FACTORIES ACT 1948

Regulations of factories because of rising number of factories

1934- factories act came up according to ILO standards but did nit suffice

Finally the 1948 act

What is factory? To answer this there are 2 test

1. What amounts to premise?

2. What amounts to manufacturing process?

Bhiwandiwala vs State of Bombay

What is factory and what constitutes premise.

Main question involved was does production of salt in open area amounts to factory.

Area was open area. Court looked into definition of factory Section 2(m)

Any premise including precincts

10 number of workers working with aid of power or 20 workers without aid of power on any day
preceding 12 months.

Manufacturing process: make new product out of raw material. Manufacturing process could be
modifying etc etc with view to sell, transport or use.

Premises need not be has concrete structure, it can be open structure as well.

Certain provisions of factories act may not be applicable to premise. And it will not make it a non factory.

Manufacturing salt in open area was not factory because making sea water to convert into salt is natural
process but a lot of labour and work was done by labours. It was considered factory and it was premise
and there was manufacturing.

Lal Mohd and ors vs Railway Construction and co.

Premises not only cover building but also local land. Railway line constructed for 54kms it cannot be
done in one day, it has to be done in phased manner. They have to get all the materials like slipper, board,
gloves, material etc to construct and it will be done in parts. Therefore, there was manufacturing activity
also going on. Though manufacturing activity was not taking place in one premise, but it was taking
place in on e premise at a time.

Delhi electric supply undertaking vs Management

Electricity lines were not considered factory

Manufacturing: Any process by which we take certain article or substance and then adapt it in such a
way to use it as new required product is manufacturing.