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Worker: Factories Act, 1948:-2 (L) "Worker" Means A Person Employed, Directly or by or Through
Worker: Factories Act, 1948:-2 (L) "Worker" Means A Person Employed, Directly or by or Through
Stoppage of Work
Section 103
Section 2(v) “factory”2 means any premises including the precincts
thereof—
(i) whereon ten or more workers are working, or were working on
any day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on with the aid of power, or is
ordinarily so carried on, or
(ii) whereon twenty or more workers are working, or were working on
any day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on without the aid of power, or
is ordinarily so carried on,—
but does not include a mine, or a mobile unit belonging to the armed
forces of the Union, railway running shed or a hotel, restaurant or
eating place.
Explanation I.—For computing the number of workers for the
purposes of this clause all the workers in different groups and relays]
in a day shall be taken into account;
Explanation II.—For the purposes of this clause, the mere fact that an
Electronic Data Processing Unit or a Computer Unit is installed in any
premises or part thereof, shall not be construed to make it a factory if
no manufacturing process is being carried on in such premises or part
thereof;
Case Laws :-
2
2(m) “factory” means any premises including the precincts thereof-
(i) whereon ten or more workers are working, or were working on any day of the preceding twelve
months, and in any part of which a manufacturing process is being carried on with the aid of
power, or is ordinarily so carried on, or
(ii) whereon twenty or more workers are working, or were working on any day of the preceding
twelve months, and in any part of which a manufacturing process is being carried on without the
aid of power, or is ordinarily so carried on,
but does not include a mine subject to the operation of the Mines Act, 1952 (35 of 1952) or a mobile unit
belonging to the armed forces of the Union, a railway running shed or a hotel, restaurant or eating place;]
[Explanation 5[I].-For computing the number of workers for the purposes of this clause all the workers in
6[different groups and relays in a day shall be taken into account;]
[Explanation II.-For the purposes of this clause, the mere fact that an Electronic Data
Processing Unit or a Computer Unit is installed in any premises or part thereof, shall not be
construed to make it a factory if no manufacturing process is being carried on in such
premises or part thereof.];
1. Ardeshir H. Bhiwandiwala Vs. State of Bombay
It is clear that the word " premises " is a generic term meaning
open land or land with buildings or buildings alone. The
expression" premises including precincts" it has been urged, clearly
indicates that in the context of the definition of the word " factory
", premises meant only buildings as buildings alone can have
precincts and there can be no precincts of any open land. This
expression " premises including precincts" does not necessarily
mean that the premises must always have precincts. Even buildings
need not have any precincts. The word " including " is not a term
restricting the meaning of the word " premises " but is a term
which enlarges the scope of the word " premises ". We are
therefore of opinion that even this contention is not sound and does
not lead to the only conclusion that the word " premises " must be
restricted to mean buildings and be not taken to cover open land as
well.
3
2(n) “occupier” of a factory means the person who has ultimate control over the affairs of the factory,
Provided that- (i) in the case of a firm or other association of individuals, any one of the individual partners or
members thereof shall be deemed to be the occupier;
(ii) in the case of a company, any one of the directors, shall be deemed to be the occupier;
(iii) in the case of a factory owned or controlled by the Central Government, or any State Government, or any
local authority, the person or persons appointed to manage the affairs of the factory by the Central
Government, the State Government or the local authority, as the case may be, shall be deemed to be the
occupier]:
(Ultimate control over the company affairs is different from the
control over factory. Day to day control is different from the
ultimate control. Ultimate control cannot be transferred unless
the ownership itself has been transferred.)
2. Wimco Ltd. Vs. Union of India
(Person designated as occupier shall be deemed to have ultimate
control over the factory not the directors as directors may not be
involved in the affairs of factory)
3. Indian Oil Corporation Ltd. Vs. Chief Inspector of Factories
(Indian Oil shall come in the category of third proviso as it is the
corporate mask of central government)
4. ESIC Vs. G.N. Mathur
(Ultimate control means right to take policy decisions in running
the factory itself)
5. Jaipur Syntex Vs. Sate of Rajasthan
(The Manager may have immediate control of the factory but
not the ultimate control)