10/22/2020 Supreme Court Observer - The Supreme Court Struck Down Gujarat’s Notifications under the Factories Act

The
Court Struck Down Gujarat’s Notifications under the
Factories Act
(https://www.scobserver.in/the-desk) Research

Desk
By Kruthika R | Posted On 20th October 2020

In light of the COVID-19 pandemic, the State of Gujarat had relaxed compliance under the  Factories
(https://labour.gov.in/sites/default/files/TheFactoriesAct1948.pdf) Act, 1948
(https://labour.gov.in/sites/default/files/TheFactoriesAct1948.pdf)  to boost ‘industrial and commercial activities’. Among
other provisions,  factories were exempted from Sections 51, 54, 55, and 56 that regulated work hours and rest for factory
workers.

Gujarat Mazdoor Sabha, a registered trade union, and Trade Union Centre of India, a federation of registered trade unions,
moved the Supreme Court challenging the Gujarat government’s notifications under the Factories Act. One of their main
arguments was that the COVID-19 pandemic could not be used as a ground to provide relaxations under the Act. Section 5 of
the Act allows the government to provide exemptions or relaxations only in the case of a ‘public emergency’. The proviso to
Section 5 defines a public emergency as ‘a grave emergency whereby the security of India or of any part of the territory
thereof is threatened, whether by war or external aggression or internal disturbance’. The internal disturbance ground did not
cover a pandemic or lockdown; instead it should be interpreted similarly to war or external aggression. Moreover, the
petitioners contended that the economic justification used by the State was a smokescreen to make workers work
overtime and under onerous conditions. 

The State government argued that the COVID-19 pandemic was a ‘public emergency’ as it threatened the ‘social order of the
country’. It also caused ‘extreme financial exigencies’ and slowdown in economic activities that led to ‘internal disturbance in
the State’. The motivation behind the notifications was to ensure that factories continue to meet their regular production
targets – not exceptionally high ones.  

A three-judge bench of J. Chandrachud (https://www.scobserver.in/judges?id=d-y-chandrachud), J. Indu Malhotra

(https://www.scobserver.in/judges?id=justice-indu-malhotra) and J. KM Joseph (https://www.scobserver.in/judges?
id=justice-k-m-joseph) heard this case and passed its  judgment (https://scobserver-
production.s3.amazonaws.com/uploads/ckeditor/attachments/556/Gujarat_Mazdoor_Judgment.pdf) on 1 October 2020.

https://www.scobserver.in/the-desk/court-struck-down-gujarat-s-notifications-that-suspended-compliance-under-the-factories-act 1/3
10/22/2020 Supreme Court Observer - The Supreme Court Struck Down Gujarat’s Notifications under the Factories Act

                                                                                                Image for representational purposes only. Photo credit: Katrin Park / International Food Policy Research Institute / 1 June, 2016

Can a Pandemic Be Considered as a ‘Public Emergency’?

The Court noted that the power to provide exemptions under Section 5 of the Act can be exercised only if the following
conditions are met:

a) Presence of a ‘grave emergency’

b) The security of India must be threatened by this emergency

c) The cause of this threat must be either because of war, external aggression or internal disturbance. 

The Court went on to hold that the State must objectively prove that this criterion has been fulfilled, in order to invoke the
powers under Section 5. The crucial issue, in this case, was whether a pandemic or lockdowns imposed due to a pandemic
constituted a ‘public emergency’.

The Court was not convinced by the State’s arguments. It held that ‘economic slowdown created by the COVID-19 pandemic
does not qualify as an internal disturbance threatening the security of the State’. It also relied on the Report of Sarkaria
Commission on Centre-State Relations (January 1988) to unpack the meaning of ‘internal disturbance’. Though the Report’s
analysis of ‘internal disturbance’ was in the context of Articles 355 and 356, it would be insightful to use such analysis in the
present case. The Report had categorically noted that ‘mere financial exigencies of a State do not qualify as an internal
disturbance’. 
 

Constitutional Mandate to Uphold Workers’ Rights

Moving on from the specific statutory issue relating to  the Factories Act, 1948, the Court invoked constitutional principles.
First, it relied on the Directive Principles of State Policy. The Court held that the Factories Act is an ‘integral element of the
state policy which seeks to uphold’ Articles  38
(https://www.constitutionofindia.net/constitution_of_india/directive_principles_of_state_policy/articles/Article%2038) (State
to secure a social order for the promotion of the welfare of the people),  39
https://www.scobserver.in/the-desk/court-struck-down-gujarat-s-notifications-that-suspended-compliance-under-the-factories-act 2/3
10/22/2020 Supreme Court Observer - The Supreme Court Struck Down Gujarat’s Notifications under the Factories Act

(https://www.constitutionofindia.net/constitution_of_india/directive_principles_of_state_policy/articles/Article%2039) (Certain
principles of policy to be followed by the State),  42
(https://www.constitutionofindia.net/constitution_of_india/directive_principles_of_state_policy/articles/Article%2042) (Provision
for just and humane conditions of work and maternity relief) and  43
(https://www.constitutionofindia.net/constitution_of_india/directive_principles_of_state_policy/articles/Article%2043) (Living
wage, etc., for workers). The Court further held that the notifications ‘legitimize the subjection of workers to onerous working
conditions at a time when their feeble bargaining power stands whittled by the pandemic’.  Finally, relying on Article  21
(https://www.constitutionofindia.net/constitution_of_india/fundamental_rights/articles/Article%2021)  of the Constitution of
India, 1950 the Court noted that the fundamental right to life included workers’ right to humane conditions at work and an
‘equal opportunity at social and economic freedom’.

For the reasons that COVID-19 pandemic did not constitute a 'public emergency' for the purposes of the Factories Act, 1948
and that the notifications violated the workers' fundamental right to life, the Court struck them down.  

Resources
Gujarat Mazdoor Sabha v. State of Gujarat (https://scobserver-

production.s3.amazonaws.com/uploads/beyond_court_resource/document_upload/568/Gujarat_Mazdoor_Judgment.pdf)

About Us (/about-us)

Events (/events)

Contact Us (mailto:jai.brunner@clpr.org.in)

Also Visit

(http://clpr.org.in/) (http://cadindia.clpr.org.in/)

Supported By

(https://southasia.fnst.org/)

2017-20 © Center for Law and Policy Research

https://www.scobserver.in/the-desk/court-struck-down-gujarat-s-notifications-that-suspended-compliance-under-the-factories-act 3/3