Law Inter Notes Compressed-201-300

THE FIRST SCHEDULE
[See section 23(4)]

PROVISIONS REGARDING MATTERS RELATING TO MUTUAL RIGHTS AND DUTIES OF PARTNERS AND
LIMITED LIABILITY PARTNERSHIP AND ITS PARTNERS APPLICABLE IN THE ABSENCE OF ANY AGREEMENT
ON SUCH MATTERS
MUTUAL RIGHTS & DUTIES

1. The mutual rights and duties of the partners and the mutual rights and duties of the limited liability
partnership and its partners shall be determined, subject to the terms of any limited liability partnership
agreement or in the absence of any such agreement on any matter, by the provisions in this Schedule.
First look at the LLP Agreement, if that is silent, come back to the First Schedule
2. All the partners of a limited liability partnership are entitled to share equally in the capital, profits
and losses of the limited liability partnership.
Equal Sharing in Capital Profits & Losses
3. The limited liability partnership shall indemnify each partner in respect of payments made and
personal liabilities incurred by him—
(a) in the ordinary and proper conduct of the business of the limited liability partnership; or
(b) in or about anything necessarily done for the preservation of the business or property of the
limited liability partnership.
LLP shall pay to Partner for payments made on behalf of LLP and for any liabilities
incurred during business.
4. Every partner shall indemnify the limited liability partnership for any loss caused to it by his fraud
in the conduct of the business of the limited liability partnership.
Partner shall compensate to LLP for any loss committed due to fraud.
5. Every partner may take part in the management of the limited liability partnership.
Every partner has management rights.
6. No partner shall be entitled to remuneration for acting in the business or management of the limited
liability partnership.
No remuneration to any partner for LLP work.
7. No person may be introduced as a partner without the consent of all the existing partners.
Admission of new partner needs 100% consent
8. Any matter or issue relating to the limited liability partnership shall be decided by a resolution
passed by a majority in number of the partners, and for this purpose, each partner shall have one vote.
However, no change may be made in the nature of business of the limited liability partnership without the
consent of all the partners.
Normal Decisions: Majority Vote
Change in Business: 100% Vote
9. Every limited liability partnership shall ensure that decisions taken by it are recorded in the minutes
within thirty days of taking such decisions and are kept and maintained at the registered office of the
Minutes to created in 30 days for all meetings and decisions and to be maintained at Registered
Office.
10. Each partner shall render true accounts and full information of all things affecting the limited
liability partnership to any partner or his legal representatives.
Each partner to account for all money in and out.
11. If a partner, without the consent of the limited liability partnership, carries on any business
of the same nature as and competing with the limited liability partnership, he must account for and pay
over to the limited liability partnership all profits made by him in that business.
Personal profits from competing business are to be handed over to LLP
12. Every partner shall account to the limited liability partnership for any benefit derived by him
without the consent of the limited liability partnership from any transaction concerning the limited
liability partnership, or from any use by him of the property, name or any business connection of the
Personal profits by using LLP name and resources are to be handed over to LLP
13.No majority of the partners can expel any partner unless a power to do so has been conferred by
express agreement between the partners.
Majority can not expel any partner without delegated power by all partners.
14.All disputes between the partners arising out of the limited liability partnership agreement which
cannot be resolved in terms of such agreement shall be referred for arbitration as per the provisions of the
Arbitration and Conciliation Act, 1996 (26 of 1996).
Disputes to be settled by Arbitration
THE SECOND SCHEDULE
(See section 55)
CONVERSION FROM FIRM INTO LIMITED LIABILITY
PARTNERSHIP
1. Interpretation.—In this Schedule, unless the context otherwise requires,—

(a) "firm" means a firm as defined in section 4 of the Indian Partnership Act, 1932 (9 of 1932);
(b) "convert", in relation to a firm converting into a limited liability partnership, means a transfer
of the property, assets, interests, rights, privileges, liabilities, obligations and the undertaking of the
firm to the limited liability partnership in accordance with this Schedule.
Conversion = Transfer of property, assets, interests, rights, privileges, liabilities, obligations
and the undertaking
2. Conversion from firm into limited liability partnership.—(1) A firm may convert into a limited
liability partnership by complying with the requirements as to the conversion set out in this Schedule.
(2) Upon such conversion, the partners of the firm shall be bound by the provisions of this Schedule
that are applicable to them.
Conversion is a voluntary activity
3. Eligibility for conversion.—A firm may apply to convert into a limited liability partnership in
accordance with this Schedule if and only if the partners of the limited liability partnership into which the
firm is to be converted, comprise, all the partners of the firm and no one else.
Consent of 100% partners needed for conversion
Partners of LLP should be from Partners of Firm Only, No new person.
4. Statements to be filed.—A firm may apply to convert into a limited liability partnership by filing
with the Registrar—
(a) a statement by all of its partners in such form and manner and accompanied by such fee as the
Central Government may prescribe, containing the following particulars, namely:—
(i) the name and registration number, if applicable, of the firm; and
(ii) the date on which the firm was registered under the Indian Partnership Act, 1932 (9 of
1932) or under any other law, if applicable, and
(b) incorporation document and statement referred to in section 11.
Required Documents:
Statement by all partners + Old Registration Certificate + Incorporation Documents
5. Registration of conversion.—On receiving the documents referred to in paragraph 4, the Registrar
shall subject to the provisions of this Act, register the documents and issue a certificate of registration in
such form as the Registrar may determine stating that the limited liability partnership is, on and from the
date specified in the certificate, registered under this Act:
Provided that the limited liability partnership shall, within fifteen days of the date of registration,
inform, the concerned Registrar of Firms with which it was registered under the provisions of the Indian
Partnership Act, 1932 (9 of 1932) about the conversion and of the particulars of the limited liability
partnership in such form and manner as the Central Government may prescribe.
Apply to RoC + RoC Approval + LLP to inform Previous registrar in 15 days from COI
6. Registrar may refuse to register.—(1) Nothing in this Schedule shall be construed as to require
the Registrar to register any limited liability partnership if he is not satisfied with the particulars or other
information furnished under the provisions of this Act:
Provided that an appeal may be made before the Tribunal in case of refusal of registration by the
Registrar.
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(2) The Registrar may, in any particular case, require the documents referred to in paragraph 4 to be
verified in such manner, as he considers fit.
RoC may refuse conversion + Appeal to NCLT possible
7. Effect of registration.—On and from the date of registration specified in the certificate of
registration issued under paragraph 5,—
(a) there shall be a limited liability partnership by the name specified in the certificate of
registration registered under this Act;
(b) all tangible (movable and immovable) property as well as intangible property vested in the
firm, all assets, interests, rights, privileges, liabilities, obligations relating to the firm and the whole of
the undertaking of the firm shall be transferred to and shall vest in the limited liability partnership
without further assurance, act or deed; and
(c) the firm shall be deemed to be dissolved and if earlier registered under the Indian Partnership
Act, 1932 (9 of 1932) removed from the records maintained under that Act.
From the date of COI, LLP becomes a body corporate, will acquire Previous Partnership
and Old firm will be deemed to be dissolved.
8. Registration in relation to property.—If any property to which sub-paragraph (b) of paragraph 7
applies is registered with any authority, the limited liability partnership shall, as soon as practicable after
the date of registration, take all necessary steps as required by the relevant authority to notify the authority
of the conversion and of the particulars of the limited liability partnership in such medium and form as the
authority may specify.
Property registration to be transferred in LLP name asap
9. Pending proceedings.—All proceedings by or against the firm which are pending in any Court or
Tribunal or before any authority on the date of registration may be continued, completed and enforced by
or against the limited liability partnership.
Pending Proceedings at any court, tribunal, authority shall continue.
10. Continuance of conviction, ruling, order or judgment.—Any conviction, ruling, order or
judgment of any Court, Tribunal or other authority in favour of or against the firm may be enforced by or
against the limited liability partnership.
Any order for or against old firm will continue with LLP
11. Existing agreements.—Every agreement to which the firm was a party immediately before the
date of registration, whether or not of such nature that the rights and liabilities thereunder could be
assigned, shall have effect as from that date as if—
(a) the limited liability partnership were a party to such an agreement instead of the firm; and
(b) for any reference to the firm, there were substituted in respect of anything to be done on or
after the date of registration a reference to the limited liability partnership.
All existing agreements in the name of old firm will continue in the name of LLP
12. Existing contracts, etc.—All deeds, contracts, schemes, bonds, agreements, applications,
instruments and arrangements subsisting immediately before the date of registration relating to the firm or
to which the firm is a party, shall continue in force on and after that date as if they relate to the limited
liability partnership and shall be enforceable by or against the limited liability partnership as if the limited
liability partnership were named therein or were a party thereto instead of the firm.
All existing contracts in the name of old firm will continue in the name of LLP
13. Continuance of employment.—Every contract of employment to which paragraph 11 or
paragraph 12 applies shall continue to be in force on or after the date of registration as if the limited
liability partnership were the employer thereunder instead of the firm.
All existing EMPLOYMENT contracts in the name of old firm will continue in the name of LLP
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14. Existing appointment, authority or power.—(1) Every appointment of the firm in any role or
capacity which is in force immediately before the date of registration shall take effect and operate from
that date as if the limited liability partnership were appointed.
(2) Any authority or power conferred on the firm which is in force immediately before the date of
registration shall take effect and operate from that date as if it were conferred on the limited liability
partnership.
All existing appointment, authority and powers will continue in the name of LLP
15. Application of paragraphs 7 to 14.—The provisions of paragraphs 7 to 14 (both inclusive) shall
apply to any approval, permit or licence issued to the firm under any other Act which is in force
immediately before the date of registration of the limited liability partnership, subject to the provisions of
such other Act under which such approval, permit or licence has been issued.
Approval, Permit or Licence granted to Old firm shall continue in the name of LLP
16. Partner liable for liabilities and obligations of firm before conversion.—(1) Notwithstanding
anything in paragraphs 7 to 14 (both inclusive), every partner of a firm that has converted into a limited
liability partnership shall continue to be personally liable (jointly and severally with the limited liability
partnership) for the liabilities and obligations of the firm which were incurred prior to the conversion or
which arose from any contract entered into prior to the conversion.
(2) If any such partner discharges any liability or obligation referred to in sub-paragraph (1), he shall
be entitled (subject to any agreement with the limited liability partnership to the contrary) to be fully
indemnified by the limited liability partnership in respect of such liability or obligation.
Personal and mutual liability for everything done before conversion will continue.
17. Notice of conversion in correspondence.— (1) The limited liability partnership shall ensure that
for a period of twelve months commencing not later than fourteen days after the date of registration, every
official correspondence of the limited liability partnership bears the following:
(a) a statement that it was, as from the date of registration, converted from a firm into a limited
liability partnership; and
(b) the name and registration number, if applicable, of the firm from which it was converted.
(2) Any limited liability partnership which contravenes the provisions of sub-paragraph (1) shall be
punishable with fine which shall not be less than ten thousand rupees but which may extend to one lakh
rupees and with a further fine which shall not be less than fifty rupees but which may extend to five
hundred rupees for every day after the first day after which the default continues.
Within 14 days from conversion, LLP shall display the facts of conversion in all documents,
communication, display for next 12 months.
Else, Penalty is as follows:
Minimum Fine: Rs. 10,000 Maximum Fine: Rs. 1,00,000
Further Fine if the original fine remains unpaid:
Minimum Fine: Rs. 50 per day Maximum Fine: Rs. 500 per day.
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THE THIRD
SCHEDULE
(See section 56)
CONVERSION FROM PRIVATE COMPANY INTO LIMITED LIABILITY
PARTNERSHIP
1. Interpretation.—In this Schedule, unless the context otherwise requires,—

(a) "company" means a private company as defined in clause (iii) of sub-section (1) of
section 3of the Companies Act, 1956 (1 of 1956);
(b) "convert", in relation to a private company converting into a limited liability partnership,
means a transfer of the property, assets, interests, rights, privileges, liabilities, obligations and the
undertaking of the private company to the limited liability partnership in accordance with this
Schedule.
and the undertaking
2. Eligibility for conversion of private companies into limited liability partnership.—(1) A
company may convert into a limited liability partnership by complying with the requirements as to the
conversion set out in this Schedule.
(2) A company may apply to convert into a limited liability partnership in accordance with this
Schedule if and only if—
(a) there is no security interest in its assets subsisting or in force at the time of application; and
(b) the partners of the limited liability partnership to which it converts comprise all the
shareholders of the company and no one else.
(3) Upon such conversion, the company, its shareholders, the limited liability partnership into which
the company has converted and the partners of that limited liability partnership shall be bound by the
provisions of this Schedule that are applicable to them.
Consent of 100% shareholders needed for conversion
Partners of LLP should be from Shareholders of Company Only, No new person.
No security interest should be there.
3. Statements to be filed.—A company may apply to convert into a limited liability partnership by
filing with the Registrar—
(a) a statement by all its shareholders in such form and manner to be accompanied by such fees as
the Central Government may prescribe, containing the following particulars, namely:—
(i) the name and registration number of the company;
(ii) the date on which the company was incorporated; and
Required Documents:
Statement by all shareholders + Old Registration Certificate + Incorporation Document
shall, subject to the provisions of this Act and the rules made thereunder, register the documents and issue
a certificate of registration in such form as the Registrar may determine stating that the limited liability
partnership is, on and from the date specified in the certificate, registered under this Act:
inform the concerned Registrar of Companies with which it was registered under the provisions of the
Companies Act, 1956 (1 of 1956) about the conversion and of the particulars of the limited liability
1
Registrar.
registration issued under paragraph 4—
(b) all tangible (movable or immovable) and intangible property vested in the company, all assets,
interests, rights, privileges, liabilities, obligations relating to the company and the whole of the
undertaking of the company shall be transferred to and shall vest in the limited liability partnership
(c) the company shall be deemed to be dissolved and removed from the records of the Registrar
of Companies.
From the date of COI, LLP becomes a body corporate, will acquire Previous Company and
Company will be deemed to be dissolved.
7. Registration in relation to property.—If any property to which clause (b) of paragraph 6 applies
is registered with any authority, the limited liability partnership shall, as soon as practicable, after the date
of registration, take all necessary steps as required by the relevant authority to notify the authority of the
conversion and of the particulars of the limited liability partnership in such form and manner as the
authority may determine.
8. Pending proceedings.—All proceedings by or against the company which are pending before any
Court, Tribunal or other authority on the date of registration may be continued, completed and enforced
by or against the limited liability partnership.
judgment of any Court, Tribunal or other authority in favour of or against the company may be enforced
Any order for or against old company will continue with LLP
10.Existing agreements. —Every agreement to which the company was a party immediately before
the date of registration, whether or not of such nature that the rights and liabilities thereunder could be
(a) the limited liability partnership were a party to such an agreement instead of the company; and
(b) for any reference to the company, there were substituted in respect of anything to be done on
or after the date of registration a reference to the limited liability partnership.
All existing agreements in the name of old company will continue in the name of LLP
instruments and arrangements subsisting immediately before the date of registration relating to the
company or to which the company is a party shall continue in force on and after that date as if they relate
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to the limited liability partnership and shall be enforceable by or against the limited liability partnership as
if the limited liability partnership were named therein or were a party thereto instead of the company.
All existing contracts in the name of old company will continue in the name of LLP
paragraph 11 applies shall continue in force on or after the date of registration as if the limited liability
partnership were the employer thereunder instead of the company.
All existing EMPLOYMENT contracts in the name of old company will continue in the name of LLP
13. Existing appointment, authority or power.—(1) Every appointment of the company in any role
or capacity which is in force immediately before the date of registration shall take effect and operate from
(2) Any authority or power conferred on the company which is in force immediately before the date
of registration shall take effect and operate from that date as if it were conferred on the limited liability
partnership.
apply to any approval, permit or licence issued to the company under any other Act which is in force
Approval, Permit or Licence granted to Old company shall continue in the name of LLP
15. Notice of conversion in correspondence.—(1) The limited liability partnership shall ensure that
official correspondence of the limited liability partnership bears the following, namely:—
(a) a statement that it was, as from the date of registration, converted from a company into a
limited liability partnership; and
(b) the name and registration number of the company from which it was converted.
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THE FOURTH SCHEDULE
(See section 57)
CONVERSION FROM UNLISTED PUBLIC COMPANY INTO LIMITED LIABILITY
PARTNERSHIP
1. Interpretation.— (1) In this Schedule, unless the context otherwise requires,—

(a) "company" means an unlisted public company;
(b) "convert", in relation to a company converting into a limited liability partnership, means a
transfer of the property, assets, interests, rights, privileges, liabilities, obligations and the undertaking
of the company to the limited liability partnership in accordance with the provisions of this Schedule;
and the undertaking
2. Conversion of company into a limited liability partnership.—(1) A company may convert into a
limited liability partnership by complying with the requirements as to the conversion set out in this
Schedule.
(2) Upon such conversion, the company, its shareholders, the limited liability partnership into which
the company has converted and the partners of that limited liability partnership shall be bound by the
provisions of this Schedule that are applicable to them.
3. Eligibility for conversion.—A company may apply to convert into a limited liability partnership
in accordance with the provisions of this Schedule if and only if—
(a) there is no security interest in its assets subsisting or in force at the time of application; and
(b) the partners of the limited liability partnership to which it converts comprise all the
shareholders of the company and no one else.
Consent of 100% shareholders needed for conversion
Partners of LLP should be from Shareholders of Company Only, No new person.
No security interest should be there.
4. Statements to be filed.—A company may apply to convert into a limited liability partnership by
filing with the Registrar—
(a) a statement by all its shareholders in such form and manner to be accompanied by such fee as the
Central Government may prescribe containing the following particulars, namely:—
(i) the name and registration number of the company;
(ii) the date on which the company was incorporated; and
Required Documents:
Statement by all shareholders + Old Registration Certificate + Incorporation Document
shall, subject to the provisions of this Act, and the rules made thereunder, register the documents and
issue a certificate of registration in such form as the Registrar may determine stating that the limited
liability partnership is, on and from the date specified in the certificate, registered under this Act:
inform the concerned Registrar of Companies with which it was registered under the provisions of the
Companies Act, 1956 (1 of 1956) about the conversion and of the particulars of the limited liability
1
Registrar.
registration issued under paragraph 5—
(b) all tangible (movable or immovable) and intangible property vested in the company, all assets,
interests, rights, privileges, liabilities, obligations relating to the company and the whole of the
undertaking of the company shall be transferred to and shall vest in the limited liability partnership
(c) the company shall be deemed to be dissolved and removed from the records of the Registrar
of Companies.
From the date of COI, LLP becomes a body corporate, will acquire Previous Company and
Company will be deemed to be dissolved.
8. Registration in relation to property.—If any property to which clause (b) of paragraph 7 applies
is registered with any authority, the limited liability partnership shall, as soon as practicable, after the date
of registration, take all necessary steps as required by the relevant authority to notify the authority of the
conversion and of the particulars of the limited liability partnership in such form and manner as the
authority may determine.
9. Pending proceedings.—All proceedings by or against the company which are pending in any
Court or Tribunal or before an authority on the date of registration may be continued, completed and
enforced by or against the limited liability partnership.
judgment of any Court, Tribunal or other authority in favour of or against the company may be enforced
Any order for or against old company will continue with LLP
11. Existing agreements.—Every agreement to which the company was a party immediately before
the date of registration, whether or not of such nature that the rights and liabilities thereunder could be
(a) the limited liability partnership were a party to such an agreement instead of the company; and
(b) for any reference to the company, there were substituted in respect of anything to be done on
or after the date of registration a reference to the limited liability partnership.
All existing agreements in the name of old company will continue in the name of LLP
instruments and arrangements subsisting immediately before the date of registration relating to the
company or to which the company is a party shall continue in force on and after that date as if they relate
to the limited liability partnership and shall be enforceable by or against the limited liability partnership as
if the limited liability partnership were named therein or were a party thereto instead of the company.
All existing contracts in the name of old company will continue in the name of LLP
2
paragraph 12 applies shall continue in force on or after the date of registration as if the limited liability
partnership were the employer thereunder instead of the company.
All existing EMPLOYMENT contracts in the name of old company will continue in the name
of LLP
14. Existing appointment, authority or power.—(1) Every appointment of the company in any role
or capacity which is in force immediately before the date of registration shall take effect and operate from
(2) Any authority or power conferred on the company which is in force immediately before the date
of registration shall take effect and operate from that date as if it were conferred on the limited liability
partnership.
apply to any approval, permit or licence issued to the company under any other Act which is in force
Approval, Permit or Licence granted to Old company shall continue in the name of LLP
16. Notice of conversion in correspondence.—(1) The limited liability partnership shall ensure that
official correspondence of the limited liability partnership bears the following, namely:—
(a) a statement that it was, as from the date of registration, converted from a company into a
limited liability partnership; and
(b) the name and registration number of the company from which it was converted.
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FACTORIES ACT, 1948 for CMA INTER LAW | CA Raghav Goel
FACTORIES ACT, 1948 w.e.f. 1.4.1949
CONCEPT 1. MEANING OF FACTORY Section 2(m)
“Factory” means any premises including the precincts thereof—
(i) whereon 10 or more workers are (ii) whereon 20 or more workers are
working, or were working on any day of the working, or were working on any day of the
preceding 12 months, and in any part of preceding 12 months, and in any part of
which a manufacturing process is being which a manufacturing process is being
carried on with the aid of power, or is carried on without the aid of power, or is
ordinarily so carried on, or ordinarily so carried on, —
but does not include
A mine A mobile unit Railway A hotel A restaurant Eating place.

belonging to running shed
the armed
forces of the
Union
Counting Rule:
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.
Electronic Data Processing or Computer unit not a Factory
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.
State Amendments: Certain State Governments have increased limit of 10 workers to 20

workers and limit of 20 workers to 40 workers.
CONCEPT 2. MEANING OF MANUFACTURING PROCESS Section 2(k)
“Manufacturing process” means any process for—
(i) making altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning,
breaking up, demolishing, or otherwise treating or adapting any article or substance with a
view to its use, sale, transport, delivery, or disposal, or
(ii) pumping oil, water, sewage or any other (iii) generating, transforming, or
substance; or transmitting power; or
Page 1 of 23
(iv) composing types for printing, printing by (v) constructing, reconstructing, repairing,
letter press, lithography, photogravure or refitting, finishing or breaking up ships or
other similar process or book binding; 3 or vessels; or
(vi) preserving or storing any article in cold storage;
CONCEPT 3. MEANING OF OCCUPIER Section 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 (ii) in the case of a company, (iii) in the case of a factory
other association of owned or controlled by the
individuals, any one of the directors Government,
Any one of the individual the person or persons

partners or members appointed to manage the
affairs
Provided further that in the case of a ship which is being repaired, or on which maintenance
work is being carried out, in a dry dock which is available for hire,—
(1) the owner of the dock shall be deemed (2) the owner of the ship or his agent or
to be the occupier master or other officer-in-charge of the ship
CONCEPT 4. MEANING OF WORKER Section 2(l = el)
✓ “Worker” means a person employed,

✓ directly or by or through any agency (including a contractor)
✓ with or without the knowledge of the principal employer,
✓ whether for remuneration or not,
✓ in any manufacturing process, or
✓ in cleaning any part of the machinery or premises used for a manufacturing process,
or
✓ in any other kind of work incidental to, or connected with, the manufacturing process,
✓ but does not include any member of the armed forces of the Union
CONCEPT 5. MULTIPLE UNITS AND MULTIPLE FACTORIES
✓ The State Government may,

✓ After giving an opportunity of being heard,
✓ on its own or on an application made in this behalf by an occupier,
✓ direct that different departments or branches of a factory
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✓ shall be treated as separate factories or

✓ that two or more factories of the occupier shall be treated as a single factory
CONCEPT 6. APPROVAL LICENSING AND REGISTRATION OF FACTORIES
The State Government may make rules for the following purposes:
The submission of The permission in The submission of The registration and

plans of factories to writing of the State plans and licensing of factories
the Chief Inspector Government or the specifications
or the State Chief Inspector to be
Government obtained for the site
on which the factory
is to be situated and
for the construction
or extension of any
factory;
If on an application for permission no order is communicated within 3 months from the date
on which it is so sent, the permission applied for in the said application shall be deemed to
have been granted.
Appeal against refusal can be filed in 30 days to Central Government against State
Government and to State Government in any other case.
CONCEPT 7. NOTICE BY OCCUPIER
15 Days Advance Notice at the time of start containing following particulars:
1. The occupier shall, at least 15 days before he begins to occupy or use any premises as
a factory, send to the Chief Inspector a written notice containing—
2. the name and situation of the factory;
3. the name and address of the occupier;
4. the name and address of the owner of the premises or building including the precincts
5. the address to which communications relating to the factory may be sent;
6. the nature of the manufacturing process to be carried on during the next 12 months
7. the total rated horse power installed or to be installed in the factory,
8. the name of the manager of the factory
9. the number of workers likely to be employed in the factory;
10. such other particulars as may be prescribed.
30 Days advance Notice in case of Non working factory becomes working
A factory engaged in a manufacturing process which is ordinarily carried on for less than
180working days in the year resumes working, the occupier shall send a written notice to the
Chief Inspector at least 30 days before the date of the commencement of work.
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7 days’ notice in case of New Manager

Whenever a new manager is appointed, the occupier shall send to the Inspector notice and
to the Chief Inspector a copy thereof within 7 days from the date on which such person takes
over charge.
CONCEPT 8. GENERAL DUTIES OF OCCUPIER
(1) Every occupier shall ensure, the health, safety and welfare of all workers while they are
at work in the factory
(2) the matters to which such duty extends, shall include—
(a) the provision (b) the (c) the (d) the (e) the
and arrangements provisions of maintenance of provision,
maintenance of in the factory such all places of maintenance or
plant and for ensuring information, work in the monitoring of
systems of work safety and instruction, factory in a such working
in the factory absence of risks training and condition that is environment in
that are safe to health in supervision as safe and the factory for
and without connection with are necessary to without risks to the workers
risks to health: the use, ensure the health that is safe,
handling, health and without risks to
storage and safety of all health and
transport of workers at adequate as
articles and work: regards
substances; facilities and
arrangements
for their
welfare at
work.
(3) Every occupier shall prepare, and revise, a written statement of his general policy with
respect to the health and safety of the workers at work and to bring it to the notice of all the
workers.
CONCEPT 9. INSPECTORS
1. The State Government may appoint Inspectors and may assign to them such local limits
as it may think fit.
2. The State Government may appoint Chief Inspector who shall, in addition to the powers
conferred on a Chief Inspector under this Act, exercise the powers of an Inspector
throughout the State.
3. The State Government may, appoint as many Additional Chief Inspectors, Joint Chief
Inspectors and Deputy Chief Inspectors and as many other officers as it thinks fit.
4. No person shall be appointed who is or becomes directly or indirectly interested in a
factory or in any process or business carried on therein.
5. Every District Magistrate shall be an Inspector for his district.
Page 4 of 23
6. Every Chief Inspector, Additional Chief Inspector, Joint Chief Inspector, Deputy Chief
Inspector and every other officer appointed under this section shall be public servant.
CONCEPT 10. POWERS OF INSPECTORS
1. Enter, any place which is used, or which he has reason to believe is used, as a factory.
2. Make examination of the premises, plant, machinery, article, or substance.
3. Inquire into any accident or dangerous occurrence, whether resulting in bodily injury,
disability or not, and take on the spot or otherwise statements of any person which he
may consider necessary for such inquiry.
4. Require the production of any prescribed register or any other document.
5. Seize, or take copies of, any register, record or other document or any portion thereof as
he may consider necessary in respect of any offence.
6. Direct the occupier that any premises or any part thereof, or anything lying therein, shall
be left undisturbed for so long as is necessary.
7. Take measurements and photographs and make such recordings as he considers
necessary.
8. Taking with him any necessary instrument or equipment.
9. In case of any dangerous article or substance found in any premises, direct it to be
dismantled or test it or detain it for so long as is necessary.
10. Exercise such other powers as may be prescribed.
CONCEPT 11. CERTIFYING SURGEONS
1. The State Government may appoint qualified medical practitioners to be certifying

surgeons.
2. A certifying surgeon may, with the approval of the State Government, authorise any
qualified medical practitioner to exercise any of his powers under this Act.
3. No person shall be appointed or continue to exercise such powers, who is or becomes the
occupier of a factory or is or becomes directly or indirectly interested therein.
4. The certifying surgeon shall carry out such duties as may be prescribed in connection
with—
(a) the examination and certification of young persons.
(b) the examination of person engaged in factories in such dangerous occupations.
(c) the exercising of such medical supervision as may be prescribed for any factory or class or
description of factories where—
(i) cases of illness have (ii) there is a likelihood of (iii) young persons are, or
occurred. injury to the health of are about to be, employed in
workers employed in that any work which is likely to
manufacturing process; cause injury to their health.
Certificates of (1) It shall be issued by Certifying surgeon.

fitness (2) It shall be valid for 12 months.
(3) Fee payable for certificate shall be paid by Occupier.
Page 5 of 23
CONCEPT 12. HEALTH RELATED MEASURES
Cleanliness (a) accumulation of dirt and refuse shall be removed daily from the floors
and benches of workrooms and from staircases and passages
(b) the floor of every workroom shall be cleaned at least once in every
week
(c) effective means of drainage shall be provided and maintained;
(d) all inside walls and partitions, all ceilings or tops of rooms and all walls,
sides and tops of passages and staircases shall—
• where they are painted with non washable water-paint or
varnished, be repainted or re-varnished at least once in every
period of 5 years
• where they are painted with washable water-paint, be re-painted
with at least one coat of such paint at least once in every period of
3 years and washed at least once in every period of 6months;
• where they are painted or varnished or where they have smooth
impervious surfaces be cleaned at least once in every period of
fourteen months by such method as may be prescribed;
• in any other case, be kept white washed or colour washed, and the
whitewashing or colour washing shall be carried out at least once
in every period of fourteen months;
(e) all doors and window frames and other wooden or metallic framework
and shutters shall be kept painted or varnished at least once in every
period of 5 years;
Disposal of Effective arrangements for the treatment of wastes and effluents must be
wastes and in place.
effluents
Ventilation (a) Adequate ventilation by the circulation of fresh air.
and (b) Temperature to have reasonable conditions of comfort and prevent
temperature injury to health
Dust and (1) Effective measures shall be taken to prevent inhalation and
fume accumulation of dust and fume.
(2) Any exhaust appliance shall be applied as near as possible to the point
of origin of the dust, fume or other impurity.
(3) No stationary internal combustion engine shall be operated unless the
exhaust is conducted into the open air.
Artificial (1) Humidity to be maintained, if needed, it shall be artificially increased.
humidi- (2) Water used for the purpose shall be taken from a public supply, should
-fication be purified, if not already purified.
Overcrowding (1) No room in any factory shall be overcrowded.

(2) At least 14.2 cubic meters of space for every worker should be given.
(3) A notice specifying the maximum number of workers must be
displayed.
Page 6 of 23
Lighting (1) There shall be provided and maintained sufficient and suitable lighting,
natural or artificial, or both.
(2) All glazed windows and skylights shall be kept clean on both the inner
and outer surfaces.
(3) Effective provision shall be made for the prevention of glare, reflection,
Shadows.
Drinking (1) Effective arrangements shall be made to provide and maintain at
water suitable points conveniently situated for all workers, a sufficient supply
of wholesome drinking water.
(2) All such points shall be legibly marked “drinking water” in a language
understood by a majority of the workers.
(3) No such point shall be situated within 6 meters of any washing place,
urinal, latrine, spittoon, open drain.
(4) If more than 250 workers are ordinarily employed, cool drinking water
during hot weather shall be provided.
Latrines and (1) Sufficient latrine and urinal shall be provided, conveniently situated
urinals and accessible to workers at all times while they are at factory.
(2) Separate enclosed latrines and urinals shall be provided for male and
female workers;
(3) They shall be adequately lighted and ventilated.
(4) They shall be maintained in a clean and sanitary condition;
(5) Sweepers shall be employed.
(6) If more than 250 workers are ordinarily employed—
a. all latrine and urinal accommodation shall be of prescribed
sanitary types;
b. the floors and internal walls, up to a height of 90 centimeters, of
and the sanitary blocks shall be laid in glazed tiles to provide a
smooth polished surface;
c. they shall be thoroughly washed and cleaned at least once in
every 7 days with suitable detergents or disinfectants or with
both.
Spittoons (1) There shall be provided a sufficient number of spittoons in convenient
places and they shall be maintained in a clean and hygienic condition.
(2) No person shall spit within the premises of a factory except in the
spittoons
(3) Whoever spits elsewhere shall be punishable with fine not exceeding
5 rupees.
CONCEPT 13. WELFARE RELATED MEASURES
Washing (1) Adequate and suitable facilities for washing shall be provided.
facilities (2) Separate and adequately facilities shall be provided male and female.
(3) Such facilities shall be conveniently accessible and shall be kept clean.
Facilities for There must be suitable places for keeping clothing not worn during
storing and working hours and for the drying of wet clothing.
Page 7 of 23
drying
clothing
Facilities for Suitable arrangements for sitting shall be provided and maintained for all
sitting standing workers so that they may take rest whenever possible.
First-aid (1) There shall be provided and maintained to be readily accessible during
appliances all working hours first-aid boxes or cupboards equipped with the
prescribed contents,
(2) The number of such boxes or cupboards to be provided and
maintained shall not be less than 1 for every 150 workers
(3) Each first-aid box or cupboard shall be kept in the charge of a separate
responsible and qualified person and who shall always be readily
available.
(4) In every factory wherein more than 500 workers are ordinarily
employed there shall be provided and maintained an ambulance room.
Canteens Where more than 250 workers are ordinarily employed, a canteen shall be
provided.
Shelters, rest (1) Where more than 150 workers are ordinarily employed, adequate and
rooms and suitable shelters or rest rooms and a suitable lunch room, with
lunch rooms provision for drinking water, where workers can eat meals brought by
them, shall be provided.
(2) The shelters or rest rooms or lunch rooms shall be sufficiently lighted
aid ventilated and shall be maintained in a cool and clean condition.
Creches. every factory wherein more than 30 women workers are ordinarily employed
ere shall be provided and maintained a suitable room or rooms for the use of
dren under the age of 6 years of such women.
h rooms shall provide adequate accommodation, shall be adequately lighted
ventilated, shall be maintained in a clean and sanitary condition and shall be
er the charge of women trained in the care of children and infants.
Welfare Where 500 or more workers are ordinarily employed the occupier shall
officers employ welfare officers.
CONCEPT 14. SAFETY RELATED MEASURES
Major (1) Fencing of machinery;

categories of (2) Work on or near machinery in motion;
safety (3) Employment of young persons on dangerous machines;
measurers (4) Striking gear and devices for cutting off power;
(5) Self acting machines;
(6) Casing of a new machinery;
(7) Prohibition of employment of women and children near cotton
openers;
(8) Lifting machines, chains, ropes and lifting tackles;
(9) Revolving machinery;
(10) Floors, stairs and means of access;
(11) Pits, sumps openings in floors etc.,;
Page 8 of 23
(12) Excessive weights;

(13) Protection of eyes;
(14) Precaution against dangerous fumes, gases, etc.,
(15) Precautions regarding the use of portable electric light;
(16) Explosive or inflammable dust, gas etc.,
(17) Precaution in case of fire;
(18) Safety on buildings and machinery;
(19) Maintenance of buildings;
(20) Appointment of safety officers.
Hazardous (1) State Government shall appoint a Site Appraisal Committee.

Processes
(2) Site Appraisal Committee shall examine an application for the
establishment of a factory involving hazardous process
(3) It will make its recommendation to the State Government within 90

days.
(4) The Committee has the power to call for any information from the
person making an application.
(5) When the application is got approved by the State Government, it shall
not be necessary to obtain a further approval from the Central Board
of the State Board of pollution authorities.
Responsibility (1) To lay down a detailed policy with respect to the health and safety of
of the the workers
occupier (2) To disclose all the information regarding dangers
(3) To draw up an onsite emergency plan and detailed disaster control
measures
(4) To lay down measures for the handling usage, transportation and
storage and disposal of hazardous substances
Powers of the Power to inquire to the standards of health and safety observed in a
Central factory.
Government Power to provide emergency standards in respect of a factory.
Power of fixing the maximum permissible threshold limits of exposure of
chemical and toxic substances
Safety ✓ Occupier shall set up a Safety Committee

Committee ✓ consisting of equal number of representations of workers and
management
✓ to promote co-operation between the workers and the management
✓ in maintaining proper safety and health at work
CONCEPT 15. WORKING HOURS OF ADULTS
Weekly hours Maximum 48 Hours per week.
Page 9 of 23
Weekly 1. First fay of the week shall be holiday.

holidays 2. If he works on such day, 1 complimentary off will be given in the same
month or next 2 months.
3. Maximum 10 days working allowed without holiday.
Daily working 9 hours with 1 hour break.

hours
Intervals for 1. Working stretch without break cannot exceed 5 hours.
rest 2. Half an hour break compulsory after 5 hours continuous working.
Spread over Maximum spread over including work, over time, break shall not exceed
10.5 hours a day.
Night Shift Allowed subject to same duration of working hours.
Overlapping Not allowed.
shift
Extra wages Double rate of wages shall apply.
for overtime
Restriction on One worker, two jobs at the same time prohibited.
double
employment
Notice of (1) Period of work must be displayed in Factory.
periods of (2) Copy of displayed notice shall be sent to Inspector.
work for
adults
Register of Contents:
adult workers
(a) Name of each adult worker in the factory;
(b) Nature of his work;
(c) Group, if any, in which he is included;
(d) Relay to which he is allotted;
(e) such other particulars as may be prescribed
CONCEPT 16. EMPLOYMENT OF WOMEN
Working Shall be same as male.

Hours
Prohibited 7 PM to 6 AM
working
hours 7 pm can be extended by State Government to 10 pm.
6 am can be extended back by State Government to 5 am.
CONCEPT 17. EMPLOYMENT OF YOUNG PERSONS
Prohibition of If age is less than 14 years, no work allowed.

employment
Page 10 of 23
of young
children
Non-adult Formalities needed for non-adult worker:
workers to (1) A certificate of fitness
carry tokens (2) Such worker must carry a token
Certificates of (4) It shall be issued by Certifying surgeon.

fitness (5) It shall be valid for 12 months.
(6) Fee payable for certificate shall be paid by Occupier.
Prohibited 7 pm to 6 am.
timings for
female
adolescent or
a male
adolescent
Working Maximum working hours 4.5 per day.
hours for
children Prohibited hours for male child
10 pm to 6 am.
Prohibited hours for female child

7 pm to 8 am.
Register of Contents:
child workers
(a) The name of each child worker in the factory,
(b) The nature of his work,
(c) The group, if any, in which he is included,
(d) Where his group works on shifts, the relay to which he is allotted, and
(e) The number of his certificate of fitness
CONCEPT 18. ANNUAL LEAVE WITH WAGES
Minimum 240 days per year

working
needed
Leave credit Adult:
rule 1 leave for 20 days worked
Child:
1 leave for 15 days worked
Leave carry Maximum 30 for adult, 40 for child.

forward
Page 11 of 23
However, if leave applied but not approved shall stand carried forward
without limit.
Frequency of Maximum 3 times in 1 year.
leave
Leave 15 days in advance.
application
However, 30 days in advance in case of public utility service.
Wages during Shall be paid.
leave period
Payment in Worker may apply for advance when he goes for leave for min 4 days in
advance case of adult and 5 days in case of child.
CONCEPT 19. Obligations and Rights of workers
Obligations (1) No willfully interfere with or misuse any appliance, convenience or

other thing
(2) No willfully and without reasonable cause any action which is likely to
endanger himself or others;
(3) No willfully neglect to make use of any appliance or other thing
Rights (1) To obtain from the occupier, information relating to workers’ health
and safety at work.
(2) To get trained within the factory wherever possible
(3) To represent to the Inspector for inadequate provision for protection
of his health or safety in the factory.
CONCEPT 20. Major terms
Adult Completed 18 years of age.

Adolescent Completed 15 but not 18.
Child Not completed 15.
Young Child and adolescent.
Week 7 days starting from Saturday midnight.
Competent ✓ A person or an institution
Person ✓ recognized by the Chief Inspector
✓ for the purposes of carrying out tests, examinations and inspections.
Hazardous ✓ Any process or activity
Process ✓ in relation to an industry
✓ specified in the First Schedule where,
✓ unless special care is taken,
✓ raw materials used therein or
✓ the intermediate or finished products, bye-products, wastes, or
effluents thereof would-
(1) cause material impairment to the health of the persons engaged in
or connected therewith, or
(2) result in the pollution of the general environment.
Page 12 of 23
QUESTIONS ANSWERS
Question 1.
Write short note on “Working hours for children” (4 marks; 2010 -
June)
Answer: 1
Working Hours for Children: No child shall be employed or permitted:
(i) to work in any factory for more than four and half hours in any day;
(ii) during the night;
(iii) not more than two shifts and shifts should be 5 hours apart;
(iv) no child shall be allowed to work in any factory on any day on which he has already
been working in any other factory;
(v) No female child shall be allowed to work in any factory except between 8 am to 7
pm.
Question 2.
Write short note on 'Overcrowding' (Factories Act). (4 marks; 2010
- Dec)
Answer: 2
Overcrowding as per Factories Act:
(i) No room in any factory shall be overcrowded to become injurious to health.
(ii) Space for worker:
• 9.9 cubic meter for every worker for factories existing before application of
Act and
• 14.2 Cubic meter for every worker for factories built after the
commencement of the Factories Act.
(iii) If the chief inspector requires, a notice specifying the maximum number of workers
who may be employed in the room shall be posted in each workroom.
(iv) The Chief inspector may grant exemptions to above conditions if he is satisfied that
such conditions are unnecessary.
Question 3.
Write short note on ‘Duties of occupier’ (4 marks; 2011 -
June)
Answer: 3
Duties of Occupier:
(i) He should ensure safety, health and welfare of all workers who are working in his
factory.
(ii) He should maintain plant and machinery of the factory so that they are safe and
without risk.
(iii) Handling, storage, transport of all materials should be safe and without risk.
(iv) He should provide, maintain and monitor the working environment in the factory
without risk and hazard to workers and adequate in facilities.
(v) The occupier should prepare, revise appropriately and display his general policy
regarding the safety, security and health of the workers working in his factory.
Question 4.
Write short note on ‘Safety Officers’ (Factories Act); (4 marks; 2011
- Dec)
Answer: 4
Page 13 of 23
If State Govt. requires every factory will have a safety officer if it has one thousand or more
workers ordinarily. The duties, qualifications and conditions of appointment and service will
be decided by the State Govt. The occupier is required to appoint the specified number of safety
officers (as given-the order of State Govt.) if (i) one thousand or more workers are ordinarily
employed; Or (ii) State Govt. is of the opinion that the manufacturing process in the factory
may cause risk of body injury, poisoning, disease, or any hazard to health.
Question 5.
Write short note on ‘Cleanliness of factory’ (5 marks; 2017
– Dec)
Answer: 5
Section 11 of the Act provides every factory shall be kept clean and free from effluvia arising
from any drain, privy or other nuisance, and in particular-
• removal of accumulated dirt and refuse on floors, benches of workroom, stair cases and
passages and effective disposal of the same;
• cleaning of the floor of every workroom - once in every week by washing with
disinfectant or by some other effective method;
• providing effective drainage for removing water to the extent possible;
• to ensure that interior walls and roofs etc., are kept clean the following is to be complied
with-
• white wash or colour wash should be carried out at least once in every period of 14
months;
• where surface has been painted or varnished, repair or re-varnish should be carried out
once in every five years, if washable then once in every period of six months;
• where they are painted or varnished or where they have smooth impervious surface, it
should be cleaned once in every period of 14 months by such method as may be
prescribed.
• all doors, windows and other framework which are of wooden or metallic shall be kept
painted or varnished at least once in every period of five years;
The dates on which such processes are carried out shall be entered in the described register.
Question 6.
Write short note on ‘Manufacturing process under the Factories Act, 1948’. (5 marks; 2018
- June)
Answer:
Manufacturing process under the Factories Act, 1948.
Manufacturing Process" means Process for:
(i) Making, altering, repairing, oiling, washing, cleaning, ornamenting, finishing,
packing, breaking up, or otherwise treating or adapting any article or substance with
a view to its use, sale transport, delivery or disposal, or
(ii) Pumping oil, water, sewage or any other substance or,
(iii) Generating, transforming or transmitting, power, or
(iv) Composing types for printing the letter press, lithography, photographing, or other
similar process or book binding, or
(v) Constructing, re-constructing, repairing, refitting, or breaking up of ships or vessels
; or
(vi) Preserving or Storing any articles in cold storage;
In this regard it becomes necessary to discuss some special circumstances that came up
in some court cases:
Page 14 of 23
(1) Preparation of food with aid of various electrical appliances in kitchen of a hotel is a
manufacturing process: As decided in the case of "Poona Industrial Hotel vs. I.C. Sarin,
1980, Lab I.C. 100.
(2) Selling of petrol or diesel by a petrol dealer or repairing of motor vehicle will not come
within the term "manufacturing process", as noted in the case of: "National Service
Centre and Petrol Pump Vs. E.S.I Corporation, 1983 lab I.C. 412 (P. & H.).
(3) The work of mere packing cannot be called as a manufacturing process; {ref. A.I.R.
1955 NUC 2710}.
(4) The business of sale of diesel oil, motor spirit, lubricant, servicing of cars and lorries,
repairing vehicles and charging batteries with the aid of power, by employing more
than 20 workers / labourers amount to manufacturing process, as noted in the case of
"Baranagar Service Station Vs. E.S.I Corporation (1987) 1 L.L.N 912 (Cal.) (Divisional
Bench). & Lab I.C. 302.
(5) Decorticating groundnuts in electric mill is a manufacturing process (A.I.R. 1959
Madras 30).
(6) Breaking up of boulders is a manufacturing process - as decided in case of "Larsen &
Toubro Vs. State of Orissa, 1992 Lab I.C. 1513 (Orissa Divisional Bench).
(7) Transportation of goods on contract basis from one place to another by road with the
assistance of transport carriers is not a manufacturing process-as decided in the case of
Regional Director, E.S.I.C Vs. Jaihind Roadways, Bangalore (2001 ),1 L.L.J 1187
(Karnataka).
(8) Reading the definition of 'Manufacturing Process' in the light of Supreme Court in
"Workmen", Delhi Electricity Supply Undertaking Vs. management", (1974) 3 S.C.C.
108, the word 'or' in Section 2(k) (iii) must be read as 'and'.
Question 7.
Write short notes on ‘Annual Leave under the Factories Act, 1948’ (5 marks; 2019
- June)
Answer:
Annual leave:
Section 79 of The Factories Act, 1948 Provides that every worker who has worked for a period
240 days or more in a factory during a calendar year shall be allowed leave with wages for a
number lays calculated at the rate of-
If an adult, one day for every 20 days of work performed by him during the previous calendar
rear
If a child, one day for every 15 days of work performed by him during the previous calendar
year
The following shall be deemed to be days on which the worker has worked for the purpose of
computation of the period of 240 days or more-
Any days of lay off, by agreement or contract or as permissible under the standing orders
In the case of a female worker, maternity leave for any number of days not exceeding 12 weeks
And the leave earned in the year prior to that in which the leave is enjoyed.
But the above shall not be entitled for a worker to earn leave. The leave admissible shall be
exclusive of all holidays whether occurring during or at either end of the period of leave.
In calculating the leave fraction of leave of half a day or more shall be treated as one full day's
leave and fraction of less than half a day shall be omitted.
Question 8.
Personnel Manager told to Director that at least one canteen shall be provided in every factory.
Do you agree? (2
marks; 2008 - Dec)
Page 15 of 23
Answer: 8
False: According to Factories Act, 1948, a canteen is required to be provided in any specified
factory if the number of workers working in it is more than 250. Hence, it is not mandatory for
every factory to provide canteen.
Question 9.
Occupier of a factory in relation to the company means factory Manager of the factory, Answer
based on legal provision. (2 marks;
2009 - June)
Answer:
False: Occupier has been defined in the Factories Act in Section 2(n) as the person who has
ultimate control over the affairs of the factory. It is also stated further that in case of firm or
other association of individuals, any one of the partners or members thereof shall be deemed
to be the 'occupier'. The Section 2 further states that in case of a company, any of the directors
shall be deemed to be the 'occupier'.
Question 10.
As per provision of Factories Act, every factory is to appoint at least one welfare Officer-Do
you agree? Answer citing rules. (2 marks;
2009 - June)
Answer:
False: In every factory wherein 500 or more workers are ordinarily employed, the occupier
shall employ such number of welfare officer as may be prescribed.
Question 11.
Comment on the following statements based on legal provisions:
(a) A factory owner can close a place of employment of his own. (2 marks; 2009
- Dec)
(b) Creches are compulsory in a factory where women employees are employed.
(2 marks; 2009 - Dec)
Answer: 11
(a) Prior permission of government is required for closure of a place of employment if the
industrial establishment employs 100 or more workmen.
(b) Creches are required to be provided when in a factory, more than 30 women are
employed.
Question 12.
Factories Act provides certain precaution measures in case of fire, give details.
(4 marks; 2010 - June)
Answer: 12
The precautions required in case of fire as per Factories Act, are as follows:
(i) All precautions and measured should be taken to prevent the occurrence of fire
inside and outside the factory.
(ii) Fire escape should be provided. This should be adequate for all the employees.
(iii) All necessary equipment and facilities should be provided to fight and put out the
fire.
(iv) All workers must be trained regarding what they should do in case of fire. All must
know where the escape is.
(v) The state govt. has powers to give directions in this regard.
(vi) The Chief Inspector has all the powers, if in his opinion, the measures and
precautions taken by factory to deal with fire, are inadequate, he may direct the
Page 16 of 23
factory to provide more facilities, equipment and arrangements in the factory. He

may also frame a time schedule for this.
Question 13.
(a) Manager of the factory fixed the working hours of women from 6 p.m. to 1 a.m. during
the period from Monday to Friday of first week of May 2010. Whether it is permissible,
cite with Rule position. (2
marks; 2010 - June)
(b) As per Factories Act 'First Aid Boxes' shall be provided and maintained not less than
one for every 200 workers ordinarily engaged. (2 marks;
2010 - June)
Answer: 13
(a) As per the provisions of Factories Act, the working hours for women are between 6.00
am to 7.00 pm. No woman shall be allowed to work from 7.00 pm to 6.00 am. The state
government has powers to alter the above limits but in no case the women will be
allowed to work in any factory between 10.00 pm to 6.00 am. Hence, the manager's
decision is incorrect in the eyes of law.
(b) As per the Factories Act, " first aid boxes" shall be provided and maintained not less
than one for every 150 (not 200 as given) workers ordinarily engaged.
Question 14.
Comment on the following based on legal provisions:
As per Factories Act, Canteen is mandatory in all the factories. (2 marks; 2010
- Dec)
Answer: 14
False. According to Factories Act, 1948, a canteen is required to be provided in any specialized
factory if the number of workers working in it is 250 or more. Hence, it is not mandatory for
every factory to provide canteen.
Question 15.
What is the normal time for payment of Wages (Factories Act). (4 marks; 2010
- Dec)
Answer: 15
(i) For Railway, factory or industrial or other establishment where less than 1,000
persons are working: Wages shall be paid before expiry of 7th day from date of
wage becoming payable.
(ii) For Railway, factory or industrial or other establishment where 1,000 or more
persons are working: Wages should be paid before expiry of 10th day from date of
wage becoming payable.
(iii) For persons employed in Dock, Wharf (landing place), or Jetty: Wages shall be paid
before expiry of 7th day from date of wage becoming payable.
(iv) When the person is removed from service, his due wages shall be paid to him before
the expiry of 2nd working day from the date of removal of service.
Question 16.
Comment on the following based on legal provisions: (d) Occupier of a Factory means the
person who occupies and resides in the factory. Offer your views. (2 marks;
2011 - June)
Answer: 16
The statement is wrong. The Occupier of a factory means any person having ultimate control
over the affairs of the factory.
Page 17 of 23
Question 17.
Comment on the following based on legal Provisions:
An young employee disagreed to work on dangerous machines in a factory. (2 marks; 2011
- Dec)
Answer: 17
A young employee cannot be allowed to work at any machine unless:
(i) he has been fully instructed to the dangers arising in connection with the machine
and the precautions to be taken; and
(ii) he has received sufficient training in work at the machine, or
(iii) he has under adequate supervision by a person who has thorough knowledge and
experience in the machine. (Section 23 of Factories Act, 1948).
(iv) State Government may prescribe / specify such machines which in its opinion are
of such dangerous character that young persons ought not work on them unless
foregoing requirements are complied with.
Question 18.
Any child can be employed in a factory. (2 marks; 2012 -
June)
Answer: 18
As per The Factories Act, 1948, Children below 14 years are not allowed to work in the factory.
Child means a child who has not completed the age of 15 years. After attaining the age of 14,
he or she can work in the factory provided he or she has a certificate of fitness given by a
competent authority.
Question 19.
"Young person" means a person who has completed 18 years of age (Factories Act, 1948). Do
you agree? (2 marks;
2012 - June)
Answer: 19
The statement is not correct. Young person means a person who is either a child or an
adolescent. [Sec 2(d), The Factories Act, 1948] A child means a person who has not completed
his 15th year of age. [Sec 2(c), The Factories Act, 1948] An adolescent means a person who
has completed his 15th year of age but not completed his 18th year. [Sec 2(b), The Factories
Act, 1948]
Question 20.
(a) Are there any provisions in the Factories Act for protection of eyes of Workmen?
(2 marks; 2012- Dec)
(b) (i) Who is 'Occupier' (Factories Act)
(ii) State the Duty of the Occupier when a new manager is appointed in the factory.
(2 + 2 = 4 marks; 2012- Dec)
Answer:
(a) Yes, State Govt. by rules require that effective screens or suitable goggles shall be
provided for the protection of eyes of persons employed on or in the immediate vicinity
of manufacturing process which involves:
1. Risk of injury to the eyes from particles or fragments thrown off in the course
of process or
2. Risk to the eyes by reason of exposure to excessive light.
(b) (i) Occupier has been defined in the Factories Act in Section 2(n) as the person who has
ultimate control over the affairs of the factory. It is also stated further that in case of
Page 18 of 23
firm or other association of individuals, any one of the partners or members thereof
shall be deemed to be the 'occupier'.
The Section 2 further states that in case of a company, any of the directors shall be
deemed to be the 'occupier'. The Supreme Court resolved in JK Industries vs Chief
Inspector of Factories in 7997that only a member of Board of Directors of the company
can be a 'occupier' of the factory of the company. The ultimate control of the factory
vests with the BOD of the company and not on anyone else. Any company which owns
a factory cannot nominate its employee or its officer except the director of the company
as the occupier of its factory.
(ii) When the new manager is appointed, it is the duty of the occupier to inform the
inspector and chief inspector in writing regarding the appointment within seven days of
the appointment.
Question 21.
Factories Act, 1948 is applicable to all the factories wherein 50 or more workers are working.
Answer: 21
Factories Act, 1948 is applicable to factory which is defined as:
Factory: means any premises including its precincts (means zone, sector, ground, division,
area. Precinct means any area enclosed by wall.) where
(i) ten or more workers are working or were working in any day of the preceding
twelve months, in a manufacturing process which is carried on with the help of
power Or
(ii) twenty or more workers are working or were working in any day of the preceding
twelve months, in a manufacturing process which is carried on without the help of
power.
Question 22.
As per Factories Act, adequate shelters, rest rooms and lunch rooms are mandatory in all the
factories. Do you agree? Give correct answer. (2
marks; 2013 - June)
Answer: 22
The occupier is required to provide suitable shelters or rest rooms and a suitable lunch rooms
with provision of drinking water, in his factory if more than one hundred and fifty workers are
ordinarily employed in it.
Question 23.
Does a laundry attached to the hospital (main Institution) used for washing linen used in the
hospital is factory within the meaning of the Factories Act, 1948? (3 marks;
2014 - June)
Answer: 23
When hospital is not a factory, it is obvious that any department of hospital cannot be treated
as factory.
In Dr. PSS Sundar Rao, GS v Inspector of Factories Vellore 1984II LLJ 237 Mad, the question
was whether a laundry attached to the Christian Medical College and Hospital, Vellore is
Factory within the meaning of this Act.
Page 19 of 23
The Madras High Court held that the laundry run by the hospital cannot be separated from the
main Institution. In order to ensure high degree of hygienic standard the Hospital is having its
own laundry for washing the linen used in the hospital.
Therefore, laundry is only subsidiary, minor or incidental establishment of the hospital which
is not a factory.
• One department of the Hospital established for the efficient functioning of the Hospital
cannot be therefore be disjoined from the main Institution and termed to be a factory.
• The paramount or the primary character of the main Institution alone has to be taken
into consideration and when the main Institution is not a factory; a department thereof
cannot become so, even though a manufacturing process is carried on there.
Question 24.
Explain the right of workers to warn about imminent danger under the Factories Act, 1948.
Answer: 24
As per Section 41H of the Factories Act, 1948, it is the right of workers to warn about imminent
danger
(1) Where the workers employed in any factory engaged in a hazardous process have
reasonable apprehension that there is a likelihood of imminent danger to their lives or
health due to any accident, they may bring the same to the notice of the occupier, agent,
manager or any other person who is in-charge of the factory or the process concerned
directly or through their representatives in the safety committee and simultaneously
bring the same to the notice of the Inspector.
(2) It shall be the duty of such occupier, agent, manager or the person incharge of the
factory or process to take immediate remedial action if he is satisfied about the
existence of such imminent danger and send a report forthwith the action taken to the
nearest Inspector.
(3) If the occupier, agent manager or the person incharge referred to in sub-section (2) is
not satisfied about the existence of any imminent danger as apprehended by the
workers, he shall, nevertheless, refer the matter forthwith to the nearest Inspector whose
decision on the question of the existence of such imminent danger shall be final.
Question 25.
Employees of an electricity generation station claimed that their unit is covered under the
definition of 'factory' considering the process of transforming and transmission of electricity
generated at the power station as a 'manufacturing process'. Will their claim succeed under
Factories Act, 1948.
(6 marks; 2016 - Dec)
Answer: 25
As per Section 2(k) of the Factories Act, 1948, manufacturing process means any process for:
(i) Making, altering, repairing, ornamenting, finishing, packing, oiling, washing,
cleaning, breaking up, demolishing, or otherwise treating or adapting any article or
substance with a view to its use, sale, transport, delivery or disposal, or
(ii) Pumping oil, water, sewage or any other substance; or;
(iii) Generating, transforming or transmitting power; or
(iv) Composing types for printing, printing by letter press, lithography, photogravure or
other similar process or book binding;
(v) Constructing, reconstructing, repairing, refitting, finishing or breaking up ships or
vessels;
(vi) Preserving or storing any article in cold storage;
Page 20 of 23
Process undertaken at electricity generating station, Sub-station is transferring and transmitting

electricity is not a manufacturing process and are not thus factory- [Delhi Electricity Supply
Undertaking vs. Management of DESU, AIR(1973)SCC 365].
Question 26.
What are the responsibilities of an occupier in a factory? (5 marks; 2017 -
June)
Answer: 26
Responsibility of the occupier
The occupier has to follow the procedure:
• to lay down a detailed policy with respect to the health and safety of the workers;
• to disclose all the information regarding dangers including health hazards and the
measures to overcome such hazards arising from the exposure to or handling of the
materials or substances in the manufacture, transportation, storage and other processes
to the workers employed in the factory;
• to draw up an onsite emergency plan and detailed disaster control measures for the
factory and make known to the workers and to the general public living in the vicinity
of the factory, the safety measures required to be taken in the event of accident taking
place.
• to lay down measures for the handling usage, transportation and storage of hazardous
substances inside the factory premises and the disposal of such substances outside the
factory premises and publicize them in the manner prescribed among the workers and
the general public living in the vicinity.
Section 41C provides that the occupier is having specific responsibilities in relation to
hazardous processes. He has to maintain the health records of the employees. He is to appoint
experienced persons who possess specified qualifications in handling hazardous substances and
competent to supervise such handling within the factory.
Question 27.
Critically examine the duties of certified surgeon under the Factories Act, 1948.
Answer: 27
Section 10 under the Factories Act, 1948 provides that the State Government may appoint
qualified medical practitioners to be certifying surgeons for the purposes of this Act within
such local limits or for such factory or class or description of factories as it may assign to them
respectively. The duties of certified surgeons are as follows-
• the examination and certification of young persons;
• the examination of person engaged in factories in such dangerous occupations or
processes as may be prescribed;
• the exercising of such medical supervision as may be prescribed for any factory or class
or description of factories, where -
o cases of illness have occurred which it is reasonable to believe are due to the
nature of the manufacturing process carried on, or other conditions of work
prevailing, therein;
o by reason of any change in the manufacturing process carried on or in the
substances used therein or by reason of the adoption of any new manufacturing
process or of any new substance for use in a manufacturing process, there is a
likelihood of injury to the health of workers employed in that manufacturing
process;
Page 21 of 23
o young persons are, or are about to be, employed in any work which is likely to
cause injury to their health.
Question 28.
Discuss the welfare measures to be taken in a factory for the workmen employed therein as per
the Factories Act, 1948. (8
marks; 2019 - Dec)
Answer: 28
The following are the welfare measures prescribed in the Factories Act, 1948 to be provided
by the factory to their workmen:
As per Section 42 provides that in every factory adequate and suitable
facilities for washing shall be provided and maintained for the use of the
1. Washing facilities
workers. Separate and adequately screened facilities shall be provided for
the use of male and female workers.
Section 43 provides that the State Government may, in respect of any
Facilities for storing factory or class or description of factories, make rules requiring the
2.
and drying clothing provision therein of suitable places for keeping clothing not worn during
working hours and for the drying of wet clothing.
Section 44 provides that suitable arrangements for sitting shall be provided
and maintained for all workers obliged to work in a standing position, in
3. Facilities for sitting
order that they make take advantage of any opportunities for rest which may
occur in the course of their work.
Section 45 provides that first aid appliances shall be provided and
maintained so as to be readily accessible during all working hours or
4. First aid appliances cupboards equipped with the prescribed contents and the number of such
boxes or cupboards to be provided and maintained shall not be less than for
every 150 workers at any one time in the factory.
Section 46 provides that if more than 250 workers are employed in a factory
a canteen or canteens shall be provided and maintained by the occupier for
5. Canteens the user of the workers. The items of expenditure in the running of the
canteen which are not to be taken into account in fixing the cost of foodstuffs
shall be borne by the employer.
Section 47 provides that if more than 150 workers are employed adequate
Shelters, rest rooms and suitable shelters or rest rooms and a suitable lunch room with provision
6.
and lunch rooms for drinking water shall be provided and maintained for the use of the
workers.
Section 48 provides that if more than 30 women workers are employed there
shall be provided and maintained a suitable room for the use of children
7. Creches under the age of 6 years of such women. The same shall be adequately
ventilated and shall be maintained in clear and sanitary conditions and under
the charge of women trained in the care of children and infants.
Section 49 provides that if 500 or more than workers are employed in a
Welfare
8. factory, the occupier shall employ in the factory such number of welfare
Officers
officers as may be prescribed.
Question 29.
ABC Ltd. carrying manufacturing activities with aid of power and with eight workers for last
two years ending on 31.03.2014. Three more workers were appointed on 01.04.2014, two
workmen left the company on 30.04.2014. Thereafter no workman was employed nor any
workmen left. Mr. Basant, one of the workman demanded that Factories Act, 1948 shall be
Page 22 of 23
applicable to this company but the management denied. Give your opinion.
(3 marks; 2015 - Dec)
Answer:
According to Sec. 2 (m) of the Factories Act, 1948, 'factory' means any premises including the
precincts thereof:
(i) Wherein 10 or more workers are working or were working on any day of the
preceding 12 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) Wherein 20 or more workers are working or were working on any day of the
preceding 12 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.
In the given case, during the period 01.04.2014 to 30.04.2014, there were 11 workers carrying
manufacturing activities with aid of power. So, the Factories Act, 1948 is applicable on ABC
Ltd. Mr. Basant is correct.
Page 23 of 23

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THE FIRST SCHEDULE

[See section 23(4)]

MUTUAL RIGHTS & DUTIES

1. Interpretation.—In this Schedule, unless the context otherwise requires,—

1. Interpretation.—In this Schedule, unless the context otherwise requires,—

1. Interpretation.— (1) In this Schedule, unless the context otherwise requires,—

FACTORIES ACT, 1948 w.e.f. 1.4.1949

CONCEPT 1. MEANING OF FACTORY Section 2(m)

“Factory” means any premises including the precincts thereof—

but does not include

A mine A mobile unit Railway A hotel A restaurant Eating place.

Electronic Data Processing or Computer unit not a Factory

State Amendments: Certain State Governments have increased limit of 10 workers to 20

CONCEPT 2. MEANING OF MANUFACTURING PROCESS Section 2(k)

“Manufacturing process” means any process for—

CONCEPT 3. MEANING OF OCCUPIER Section 2(n)

Any one of the individual the person or persons

CONCEPT 4. MEANING OF WORKER Section 2(l = el)

✓ “Worker” means a person employed,

CONCEPT 5. MULTIPLE UNITS AND MULTIPLE FACTORIES

✓ The State Government may,

✓ shall be treated as separate factories or

CONCEPT 6. APPROVAL LICENSING AND REGISTRATION OF FACTORIES

The submission of The permission in The submission of The registration and

CONCEPT 7. NOTICE BY OCCUPIER

15 Days Advance Notice at the time of start containing following particulars:

30 Days advance Notice in case of Non working factory becomes working

7 days’ notice in case of New Manager

(2) the matters to which such duty extends, shall include—

CONCEPT 10. POWERS OF INSPECTORS

CONCEPT 11. CERTIFYING SURGEONS

1. The State Government may appoint qualified medical practitioners to be certifying

Certificates of (1) It shall be issued by Certifying surgeon.

CONCEPT 12. HEALTH RELATED MEASURES

Overcrowding (1) No room in any factory shall be overcrowded.

CONCEPT 13. WELFARE RELATED MEASURES

CONCEPT 14. SAFETY RELATED MEASURES

Major (1) Fencing of machinery;

(12) Excessive weights;

Hazardous (1) State Government shall appoint a Site Appraisal Committee.

(3) It will make its recommendation to the State Government within 90

Safety ✓ Occupier shall set up a Safety Committee

CONCEPT 15. WORKING HOURS OF ADULTS

Weekly hours Maximum 48 Hours per week.

Weekly 1. First fay of the week shall be holiday.

Daily working 9 hours with 1 hour break.

CONCEPT 16. EMPLOYMENT OF WOMEN

Working Shall be same as male.

CONCEPT 17. EMPLOYMENT OF YOUNG PERSONS

Prohibition of If age is less than 14 years, no work allowed.

Certificates of (4) It shall be issued by Certifying surgeon.

Prohibited hours for female child

CONCEPT 18. ANNUAL LEAVE WITH WAGES

Minimum 240 days per year

Leave carry Maximum 30 for adult, 40 for child.

CONCEPT 19. Obligations and Rights of workers

Obligations (1) No willfully interfere with or misuse any appliance, convenience or

CONCEPT 20. Major terms

Adult Completed 18 years of age.