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SUPREME COURT OF INDIA
27th January, 1961
S.J. IMAM, J.L. KAPUR, K.C. DAS GUPTA, RAGHUBAR DAYAL AND N. RAJAGOPALA AYYANGAR, JJ.
Ardeshir H. Bhiwandiwala, Appellant
Versus
State of Bombay (now Maharashtra). Respondent.
Criminal Appeal No. 32 of 1956.
Advocates appeared
M/s. Porus. A Mehta and R. Ganapathy Iyer, Advocates and M/s. R.A. Gagrat and G. Gopalakrishnan, Advocates of M/s. Gagrat and Co., for Appellant; Mr. N.S. Bindra Senior Advocate, (M/s. R.H. Dhebar and T.M. Sen, Advocates. with him), for Respondent. 30
FACTORIES ACT - Definition of factory - Premises - Manufacturing process - Salt works - Whether a factory.
Fact of the Case:
The appellant was convicted of working a salt works without obtaining a license under the Factories Act, 1948. The main question for determination was whether these Salt Works come within the definition of the word factory under cl. (m) of S. 2 of the Act.
Finding of the Court:
The court held that the salt works came within the definition of the word factory and that the appellant had been rightly convicted of the offence of working the factory without obtaining a license.
Issues: 1. Whether the salt works come within the definition of the word factory under cl. (m) of S. 2 of the Factories Act, 1948? 2. Whether the appellant was rightly convicted of the offence of working the factory without obtaining a license.
Ratio Decidendi: 1. The court held that the word premises in the definition of the word factory means open land or land with buildings or buildings alone. The court also held that the expression manufacturing process means any process for 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. 2. The court held that the process of converting sea water into salt carried on the appellant’s Salt Works comes within the definition of manufacturing process in cl. (k) of S. 2 of the Act.
Final Decision: Appeal dismissed.
Certainly. Based on the provided legal document, here are the key points:
The primary legal issue concerns whether the Salt Works in question qualify as a "factory" under the definition provided in the Factories Act, 1948, specifically under clause (m) of Section 2 (!) .
The definition of "factory" includes premises where a manufacturing process is carried on, with the aid of power or ordinarily so carried on, and where a certain number of workers are employed, regardless of whether the premises consist of buildings or open land (!) (!) .
The term "premises" in the context of the Act is interpreted broadly to include land with or without buildings, not limited solely to enclosed structures (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) .
The inclusion of the phrase "including the precincts thereof" indicates that the scope of premises encompasses entire areas, which may contain multiple separate buildings or open land, and is not restricted to buildings alone (!) (!) (!) (!) .
The Act's provisions are applicable to open land where a manufacturing process occurs, and the term "place" used in the Act also supports this interpretation (!) (!) .
The process of converting sea water into salt at the Salt Works involves human agency and natural forces working together. Human effort is employed in various stages such as pumping sea water, maintaining crystallization beds, and harvesting salt, thus qualifying as a manufacturing process (!) (!) (!) (!) (!) (!) (!) (!) .
The process of salt production involves treatment and adaptation of sea water into salt, which aligns with the definition of a manufacturing process under the Act (!) (!) (!) .
The legal interpretation considers that the process does not need to occur within a building; it is sufficient that a manufacturing process is being carried on, whether in open land or enclosed structures (!) (!) (!) .
The opinion of authorities and previous representations do not alter the conclusion that the Salt Works fall within the scope of the "factory" definition under the Act, especially given the employment of human agency in the process (!) (!) (!) .
The court ultimately upheld the conviction, affirming that the Salt Works constitute a factory under the Act and that the appellant had rightly been convicted of working without a license (!) .
Would you like any further clarification or assistance with specific legal implications?
Judgment
RAGHUBAR DAYAL, J. : This is an appeal by special leave by Ardeshir H. Bhiwandiwala against the order of the High Court of Bombay allowing an appeal by the State against the acquittal of the appellant of an offence under S.92 of the Factories Act, 1948 (Act LXIII of 1948), hereinafter called the Act, for his working the Wadia Mahal Salt Works situate at Wadala, Bombay, without obtaining a licence under S. 6 of the said Act read with R. 4 of the rules framed under the Act.
2. The main question for determination in this appeal is whether these Salt Works come within the definition of the word factory under cl. (m) of S. 2 of the Act. The answer to this question depends on the meaning of the word premises in the definition of the word factory and on the determination whether what is done at this Salt Works in connection with the conversion of sea water into crystals of salt comes within the definition of the expression manufacturing process in cl. (k) of S 2 of the Act.
3. The Salt Works extend over an area of about two hundred and fifty acres. Some of the other salt works, however, have even larger areas. The only buildings on this land consist of temporary shelters constructed for the resident labour and for an office. At a few places, pucca platforms exist for fixing the water pump when required to pump water from the sea. When not required, this pump is kept in the office. With the exception of the constructions already mentioned, the entire area of the Salt Works is open. On the sea side, it has bunds in order to prevent sea water flooding the salt pans.
4. Clause (m) of S. 2 of the Act reads:
" 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, or a railway running shed;".
The relevant portion of the definition of manufacturing process in cl. (k) of S. 2, reads :
" 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 or sewage, or........................".
5. It is contended for the appellant that the expression premises in the definition of the word factory means buildings and that mere open land is not covered by the word premises and as there are no buildings except temporary sheds on the Salt Works, the salt Works cannot be said to be a factory . We do not agree with this contention. The word premises has now come to refer to either land or buildings or to both, depending on the context. The meanings of the word premises in various lexicons and dictionaries are given below: .
(a) Wharton s Law Lexicon:
Premises is often used as meaning land or houses
(b) Cochran s Law Lexicon, IV Edition:
Premises means houses or lands ,
(c) Black, H. C., Law Dictionary, IV Edition:
Premises as used in the estates means-
(i) lands and tenements; an estate; land and buildings thereon; the subject-matter of the conveyance;
(ii) a distinct and definite locality and may mean a room, especially building or other definite area;
(d) Earl Jowitt, Dictionary of English Law:
Premises ... ...... ... from this use of the word, premises has gradually acquired the popular sense of land or buildings, originally, it was only used in this sense by laymen, and it was never so used in well-drawn instruments, but it is now frequently fou
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