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1957 Supreme(Ker) 344

Judges : SANKARAN
V.M.Patel - Appellant
Versus
Inspector of Factories, Alwaye - Respondent
Case No : Crl. R. P. No. 5 of 1956 (K)
Decided On : 12/20/1957
Advocates Appeared :
A. Madhava Prabhu; D. A. Kammath; For Accused Public Prosecutor; For State

The main legal point established in the judgment is that for a person to be considered a 'worker' under the Factories Act, they must be employed by the person having ultimate control over the business concern.

Headnote:

Factories Act - Manufacturing Process - S.6, S.7, S.92 - The court discussed the definition of 'factory' and 'worker' under the Factories Act and the obligations of the occupier. The process of garbling pepper was considered a manufacturing process, and the workers engaged in the process were found to be workers as defined in the Act. The court emphasized the requirement that workers must be employed by the person having ultimate control over the business concern. The court also referred to relevant sections and rules under the Act and highlighted the comprehensive nature of the definition of 'worker' in the Act.

Fact of the Case:

The petitioner, managing partner of a firm, was convicted for running a factory without complying with the Factories Act. The prosecution alleged that the firm's pepper business amounted to a manufacturing process and the petitioner had not obtained necessary permissions and registrations as required by the Act.

Finding of the Court:

The court found that the process of garbling pepper constituted a manufacturing process and the workers engaged in the process were considered workers as defined in the Act. However, the court emphasized that the workers must be employed by the person having ultimate control over the business concern.

Issues: The main issue was whether the petitioner was running a factory as defined in the Factories Act and whether the workers engaged in the process were considered workers as per the Act.

Ratio Decidendi: The court emphasized that the workers must be employed by the person having ultimate control over the business concern to be considered workers as per the Act. The court also referred to relevant sections and rules under the Act and highlighted the comprehensive nature of the definition of 'worker' in the Act.

Final Decision: The conviction and sentence entered against the accused-petitioner were set aside, and he was acquitted of the offences charged against him in the case.

Judgment :-

1. This revision petition is directed against the conviction of the petitioner for offences under clauses (a) and (d) of sub-section (I) of S.6 and also under S.7 read with S.92 of the Factories Act (Act LXIII of 1948) The petitioner is the managing partner of a firm known by the name "Gujarat Travancore Agency" doing business at Mattancherry. This firm is dealing in pepper, and in that connection the process of drying, garbling and packing of pepper is being carried on in the premises of the firm at Mattancherry According to the prosecution the work thus carried on by this firm amounts to a manufacturing process as contemplated by the Factories Act and more than 20 persons are being regularly engaged by the petitioner to have this work done On this basis it is contended that the petitioner has been running a factory as defined in the Factories Act and the petitioner's position is that of the occupier of the factory.

2. On 10-11-1953. Pw.1 who is the Inspector of Factories. Northern Division, Alwaye, inspected the premises and on conducting the necessary inquiries, he was satisfied that the petitioner was running the factory without complying with the requirements of the Factories Act and has thus committed certain offences made punishable under S.92 of the Factories Act. S.112 of the Act empowered the State government to make "rules providing for any matter which, under any of the provisions of the Act, is to be or may be prescribed or which may be considered expedient in order to give effect to the purposes of this Act". In exercise of this power, a set of rules were made and published by the State Government in the gazette dated 15th July 1952. These rules include rules contemplated by clauses (a) and (d) of S.6(1) of the Factories Act. This section deals with the approval, licensing and registration of factories and clause (a) states that the State government may make rules requiring the previous permission in writing of the State government or of the Chief Inspector to be obtained for the site on which the factory is to be situated and for the construction or extension of any factory or class or description of factories. Similarly clause (d) of the Section provides for making rules requiring the registration and licensing of factories or any class or description of factories, and prescribing the fees payable for such registration and licensing and for the removal of licences. R.3 and 4 of the rules already referred to are the relevant rules as contemplated by clauses (a) and (d) of S.6 (1) of the Act. The petitioner has been conducting the pepper business in the premises of his firm without applying for and obtaining the permission of the State government or of the Chief Inspector for conducting the business at the particular site and also without obtaining the necessary registration and the license, and thus he is alleged to have contravened clauses (a) and (d) of S.6 (1) and R.3 and 4 of the rules made under the Act. Sub-section (1) of S.7 of the Act requires the occupier to give a written notice to the Chief Inspector at least 15 days before he begins to occupy or use any premises as a factory, containing the several particulars as enumerated in the subsection. R.12 also deals with the same matter. No such notice was given by the petitioner. Contravention of these requirements of the Act and rules made under it, is made punishable by S.92 of the Act. That section states that the occupier and manager of the factory, on conviction of such an offence, shall be punishable with imprisonment for a term which may extend to three months or a fine which may extend to Rs. 500, or with both.

3. Pw.1 prosecuted the petitioner for the offences already mentioned, by preferring a complaint after obtaining the sanction contemplated by S.105 of the Act. The main defence of the petitioner is that he is not running a factory as defined in the Factories Act and that therefore he is not bound to comply with the requirements of S.


































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