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2023 Supreme(Jhk) 1361

IN THE HIGH COURT OF JHARKHAND AT RANCHI
Anil Kumar Choudhary, J.
Amarendu Prakash and ors. - Petitioners
Versus
The State of Jharkhand and ors. - Opposite Parties
Cr.M.P. No. 409 of 2022
Decided On : 31-07-2023

Advocates:
Advocate Appeared:
For the Petitioner:Mr. Indrajit Sinha, Advocate, Mr. Bibhash Sinha, Advocate, Mr. Ankit Vishal, Advocate
For the Opposite Party : Mr. Ashutosh Anand, A.A.G.-III, Ms. Rishi Bharati, A.C. to A.A.G. -III

IMPORTANT POINT
Directors are not liable for offences under Section 92 of the Factories Act, 1948, and related sections and rules.

Headnote:

Factories Act - Criminal Proceeding - Section 92 of the Factories Act, 1948 - Summary of Acts and Sections: Section 92 of the Factories Act, 1948, Section 7A (2)(b), 2(c) and 2(d) read with Rule 55A of the Bihar Factories Rule, 1950, Section 6 of the Factories Act, 1948 read with Rule 8 of the Bihar Factories Rules, 1950

Fact of the Case:

The petitioners sought to quash criminal proceedings under Section 92 of the Factories Act, 1948, arguing that as directors, they were not liable under the Act.

Finding of the Court:

The court found that the petitioners, as directors, were not liable for the offences under Section 92 of the Factories Act, 1948, and quashed the criminal proceedings against them.

Issues: Liability of directors under Section 92 of the Factories Act, 1948, and related sections and rules.

Ratio Decidendi: Directors were not liable for offences under Section 92 of the Factories Act, 1948, and related sections and rules.

Final Decision: The criminal proceedings under Section 92 of the Factories Act, 1948 were quashed and set aside for the petitioners.

JUDGMENT :

1. Heard the parties.

2. This criminal miscellaneous petition has been filed invoking the jurisdiction of this Court under Section 482 Cr.P.C. with a prayer to quash the entire criminal proceeding arising out of Complaint Case No. 05 of 2021 including the order taking cognizance dated 04.01.2021, passed by the learned Chief Judicial Magistrate, Bokaro, whereby and where under cognizance for the offences punishable under Section 92 of the Factories Act, 1948 has been taken and summons were issued, now pending in the Court of learned Chief Judicial Magistrate, Bokaro.

3. It is submitted by the learned counsel for the petitioners that the petitioners do not press the prayer on behalf of the petitioner no.3 –Sanjay Kumar and prays to withdraw the same with liberty to raise all the grounds taken in this criminal miscellaneous petition before the concerned court at the relevant time.

4. Accordingly, this criminal miscellaneous petition is dismissed as withdrawn, so far as the petitioner no.3 –Sanjay Kumar is concerned with liberty to raise all the grounds taken in this criminal miscellaneous petition before the appropriate court at the relevant time.

5. So far as the petitioner nos. 1 & 2 are concerned, it is submitted by the learned counsel for the petitioner nos. 1 & 2 that as per Section 92 of the Factories Act, 1948 which reads as under:-

    92. General penalty for offences.—Save as is otherwise expressly provided in this Act and subject to the provisions of Section 93, if in, or in respect of, any factory there is any contravention of any of the provisions of this Act or of any rules made thereunder or of any order in writing given thereunder, the occupier and manager of the factory shall each be guilty of an offence and punishable with imprisonment for a term which may extend to [two years] or with fine which may extend to [one lakh rupees] or with both, and if the contravention is continued after conviction, with a further fine which may extend to [one thousand rupees] for each day on which the contravention is so continued:

[Provided that where contravention of any of the provisions of Chapter IV or any rule made thereunder or under Section 87 has resulted in an accident causing death or serious bodily injury, the fine shall not be less than [twenty-five thousand rupees] in the case of an accident causing death, and [five thousand rupees] in the case of an accident causing serious bodily injury.

Explanation.—In this section and in Section 94 “serious bodily injury” means an injury which involves, or in all probability will involve, the permanent loss of the use of, or permanent injury to, any limb or the permanent loss of, or injury to, sight or hearing, or the fracture of any bone, but shall not include, the fracture of bone or joint (not being fracture of more than one bone or joint) of any phalanges of the hand or foot.]

(Emphasis supplied)

that only the occupier and the manager of the factory are liable for the offences committed under section 92 of the Factories Act, 1948, which is the penal section in the Factories Act, 1948. It is next submitted by the learned counsel for the petitioner nos. 1 & 2 that the petitioner no.1 who was admittedly the Director In charge of the Bokaro Steel Plant and the petitioner no.2 who was the Executive Director of the Bokaro Steel Plant, Steel Authority of India were neither the occupier nor the manager, hence are not liable to be prosecuted for the offences punishable under Section 92 of the Factories Act, 1948. It is next submitted by the learned counsel for the petitioner nos. 1 & 2, drawing attention of this Court to page no.32 of the brief which is the enquiry report submitted by the complainant himself, that he has stated therein that the occupier is one Atanu Bhowmick, Executive Director (Works). It is next submitted by the learned counsel for the petitioner nos. 1 & 2 that under Section 2(n)(iii) of the Factories Act, 1948 which reads as under:-

2(n) “occupier” of a factory means t

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