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IN THE HIGH COURT OF JUDICATURE AT MADRAS
G.JAYACHANDRAN, J.
Anindya Dutta, Son of Anup Kumar dutta - Appellant
Versus
The Deputy Director – IV (i/c), Industrial Safety and Health - Respondent
Crl.O.P.Nos.14351, 14354, 14359, 14362 & 14366 of 2024 & Crl.M.P.Nos.8798 to 8800, 8796 & 8794 of 2024
Decided on : 12-08-2024
| Table of Content |
|---|
| 1. complaint details for violations of factories act. (Para 1 , 2 , 3) |
| 2. argument regarding exemption under catering establishments act. (Para 4 , 5 , 6) |
| 3. dispute regarding factory definition and application. (Para 8 , 10 , 14) |
| 4. discussion on jurisdiction and nature of establishments. (Para 12) |
| 5. court's observation on adherence to special legislation. (Para 21 , 28) |
| 6. catering establishments act's specificity overrides factory act. (Para 24 , 26 , 27) |
| 7. court quashes complaints based on jurisdiction issues. (Para 29 , 31) |
ORDER :
G. JAYACHANDRAN, J.
These Criminal Original Petitions to quash the complaint filed by the Deputy Director-IV, Industrial Safety and Health, Guindy, Chennai, for violation of FACTORIES ACT .
2. Gist of the complaint:-
On 22/09/2023, the premises situated at SLC MAA, Guindy Kitchen, G.R. Enclave No:2/1, Dhanakodiraja Street, Ekkattuthangal, Chennai was inspected by the Officials of Industrial Safety and Health Department and noticed that the premises is used as a ‘Factory’ by the Occupier-cum-Manager, wherein manufacturing of food being carried out by engaging 14 workers and using 23.75 HP machines without permission of the Director of Industrial Safety and Health. A show cause notice dated 19/10/2023 was sent to the Occupier-cum-Manager providing the details of 9 contraventions of the FACTORIES ACT noticed during the inspection and called for explanation. In response to the Show Cause Notice (SCN), reply dated 07/11/2023 was sent stating that the Establishment is duly registered under the TAMIL NADU CATERING ESTABLISHMENTS ACT , 1958. As per Section 30 of the Tamil Nadu Catering Establishment Act, the provisions of The FACTORIES ACT , 1948 will not apply to its establishment. Not being satisfied with the said reply, five complaints presented before the Chief Metropolitan Magistrate, Egmore against Thiru.Anindya Dutta, the petitioner herein as Occupier-Cum-Manager of DTwelve Space (P) Ltd for the alleged contraventions of:-
| (i) | Section 6(1)(a)(aa)(b)(c) r/w Rule 3(1)(2) Section 6(1)(d) Rules 4(1)(2)(3) Section 7(1) Rule 12 |
| (ii) | Section 6(1)(9) r/w Rule 79 Section 45(1) r/w Rule 63 |
| (iii) | Section 45(3) r/w Rule 63-B Section 38 r/w Rule 61(10)(f) |
| (iv) | Section 3 r/w Rule 3(1)(2) |
| (v) | Section 4(1)(b)(i) |
3. The Learned Chief Metropolitan Magistrate, Egmore taken the five complaints on file as C.C.Nos.340/2024, 341/2024, 342/2024, 343/2024 and 344/2024 and caused summons to the petitioner.
4. Gist of the quash petition:-
(i) The Petitioner company is engaged in the business of running, managing and operating the day-today affairs of residential premises, and license/sub-licenses such residential premises to individuals (including students and working professionals) for the purpose of long-stay accommodation. Over a period, it has acquired an immense reputation for the quality of services it provides. For those living in the accommodation spaces run by the Petitioner Company, it provides meals as well. Since, there are multiple accommodation facilities that are run by the Company within the same city, for achieving operational efficiency, a common centralized kitchen was established by the Company to serve meals to all those people residing in its facilities. This facility was established and became operational in March 2023.
(ii) The Petitioner being an establishment, which falls under the definition of 'Catering Establishment' as per Section 2(1) of TAMIL NADU CATERING ESTABLISHMENTS ACT , 1958, filed application for license and registration for its operation under the Act on 13.06.2023 by the Petitioner Company. This application was allowed by the relevant authority on 20.10.2023 and this application was allowed by the relevant authority on 20.10.2023 was made applicable for the whole year of 2023, ending on 31.12.2023. Subsequently, for the year 2024, a fresh application was made in the month 25.02.2024, which was allowed on 27.02.2024. This renewed license is valid till 31.12.2024.
(iii) The petitioner’s e
AI
Establishments registered under the Tamil Nadu Catering Establishments Act are exempt from the Factories Act, as per Section 30, and the nature of activity determines legislative applicability.
Staff canteens operated for employees do not qualify as 'restaurants' under the Act, thus are exempt from its provisions.
Point of law : If an order is not obligatory to be passed under the statute, no appeal would lie against the offence alleged under Section 7A(2)(c) of the Factories Act as is alleged in the case at h....
It is well settled that at stage of issuing process, Magistrate is mainly concerned with allegations made in complaint or evidence led in support of same and Magistrate is only to be satisfied that t....
Workers under the Factories Act are defined by the existence of a contract of service, where control and supervision by the employer are evident.
The complaints were an abuse of process of court, as there was no violation of law and rules and regulations, and the complaints were filed belatedly. The non-mention of the show cause notice and its....
An establishment with fewer than ten employees does not fall under the Employees State Insurance Act, 1948, and arbitrary orders without due process violate principles of natural justice.
The judgment establishes the obligation to comply with the Inspector of Labour's order under the Act and the application of the Act to the Corporation and its employees.
The court held that only one director of a company can be prosecuted for violations under specific sections of the Factories Act, affirming a strict interpretation of legislative intent.
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