IN THE HIGH COURT OF ALLAHABAD
S. D. Agarwala and R. R. Misra, JJ.
BHATIA METAL CONTAINERS (PVT.) LTD. - Appellant
Versus
STATE OF UTTAR PRADESH - Respondents
Civil Misc. Writ Petition 15223 Of 1989
Decided On : 07/25/1989
Occupier - Factories Act - The definition of occupier under Section 2(n) of the Factories Act, 1948, and its proviso (ii) clarifies that in the case of a company, one of the Directors shall be deemed to be the occupier. The intention of the Legislature is clear that in the case of a company, one of the Directors has to be deemed to be an occupier, and it does not permit a company to nominate anybody else for this purpose. Therefore, one of the Directors of the company alone can be deemed to be the occupier of the factory.
Fact of the Case:
The petition was filed against an order directing the petitioner company to give the name of a Director who would be deemed to be an occupier of the factory.
Finding of the Court:
The court found that the petitioner, being a Private Limited Company, is governed by the second proviso to sub-clause (n) of Section 2 of the Factories Act, and therefore dismissed the petition.
Issues: Interpretation of the definition of 'occupier' under Section 2(n) of the Factories Act and its applicability to a company.
Ratio Decidendi: The intention of the Legislature is clear that in the case of a company, one of the Directors has to be deemed to be an occupier, and it does not permit a company to nominate anybody else for this purpose.
Final Decision: The petition was dismissed as the petitioner, being a Private Limited Company, is governed by the second proviso to sub-clause (n) of Section 2 of the Factories Act.
( 1 ) THIS petition under, Article 226 of the Constitution of India is directed against an order dated 10th March, 1989 by which the Director of Factories, U. P. Kanpur, has asked the petitioner company to give the name of a Director who would be deemed to be an occupier of the petitioner.
( 2 ) SECTION 2 (n) of the Factories Act, 1948 defines an occupier. It reads as under:
"2 (n ). "occupier" of a factory means the person who has ultimate control over the affairs of the factory. "
Proviso (ii) to Sub-section (n) of Section 2 of the Act is relevant for the purposes of this Act. It reads as under:"proviso (ii ). In the case of a company, any one of the Directors shall be deemed to be the occupier. "
( 3 ) FROM a reading of the definition of occupier in Section 2 (n) of the Act read with the second proviso, it is clear that in the case of a company, one of the Directors shall be deemed to be an occupier. This amendment in the definition of the word occupier has been brought about by act No. 20 of 1987. The intention of the Legislature is clear that in the case of a company, one of the Directors has to be deemed to be an occupier. It does not permit a company to nominate anybody else for the purposes of the Act other than one of the Directors to be a person who has ultimate control over the affairs of the factory. This was not the intention of the Legislature. In our opinion, one of the Directors of the company alone can be deemed to be the occupier of the factory. The Director of Factories was, therefore, justified in asking the company to give the name of one of its Directors who would be deemed to be an occupier of the factory.
( 4 ) THE petitioner is a Private Limited Company. It clearly is governed by the second proviso to sub-clause (n) of Section 2 of the Factories Act. In the circumstances, we do not find any merit in this petition. It is, accordingly, dismissed.
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