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Unit 4: Factories Act, 1948

4.2 Definitions Notes

Following are the definitions included in the Factories Act:

1. Factory

Section 2(n) of the Factories Act, 1948 defines “factory” to mean:
Any premises including the precincts thereof-

l z 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.
l z 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.
!

Caution It specifically excludes:
A mine subject to the operation of the Mines Act, 1952, or a mobile unit belonging to the
armed forces of the Union, a railway running shed or a hotel, restaurant or eating place.
Meaning of the words “Premises and Precinct”

The word ‘premises’ means open land or land with building or building alone. Therefore salt
works where process of converting seawater into salt is carried on in the open comes within
‘premises’ as defined in the Act. [(Ardeshir H. Bhiwandiwala v. State of Bombay, A.I.R. 1962 SC
29)] Precincts means a space enclosed by wall. [in re K.V.V. Sharma, Manager, Gemini Studio,
Madras, A.I.R 1953 Mad. 29] Any ‘premises’ to be categorised as factory two conditions must be
fulfilled.
l z Ten or more persons are employed in the premises using power or be employed not using
power.

l z Twenty or more workers must be employed not using power.

2. Manufacturing Process

The expression “manufacturing process” has been defined in Section 2(k) to mean any process.
l z 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
l z pumping oil, water, sewage, or any other substance; or
l z generating, transforming or transmitting power; or

l z composing types for printing, printing by letter press, lithography, photogravure or other
similar process or book binding; or
l z constructing, reconstructing, refitting, finishing or breaking up ships or vessels; or

l z preserving or storing any article in cold storage.
It was held in State of Bombay v Ali Saheb Kashim Tamboli, [(1995) 2 LLJ 182)] that bidi making
is a manufacturing process.

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