Page 10 - DMGT306_MERCANTILE_LAWS_II

Unit 1: The Factories Act, 1948

Self Assessment Notes

State whether the following statements are true or false:
1. In 1981, Indian Factories Act was passed which gave protection to the employees, especially
to the children.

2. The Factories Act, 1934, was several times, amended and then the new Act of 1948 was
passed.
3. The amended Act also provided for investigations of all fatal accidents within a month of
their occurrence.

1.2 Definitions

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-

 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.

 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 mean a space enclosed by wall. [(in re K.V.V. Sharma v. Manager, Gemini Studio, Madras,
A.I.R 1953 Mad. 29.)] Any ‘premises’ to be categorised as factory two conditions must be fulfilled.
 Ten or more persons are employed in the premises using power or be employed not using
power.

 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.

 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

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