Page 14 - DMGT306_MERCANTILE_LAWS_II

Unit 1: The Factories Act, 1948

 Week means a period of seven days beginning at midnight on Saturday night or such Notes
other night as may be approved in writing for a particular area by the Chief Inspector of
Factories. [Section 2 (f)]
 Power means electrical energy, or any other form of energy, which is mechanically
transmitted and is not generated by human or animal agency. [Section 2 (g)]

 Prime Mover means any engine, motor or other appliance, which generates or otherwise
provides power. [Section 2 (h)]
 Transmission Machinery means any shaft, drum, pulley, system of pulleys, coupling clutch,
driving belt or other appliance or device by which the motion of a prime mover is
transmitted to or received by any machinery or appliance [Section 2 (i)]

 Machinery includes prime movers, transmission machinery and all other appliances,
whereby power is generated, transformed, transmitted or applied. [Section 2 (j)]

 Managing Agent has the meaning assigned to it in the Indian Companies Act, 1913 (VII of
1913). [Section 2 (o)]
 Prescribed means prescribed by rules made by the State Government under this Act.
[Section 2 (p)]
 Relay and Shift means where work of the same kind is carried out by two or more sets of
workers working during different periods of the day, each of such sets is called a ‘relay’
and each of such period is called ‘shift’. [Section 2 (r)].

Self Assessment

State whether the following statements are true or false:
4. The word ‘premises’ means close land or land with building or building alone.
5. The expression “manufacturing process” has been defined in Section 3(k) to mean any
process.
6. Child means a person, who has not completed his 15th year of age.

1.3 Approval, Licensing and Registration of Factories

The responsibility for getting the premises approved, when the factory is to be established, lies
on the occupier. Under Section 6 the State Government have been vested with the powers to
frame rules which are to be complied with. Section 4 empowers the State Government to declare
different departments’ or branches of a factory as separate factories, in case a request is made in
writing in this regard by the occupier. But there is no provision to enable two or more factories
of the same occupier being declared as a single factory. The State Governments are also
empowered to exempt any factory or any class of factories from all or any of the provisions of
the Act (except section 67) for a specified period on the conditions notified in case of public
emergency, which means grave emergency whereby the security of India or any part thereof is
threatened, whether by war or external aggression or internal disturbance. Such a notification
can be made for 3 months at a time.
1.3.1 Procedure for Approval, Licensing and Registration of Factories

The factory is to be got approved and registered after obtaining a license by the occupier in
accordance with the rules framed by the State Government in this behalf. The, State Governments
are empowered to frame rules requiring the occupier of a factory for the purposes of this Act for

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