Page 15 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes the submission of plans of any class or description of factories to the Chief Inspector or State
Government and to obtain previous permission of the Chief Inspector of Factories with regard
to site where factory is proposed to be constructed, or extension, in case the factory already
exists. A factory shall not be deemed to be extended by reason only of the replacement of any
plant or machinery if such replacement or addition does not reduce the minimum clear space
required for safe working around the plant or machinery or adversely affects the environmental
conditions from the evolution or emission of steam, heat or dust or fames injurious to health.
The occupier is required to submit full building plans along with necessary particulars of
specifications according to which the building is to be got approved in accordance with the
rules. The registration, obtaining of license or renewal of license, as the case may be, is to be
done by the occupier in accordance with the rule by paying the prescribed fees. The permission
relating to site on which the factory is proposed to be constructed or extension to be executed in
the existing factory in accordance with the plan is to be given within 3 months by the authority
to whom, the request is made. If no reply is received within the aforesaid period, the permission
is presumed. In case permission is refused then, in that case, the applicant may appeal to the State
Government if permission is refused by the Chief Inspector or to the Central Government if the
permission is refused by the State Government, within 30 days.

Did u know? No license or renewal of license shall be granted unless the occupier gives at
least 15 days notice in writing to the Chief Inspector of factories before he proposes to
occupy or use any premises as factory.
The notice shall state the full particulars of the factory, namely:
 the name and situation of the factory;

 the name and address of the occupier;
 the name and address of the owner of the premises or building;

 the nature of manufacturing process;
 the total rated horse power installed or to be installed in the factory, which shall not
include the rated horse power of any separate standby plant;

 the name of manager of the factory for the purpose of this Act;
 the number of workers likely to be employed in the factory ;
 the average number of workers per day employed during the last twelve months, in case
of a factory, is in existence on the date of the commencement of this Act;
 such other particulars as may be prescribed under the rules. [Section 7 (1)]
The occupier is required to give notice to the Chief Inspector of Factories containing the above
particulars with regard to those factories which were already functioning before this Act, within
30 days from the commencement of the Act [Section 7 (2)]. Before a factory engaged in a
manufacturing process which is ordinarily carried on for less than 180 working days in a year
resumes working, the occupier is required to send full particulars of the factory to the Chief
Inspector within 30 days of such resumption of work [Section 7 (3)]. Any change in the
appointment of a manager or the factory is to be intimated within 7 days by the occupier to the
Chief Inspector [Section 7 (4)]. During the time no manager functions in the factory, the occupier
is deemed as manager for the purpose of the Act. Non-compliance with the provisions of
Sections 6 and 7 is an offence for which the occupier can be punished.

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