Factories Act, 1948

L.K. Verma, a Safety Officer, was charged with using abusive language and threatening a superior and was placed under suspension. He appealed the suspension to the Labour Commissioner under Rule 14 of the U.P. Factories (Safety Officers) Rules, 1984, but was dismissed from service while the appeal was pending. The Labo…

The appellant, a petrol pump operator, challenged an order directing him to pay contributions under the Employees' State Insurance Act, 1948, arguing that his premises did not qualify as a "factory" within the meaning of the Act. The central issue was whether the activity of pumping petrol/diesel constituted a "manufac…

The appellants, workers employed in a statutory canteen of Indian Oil Corporation Ltd. (IOCL) at Haldia, were engaged through a contractor. They sought a writ directing IOCL to absorb and regularise them, arguing that the canteen is a statutory requirement under the Factories Act and that IOCL exercised control over th…

The Employees' State Insurance Corporation (ESIC) sought contributions from several manufacturing companies for casual daily‑wage workers employed to construct additional buildings for factory expansion. The Madras High Court held that such workers were not "employees" within the meaning of section 2(9) of the Employee…

Parimal Chandra and other canteen workers of the Life Insurance Corporation of India (LIC) filed a writ petition seeking to be treated as regular employees of LIC and to receive the minimum salary paid to Class IV employees, invoking the principle of equal pay for equal work. The High Court initially granted the relief…

The Delhi Gymkhana Club Ltd., a members' club with a kitchen and catering division employing more than twenty workers, was held by the Employees' State Insurance Corporation to be covered under the Employees' State Insurance Act, 1948 and was ordered to pay contributions for the period 1980-1985. The club challenged th…

The appellants, owners of factories in Andhra Pradesh, challenged a Government Order that raised the maximum licence fee under the Andhra Pradesh Factories Rules, 1950 from Rs.10,000 to Rs.18,00,000. They argued that the fee is a regulatory fee, not a tax, and therefore the principle of quid pro quo does not apply; the…

The Supreme Court examined applications by security agencies for exemption from the Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981. The State Government had rejected all exemption requests, citing a policy that granting exemptions would not be in the interest of the security guards…

The Reserve Bank of India (RBI) provided canteen facilities for its Class III and IV employees through three arrangements – an Implementation Committee, co‑operative societies and contractors – but had no statutory duty to run these canteens. The Central Government Industrial Tribunal held that 166 canteen workers were…

The petition filed under Article 32 by an association of about 2,000 employees of railway institutes and clubs sought to have these workers treated on par with employees of statutory railway canteens. The petitioners argued that the institutes and clubs are integral parts of the railways, receive grants‑in‑aid and othe…

The petitioners were workers in railway canteens classified as statutory, non‑statutory recognised, and non‑statutory non‑recognised. They sought to be treated as railway employees and to receive the same service conditions as other railway staff. The Court examined the statutory duty under Section 46 of the Factories …

The Consumer Education and Research Centre filed a public‑interest writ under Article 32 seeking protection for workers in asbestos mines and industries, alleging that the right to health and medical care is a fundamental right under Article 21 read with Articles 39(c), 41, 43 and 48A of the Constitution. The petition …

The appellants, employees of a canteen operating in the Steel Club of Bhilai Steel Plant, challenged their dismissal under Section 58 of the Madhya Pradesh Shops and Establishments Act, 1958, arguing that the Act applied to the club. The respondents contended that the club was a "club not being a residential club" and …

Mis. Graver and Weil (India) Ltd. manufactured sodium bichromate and transferred it to an adjoining Chromic Acid section where chromic‑acid flakes were produced using power. The flakes were removed without payment of excise duty and were seized. The Collector imposed a penalty and ordered confiscation; the Tribunal uph…

The Supreme Court examined whether directors of Jiyajirao Cotton Mills Ltd., a company that owned factories, could be held personally liable for unpaid wages under the Payment of Wages Act, 1936 as amended by the Madhya Pradesh Industrial Relations Act, 1960. The Court held that the Act does not incorporate the "occupi…

The petitioners, canteen workers in three defence establishments at Kanpur, retired after 22‑Oct‑1980 and claimed that their service in the canteens prior to that date should count as qualifying service for pension. The Union of India contended that before 22‑Oct‑1980 the canteens were managed by Canteen Managing Commi…

The respondent, Virendra Kumar Sharma, worked as an apprentice for CIMMCO Wagon Factory and received a stipend of Rs.250 per month, with a contractual clause stating the company had no obligation to employ him after training. No appointment letter or salary was ever paid, and letters recommending his appointment were w…

The Regional Director of the Employees' State Insurance Corporation sought contributions from the factories of High Land Coffee Works and Sons under the Employees' State Insurance Act, 1948. Section 1(4) of the Act excludes "seasonal factories," defined in Section 2(12). The factories were originally classified as seas…

The petitioners, J.K. Industries Ltd. and others, sought renewal of factory licences but were directed by the Chief Inspector of Factories to file applications signed only by a director, as the occupier, under Section 2(n) proviso (ii) of the Factories Act, 1948 (amended 1987). The Supreme Court examined whether a comp…

The case concerned workmen employed by a contractor to run a statutory canteen on the premises of Air India, which under Section 46 of the Factories Act, 1948, must provide such a facility. The workmen claimed they were deemed employees of Air India and sought regularisation and other employment benefits. The Supreme C…

The Supreme Court examined an appeal by S.M. Datta, the occupier of a factory, who sought to quash a criminal complaint filed by a Factories Inspector under Sections 61, 62 and 63 of the Factories Act, 1948. The complaint alleged that an adult worker was made to work beyond prescribed hours without his name being displ…

The Industrial Coal Enterprises (respondent) established a small‑scale manufacturing unit in Uttar Pradesh with a capital investment below Rs. 3 lakh and obtained sales‑tax exemption under Section 4‑A of the U.P. Sales Tax Act, 1948, effective from 9 August 1985. The unit later shifted to its own premises, raising its …

Kirloskar Brothers Ltd., a manufacturer with factories in Maharashtra and Deewas, set up regional offices in Secunderabad and Bangalore to sell its products. The State Governments of Andhra Pradesh and Karnataka treated these offices as establishments under Section 2(g) of the Employees' State Insurance Act, 1948 and i…

The Christian Medical College, a hospital, operates an Equipment Maintenance Department with 45 workers that repairs and maintains medical equipment. The Employees' State Insurance Corporation (ESIC) issued a notice that the department fell within Section 2(12) of the Employees' State Insurance Act, 1948 (ESI Act) and …

V. Sasidharan, a clerk in a firm of lawyers, was dismissed and appealed under the Kerala Shops and Commercial Establishments Act, 1960. The firm contended that it was not a "commercial establishment" within the meaning of the Act, leading the Appellate Authority to dismiss the appeal on a preliminary objection. The Hig…

The State of Maharashtra terminated the services of 256 workmen employed on 25 lift‑irrigation schemes after transferring the schemes to a sugar factory. The workmen claimed entitlement to reinstatement and backwages, arguing that the termination was a breach of Section 25N of the Industrial Disputes Act, 1947, while t…

The Supreme Court considered a series of civil appeals arising from dismissals of bank employees who sought relief under various State Shops and Establishments Acts. The banks argued that the Acts did not apply to them because they were "establishments under the Central Government" and thus fell within the exemption in…

The Union of India appealed a decision of the Central Government Labour Court which had granted overtime wages at double the ordinary rate to 78 employees of the India Security Press, Nasik, under s.59 of the Factories Act read with s.70 of the Bombay Shops and Establishments Act, 1948. The appellants argued that the r…

The appellants were selected by the Bihar Public Service Commission as Motor Vehicle Inspectors under recruitment rules that required specific technical qualifications and years of practical experience. Several writ petitions challenged their appointments on the ground that the candidates lacked the requisite experienc…

The Currency Note Press, a government-owned corporation, was sued by 17 former employees who claimed overtime wages for work done between 1986 and 1990 under Section 33-C(2) of the Industrial Disputes Act, 1947. The Labour Court dismissed their applications, but the Bombay High Court set aside that order and granted th…

The case concerned workers of the Ordinance Clothing Factory, Avadi, who were divided into day workers and piece‑rated workers. The Union of India, on behalf of the piece‑rated workers, sought direction that they be paid overtime wages at double the ordinary rate for the 3¼ hours worked each week beyond the normal 44¾‑…

Lanco Anpara Power Ltd was constructing a thermal power plant and had obtained registration under the Factories Act. The State authorities issued show‑cause notices under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (BOCW Act) and the Buildings and Other Con…

The appellants, supervisory employees of the Security Printing and Minting Corporation of India Ltd., claimed double overtime allowance under Section 59(1) of the Factories Act, 1948 for work performed between 1988 and 2005. Their claim arose while they were central government servants holding civil posts, and therefor…

The case concerned Time Keepers employed in various workshops of the Eastern Railway who were recruited as clerical staff but were held to be workers under the Factories Act, 1948. The Railway Board issued orders granting the Fifth Pay Revision Commission benefits from 18 February 2000 only to certain workshops, exclud…

Kunji Raman and 36 other work‑charged employees of the Mahi Sagar Project filed a writ petition alleging that the Rajasthan Service Rules, 1951 and the Rajasthan Service (Concessions on Project) Rules, 1962/1975 were inapplicable to them, depriving them of house‑rent allowance, project allowance and leave encashment. T…

The appellant, Ajay Raj Shetty, who was employed as General Manager/Technical Coordinator of M/s Electriex (India) Ltd., was convicted under Section 85(i)(b) of the Employees' State Insurance Act, 1948 for failing to remit ESI contributions that had been deducted from employees' wages. The issue before the Supreme Cour…

The State Bank of India (SBI) was challenged by its Canteen Employees' Union, which claimed that canteen staff employed by Local Implementation Committees (LIC) under SBI's welfare scheme were de facto SBI employees and should be absorbed. The Industrial Tribunal held there was no employer‑employee relationship because…

The Supreme Court examined a public‑interest writ petition filed by environmental activist M.C. Mehta on behalf of Delhi residents challenging two orders that prohibited Shriram Foods & Fertiliser Industries from operating its caustic‑chlorine plant in a densely populated area of Delhi. After a series of oleum‑gas leak…

The appellants, who were managers of a canteen in a sugar mill, claimed overtime wages and filed an application under Section 33C(2) of the Industrial Disputes Act, 1947. The Labour Court allowed the claim on the basis of punch‑card records, but the High Court set aside the award, holding that Section 33C(2) is an exec…

The Supreme Court examined an appeal arising from the closure of a data processing division of a computer services company. The central question was whether the activities of data processing and software preparation constitute a "manufacturing process" under Section 2(k) of the Factories Act, 1948, thereby rendering th…

The Employees' State Insurance Corporation inspected Mis. Hotel New Nalanda and, noting a refrigerator and grinder, deemed it a "factory" under s.2(12) of the Employees State Insurance Act, 1948, directing compliance. The hotel contested, asserting it was a tourist home with fewer than ten employees and no manufacturin…

Sunil Industries, a sole‑proprietor workshop shaping steel sheets, employed Ram Chander Pradhan as a press operator. While operating a press, Pradhan suffered injuries to his right index finger and thumb, leading to amputation of part of the finger. He filed a claim under the Workmen's Compensation Act, 1923 and was aw…

Indian Oil Corporation Ltd., a government‑owned company, applied for a factory licence for its Namkum storage unit. The Chief Inspector of Factories refused, deeming the depot manager not an occupier because, under clause (ii) of the first proviso to Section 2(n) of the Factories Act, only a director of a company could…

Bhushan Power & Steel Ltd. (appellant) entered into a Memorandum of Understanding (MOU) with the State of Orissa on 15 May 2002, wherein the State agreed to recommend iron‑ore mining leases for the appellant’s integrated steel plant. After restructuring of the Bhushan group, the State claimed the MOU had ceased and dem…

The Association of Engineering Workers filed a complaint under Item 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, alleging that Hindalco Industries treated its canteen staff as contract workers to avoid granting permanency and benefits. The Industri…

The workmen employed in the canteen of Air India, which was operated by Chef Air, a unit of the Hotel Corporation of India (HCI), claimed they were regular employees of Air India. Air India argued that HCI was a separate legal entity and that it had no control over the workers' hiring, wages, or discipline. The Supreme…

The Supreme Court considered whether workmen of the Government Mint in Calcutta, who were allotted government accommodation and therefore did not receive house rent allowance (HRA), could notionally include HRA in the "ordinary rate of wages" for calculating overtime allowance under Section 59 of the Factories Act, 194…

A group of canteen workers employed through a contractor filed writ petitions seeking to be regularised as employees of Mishra Dhatunigam Ltd. and other respondents, invoking the statutory duty under the Factories Act to provide a canteen. The Andhra Pradesh High Court allowed the writs, directing the employers to trea…

National Thermal Power Corporation Ltd. (NTPC), a public sector undertaking, was statutorily obligated under Section 46 of the Factories Act, 1948 to provide a canteen for its employees. The canteen was operated by contractors, employing about 54 workers. The workers filed a writ petition seeking regularisation as NTPC…

The landlords of Prem Talkies obtained vacant possession of the building in 1984 and later intended to let it out as a fully equipped cinema theatre to the Mehrotras. The appellant, Satya Narain Pandey, applied for allotment of the building under the U.P. Urban Buildings (Regulation of Letting, Rent and Eviction) Act, …

The Uttaranchal Forest Development Corporation engaged daily‑wage workers for measuring wood and protecting timber. When work ceased, the workers were retrenched under Section 6‑N of the U.P. Industrial Disputes Act. The Labour Court held the retrenchment valid, saying the corporation was not an "industrial establishme…

The case concerned a senior judicial officer, R.R. Parekh, who was dismissed from service after two disciplinary inquiries found him guilty of misconduct for awarding sentences below the statutory minimum under Section 135 of the Customs Act, allegedly motivated by corrupt or oblique motives. The High Court had revisit…

The West Bengal Factories Service comprised three categories of inspectors – general, chemical and medical – each with separate recruitment rules and pay scales. After the Bhopal disaster, the State created a chemical cadre with a lower pay scale and limited promotional prospects, prompting chemical inspectors to seek …

The appellant, Savita Chemicals Ltd., sought a declaration that a strike by the Dyes and Chemical Workers Union was illegal under Sections 24(1)(a) and 24(1)(i) of the Maharashtra Recognition of Trade Unions & Prevention of Unfair Labour Practices Act, 1971. The union had issued a strike notice during the subsistence o…

The petitioners were workmen appointed on an ad‑hoc basis for the Anpara‑Rihand Nagar railway construction project of Indian Railway Construction Co. Ltd. (IRCON). After the project was completed in early 1998, they were served with retrenchment notices and offered compensation under Section 25‑F of the Industrial Disp…

The Supreme Court entertained a public‑interest writ filed by M.C. Mehta challenging the employment of children below fourteen in hazardous factories and mines in Sivakasi and elsewhere, alleging violation of the fundamental right under Article 24 of the Constitution. The Court examined the constitutional mandate under…

The State of Madhya Pradesh appealed against a Madhya Pradesh High Court judgment that had held the electricity duty payable by Mis. Birla Jute Manufacturing Co. Ltd. for power consumed at its limestone mine premises should be calculated at the lower rate under Item (2) of the Table to Section 3 of the Madhya Pradesh E…

East India Hotels Ltd., an approved hotel, claimed both the extra depreciation allowance under clause (iii) and the extra shift depreciation allowance under clause (iv) of Item III of Appendix I to the Income Tax Rules for AY 1977-78. The Revenue argued that an approved hotel could claim only the extra depreciation all…

The Osmania University’s Department of Publications and Press operates printing presses employing about 100 workers. The university challenged the applicability of the Employees' State Insurance Act, 1948 to its employees, arguing that the department did not constitute a "factory". The Supreme Court examined the defini…

On 3 March 1989 a fire broke out at temporary pandals erected for Tata Iron and Steel Company's Foundation Day, killing and injuring many. The Inspector of Factories conducted a preliminary investigation on 5‑6 March 1989 and later received a detailed committee report on 23 April 1990; a criminal complaint was filed on…

The Supreme Court examined the Delhi Master Plan (2001) under the Delhi Development Act, 1957, which categorises hazardous, noxious, heavy and large industries (H‑a and H‑b) as prohibited in Delhi and mandates their relocation within three years. The Court found that 168 such industries continued to operate illegally, …

VST Industries Ltd., a cigarette manufacturing company, operated a canteen for its workers under Section 46 of the Factories Act, 1948. After 1982 the canteen was managed by private contractors, but the workers continued to be employed and received wages, ESI and PF benefits through the contractors, while the company s…

The Collector of Central Excise appealed against the Customs, Excise and Gold (Control) Appellate Tribunal’s order allowing Himalayan Cooperative Milk Product Union Ltd. to claim exemption from excise duty on liquid nitrogen under Notification No. 105/80‑CE. The notification exempts goods falling under Item 68 of the F…

The Employees' State Insurance Corporation (ESIC) sought to include the Managing Director (MD) of Apex Engineering Pvt. Ltd., Shri V.N. Dhanwate, among the company's employees for purposes of coverage under Section 2(12) of the Employees' State Insurance Corporation Act, 1948. The lower courts held that the MD was not …

The appellants, industrial units manufacturing toffees in Uttar Pradesh, applied for eligibility certificates under a 1991 notification granting sales‑tax exemption to new and expanding units, but were denied on the ground that toffee was a "sweetmeat" listed in Annexure II of the notification. The High Court upheld th…

The Peoples Rights and Social Research Centre (PRASAR), a Delhi‑based NGO, filed a writ petition under Article 32 seeking relief for the widespread occurrence of silicosis among workers in mining, construction, stone‑cutting and sand‑blasting industries. The petition alleged violations of fundamental rights under Artic…

The National Kamgar Union (appellant) challenged the closure of Kran Rader Pvt. Ltd.'s manufacturing unit, alleging that more than 100 workers were employed and that the employer failed to comply with Section 25-K of Chapter VB of the Industrial Disputes Act, 1947. The Industrial Court had held that 115 workers were em…

The case involved 25 workmen employed by Indian Railway Construction Co. Ltd. (IRCON) on the Rihand Nagar railway line project who were served retrenchment notices in 1993 stating that most work was completed. The workmen challenged the notices, arguing that the project constituted a "factory" under the Factories Act, …

The workmen employed in the statutory canteen of Indian Petrochemicals Corporation Ltd. filed a writ petition seeking declaration that they were regular employees of the corporation and were entitled to regularisation, pay scales and arrears. The Bombay High Court held that, relying on Parimal Chandra Raha v. LIC, the …

An inspection of Tata Steel's Growth Shop and Fabrication Yard revealed violations of the Factories Act, 1948 and Bihar Factories Rules, including lack of overtime slips, absence of leave books for contract labour, and several canteen deficiencies. Cognizance was taken against the occupier, Heman Madhusudan Nerurkar, a…

The appellant, a director of Ideal Jawa (India) Ltd., was charged under Section 14A of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 for failing to deposit EPF contributions for October‑December 1990. He contended that, as merely a director and not the occupier or manager, he was not an "employe…

The petitioners, about 300 catering cleaners employed by contractors on the Southern Railway, alleged that they were paid meagre wages and denied statutory benefits, and sought a writ of mandamus under Article 32 to compel the abolition of the contract‑labour system and their regularisation as railway employees. The Co…

The appellants were canteen workers at the Moradabad Division of the Northern Railway who claimed that their canteen should be treated as a statutory canteen under the Factories Act, 1948 and that their services should be regularised. The respondents argued that the canteen was a non‑statutory, non‑recognised facility …

The S.G. Chemicals and Dyes Trading Employees' Union challenged the closure of the company’s Churchgate marketing and sales division, arguing that the closure violated section 25‑0 of the Industrial Disputes Act and amounted to an unfair labour practice under Item 9 of Schedule IV of the Maharashtra Recognition of Trad…

Prem Singh, a welder, worked for about 37 years in a work‑charged establishment of the Uttar Pradesh government and was later regularised before superannuation. He claimed that the period spent in the work‑charged establishment should be counted as qualifying service for pension under the Uttar Pradesh Retirement Benef…

Bombay Anand Bhavan Restaurant, a proprietorship engaged in preparing sweets, savories, coffee and tea, employed more than ten workers and used LPG gas to operate a bottle cooler and coffee roaster. The Deputy Director of the Employees' State Insurance (ESI) Corporation directed the restaurant to pay contributions unde…

The case concerned whether M/s Endocrinology and Immunology Lab, a pathological laboratory, fell within the ambit of the Employees' State Insurance Act, 1948 and, if so, from which date. The High Court had held that the lab was covered from 6 September 2007 under a Kerala government notification that extended the Act t…

The State of Goa filed a complaint alleging that the respondent's professional laundry service operated as a factory without a valid licence, violating the Factories Act, 1948. A Judicial Magistrate First Class issued summons on the basis of the complaint, but the High Court quashed the process, holding that dry‑cleani…

The respondent, B.K. Vijay, was appointed as a Safety Officer in BHEL's Jhansi factory and, although placed in the non‑executive SA‑II cadre, was given the status of a Senior Executive under Rule 5 of the U.P. Factories (Safety Officers) Rules, 1984. He filed a writ petition seeking to be treated as a Senior Executive …

The Supreme Court examined a Karnataka Government notification issued under Section 10 of the Contract Labour (Regulation & Abolition) Act, 1970 that prohibited the employment of contract labour in industrial canteens of factories employing 250 or more workers. The petitioners argued that canteen work is not part of th…

Continental Chemicals Ltd. obtained a sales tax registration in November 1985 and made a trial sale on 1‑Nov‑1985, but only acquired permanent registration as an industrial unit on 11‑Sep‑1986 and began actual production on 3‑Mar‑1986, with its first sale on 5‑Mar‑1986. The company applied for a six‑year sales‑tax exem…

Polymat India Ltd. and an associate insured their factory premises against fire under two policies issued by National Insurance Co. Ltd. The policies described the location as "factory‑cum‑godown" and the insured answered in the negative to a query about goods stored in the open. After a fire destroyed the building, pl…

The Gujarat Mazdoor Sabha and a national trade union challenged two Gujarat State notifications issued under Section 5 of the Factories Act, 1948 that exempted all factories from provisions on working hours, rest intervals and overtime pay during the COVID‑19 pandemic. The petitioners argued that the pandemic did not c…

The petitioners, daily‑rated carpenters employed by the Himachal Pradesh State Handicrafts Corporation, filed a writ petition under Article 32 seeking "equal pay for equal work" with regular government carpenters or, alternatively, the minimum wages fixed by the Deputy Commissioner. The respondents argued that the corp…

The Worth Trust, a charitable organization that also runs commercial factories, was challenged by its workers' union for payment of bonus and ex-gratia for the year 1996-97. The union argued that the workers, employed in the Trust's factories, fall within the definition of "workmen" under the Factories Act and are ther…