Harsh Kumar Mehta
Consultant In Labour Laws/hr
Sr. Manager Hr/admin
Apex Management
Labour Laws Consultants
Head - H R
Korgaonkar K A
Private Consultant On Labour Laws
Sr.manager-hr Monarch Catalyst Pvt.ltd.
+3 Others

Thread Started by #Anonymous

Dear All,
An establishment engaged in development of designs having 150 plus employees, is registered under S&E Act.
The said establishment has one HP indigo printer which is a big in size. The establishment runs this printer occasionally and not regularly, as and when required. The prints are sent to the clients as sample for approval of designs. This printer is attended by only one person. The person who attend this printer is not appointed to attend this printer only.
Under this circumstances, my question is, whether the provisions of Factory Act applies to this establishment? I expect the discussion by experts on this subject, if yes - why? and if not -why?
23rd June 2014 From India, Mumbai
Hi As per my view I thing Factory act will not be applied for your organisation.
23rd June 2014 From India, Bangalore
Hi As per my view I thing Factory act will not be applied for your organisation. but still awaiting for others valuable inputs tooo
23rd June 2014 From India, Bangalore
Dear Queriest,
My view is as under:
The manufacturing process i.e. printing is carried out in the premises of establishment not on regular basis and seems to be very casual in nature. Hence the provisions of Factories Act should not be applied. Please refer case of Jain Movie Palace v. State of Bihar 2007 I LLJ 916 (Jhark JC).
One can have different view here. Experts are requested to comment.
23rd June 2014 From India, Mumbai
Dear Keshavji,
The Establishment at first stage is registered under S&E Act and as such there are no manufacturing activities carried out in the establishment.
Hence, the Factories Act should not be applied.
24th June 2014 From India, Mumbai
The basic of for Factories act is any material (Raw Material) been brought inside and modified the shape of raw material(Finished Goods) or repacking with multi sizes / multi weight with the help of electric and machine power will be considered as factory.
In your case only Printing industry law will be applicable it can be part of S&E act
K R Ravi
24th June 2014 From India, Bangalore

1. In my opinion, the question of size of the printer, whether it is used occasionally or regularly, or whether the said printer is used by only one person for very short period etc. are not so material and not important. The only question is whether the "development of designs" and printing of the same with the help of one HP Printer is "manufacturing process" as mentioned in section 2(k)(iv) read with section 2(m) of the Factories Act, 1948.

2. The case of Jain Movie Palace v. State of Bihar as mentioned by Sh. Korgaonkarji perhaps relate to use of generator in a cinema hall for use as and when there was no electricity supply and the hon'ble court in that case held that the use of said generator set was not use of power in "ordinarily" sense as laid down in section of Factories Act, 1948 as mentioned above.

3. In my opinion, the establishment qualifies to be covered as "factory" under provisions of the Factories Act, 1948 because use of power is there for manufacturing process i.e. for printing of designs, which are( as reported) further sent to clients for approval.

4. However, if the case is contested in the hon'ble court then it can be a matter of new controversy because now with the advancement of science and technology, the printers/printing machines and its process has been changed and automation has taken place. I could not find relevant case law on use of HP printers as manufacturing process. Perhaps, seniors and experts may also guide in the matter.
24th June 2014 From India, Noida
It should be Register Under The Factory Act-1948 as it's applicable here.
All seasonal and non seasonal manufacturing units should be register under The Factory Act-1948 but as u said this unit has been run under the required.
Even also you just contact Factory Inspector for better conclusion.
24th June 2014 From India, Hyderabad
Dear Harsh Kumar ji,
I duly accept what you say.
But, I feel the H'ble SC has distinguished between the core activity and ancillary activity in this case and decided that the ancillary activity is not a manufacturing process.
And accordingly I applied the logic in a given case in which core activity is designing and the printout is ancillary one.
24th June 2014 From India, Mumbai
It is not a Factory.
Factory means 10 persons working with power and 20 persons working
without power and wherein manufacturing activity takes place.
Taking out prints from the printer is not a manufacturing activity.
24th June 2014 From India, Hyderabad
Do you have guarantee to get better conclusion from Factory Inspector? How many govt officers you found equipped with knowledge?
Probably you may get a conclusion in your favour if you sphere GANDHI BAPU. Rather, you will definitely get conclusion in you favour with GANDHI BAPU.
Atleast, in Maharashtra, I have not come across even one percent officials from Factory & Labour dept who are cocern with Law.
24th June 2014 From India, Mumbai
Please see that as per the definition of Factory in Factories Act the railway running shed or hotel or restaurant or eating place is excluded fro the definition even though power may be used there.In explanation 11 of it says that the mere fact that EDP unit or computer unit is installed in a premise will not make it a factory if no other manufacturing activity is carried on there.
This shows that it is the core activity that determines the manufacturing activity /factory.
As such having a printer will not make the firm a factory unless it is the core activity.This is worth for a test case.

24th June 2014 From India, Thiruvananthapuram
Dear all,
I agree with the remarks of Shri Harsh Mehta, development of designs and its printing falls within the definition of manufacturing under section 2k of the Factories Act 1948. Even the establishments engaged in the computer software development are also covered /cover able in certain States under section 2(m)(1) of the Act.
25th June 2014 From India, Delhi
In my opinion, preparation of drawings & design is not a manufacturing activity & it would fall under the catagory of service. Factory Act is not apllicable. The case is identical to any IT company, they work with similar infrastructure.
Satish Akut
25th June 2014 From India, Pune
My dear Anonymous,
You have diverted the mind of the members by mentioing that the said establishment has one big HP indigo printer,which runs occasionally but what I could perceive is that your main activity remains the "development of designs" for which 150 plus employees are engaged.In my opinion, the development of designs is nothing but COMPOSING, which is already covered under the definition of 'manufacturing process' given under Section 2(k) of the Factories Act,1948.Though you have mentioned that the prints are sent to the clients as sample for approval of designs but you have not mentioned what is your next step of activity. I am sure these designs are printed for commercial use. If I am correct, the whole process matches the ingredients of definition under 2(k) of the Act and hence it is the 'manufacturing process.' As such your establishment needs to be registered under the Factories Act.
BS Kalsi
Member since Aug 2011
26th June 2014 From India, Mumbai
Then all software companies and Design Offices are to be brought under the purview of Factories Act. The printer, xerox machine, Fax, computers are same category. Factory Act does not apply here. Pon
11th July 2014 From India, Lucknow
Amit Chaudhari,
I didn't claim to be correct in my mail.I gave my opinion/views based on the facts of the query.The members are within their rights to agree or differ with my views.
BS Kalsi
Member since Aug 2011
18th July 2014 From India, Mumbai
While going through the facts of the case and also the definition of section 2k, Mr. Kalsi is right. The manufacturing process with the aid of power and employing merely 10 employees falls within the preview of the Factories Act.
I totally agree with Mr.Kalsi.
18th July 2014 From India, Delhi
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