Harsh Kumar Mehta
Consultant In Labour Laws/hr
Sr. Manager Hr/admin
Labour Laws Consultants
Head - H R
Korgaonkar K A
Private Consultant On Labour Laws
Sr.manager-hr Monarch Catalyst Pvt.ltd.
23rd June 2014 From India, Bangalore
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
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
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
#AnonymousDo 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
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
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
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.
Member since Aug 2011
26th June 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