Ananta S Ray
Dear sirs,

We are a registered company "X" under companies Act 1956 and having a license Agreement with one of port Trust for mechanization and operation and maintenance of conveyor system and providing service to the other manufacturing unit "Y" to transport their cargo from plant area to port area. company X is having cargo handling agreement with company "Y" for transporting their cargo with certain mutual agreed price.

Following are the registration of company "X" :
1. company X is having contract labour license under CLRA Act 1970 for engaging contract labour of 70 number for operation and maintenance of mechanization of conveyor system.

2. Company "Y" is a consortium member of company X having minor share holding
3 . 3.2 km of conveyors falling within the factory premises of company "Y" which is covering under factory license.
4. 3.00 KM of conveyors is falling outside of factory boundary having port ROW land which is not taken any factory license by "X" or "Y"
5. 3.00 km of conveyors are within the port limit which falls under Dock safety rules and regulation Act.


whether Company X is required to take Factory license for 3.00 km outside factory boundary or not?
what is the rule said for a service provider X is having a conveyor system for transporting cargo of Y company

awaiting your valuable legal opinion

From India, Mumbai
Labour Law & Hr Consultant
Management Consultancy

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Irrespective of the registration of that area by 'X' or 'Y' company, the workers engaged in that area, would be deemed to be engaged in "manufacturing process" and would be covered under the definition of "worker" under the Factories Act 1948 and would be entitled to all the benefits available for workers.

- S. K. Mittal

From India, Faridabad

Factory license is to be taken by the Owner thereof. Here who is owning the conveyor belt, normally it would be company Y and as service provider you are not required to obtain Factory License.
For detailed examination the agreement between Company X and Y is to be seen with reference to the applicable State Rules as per Section 6 of the Factories Act 1948.

From India, Mumbai

Dear friend,

In short Company X is a contractor of operation, maintenance and mechanization of conveyer system within the factory premises and outside stretch belonging to Company Y.

Therefore, it is suffice that you have taken contractor's license under the CLRA Act,1970. Even, if the conveyer stretch lying outside the area registered under the Factories Act, 1948 also falls under the Act, it is the responsibility of Company Y who is the owner of the system.

From India, Salem

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