Dear all,
Pls go through the seminal case on this subject, which says, additional construction within the factory which registered under the Factories Act, 1948 warrants compliance under the BOCW Act;
Seminal Case
The fact that construction workers are not covered under the Factories Act, 1948, and are therefore entitled to welfare measures under the BOCW Act was put forth in the case of Lanco Anpara Power Ltd. V. State Of Uttar Pradesh & Others dated Oct. 10, 2016.
Facts of the case. The petitioner construction companies were issued various show cause notices for failing to register under the BOCW Act and for payment of tax under the BOCW Act. The validity of these notices were challenged in several writ petitions before various High Courts on the ground that the BOCW Act was not applicable to these factories as they were registered under the Factories Act. The petitioner construction companies, which are engaged in construction activities, argued that once the undertaking or the establishment had obtained a license for registration under the Factories Act, the BOCW Act was not applicable on account of the exclusion under Section 2(1)(d) of the BOCW Act. However, the respondents called for a more beneficial interpretation to the exclusion clause on the ground that the legislation must cater to the benefits of construction workers.
Issue. The issue before the Supreme Court was whether the BOCW Act was applicable to those premises that are registered under the Factories Act, 1948.
Judgment. The Court held that the establishments/premises registered under the Factories Act, 1948, employing construction workers in the construction of factory premises were not excluded from the application of the BOCW Act in terms of the exclusion clause. The Court reasoned that an establishment/premise would become a factory under Section 2 (m) of the Factories Act only when the manufacturing process as defined under Section 2(k) of the Factories Act commenced. Consequently, the provisions of the Factories Act would apply only when the manufacturing process commences, and even upon commencement of the manufacturing activity, it only covered those workers who are engaged in such manufacturing activity under the Factories Act and not construction workers.
Hence, construction activities which are carried out in relation to establishments/registered premises /licensed under the Factories Act, 1948, would not attract the exclusion clause of the BOCW Act by itself. Workers carrying on such activities would be covered under the BOCW Act.
Seniors may guide.
Regards,
Saravanakumar B