Understanding Factory Liability: How Do Managers Navigate Legal Exemptions and Accident Reporting?

Factories Act 1948 Section 101

Exemption of occupier or manager from liability in certain cases: Where the occupier or manager of a factory is charged with an offence punishable under this Act, he shall be entitled, upon a complaint duly made by him and on giving the prosecutor not less than three clear days' notice in writing of his intention to do so, to have any other person whom he charges as the actual offender charged. If, after the commission of the offence has been proved, the occupier or manager of the factory proves to the satisfaction of the Court:
- That he has used due diligence to enforce the execution of this Act
- That the said other person committed the offence in question without his knowledge, consent, or connivance

Then, that other person shall be convicted of the offence and shall be liable to the same punishment as if he were the occupier or manager of the factory. The occupier or manager, as the case may be, shall be discharged from any liability under this Act concerning such offence.

Provided that in seeking to prove as aforesaid, the occupier or manager of the factory may be examined on oath, and his evidence and that of any witness whom he calls in his support shall be subject to cross-examination on behalf of the person he charges as the actual offender and by the prosecutor.

Furthermore, if the person charged as the actual offender by the occupier or manager cannot be brought before the court at the time appointed for hearing the charge, the court shall adjourn the hearing from time to time for a period not exceeding three months. If, by the end of the said period, the person charged as the actual offender still cannot be brought before the court, the court shall proceed to hear the charge against the occupier or manager and shall, if the offence is proved, convict the occupier or manager.

Factories Act: Sec 88 Notice of certain accidents

Where in any factory an accident occurs that causes death or bodily injury, by reason of which the injured person is prevented from working for a period of forty-eight hours or more immediately following the accident, the manager of the factory shall send notice to the relevant authorities in the prescribed form and within the specified time.

The State Government may make rules for regulating the procedure at inquiries under this section.

Thank you for your attention to this matter.

The two provisions are not interrelated and hence dealt with separately:

Section 101: Exemption of Factory Occupier or Manager from Liability in Prosecution Proceedings

Section 101 deals with the exemption of a Factory Occupier or Manager from liability in prosecution proceedings. This clause is applicable when a Factory Occupier or Manager is charged with violating the Factory Act provisions. They can plead before the court, "I am not responsible, Mr. X is responsible." Such a person will be held responsible if the commission of the offense is proved. Before the plea is taken up, the Factory Occupier or Manager must give three days' clear notice to the Public Prosecutor nominated by the State in the matter. Still, such a Factory Occupier or Manager has to prove that they have used due diligence to enforce the execution of this Act, and that the said other person committed the offense in question without their knowledge, consent, or connivance. The other person shall be convicted of the offense and shall be liable to the punishment as if they were the occupier or manager of the factory.

The person charged as the actual offender by the occupier or manager has to be brought before the court at the time appointed for hearing the charge, and at any rate within a period of three months. If by the end of the said period the person charged as the actual offender cannot still be brought before the court, the court shall proceed to hear the charge against the occupier or manager and shall, if the offense be proved, convict the occupier or manager.

Notice of Accident - Section 88

Section 88 specifically provides that if, as a result of any accident, injury is caused to a person by which the person injured is prevented from working for a period of forty-eight hours or more immediately following the accident, or if the accident is of such nature as is prescribed in this behalf in the Rules, the manager of the factory shall send notice thereof as per the Rules in this regard. In case of death, the Factory Inspector has to hold an inquiry into the accident within one month of the accident. In this regard, the Rules applied by the respective State Government are very important and provide the operational guidelines which have to be adhered to.

Thanks, sir. Much appreciated.

In Section 88, examples: If a person gets injured, it means he lost his hand. In this case, when do we have to inform the factory inspector? Please explain the time frame for the above case.

Example 2: In the case of a fatality within the premises, when should it be reported to the factory inspector within the specified time frame? In which form should it be reported, and who is the responsible person to inform the incidents to the factory inspectors?

Sir, please see the attachment. It answers the query in a simple way.