Dear All,
An establishment engaged in the development of designs, with 150 plus employees, is registered under the S&E Act. The said establishment has one HP Indigo printer, which is large in size. The establishment runs this printer occasionally and not regularly, as and when required. The prints are sent to the clients as samples for approval of designs. This printer is attended to by only one person. The person who attends to this printer is not appointed solely for this task.
Under these circumstances, my question is, whether the provisions of the Factory Act apply to this establishment? I expect a discussion by experts on this subject. If yes, why? And if not, why?
From India, Mumbai
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2584An establishment engaged in the development of designs, with 150 plus employees, is registered under the S&E Act. The said establishment has one HP Indigo printer, which is large in size. The establishment runs this printer occasionally and not regularly, as and when required. The prints are sent to the clients as samples for approval of designs. This printer is attended to by only one person. The person who attends to this printer is not appointed solely for this task.
Under these circumstances, my question is, whether the provisions of the Factory Act apply to this establishment? I expect a discussion by experts on this subject. If yes, why? And if not, why?
From India, Mumbai
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Hi As per my view I thing Factory act will not be applied for your organisation.
From India, Bangalore
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From India, Bangalore
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Hi As per my view I thing Factory act will not be applied for your organisation. but still awaiting for others valuable inputs tooo
From India, Bangalore
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From India, Bangalore
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Dear Queriest,
My view is as follows: The manufacturing process, i.e., printing, is carried out in the premises of the establishment not on a regular basis and seems to be very casual in nature. Hence, the provisions of the Factories Act should not be applied. Please refer to the case of Jain Movie Palace v. State of Bihar 2007 I LLJ 916 (Jhark JC).
One can have a different view here. Experts are requested to comment.
From India, Mumbai
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My view is as follows: The manufacturing process, i.e., printing, is carried out in the premises of the establishment not on a regular basis and seems to be very casual in nature. Hence, the provisions of the Factories Act should not be applied. Please refer to the case of Jain Movie Palace v. State of Bihar 2007 I LLJ 916 (Jhark JC).
One can have a different view here. Experts are requested to comment.
From India, Mumbai
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Dear Keshavji,
The establishment, at the first stage, is registered under the S&E Act, and as such, there are no manufacturing activities carried out in the establishment. Therefore, the Factories Act should not be applied.
Satishkumar
From India, Mumbai
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The establishment, at the first stage, is registered under the S&E Act, and as such, there are no manufacturing activities carried out in the establishment. Therefore, the Factories Act should not be applied.
Satishkumar
From India, Mumbai
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Hi,
The basic premise of the Factories Act is that any raw material brought inside a facility and then modified in terms of shape (resulting in finished goods) or repacked in various sizes or weights using electric and machine power will be considered a factory.
In your specific case, only the laws pertaining to the printing industry will be applicable, as it may fall under the Safety and Environment Act.
Regards,
K R Ravi
Bangalore
From India, Bangalore
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The basic premise of the Factories Act is that any raw material brought inside a facility and then modified in terms of shape (resulting in finished goods) or repacked in various sizes or weights using electric and machine power will be considered a factory.
In your specific case, only the laws pertaining to the printing industry will be applicable, as it may fall under the Safety and Environment Act.
Regards,
K R Ravi
Bangalore
From India, Bangalore
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Dear Sir(s),
In my opinion, the question of the size of the printer, whether it is used occasionally or regularly, or whether the said printer is used by only one person for a very short period, etc., is 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 a "manufacturing process" as mentioned in section 2(k)(iv) read with section 2(m) of the Factories Act, 1948.
The case of Jain Movie Palace v. State of Bihar as mentioned by Sh. Korgaonkarji perhaps relates to the use of a generator in a cinema hall for use as and when there was no electricity supply, and the honorable court in that case held that the use of the said generator set was not the use of power in the "ordinarily" sense as laid down in section of the Factories Act, 1948 as mentioned above.
In my opinion, the establishment qualifies to be covered as a "factory" under the provisions of the Factories Act, 1948 because the use of power is there for the manufacturing process, i.e., for printing designs, which are (as reported) further sent to clients for approval.
However, if the case is contested in the honorable court, then it can be a matter of new controversy because now with the advancement of science and technology, the printers/printing machines and their process have changed, and automation has taken place. I could not find relevant case law on the use of HP printers as a manufacturing process. Perhaps seniors and experts may also guide on the matter.
From India, Noida
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In my opinion, the question of the size of the printer, whether it is used occasionally or regularly, or whether the said printer is used by only one person for a very short period, etc., is 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 a "manufacturing process" as mentioned in section 2(k)(iv) read with section 2(m) of the Factories Act, 1948.
The case of Jain Movie Palace v. State of Bihar as mentioned by Sh. Korgaonkarji perhaps relates to the use of a generator in a cinema hall for use as and when there was no electricity supply, and the honorable court in that case held that the use of the said generator set was not the use of power in the "ordinarily" sense as laid down in section of the Factories Act, 1948 as mentioned above.
In my opinion, the establishment qualifies to be covered as a "factory" under the provisions of the Factories Act, 1948 because the use of power is there for the manufacturing process, i.e., for printing designs, which are (as reported) further sent to clients for approval.
However, if the case is contested in the honorable court, then it can be a matter of new controversy because now with the advancement of science and technology, the printers/printing machines and their process have changed, and automation has taken place. I could not find relevant case law on the use of HP printers as a manufacturing process. Perhaps seniors and experts may also guide on the matter.
From India, Noida
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Hi,
It should be Register Under The Factory Act-1948 as it's applicable here. All seasonal and non-seasonal manufacturing units should be registered under The Factory Act-1948, but as you said, this unit has been run under the required. Also, please contact the Factory Inspector for a better conclusion.
From India, Hyderabad
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It should be Register Under The Factory Act-1948 as it's applicable here. All seasonal and non-seasonal manufacturing units should be registered under The Factory Act-1948, but as you said, this unit has been run under the required. Also, please contact the Factory Inspector for a better conclusion.
From India, Hyderabad
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It is not a factory. Factory means 10 persons working with power and 20 persons working without power, wherein manufacturing activity takes place. Taking out prints from the printer is not a manufacturing activity.
From India, Hyderabad
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From India, Hyderabad
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Please see that as per the definition of Factory in the Factories Act, the railway running shed, hotel, restaurant, or eating place is excluded from the definition even though power may be used there. In explanation 11, it says that the mere fact that an EDP unit or computer unit is installed on 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 considering for a test case.
Email: varghese21283@gmail.com
Phone: 9961266966
From India, Thiruvananthapuram
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Email: varghese21283@gmail.com
Phone: 9961266966
From India, Thiruvananthapuram
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Dear all,
I agree with the remarks of Shri Harsh Mehta. The development of designs and their printing falls within the definition of manufacturing under section 2k of the Factories Act 1948. Even the establishments engaged in computer software development are also covered in certain states under section 2(m)(1) of the Act.
Regards
From India, Delhi
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I agree with the remarks of Shri Harsh Mehta. The development of designs and their printing falls within the definition of manufacturing under section 2k of the Factories Act 1948. Even the establishments engaged in computer software development are also covered in certain states under section 2(m)(1) of the Act.
Regards
From India, Delhi
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In my opinion, preparation of drawings and design is not a manufacturing activity; it would fall under the category of service. The Factory Act is not applicable. The case is identical to any IT company; they work with similar infrastructure.
Satish Akut
From India, Pune
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Satish Akut
From India, Pune
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My dear Anonymous,
You have diverted the mind of the members by mentioning that the said establishment has one big HP Indigo printer, which runs occasionally. However, 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 samples for approval of designs, you have not mentioned what your next step of activity is. I am sure these designs are printed for commercial use. If I am correct, the whole process matches the ingredients of the definition under 2(k) of the Act, and hence it is the 'manufacturing process.' Therefore, your establishment needs to be registered under the Factories Act.
BS Kalsi Member since Aug 2011
From India, Mumbai
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You have diverted the mind of the members by mentioning that the said establishment has one big HP Indigo printer, which runs occasionally. However, 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 samples for approval of designs, you have not mentioned what your next step of activity is. I am sure these designs are printed for commercial use. If I am correct, the whole process matches the ingredients of the definition under 2(k) of the Act, and hence it is the 'manufacturing process.' Therefore, your establishment needs to be registered under the Factories Act.
BS Kalsi Member since Aug 2011
From India, Mumbai
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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
From India, Lucknow
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From India, Lucknow
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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
From India, Mumbai
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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
From India, Mumbai
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Sir,
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 purview of the Factories Act. I totally agree with Mr. Kalsi.
Regards
From India, Delhi
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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 purview of the Factories Act. I totally agree with Mr. Kalsi.
Regards
From India, Delhi
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FACTORY ACT 1948.xls
Amendment of factory act MP rules.pdf