What Is factory

What is factory | Definition of factory | Deemed factory (as per factories act 1948)

Sec Section 2(m) in The Factories Act, 1948

“factory” means any places including the boundaries thereof—

  • (1) whereon ten or more workers are working, or on any day of the preceding twelve months, and in any a part of which a producing process is being carried on with the aid of power, or is generally so carried on, or
  • (2) whereon twenty or more workers are working, or on any day of the preceding twelve months, and in any a part of which a producing process is being carried on without the aid of power, or is generally so carried on,
  • (3) but doesn’t include a mine, subject to the operation of the Mines Act, 1952
  • railway running shed or a hotel
  • restaurant or eating place
  • For the needs of this section, the straightforward incontrovertible fact that an Electronic processing Unit or a Computer Unit is installed in any premises or part thereof, shall not be construed to form it a factory if no manufacturing process is being carried on in such premises or part thereof

Explanation -1)

  1. 10 more workers with aid of power
  2. 20 more worker without aid of power
  3. Manufacturing process must be carried

Explanation -2)

For computing the number of workers all the workers in different groups and relays in a day shall be taken into account

Explanation -3)

– The mere fact that an electronic data processing unit is installed in any premises shall not be construed to make it a factory
-If no manufacturing process is being carried on in such premises

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Judicial interpretation

Following have held to be factory:

1) Railway workshop ( indar Krishan & another v state Air 195 All 1974 )

Special note – Railway running shed specially excluded from the definition)

2) Salt worker (I.e. conversion of sea water into crystal of salt)

(Ardeshir H .bhiwandiwala v s.ofbomboy ) Air 1962 s.c 29

3) Premises where 7 person employed permanently & 3-person temporary for repair of machine

(Hari krishan v Air 1959All.794)

Following not be Factory:-

Exhibition of cinema films (s.m solar v mk.sarode) Air 1959Bom 371

Conclusion:-

There are lot of interpretation by judicial body of sec 2 m of factories act 1948
But the basic requirements of factories i.e –

  • 10 / 20 worker with aid of power/ without aid of power
  • Premises required include precincts
  • Manufacturing process must be carried

Wait for next article i.e sec 2k of factories act 1948 (what is manufacturing process)

Shivam Jha

ESME-IR Professional

(Delhi)

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