Factories Act, 1948 – ss.2(k), 2(m), 92 – Goa Factories Rules, 1985 – rr.3,4,6 – An inspection was conducted in the premises of the respondent wherein the business of Professional Laundry Service was carried on, it was found that the respondent did not possess factory approved plans – Further, the premises were being used as a factory without obtaining a valid factory licence – A complaint was filed – The JMFC issued summons to respondents – However, the High Court by the impugned order quashed the order issuing process – Correctness:
Held: There is no doubt that the business of laundry carried on by the respondent involved cleaning and washing of clothes including dry cleaning – Admittedly, more than 9 workers were employed in the centralized processing unit and also used the aid of power – The Act of 1948 defines “manufacturing process” and clearly “washing, cleaning” and the activities carried out by the respondent with a view to its use, delivery or disposal are squarely attracted – The contention of the respondent that dry cleaning does not make any product usable, saleable or worthy of transport, delivery or disposal is rejected – “Manufacturing process” has been defined to mean any process for washing or cleaning with a view to its use, sale, transport, delivery or disposal – The linen deposited with the launderer is, after washing and cleaning, delivered to the customer for use – The ingredients of the section are fully satisfied – There is nothing in the Act of 1948, which is repugnant in the subject or context, constraining to jettison the definition – Hence, this Court rejects the findings of the High Court and hold that the activity carried out which on facts is not disputed is clearly covered by the definition of “manufacturing process” u/s.2(k) which, in turn, would bring the premises in question of the respondent under the definition of “factory” u/s.2(m) – If that were so, the complaint lodged against the respondent could not have been quashed – The consequence would be that the complaint filed by the appellants along with the order issuing process of 04.12.2019 would stand restored. [Paras 33, 42, 49]
Factories Act, 1948 – ss.2(k), 2(m) – Statutory definitions – discussed. [Paras 15- 17]
Factories Act, 1948 – Object and reasons – discussed. [Paras 18-20]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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