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citation codes
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  • Factories Act, page 9, Patwari the Factories Act,
  • S, 2 (m) (ii) of the Factories Act
  • Factories Act, page 3
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
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Acts
  • Factories Act, page 9, Patwari the Factories Act,
  • S, 2 (m) (ii) of the Factories Act
  • Factories Act, page 3
Smart Summary

Factual and Procedural Background

These connected revisions arise from convictions and sentences imposed by the learned Sub-Divisional Magistrate, Tanjore in S.T.C. Nos. 36 and 37 of 1955. The primary issue for determination is whether the Sangu Soap Works, Kattumavadi Road, Arantangi, qualifies as a "factory" within the meaning of the Factories Act, 1948 (Act 63 of 1948). The lower court's factual findings have been fully set out in its judgment and are not recapitulated here.

Legal Issues Presented

  1. Whether the Sangu Soap Works constitutes a "factory" under Section 2(m)(ii) of the Factories Act, 1948, requiring that twenty or more workers be employed in a manufacturing process carried on without the aid of power or ordinarily so carried on.
  2. The interpretation and application of the definition of "manufacturing process" under Clause (k) of Section 2 of the Factories Act, 1948, particularly in light of the expanded and more comprehensive definition compared to the earlier Act of 1934.
  3. Whether certain individuals, specifically a carpenter preparing packing cases and a boy holding a paint tin, qualify as "workers" under Clause (l) of Section 2 of the Act for the purpose of meeting the threshold number of workers.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ramanatham v. Emperor, ILK 50 Mad 834 : AIR 1927 Mad 345 Clarification that "manufacturing process" refers to the business carried on, not necessarily the product produced. Used to explain that manufacturing includes processes carried out for gain with mechanical power aiding the work.
Owner v. Cottingham Sanitary Steam Laundry Co., Ltd., 1910-74 JP 219 Definition of manufacturing process involving mechanical power used in aid of work. Supported the interpretation of manufacturing process involving mechanical power in laundry business.
In re Sarma Conversion of raw film into finished product falls within manufacturing process. Illustrated what constitutes a manufacturing process.
Local Government v. Nusarwanji, AIR 1953 Nag 283 Work incidental to manufacturing process is included within the definition. Used to confirm that packaging and pressing in the factory compound are connected to manufacturing.
R. v. Wheeler, (1819) 2 B & Ald 345 Manufacture requires transformation resulting in a commercially different article. Supported the principle that mere labor without transformation does not constitute manufacture.
Cibson v. Brand, (1842) 4 M & G 179 Further elucidation on the nature of manufacture requiring transformation. Reinforced the principle on transformation in manufacture.
Ramdit v. Emperor, AIR 1934 Cal 546 Definition of "worker" including persons employed directly or through agency, whether for wages or not. Supported the classification of workers relevant to the case.
Ganpat Dattu v. Emperor, 32 Bom LR 329 : AIR 1930 Bom 162 Further interpretation of "worker" under the Act. Helped clarify the scope of persons considered workers.
M. K. F. Kadar Moideen v. The State Persons engaged in work incidental to or connected with manufacturing process qualify as workers. Justified inclusion of carpenter preparing packing cases as a worker.
State of Bombay v. Alisaheh Kashim Tamboli The term "worker" includes casual labourers, apprentices, honorary workers, and those paid by time or piece work. Supported broad interpretation of "worker" encompassing casual labour.
Pragnarain v. Emperor, AIR 1928 Lah 78 Illustrative case on definition of worker. Used to support wide import of "worker".
Supdt. and Remembrancer of Legal Affairs, Bengal v. A. J. Andrews, AIR 1931 Cal 639 Further illustration on worker definition. Supported the broad scope of worker classification.
Provincial Government C. P. & Berar v. R. Robinson, ILR 1947 Nag 43 : AIR 1947 Nag 83 Additional authority on the definition of worker. Reinforced the interpretation of worker under the Act.

Court's Reasoning and Analysis

The Court examined the definition of "factory" under Section 2(m)(ii) of the Factories Act, 1948, which requires that twenty or more workers be engaged in a manufacturing process carried on without power or ordinarily so carried on. The Court analyzed the expanded definition of "manufacturing process" under Clause (k) of Section 2, noting that it is broader and more comprehensive than the earlier Act of 1934.

The Court referenced several precedents to elucidate the meaning of "manufacturing process," emphasizing that there must be a transformation resulting in a commercially different article. Mere labor, even if aided by machinery, does not suffice unless such transformation occurs.

Regarding the definition of "worker" under Clause (l) of Section 2, the Court identified three categories of workers: those employed in the manufacturing process, those cleaning machinery or premises used in the process, and those engaged in work incidental or connected to the manufacturing process. The Court found that the carpenter preparing packing cases could be included as a worker because his activity was incidental to the manufacturing process (packaging soaps for sale).

However, the Court rejected the inclusion of the boy holding a paint tin as a worker, reasoning that his presence was for painting a sign-board, which was not incidental or connected to the manufacturing process.

Consequently, the total number of workers did not meet the statutory threshold of twenty, as only eighteen workers plus the carpenter qualified, but not the boy. Therefore, the Sangu Soap Works did not meet the definition of a factory under the Act.

Holding and Implications

The convictions and sentences imposed on the basis that the Sangu Soap Works was a factory are set aside and the revisions are allowed.

The direct effect of this decision is that the Sangu Soap Works is not considered a factory under the Factories Act, 1948, and the fines collected, if any, shall be refunded. The opinion does not set any new precedent beyond the application of existing legal principles to the facts of this case.

    In Re: A.M. Chinniah, Manager, 786 ... v. In Re: A M Chinniah, Manager, 786

    1. These are two connected revisions arising from the convictions and sentences of the learned Sub-Divisional Magistrate, Tanjore in S. T. C.

    Nos. 36 and 37 of 1955.

    2. The facts of these cases have been fully set out in the judgment of the lower Court and need not be recapitulated because the short point for determination in these revision cases is whether the Sangu Soap Works, Kattumavadi Road, Arantangi, is a factory within the meaning of Act 63 of 1948.

    3. This Sangu Soap Works can be considered to be a factory only if under S, 2 (m) (ii) of the Factories Act twenty or more workers are working or were working on any day of the preceding 12 months and in any part of which a manufacturing process is being carried on without the aid of power or is ordinarily so carried on. The term ''manufacturing process" has been defined in Clause (k) of Section 2. Sub-clauses (iv) and (v) of this clause are new. They did not occur in the old act of 1934. sub-clause (i) has also been made more comprehensive. The present definition is more comprehensive and wider in scope than that of the old Act.

    4. As is plain from the definition the whole premises are a factory even though the manufacturing process is being carried on only in a part of the premises. In Ramanatham v. Emperor, ILK 50 Mad 834 : (AIR 1927 Mad 345) (A), the words "manufacturing process" do not necessarily refer to something produced but to the business carried on Owner v. Cottingham Sanitary Steam Laundry Co., Ltd., 1910-74 JP 219 (B). Thus, a laundry carried on for the purpose of gain and in which mechanical power is used for driving machines used in aid of the work of washing clothes is within the definition of a factory.

    The conversion of raw film into finished product comes within this definition of the section : In re, Sarma, (C). Putting ginned cloth into bales and having it pressed in the compound of the factory is a work incidental to or connected with manufacturing process within the meaning of the Act. Local Government v. Nusarwanji, AIR 1953 Nag 283 (D). It will depend upon the circumstance of each case whether a particular business carried on comes within the definition of "manufacturing process'', the different processes enumerated in the clauses being merely illustrative.

    To sum up, to constitute a manufacture there must be a transformation. Mere labour bestowed on an article even if the labour is applied through machinery, will not make it a manufacture, unless it has progressed so far that a transformation ensues, and the article becomes commercially known as another and different article from that as which it begins its existence. Whatever is made by human labour, either directly or through the instrumentality of machinery (Abbott Law Dictionary). "Something of a corporeal and substantial nature, something that can be made by man from the matters subjected to his art and skill, or at the least some new mode of employing practically his art and skill is required to satisfy the word "manufacture". Per Abbott C. J. in R. v. Wheeler, (1819) 2 B & Ald 345 (E). See also Cibson v. Brand, (1842) 4 M & G 179 (F).

    5. Having considered the definition of ''manufacturing process" set out in Clause (k) of Section 2, we come to the definition of a "worker" which is defined in Clause (1), as meaning "a person employed, direcdy or through any agency whether for wages or not, in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any other kind of work incidental to, or connected with, the manufacturing process, or the subject of the manufacturing process".

    In other words the workers under this definition fall under three groups, viz. persons employed directly or through any agency, whether for wages or not (a) in any manufacturing process or (b) in cleaning any part of the machinery or premises used tor manufacturing process or (c) in any other kind of work incidental to or connected with the manufacturing process or the subject of such process. Ramdit v. Emperor, AIR 1934 Cal 546 (G), see also Ganpat Dattu v. Emperor, 32 Bom LR 329: (AIR 1930 Bom 162) (H).

    For Commentaries on "manufacturing process and works" see Volume 1 of Encyclopaedia of Labour Laws and Industrial Legislation, pages 12 and 14, A. N. Aiyar and T. A. Ramachandran Factories Act, page 3 and foll.; R. Mathurbhutham, the Indian Factories and Labour Manual, M. L. J, pages 28-29; Baksi and Mitra the Factories Act, page 9, Patwari the Factories Act, page 46.

    6. In this case the requisite number of twenty workers could have been made up only, if (a) one Subbiah Asari who was found working as a carpenter and preparing the packing cases, and (b) a boy Alagirisami who was found holding a paint tin, were included as workers. Otherwise the requisite number of workers would only he 18.

    In regard to Subbiah Asari, he may be included as a worker for the purpose of coming to the conclusion whether the Sangu Soap Works is a factory as defined in Clause (m) of Section 2, because he might legitimately be considered to be engaged in a kind of work incidental to or connected with the subject of the manufacturing process, viz., packaging of soaps for being sent out for sales : M. K. F. Kadar Moideen v. The State, (I).

    The fact that he might have been a casual labourer would make no difference because as pointed in State of Bombay v. Alisaheh Kashim Tamboli, (J), to enable a person to be a worker, it may be that he may receive wages upon the basis of time work or it may be that he may receive remuneration upon the basis of piece work or he may even be an apprentice or merely an honorary worker. The expression "worker" has a very wide import and would take in all these persons : Illustrative cases are AIR 1933 Nag 283 (D); Pragnarain v. Emperor, AIR 1928 Lah 78 (K); Supdt. and Remembrancer of Legal Affairs, Bengal v. A. J. Andrews, AIR 1931 Cal 639 (L); Provincial Government C. P. & Berar v. R. Robinson, ILR 1947 Nag 43: (AIR 1947 Nag 83) (M); (C).

    7. I am unable however to agree that Alagirisami, the boy found holding a tin containing paint would come within the definition of a "worker" and make up the requisite number 20. This boy was found holding a tin of paint does not mean that he was there for the purpose of ornamentation of the packing for transport which would come within the definition of "manufacturing process" because he was found standing outside apparently to paint the sign-board which would certainly not be a case of doing a kind of work incidental to or connected with the manufacturing process or the subject of the manufacturing process.

    8. In the result, the Sangu Soap Works will not fall within the definition of a "factory" and the convictions rested on that foot cannot be sustained. The convictions and sentences are set aside and the revisions arc allowed. The fine amounts, if collected, will be refunded.

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    Comments

    In Re: A.M. Chinniah, Manager, 786 ... v. In Re: A M Chinniah, Manager, 786
    (Sep 19, 1956)