Srivastva is the owner of a unit manufacturing Beedi in Jabalpur. 22 persons are employed in the unit. Of these 22 employees, one is a graduate for supervising the work and another apprentice learning work. The remaining

CS Executive · Setting up of Business Entities and Closure · PYQS · June 2019
Srivastva is the owner of a unit manufacturing Beedi in Jabalpur. 22 persons are employed in the unit. Of these 22 employees, one is a graduate for supervising the work and another apprentice learning work. The remaining 20 are employed not on the time wage system, but on the piece work system. Is the unit, a 'factory' within the meaning of the term under the Factories Act, 1948?

Answer & Explanation:

According to Section 2(m) of the Factories Act, 1948, a 'factory' means 'any premises including the precincts thereof:- (i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on; or (ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve 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; but this does not include a Mine subject to the operation of the Mines Act, 1952, or a mobile unit belonging to the armed forces of the union, a railway running shed or a hotel, restaurant or eating place.' For computing number of workers, all the workers in different groups in a day shall be taken into account. Therefore, in the given case as per Section 2(m) of the Factories Act, the unit of Mr. Srivastava is a factory within the meaning of the definition.

Topics: Factories Act, 1948

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