Manoj & Co. Ltd. desired to start an Aluminium Electrical Fittings and Pipes factory in Vijayawada. They made an application to the appropriate authority with all necessary documents. Even after the expiry of 3 month

CS Professional · Labour Laws & Practice · PYQS · June 2023
Manoj & Co. Ltd. desired to start an Aluminium Electrical Fittings and Pipes factory in Vijayawada. They made an application to the appropriate authority with all necessary documents. Even after the expiry of 3 months, the appropriate authority did not intimate its order either sanctioning or declining the permission. Manoj & Co. Ltd. intend to pursue legal remedies. Will the action of the company be tenable or desirable ? Discuss with reference to legal provisions.

Answer & Explanation:

Section 6 of the Factories Act, 1948 states that if an application for permission to be obtained for the site on which the factory is to be situated and for the construction or extension of any factory or class or description of factories and no order is communicated to the applicant within three months from the date on which it is so sent, the permission applied for in the said application shall be deemed to have been granted but only when applicant had duly complied with all the license requirements. Since the Manoj & Co. Ltd. complied with all requirements, it is presumed that permission is granted. Accordingly, Manoj & Co. Ltd. can go ahead with their establishment of factory.

Topics: Factories Act, 1948

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