Factories actFactory definitionSupreme Court of India

Shyam Sunder v State of Rajasthan

AIR 1974 Supreme Court 89019741 min read
The case in brief30-second read
Facts
Employer operated seasonal/temporary manufacturing premises. Argued the operation was not a "factory" under Section 2(m) of the Factories Act. Therefore, safety and welfare provisions should not apply.
Issue
Whether premises used for a temporary seasonal manufacturing operation satisfy the factory definition under Section 2(m) of the Factories Act, 1948.
Held
Factory definition is functional, not formal.
Principle
Whether premises are a factory under the Factories Act turns on manufacturing process and worker numbers, not registration. A temporary seasonal operation can be a factory.
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Facts

  • Employer operated seasonal/temporary manufacturing premises
  • Argued the operation was not a "factory" under Section 2(m) of the Factories Act
  • Therefore, safety and welfare provisions should not apply
  • State sought to enforce Factories Act provisions

Issue

  1. Whether premises used for a temporary seasonal manufacturing operation satisfy the factory definition under Section 2(m) of the Factories Act, 1948.

Held

  • Factory definition is functional, not formal
  • If:
  • A manufacturing process is being carried on
  • The worker threshold is met (10 with power, 20 without)
  • The premises are a factory regardless of:

Ratio decidendi

Whether premises are a factory turns on two functional tests: manufacturing process and worker numbers. Registration, permanence, or the employer's label are irrelevant. A temporary seasonal operation can be a factory.

Exam use

How to use it in an answer

  • Authority for functional interpretation of "factory" definition
  • Use in Part C problems where employer claims premises are not a factory
  • Key line: "In Shyam Sunder (1974), the Supreme Court held that the factory definition is functional: if a manufacturing process occurs and the worker threshold is met, the premises are a factory regardless of registration or temporary nature."

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Citation

Shyam Sunder v. State of Rajasthan AIR 1974 Supreme Court 890

Reported: AIR 1974 SC 890; verified from chapter content. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.