multiple factories in one premises
k c sahu
(Querist) 16 May 2009
This query is : Resolved
I need your help in the following problems:
Background of the problem:
Ours is a manufacturing company (Say X). The land in which our factory is located is a govt-leased land (99 years). Now we have formed a separate new company (Say Y), registered under Companies Act, to cater our raw material needs to be located in the same land/premises. We have obtained separate license for the new company under Sales Tax/Income Tax etc and also approval from state pollution control board. In order to get the factory license under factories act we have submitted all the statutory requirements.
Dispute of Land:
Company X has entered into a conversion agreement with Company Y to install a plant in the land of Company X, which is a govt-leased land.
Problem No-1
The Officials of Factory and Boilers department are raising objections that the leased land is in the name of company X and hence License cannot be given to company Y.
Problem-2
Some officials are of the opinion that one person cannot be Manager of two factories under Factories Act/
I request you to kindly give your suggestions in this matter.
Regards
K.C.SAHU
A V Vishal
(Expert) 16 May 2009
Dear Sahu,
Please refer under the extract of the Factories Act, hope it will be helpful.
4. Power to declare different departments to be separate factories or two or more factories to be a single factory. 3*[4. Power to declare different departments to be separate factories or two or more factories to be a single factory. The State Government may, 4*[on its own or] on an application made in this behalf by an occupier, direct, by an order in writing; 4*[and subject to such conditions as it may deem fit] that for all or any of the purposes of this Act different departments or branches of a factory of the occupier specified in the application shall be treated as separate factories or that two or more factories of the occupier specified in the application shall be treated as a single factory:] 4*[Provided that no order under this section shall be made by the State Government on its own motion unless on opportunity of being heard is given to the occupier.]
Y V Vishweshwar Rao
(Expert) 20 May 2009
I agree with Mr Vishal and the Govt can consider the Units/fctories as spearate or as single unit/factory
1 The Govt Lease in favour of X company
2- The Y Comapany can take permission from the Govt to run anohter unit/comapany in their X comapany premises with the same lease terms as applicabel to the X company
k c sahu
(Querist) 21 May 2009
Sir,kindly share any case law on your point no 2.
Regards
k.c.sahu
