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Ramamurthy SIvakumar (MANAGER - FINANCE)     17 December 2010

applicability of factories act1948

Dear Friends

Our company   in Andhra Pradesh is engaged in mining and processing of the materials excavated from the mines. The mining is  done in the land given by the Government on long term lease. The processing unit is also located in the mining area only.

The company is a Small scale unit and registered under MSMED act 2006. Further the company is covered by the Mines Act1952.The total number of employees will be more than 10. Further around 50-60 casual labourers will be working in the mines and the processing units.

In such a case , is it mandatory  for us to get registered under Factories Act?

Please advise



Learning

 4 Replies

Kirti Kar Tripathi (lawyer)     17 December 2010

yes, it falls within the definition of "Factory" as defined under the Factories Act, As ssuch its registration under Factories Act is mandatory.

1 Like

RENISH RAO (ADVOCATE)     18 December 2010

In my opinion,

Mining activity and processiong unit will be governed by the Minies Act, 1952 (as per definition "Mine" u/s. 2(j) of the Mines Act and provisions of the factories Act, 1948 would not be applicable in terms of para -2 of section 2(m) of the Factories Act.

RENISH RAO (ADVOCATE)     18 December 2010

Para 2 of section 2(m) of the Factory Act means the exemptions mentioned therein. (reproduced herein for ready reference and clearance of doubt)

"but does not include a mine subject to the operation of 3*[the Mines Act, 1952 (35 of 1952),] or 4*[a mobile unit belonging to the armed forces of the Union, a railway running shed or a hotel, restaurant or eating place]."

 

Kirti Kar Tripathi (lawyer)     18 December 2010

Thanks for correcting me. I agree with you in this regard.


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