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PBS KUMAR (HR - PROFESSIONAL)     16 April 2011


Dear Experts,

I am in grate confussion. Who is an "OCCUPIER" as per Factories Act, 1947 ? The contravension is only Board of Director nominee has been appointed as Occupier or only any one of the Board of Director has nominated as Occupier ?

Your response is most urgent, if any provide with case law or any G.O. may please supply.






 3 Replies

Ashok. B.V. (Executive-Legal)     16 April 2011


The answer to your query is as follows;

The proviso to section 2(n) is added by amendment Act 20 of 1987. The proviso (ii) states that "in case of a company, any one of the directors, shall be deemed to be the occupier;" Thus in Bharia Metal Containers Pvt. Ltd. V. State of UP 1990 (77) FJR 93, it was held the section 2(n) does not permit a company to nominate anybody else for the purposes of the Act other than one of the Directors of the company"

However, in 1994 II C. L. R. 312, 1992 II CLR 575 stated that any person other than a director can be occupier within the meaning of section 2(n).

Ultimately, the supreme Court in the case of J. K. Industries Ltd. V. Chief Inspector of Factories and Boilers reported in 1996 (6) SCC 665

The basic question was whether in the case of a company which owns or runs the factory, is it only a director of the company who can be notified as the occupier of the factory within the meaning of provisio (ii) to section 2 (n) of the Act, or whether the company can nominate any other employee to be the occupier by passing a resolution to the effect that the said employee shall have ultimate control over the affairs of the factory. The Supreme Court approved of the former proposition. Thus as per this judgement no person other than one of the directors can be occupier under the meaning of section 2(n) (ii).


PBS KUMAR (HR - PROFESSIONAL)     17 April 2011

Dear Ashok ji,

Thank you for  your interpretation. I got some information  which is attached . Please go through.



Attached File : 58 58 interpretation of occupier.pdf downloaded: 1093 times

Sudharshanan (Advocate)     18 April 2011

Mr. PBS Kumar

Its clearly explain in Factories act Sec 2 (n), for your information ..

Section 2 (n) "occupier" of a factory means the person who has

ultimate control over the affairs of the factory 6***. 

1*[Provided that-

(i) in the case of a firm or other association of

individuals, any one of the individual partners or

members thereof shall be deemed to be the occupier;

(ii) in the case of a company, any one of the

directors shall be deemed to be the occupier;

(iii) in the case of a factory owned or controlled

by the Central Government or any State Government, or

any local authority, the person or persons appointed to

manage the affairs of the factory by the Central

Government, the State Government or the local

authority, as the case may be, shall be deemed to be

the occupier:];

1*[Provided further that in the case of a ship which is

being repaired, or on which maintenance work is being

carried out, in a dry dock which is available for


(1) the owner of the dock shall be deemed to be

the occupier for the purposes of any matter provided

for by or under-

(a) section 6, section 7, 1*[section 7A,

section 7B] section 11 or section 12;

(b) section 17, in so far as it relates to

the providing and maintenance of sufficient and

suitable lighting in or around the dock;

(c) section 18, section 19, section 42,

section 46, section 47 or section 49, in relation

to the workers employed on such repair or


(2) the owner of the ship or his agent or master

or other officer-in-charge of the ship or any person

who contracts with such owner, agent or master or other

officer-in-charge to carry out the repair or

maintenance work shall be deemed to be the occupier for

the purposes of any matter provided for by or under

section 13, section 14, section 16 or section 17 (save

as otherwise provided in this proviso) or Chapter IV

(except section 27) or section 43, section 44 or

section 45, Chapter VI, Chapter VII, Chapter VIII or

Chapter IX or section 108, section 109 or section 110,

in relation to-

(a) the workers employed directly by him, or

by or through any agency; and

(b) the machinery, plant or premises in use

for the purpose of carrying out such repair or

maintenance work by such owner, agent, master or

other officer-in-charge or person;]



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