Occupier of the Factory

[csarengarajan]

There was a question about occupier of the factory. The occupier of the factory shall  be a Director of the company.

Kindly go through the interpretation of the case laws.

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). 

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csarengarajan
Company Secretary, Chennai
email csaren...@gmail.com
mobile 093810 11200
SHARING KNOWLEDGE SKY IS THE LIMIT

[jeevan varghese]

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Best Regards,

Jeevan Varghese.M.com. ACS.
Company Secretray in Practice

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Jeevan Varghese.M.com.ACS.
Company Secretray in Practice.