LANCO ANPARA POWER LIMITED versus STATE OF UTTAR PRADESH & ORS.

Citation: [2016] 5 S.C.R. 731 · Decided: 18-10-2016 · Supreme Court of India · Bench: A.K. SIKRI · Disposal: Dismissed

Cited by 3 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

[2016] 5 S.C.R. 731 
LANCO ANPARA POWER LIMITED 
v. 
STATE OF UTTAR PRADESH & ORS. 
(Civil Appeal No.6223 of2016) 
OCTOBER 18,2016 
[A.K. SIKRI AND N.V. RAMANA, JJ.] 
A 
B 
Building and other Construction Workers (Regulation of 
Employment and Conditions of Service) Act, 1996 - Buildings and 
other Construction Workers Welfare Cess Act,) 996 - Appellants· C 
undertaking construction activity wherein they had planned to set 
up their factories - ln the process of construction of civil works, 
construction workers engaged - Case of respondent authorities 
that the appellants to pay the cess for the welfare of the said workers 
engaged in the construction work since the provisions of the BOCW 
Act and the Welfare Cess Act meant for construction workers became 
applicable - Case of the appellants that provisions of the Factories 
Act apply to the construction of building/project of the appellants -
Held: Construction workers are not covered by the Factories Act -
Thus, they are entitled to the welfare measures provided for such 
workers under BOCW Act and Welfare Cess Act - Appellants to pay 
cess for the welfare of the said workers - Factories Act, 1948. 
Dismissing the appeals and the petitions, the Court 
HELD: 1.1 The construction workers are not covered by 
the Factories Act, 1948 and, therefore, welfare measures 
specifically provided for such workers under the Building and 
other Construction Workers (Regulation of Employment and 
Conditions of Service) Act, 1996 and the Buildings and other 
Construction Workers Welfare Cess Act, 1996 cannot be denied. 
[Para 34)(759-F-G] 
1.2 On the conjoint reading of section 2(m), 2(k) & 2(1) of 
the Factories Act, it becomes clear that "factory" is that 
establishment where manufacturing process is carried on with or 
without the aid of power. Carrying on this manufacturing process 
or manufacturing activity is thus a prerequisite. It is equally 
pertinent to note that it covers only those workers who are 
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SUPREME COURT REPORTS 
[2016] 5 S.C.R. 
engaged in the said manufacturing process. Insofar as these 
appellants are concerned, construction of building is not their 
business activity or manufacturing process. In fact, the building 
is being constructed for carrying out the particular manufacturing 
process, which, in most of these appeals, is generation, 
transmission and distribution of power. Obviously, the workers 
who are engaged in construction of the building also do not fall 
within the definition of 'worker' under the Factories Act. On these 
two aspects there is no cleavage and both parties are at ad idem. 
What follows is that these construction workers are not covered 
by the provisions of the Factories Act. [Para 21)(753-D-G) 
1.3 Having regard to the above, if the submission of the 
appellants is accepted, the construction workers engaged in the 
construction of building undertaken by the appellants which is to 
be used ultimately as factory, would stand excluded from the 
provisions of BOCW Act and Welfare Cess Act as well. This could 
not be the intention while providing the definition of 'building 
and other construction work' in Section 2(d) ofBOCW Act. [Para 
22)(753-G-H; 754-A] 
1.4 The High Court was right in observing that merely 
because the appellants have obtained a licence under Section 6 
of the Factories Act for registration to work a factory, it would 
not follow therefrom that they answer the description of the 
"factory" within the meaning of the Factories Act. A bare reading 
of the definition of factory, thereof makes it abundantly clear that 
before this stage, when construction of the project is completed 
and the manufacturing process starts, 'factory' within the meaning 
of Section 2(m) of the Factories Act does not come into existence 
so as to be covered by the said Act. [Para 23)[754-B-C) 
1.5 Section 2(d) of the BOCW Act dealing with the building 
or construction work is in three parts. In the first part, different 
activities arc mentioned which are to be covered by the said 
expression, namely, construction, alterations, repairs, 
maintenance or demolition. Second part of the definition is aimed 
at those buildings or works in relation to which the aforesaid 
activities are carried out. The third part of the definition contains 
exclusion clause by stipulating that it docs not include 'any 
building or other construction work to which the provisions of 
LANCO ANPARA POWER LIMITED v. S

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