MOHAN SINGH & ORS. versus THE CHAIRMAN RAILWAY BOARD & ORS.

Citation: [2015] 8 S.C.R. 855 · Decided: 03-08-2015 · Supreme Court of India · Bench: VIKRAMAJIT SEN · Disposal: Appeal(s) allowed

Judgment (excerpt)

[2015] 8 S.C.R. 855 
• 
·1 
MOHAN SINGH & ORS. 
'f ••• 
v. 
THE CHAIRMAN RAILWAY BOARD S;q_Rs. 
(Civil Appeal Nos.5874-5875 of 2015) · 
A 
AUGUST 03, 2015 
B 
[VIKRAMAJIT SEN AND PRAFULLA C. PANT, JJ.] 
Factories Act, 1948 - ss. 46, 2(k), 2(m) - Canteens -
Regularisation of services of canteen staff- Existing canteen 
at Moradabad Division of the Northern Railway - Held: C 
Subject Canteen is situated within the precincts of the office 
of the Divisional Railway Manager-ORM, Moradabad and 
more than 1000 workers are working in those precincts -
Ma.nufacturing activity is carried out within the ORM Office 
where the subject Canteen "is located -
Thus, all the D 
. requirements of the term "factory" as defined u/s. 2(m) 
satisfied- Premises of ORM, Moradabad to be also treated · 
as a factory under the Act in which case Moradabad Canteen 
shall ipso facto corresponded to a 'Statutory Canteen' within 
the meaning of s.46 -. Thus, the subject Canteen is a 
E 
'Statutory Canteen' under the Act - Canteen staff were not 
appointed as per the regular recruitment procedure -
. Direction issued to respondents to consider regularization 
of services of the staff employed in the subject Canteen in 
F 
consonance with the principles laid down in * Uma Devi's case, 
and fill posts that become vacant by a regular process of 
selection. 
Allowing the appeals, the Court 
HELD: 1.1 The Factories Act, 1948 is a social 
legislation enacted for the welfare of the workers. It deals 
with matters connected with the health, safety, welfare, 
G. 
· working hours of the workers, employment of young 
persons and leave to be granted to workers. The idea H 
855 
856 
SUPREME COURT REPORTS 
[2015] 8 S.C.R. 
A behind providing Statutory Canteen in a Factory is to 
create efficient, healthy, loyal and satisfied labor force 
for the organization. If such a responsibility has been 
cast on an occupier of a Factory under the law, it remains 
obligatory upon ORM, Moradabad to maintain a statutory 
B canteen so long as the staff strength exceeds two-
hundred and fifty. [Para 12) [867-A-C) 
1.2 So far as the second requirement mandatory to 
constitute a premises including its precincts as factory, 
C it cannot be disputed that the subject Canteen is situated 
within the precincts of the office of the ORM, Moradabad 
and more than 1000 workers are working in those 
precincts. As regards "manufacturing process" is being 
carriect on within the premises, it cannot be said that no 
D manufacturing activity is carried out within the ORM 
Office of Moradabad, where the subject Canteen is 
located. It cannot be disputed that railway wagons are 
repaired and maintained at the Moradabad Division. It is 
also not disputed that the Moradabad Division carries 
E on other activities such as repairing of faulty signals, 
sanitation systems, loading and unloading of goods, 
supply of power continuously for railway tracks, railway 
station etc. Thus, it has perforce to be inferred that 
F manufacturing process is being carried out at the· 
Moradabad Division. [Paras 14, 15] [868-D-E; 869-C-E] 
1.3 The ORM Office of Morada bad Division along with 
all the appurtenant lands, yards, etc. are 'premises' within 
the contemplation of the Factories Act. A comprehensive 
G reading of the Factories Act, 1948 clearly shows that the 
word "premises" can refer to an entire area, which may 
have several separate buildings, within it, or which may 
correspond to an open yard. Further, an important point 
to consider is that the definition of "manufacturing 
H 
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MOHAN SINGH v. THE CHAIRMAN RAILWAY BOARD 
857 
process" does not mandate that the manufacturing A 
activities should be carried on in one building alone. 
Whatthis ~efinition really deals with is the nature of the 
work done and not with where that work is to be done. It 
must, therefore, be held that all the requirements of the 
term "factory" as defined under Section 2(m) of the Act B 
are satisfied on the facts of the instant case. Thus, the 
premises of ORM, Moradabad must be also treated as a 
factory under the Factories Act, 1948 in which case 
Moradabad Canteen shall ipso facto corresponded to a 
'Statutory Canteen' within the meaning of Section 46 of C 
the Act. [Para 16] [869-H; 870-A, C-F] 
1.4 The employees in the statutory canteens of the 
Railways will have to be treated as Railway servants. 
Thus, the relationship of employer and employee stands D 
created between the Railway Administration and the 
cante

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