Unit-1

Factories Act 1948

 History
• The deteriorating working conditions prevailing in factories
• compelled the then British Government to frame Factories Act
• In 1881 with an objective to regulate the working conditions and
environment in factories the Factories Act was passed.
• Subsequently, the Factories Act 1934 was passed based on
recommendations suggested by Royal Commission on labor.
• However, the Act was found to be ineffective in administration,
therefore, a revised Act was passed by the Constituent Assembly
on 28th August 1948.
• The Act of 1948 was amended in 1954, where by a provision for
prevention of employment of women and children during night
and a special chapter VIII were added.
• The Act was amended in 1987 with provisions including various
safeguards in handling hazardous substances and in starting such
industries.
• Objective of the Act:
• To ensure safety measures,
• To promote health and welfare of the workers
 Imp definitions
• Section 2(m) Factory means any premises including its boundaries, where
–
• Ten or more workers are employed or were working on any day during the
preceding twelve months and in any part of which, a manufacturing
process is carried out with the aid of power or is ordinarily so carried on.
• Twenty or more workers are employed or were working on any day during
the preceding twelve months and in any part of which, a manufacturing
process is carried out without the aid of power or is ordinarily so carried
on.
• Factory does not include a mine subject to the operation of Mines Act,
1952 or a mobile unit belonging to armed forces of the union, a railway
running shed or hotel, restaurant or eating place.
• Essential points to be remembered:
• There must be a manufacturing activity,
• Mere presence of a machine or an Electronic Data Processing Unit or a
Computer Unit installed in any premises or part thereof, shall not be
construed to form a factory.
• The Act empowers the State Governments to apply its provisions. In
computing the number of workers, all the workers in different groups and
shifts in a day are taken into consideration.
• Phrase ‘premises including precints’means both premises including precints and
premises without precints.
• Where premises is a building it would include precints also, but where premises are
lands, they would not have precints. Both are covered under by factory.
• State of Bombay vs Ardeshir Hormosji Bhiwandiwala,1956,1LLJ 26-it was held that
lands in which the process of manufacturing salt is carried out is a factory.
• Kent vs Astley 1819 LR 5 QB 19-there was a slate quarry extending over a large open
space of abut 300 acres. The work was carried on in a open air. Shed was the only
building. In quarry more than 50 people were employed for splitting the rock into
slates and shaping them for sale. It was held as not a factory as the place in which
manufacturing process is carried on is an open space and cannot constitute a factory.
• Pragnarain vs Crown AIR,1928 Lah 78-it was held that factory means premises where
in anything is done towards the making or finishing of an article upto the stage when
it is ready to be sold or is in a suitable condition to be put in the market.
• Precints means a space enclosed by walls or fences. –In re K.V.V Sharma ,AIR, Mad
269.- the question in this case whether the work of converting raw film into a
finished product by means of various scientific and physical processes comes with in
the meaning of these Act. The process of converting raw film into a film fr exhibition
in a cinema is manufacturing process with in the meaning of cl (i) of sec 2 (k).
• Hazardous process means Section 2c(b)
• Inserted by the Factories (Amendment) Act, 1976, w.e.f. 26-10-1976.
• any process or activity in relation to an industry specified in the First Schedule; and
• such process causes material impairment to the health of the persons engaged in or connected
therewith causes pollution of the general environment.
• Manufacturing process: Section 2(k) of the Act defines manufacturing process as any process, which
involves –
• making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up,
demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale,
transport, delivery or disposal, or
• pumping oil, water, sewage or any other substance; or;
• generating, transforming or transmitting power; or
• composing types for printing, printing by letter press, lithography,
photogravure or other similar process or book binding
• constructing, reconstructing, repairing, refitting, finishing or breaking
up ships or vessels;
• preserving or storing any article in cold storage;
• Gujarat Electricity Board vs State of Gujarat and Another1984 IILLJ 370 Guj- the Court had to
determine whether the conversion of high voltage into low voltage and distribution of electricity
amounts to manufacturing process. It was held that these activities are not covered by the expression
manufacturing process as provide d under 2(k) of Factories Act,.
• Nagpur Electric Light and Power Co.Ltd vs The Regional Director , ESI, AIR 1967 SC 1364- It was held
that the process of transforming and transmittting electric energy are manufacturing process.
• Worker: The term ‘worker’ under Section 2(l) of the Act –
• includes a person employed:
• directly or by or through any agency (including a
contractor);
• with or without the knowledge of the principal employer;
• either for remuneration or for no remuneration;
• in any manufacturing process, or in cleaning any part of the
machinery or premises used for a manufacturing process, or
in any other work that is connected with the manufacturing
process and;
• excludes:
• the members of the armed forces of the union.
 RIGHTS AND OBLIGATIONS OF WORKERS
• Every worker in a factory has –
• the right of information relating to health and safety at work
• the right to get trained in-house or sponsorship for training in an institute duly approved by
the Chief Inspector.
• the right to represent himself directly or through his representative to the Inspector to
submit grievances.
• Every worker in a factory is under an obligation for the purposes of securing the health,
safety or welfare of the workers therein, not to wilfully
• interfere with or misuse any appliance, convenience or other thing provided in a factory;
• without reasonable cause do anything likely to endanger himself or others; and
• neglect the use of any appliance or other thing provided in the factory.
• If any worker employed in a factory contravenes any of the provisions of this section or of
any rule or order made thereunder, he shall be punishable with imprisonment for a term
which may extend to three months, or with a fine which may extend to one hundred rupees,
or with both.
• Where any worker employed in a factory commits an offence in contravention of any
provision of this Act or any rules or orders made thereunder such worker shall be punishable
with fine, which may extend to five hundred rupees. If such worker is convicted, the occupier
or manager of the factory shall not be deemed to be guilty of an offence in respect of that
contravention, unless it is proved that the latter has not taken reasonable steps to prevent
such act.
• Section 111A
• Section 111
• Section 97
• Section 2(n) Occupier: In general, the expression ‘Occupier of a factory’ means any person
who has ultimate control over the affairs of the factory. The term ‘occupier’ may be defined
with reference to the different organizations and authorities.
• In 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;
• In case of a company, any one of the directors shall be deemed to be the occupier;
• In 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.
• An occupier is a person who has ultimate control of affairs of company of the company,
hence he cannot be equated with owner, therefore occupier may be the owner or any
persons authorized by the owners on his behalf to look into the affairs of company. Section
7 imposes a responsibility on the occupier to send a written notice to the Chief Inspector at
least 15 days before he occupies or uses any premises as factory or 30 days before the date
of resumption of work in case of seasonal factories which work less than 180 days in a year.
• Indian oil corporation Ltd vs Chief Inspector of Factories AIR 1998 SC 2456- the question is
who is the occupier of govt company- it is central govt. whoever the central govt nominates
as occupier having contrl over the affairs of corporation is the occupier.
• In ION Exchange India Ltd vs Deputy chief inspector of Factories Salem-1996 1 LLJ283-
Mad-it was held that owner can nominate any person to be in ultimate control over the
affairs of a factory. If no one else is nominated to be in ultimate control over the affairs of a
company , diector of a company or any partner of partnership are deemed to be occupier.
 Notice of occupier
• The notice issued by the occupier should contain the following:
• the name and situation of the factory;
• the name and address of the occupier and /or of the owner of the premises or
building;
• the address to which communication need to be sent ;
• the nature of the manufacturing process
• the total rated horse power installed or to be installed in the factory excluding the
rated horse power of any separate stand-by plant;
• the name of the manager of the factory for the purposes of this Act;
• the number of workers likely to be employed in the factory;
• the average number of workers per day employed during the last twelve months in
the case of a factory in existence on the date of the commencement of this Act.
• If any manager is appointed, the occupier shall send a written notice to the Chief
Inspector within seven days from the date the manager assumes office otherwise
the occupier himself shall be deemed to be the manager of the factory for the
purposes of this Act.
• The Factories (Amendment) Act, 1987 has inserted a new Section 7A and 7B which
provides the duties of occupiers and manufacturers etc.
• Medical Practitioner
• With a view to ensure the health and safety of young persons and
of persons engaged in dangerous processes, the State Government
is empowered under Section 10 of the Act to appoint qualified
medical practitioners to be certifying surgeons within such local
limits or for such factory or class or description of factories as it
may assign to them respectively.
• The duties of certifying surgeon shall include–
• the examination and certification of young persons or of persons
engaged in factories in such dangerous occupations or processes
• conduct medical supervision as may be prescribed for any factory
or class or description of factories where cases of illness or injury
have occurred due to the nature of the manufacturing process or
other conditions of work prevailing, in the factory
• In this Section “qualified medical practitioner” means a person
holding a qualification granted by an authority specified in the
Schedule to the Indian Medical Degrees Act, 1916 (7 of 1916) or in
the Schedules to the Indian Medical Council Act, 1933 (27 of
1933).
 APPROVAL, LICENSING AND REGISTRATION OF FACTORIES
• Section 6 of the Act was inserted in Factories Act 1948 to guarantee the health, safety
and welfare conditions while designing and layout of the factory building.
• The State Government is empowered to frame rules regarding approval, licensing and
registration of factories which may require/prescribe as the case may be the
• submission of plans of any class or description of factories to the Chief Inspector or
the State Government;
• prior permission in writing of the State Government or the Chief Inspector for the site
on which the factory is to be situated and for the construction or extension of any
factory or class or description of factories;
• nature of such plans and specifications and by whom they shall be certified;
• An application for registration and licensing of factories must be made along with the
prescribed fee.
• When an application for permission is sent to the State Government or Chief
Inspector by registered post and where no order is communicated to the applicant
within three months from the date, the permission shall be deemed granted.
• If the permission is refused the applicant may within thirty days of the date of such
refusal, appeal to the Central Government or the State Government.
• The Factories Act has incorporated provisions on the basis of health, safety and
welfare conditions.
 Section 11 to Section 20 – Health provisions
• Cleanliness
• Every factory shall be kept clean and free from effluvia arising from any drain, privy or other,
nuisance. It is essential that all the norms specified under the Act must be followed by an
occupier otherwise on showing sufficient reasons the State Government may by order
exempt such factory or class or description of factories or any part thereof from any of the
provisions of that sub-section and if it thinks appropriate specifies alternative methods for
keeping the factory clean.
• Disposal of Wastes and Effluents
• Every factory shall make effective arrangements for the treatment of wastes and effluents
resulting from manufacturing process carried out in the factory.
• Ventilation and Temperature
• Every factory in order to secure and maintain health of workmen in every workroom must
ensure that there is
• adequate ventilation and circulation of fresh air;
• a set temperature to provide reasonable conditions of comfort and prevent injury to health;
• installation of proper temperature measuring instrument, at such places and in such position
as specified by the Act.
• Dust and Fume
• Where in a factory due to dust or fume or other impurity of such a nature is given out during
the manufacturing process which is likely to be injurious or offensive to the workers
employed, effective measures such as installation of exhaust appliance shall be taken to
prevent its inhalation and accumulation in any workroom.
• Unless the exhaust is conducted into the open air neither stationary internal nor other
combustion engine shall be operated in any room as are likely to be injurious to workers
employed in the room.
• Artificial Humidification
• The State Government may make rules in respect of all factories
where provision of artificial humidification is made. Such rules may
• prescribe standards of humidification;
• regulate the methods used for artificially increasing the humidity of
the air;
• direct prescribed tests for determining the humidity of the air to be
correctly carried out and recorded;
• prescribe the methods to be adopted for securing adequate
ventilation and cooling of the air in the workrooms;
• allow the water used for the purpose to be taken from a public
supply, or other source of drinking water, or shall be effectively
purified before it is so used;
• enabling the inspector to serve a written order on manager
specifying the measures which in his opinion should be adopted,
and requiring them to be carried out before specified date when he
forms an opinion that the water used in the factory for increasing
humidity is not effectively purified.
• Overcrowding
• Drinking Water –sec 18
• Effective arrangements be made to provide and maintain a sufficient supply of wholesome drinking
water –
• at suitable points convenient for all workers employed therein.
• all such points must be legibly marked “drinking water” in a language understood by a majority of
the workers employed in the factory.
• the water point must be situated away from washing place, urinal, latrine, spittoon, open drain
carrying sullage or effluent or any other source of contamination unless a shorter distance is
approved in writing by the Chief Inspector.
• Latrines and Urinals-sec 19,20
• Every factory must provide the number of latrines and urinals in its premises as prescribed by the
State Government –
• sufficient latrines and urinal accommodation of prescribed types at convenient places with
adequate ventilation;
• separate enclosed accommodation shall be provided for male and female workers;
• all such accommodation shall be maintained in a clean and sanitary condition at all times;
• Spittoons
• In every factory the employer shall provide and maintain –
• spittoons in a clean and hygienic condition in convenient places;
• the type and the number of spittoons may be according to the rules prescribed by the State
Government;
• a notice containing the provision “no person shall spit within the premises of a factory except in the
spittoons” and the penalty for violation thereof shall be prominently displayed at suitable places in
the premises.
 SAFETY MEASURES (SEC 21-27)
• In every factory where there is a risk from dangerous process it is essential that adequate safety measures
be taken to safeguard workers employed therein. Some of the safety measures incorporated in the Act are:
• Fencing of Machinery
• In a factory the employer must ensure that every dangerous part of the machinery is securely fenced and is
constantly maintained. The State Government may by rules prescribe such further precautions, as it may
consider necessary in respect of particular machinery or part thereof, or may exempt them subject to such
condition as may be prescribed, for securing the safety of the workers.
• Machinery in Motion
• Employer is duty to bound to ensure that a secured fence be installed to prevent any contact with machinery
in motion –
• by the worker during regular check ups.
• women and young persons are not to be allowed to clean, lubricate or adjust any part of a prime mover or of
any transmission machinery.
• Young Persons employed on Dangerous Machines
• Usually young persons are not allowed to work on any dangerous machine unless full instructions are given
to them by a person who has a thorough knowledge and experience of the machine on:
• handling of the machinery, and
• precautions to be taken.
• Prohibition of Employment of Women and Children near Cotton-Openers
• Woman or child employed in a factory for pressing cotton where a cotton-opener is at working subject to
certain conditions:
• the feed-end of a cotton-opener be separated from the delivery end by a partition extending to the roof, or
• it should be kept at such height as the Inspector may in any particular case specify in writing.
• Lifting Machines
• Every lifting machine chain, rope and lifting tackle used for the purpose of raising or lowering persons, goods or
materials in a factory must be:
• of good construction, sound material and adequate strength and free from defects;
• properly maintained; and
• thoroughly examined by a competent person at least once in every period of twelve months.
• Pressure Plant
• It is necessary that effective arrangements be made to ensure safe working pressure in the factory and the state
government is responsible to examine and test any plant or machinery for proper maintenance of pressure.
• Means of Access: The employer must ensure that all floors, steps, stairs, passages and gangways in a factory are:
• of sound construction;
• properly maintained;
• free from obstructions and substances likely to cause persons to slip; and
• provide with substantial handrails at these places.
• Openings in Floors
• Fixed vessel, sump, tank, pit or opening in the ground or in a floor of the factory which, by reasons of its depth,
situation, construction or contents, is or may be a source of danger, shall be either securely covered or fenced.
• Excessive Weights
• The State Government makes rules prescribing the maximum weights which may be lifted, carried or moved by adult
men, adult women, adolescents and children employed in factories or in any class or description of factories or in
carrying on any specified process. This is in order to ensure that no person be employed in any factory to lift, carry or
move any load so heavy as to be likely to cause him injury.
• Protection of Eyes
• To avoid any risk of injury to the eyes during manufacturing process carried on in any factory the employer must
provide effective screens or suitable goggles to the workmen and be kept in the immediate vicinity of, the process.
• Precautions Against Dangerous Fumes, Gases etc
 Sec 31-38
• No person shall be required or allowed to enter any chamber, tank, vat, pit, pipe, flue
or other confined space in any factory in which any gas, fume, vapour or dust is
likely to cause a risk to persons employed therein, unless it is provided with a –
• manhole of adequate size or other effective means of egress;
• certificate in writing has been given by a competent person, based on a test carried
out by such person.
• Such person must wear a suitable breathing apparatus and a belt securely attached to
a rope while a person outside the confined space holds the free end.
• Explosive or Inflammable Dust, Gas etc
• Where in a factory due to any manufacturing process there is a possibility of dust,
gas, fume or vapour of such character and which is all likely to explode then all
practicable measures shall be taken to prevent any such explosion by
• providing effective enclosure for the plant or machinery used in the process;
• removal or prevention of the accumulation of such dust, gas, fume or vapour;
• exclusion or effective enclosure of all possible sources of ignition.
• Precautions in case of fire
• In every factory, safeguard measures to prevent outbreak of fire and its spread, both
internally and externally, must be taken care by the employer by providing and
maintaining –
• the necessary equipment and facilities for extinguishing fire.
• educating all the workers with the means of escape in case of fire Section 29
 Sec 41 G ,H
• Safety Officers
• The State Government may by notification in the official gazette direct the occupier of a factory to employ
such number of Safety Officers as may be specified in the notification. Safety Officers may be employed:
• where 1,000 or more than 1,000 workers are employed.
• where the manufacturing process involves risk of bodily injury, poisoning or causing any other hazard to the
health of the person working in the premises of the factory.
• Role of Workers in Safety Management
• To ensure effective participation of workers in safety management:
• a Safety Committee that consists of equal number of representatives of workers and management has to be
set up unless the State Government directs not to form such a committee,
• the composition of the Safety Committee, the tenure of office of its members and their rights and duties
shall be such as may be prescribed,
• periodical review of all the safety measures must be taken up by the Committee,
• permit workers to exercise their right to notify any fear of accident or danger and initiate immediate
remedial action.
• If a person fails to comply with or contravenes the right of the workers to be warned about imminent danger
in respect of such failure or contravention, be punishable with imprisonment for a term which may extend to
seven years and with fine which may extend to two lakh rupees.
• In case the failure or contravention continues, with additional fine which may extend to five thousand
rupees for every day during which such failure or contravention continues after the conviction for the first
such failure or contravention.
• If the failure or contravention continues beyond a period of one year after the date of conviction, the
offender shall be punishable with imprisonment for a term, which may extend to ten years.
 WELFARE PROVISIONS
• Welfare Provisions
• Welfare provisions are dealt with in Sections 42 to 48. The aim of making
welfare provisions is to offer improved living and working conditions to
workers thereby promote industrial amity

• WASHING AND DRYING FACILITIES

• Every factory shall provide and maintain for the use of the workers –
• adequate and suitable facilities for washing,
• separate screened facilities for the use of male and female workers,
• suitable places for keeping and the drying of wet clothing.
• SITTING ARRANGEMENTS
• Every factory must ensure –
• suitable seating arrangements for all workers who work in a standing
position,
• provision for rest rooms,
• special seating arrangements if in the opinion of the Chief Inspector, the
workers in any factory engaged in a particular manufacturing process or
working in a particular room will work efficiently in a sitting position .Section
42-Section 43
• FIRST AID APPLIANCES
• Every factory shall –
• provide one first-aid box or cupboard for every one hundred and fifty workers ordinarily employed at any
one time in the factory.
• authorize a person as in charge of such box or cupboard who holds a certificate in first-aid treatment
recognized by State Government.
• where more than five hundred workers are ordinarily employed maintenance of an ambulance room
with the prescribed size and with all the prescribed equipment and nursing staff is to be ensured by
employer.
• CANTEENS
• Where in any specified factory more than two hundred and fifty workers are ordinarily employed the
State Government may make rules in relation to maintenance of a canteen or canteens which include:
• the date by which such canteen shall be provided;
• the standards in respect of construction, accommodation, furniture and other equipment of the canteen;
• the foodstuffs to be served therein and the charges thereof;
• the constitution of a managing committee for the canteen and representation of the workers in the
management of the canteen.
• SHELTERS OR REST ROOMS
• Every factory where more than one hundred and fifty workers are ordinarily employed it shall –
• provide adequate and suitable shelters or rest rooms,
• provide a suitable lunch room with provision for drinking water,
• ensure that shelters or rest rooms or lunchrooms are sufficiently lighted and ventilated,
• in respect of construction, accommodation, furniture and other equipment thereof, comply with
standards prescribed unless the State Government by notification in the Official Gazette, exempt any
factory or class or description of factories from the requirements of this section.
• CRECHES
• Every factory where more than thirty women workers are ordinarily employed, then they shall
be –
• provided with a suitable room or rooms for the use of children under the age of six years of
such women,
• provide adequate accommodation properly lighted and ventilated,
• ensure clean and sanitary conditions under the supervision of women trained in the care of
children and infants,
• follow the rules prescribed by the State Government in respect of facilities for the care of
children belonging to women workers including washing, changing their clothing, provision of
free milk or refreshment or both for such children.
• Appointment of Welfare Officers
• The occupier of a factory, where five hundred or more workers are ordinarily employed shall
appoint such number of welfare officers as may be prescribed. The State Government may
prescribe the duties, qualifications and conditions of service of officers.
• In addition to the above welfare provisions, the State Government is empowered under Section
50 of the Act to make rules either to exempt or require as the case may be, any factory or class
or description of factories from compliance with any of the provisions of this Chapter.

• Section 45
• Section 46
• Section 47
• Section 48
• Section 49
•
WORKING CONDITIONS
Working Conditions- Section 51,55,56,63,71,,99,74.
• WEEKLY HOURS
• In case of adult worker –
• The number of hours any adult worker is required to work in a factory shall not exceed nine hours per day
and forty-eight hours in a week. The period of nine hours may exceed subject to the previous approval of
the Chief Inspector.
• No workman is required to work more than five hours continuously in a day. But in any case the total
number of hours worked by a worker without an interval should not exceed six.
• It is essential that a rest interval of atleast half an hour is given and the period of spread over including the
period of rest must not exceed ten and a half hours per day.
• An adult worker shall be required to work in any factory in accordance with the notice of periods of work
displayed in the factory under Section 61 and the previous entries made against his name in the register
maintained for adult workers under Section 62.
• In case of child worker –
• The number of hours for which a child worker is required to work in a factory shall not exceed more than
four and a half hours in any day or during night.
• The number of shifts shall be limited to two and shall not overlap or spread over for more than five hours
each.
• Each child shall be employed in only one of the relays which shall not be changed more frequently than
once in a period of thirty days.
• No child shall be required to work in more than one factory at a time. If a child works in a factory on any
day on which he has already been working in another factory, the parent or guardian of the child or the
person having custody of or control over him or obtaining any direct benefit from his wages, shall be
punishable with fine which may extend to one thousand rupees, unless it appears to the Court that the
child so worked without the consent or connivance of such parent, guardian or person.
• A female child worker shall be required to work in a factory only between 8 am and 7 pm.
• Hours of work must correspond with notice issued under Section 72 and register maintained under
Section 73. Section 54
 Section 53, Section 57
• WEEKLY HOLIDAYS
• No adult worker shall be required to work in a factory on the first day of the week unless he had been or will be given a
holiday for a whole day on one of the three days immediately before or after the said day as the case may be.
• Notice of substituted holiday may either be delivered at the office of the Inspector or displayed in the factory whichever
is earlier by the manager of the factory. In the like manner, the notice given may be cancelled.
• In case the worker works on shift, a holiday for a whole day shall mean in his case a period of twenty-four consecutive
hours beginning when his shift ends.
• Subject to rules prescribed by the State Government, where a worker foregoes his leave to attend to an emergency work
in the office, such worker shall be allowed to avail compensatory leave within the month or within two months
immediately following that month.
• Working Shifts
• A worker is said to work on night shift, if his work extends beyond midnight. While the hours he has worked after
midnight shall be counted in the previous day, the period of twenty-four hours beginning when such shift ends is treated
as the following day.
• No work in a factory shall be carried on by means of a shift system where more than one relay of workers is engaged to
do same kind of work at the same time.
• OVERTIME WAGES
• A worker who works for more than nine hours in any day or for more than forty-eight hours in any week is entitled to
receive wages at the rate of twice his ordinary rate of wages. “Ordinary rate of wages” means the basic wages plus such
allowances, including the cash equivalent of the advantage accruing through the concessional sale to workers of food
grains and other articles but does not include a bonus. Computation of cash equivalent of the advantage accruing
through the concessional sale to workers of food grains and other articles is concerned, the state government may
prescribe the method of computation and shall maintain the registers to ensure compliance with the provisions of this
Section.
• Unless the circumstances otherwise prescribe, Section 60 of the Act lays down that no adult worker shall be required to
work in any factory on any day on which he has already been working in any other factory.
 SEC 62,69,73
• REGISTER OF ADULT AND CHILD WORKERS
• Under Section 62 of the Act, the manager of every factory shall maintain a register of adult
workers in the form prescribed by the State Government. Such register must be available to
the Inspector at all times during working hours and must include such information as:
• name of each adult worker;
• nature of his work;
• number of shifts and the relay to which he is allotted.
• Under Section 73 of the Act, the manager of every factory shall, in which children are
employed must maintain a register of child workers. Such register must be available to the
Inspector at all times during working hours and contain information such as:
• name of each child worker,
• nature of his work,
• shift and the relay to which he is allotted,
• number of the certificate of fitness granted under Section 69.
• Unless the name and other particulars are entered in the respective registers neither the
adult nor the child worker shall be allowed to work in any factory. The State Government
may prescribe the form of the register of child workers, the manner in which it shall be
maintained and the period for which it shall be preserved.
 SEC 66,67,69,70,98
• Restrictions on Employment of Women and Young Children
• According to Sections 66 and 67 of the Act unless the State Government prescribes rules providing for the exemption from
the restrictions to such extent and subject to such conditions as it may prescribe in respect of women and young children
who has not completed his fourteenth year for instance:
• women workers shall be required to work in a factory only during 6 am to 7 pm.
• a certificate of fitness issued under Section 69 that the child is in the custody of the manager of the factory.
• the child worker carries a token while at work as a reference to the certificate of fitness.
• Certificate of Fitness
• A surgeon who is authorized to certify shall on application made by any young person, parent or guardian, as the case may
be –
• examine the document signed by the manager of a factory that such person is an employee,
• ascertain the fitness of the person or any certificate of fitness,
• grant or renew a certificate already issued,
• refuse or revoke any certificate of fitness already issued stating the reasons in writing,
• recover the fee payable for the certificate from the occupier.
• Where an adolescent on certificate of fitness granted and a token issued giving reference to the certificate shall be deemed
to be an adult for all the purposes of Chapters VI and VII. However, the State Government by notification in the Official
Gazette, in respect of any factory or group or class or description of factories may –
• vary the limits already laid down,
• grant exemption from the provisions in case of serious emergency where national interest is involved.
• The Act makes a provision under Section 98 to prevent any misuse of certificate of fitness. According to Section 98 whoever
knowingly uses or attempts to use, as a certificate of fitness granted to himself under Section 70, a certificate granted to
another person under that section, or who, having procured such a certificate, knowingly allows it to be used, or an attempt
to use to be made, by another person, shall be punishable with imprisonment for a term which may extend to two months
or with fine which may extend to one thousand rupees or with both Section 70.
• LEAVE WAGES
• Unless a worker is engaged in any factory or in railway administered by the
government, annual leave with wages is available to a worker during the subsequent
calendar year if he had worked for a period of 240 days or more in a factory during
the previous calendar year. In computing the number of days:
• In case of an adult, it would be calculated at the rate of one day for every twenty days
of work performed by him during the previous calendar year;
• In case of child, it would be calculated at the rate of one day for every fifteen days of
work formed by him during the previous calendar year.
• The following days have to be included –
• any days of lay off, by agreement or contract or as permissible under the standing
orders;
• maternity leave for any number of days not exceeding twelve weeks;
• the leave earned in the year prior to that in which the leave is enjoyed.
• The leave admissible shall be exclusive of all holidays, whether occurring during or at
either end of the period of leave.
• fraction of leave of half a day or more shall be treated as one full day’s leave, and
fraction of less than half a day shall be omitted.
• If a worker does not in any one calendar year take the whole of the leave allowed to
him, that number of days shall be added to the leave to be allowed to him in the
succeeding calendar year provided that the total number of days of leave that may be
carried forward to a succeeding year shall not exceed thirty in the case of an adult or
forty in the case of a child.
The Shops and Establishment Act
1953
•A statute for the unorganized sector like shops and
establishments .
•It aims at providing statutory rights and obligations to
employees and employers engaged therein.
•The State Governments are empowered to frame its own rules
for enforcement of the Act or to make any amendments, as it
deems appropriate.
•Thus, the Act is made applicable to all persons employed in an
establishments with or without wages, except the members of
the employer’s family.
 Scope and Object of the Act

• The social objective with which State Government enacted this

legislation was to:
• protect the laborers of un-organized sector from exploitation,
• To regulate the conditions of work and employment in shops,
commercial establishments, residential hotels, restaurants, eating
houses, theatres and other places of public entertainment.
• To secure maximum benefits to the employees.
• The scope of the Act extends to whole of the respective State (or
Union Territory) and covers all establishments irrespective of their
size, turnover and persons employed.
• It covers all the shops and establishments, which are covered by
the Factories Act or Mines Act or any other Act regulating the
employment conditions.
 Imp Definitions
• Shop means and includes, as the case may be, any premises where –
• goods are sold, either by retail or wholesale,
• services are rendered to customers,
• an office, store-room, godown, warehouse or work-place used for such sales or
services but does not include a restaurant, a residential hotel, theater or other place
of amusement or entertainment. Sec 2 (16)

• Establishment means which carries on any business, trade or profession or any work
in connection with or incidental to any business, trade or profession.
• It includes –
• administrative or clerical service appertaining to such establishment,
• a shop, restaurant, a residential hotel, theater or other place of amusement or
entertainment,
• such establishment as the State Government may by notification declare to be an
establishment to which the Act applies.
• It does not include –
• a motor transport undertaking as defined in the Motor Transport Workers Act, 1961-
sec 2 (6)
•
• Employee
• The Act is applicable to all persons employed in an
establishment with or without wages, except the members of the
employer’s family. However, the State government can exempt,
either permanently or for a specified period, any establishments
from all or any provisions of this Act. A few examples of
establishments to which the Act applies:
• A shop carrying on a retail or wholesale trade or rendering a service.
• Offices of all types of organizations whether sole proprietor,
partnership, private company, public company etc.
• Auctioneers, Banks, Insurance organizations, Stock Exchanges, Share
Brokers and Commission agents and Money Changers.
• Educational institutions for profit.
• Factories and clerical departments not covered under the Factories
Act.
• Residential hotels, Clubs, Canteens, Cinemas, and other places of
amusements.
• Employer means a person who owns or
exercises ultimate control over the affairs of an
establishment and includes a manager, agent or
any other person in the immediate charge of
general management or control of such
establishment.
• Section 2(5)
 Main Provisions
• It provides compulsory registration of
shop/establishment within 30 days of commencement
of work.
• It specifies communications of closure of the
establishment within 15 days from the closing of the
establishment.
• It lays down the hours of work per day and week.
• It lays down guidelines for spread-over, rest interval,
opening and closing hours, closed days, national and
religious holidays, overtime work.
• It specifies rules for employment of children, young
persons and women.
• Lays down the minimum wages to be paid.
• Certain provisions of the following Acts apply
to this Act –
• Workmen’s Compensation Act, 1923,
• Maternity Benefit Act, 1961,
• REGISTRATION
• Every employer under this Act is under an obligation to compulsorily
register the shop or establishment within thirty days of
commencement of work.
• The application for registration must be made in a prescribed form
along with the prescribed fee addressed to the Chief Inspector of
local area.
• It should contain, i) name of employer or manager if any; ii) the
postal address of the establishment; iii) category of the
establishment; iv) any other particulars as may be prescribed. The
establishment may then be registered if the Inspector id satisfied
with the correctness of the statement and the Certificate of
Registration is issued
• On registration the certificate of registration shall be displayed at
the establishment.
• Any change in the particulars furnished at the time of registration
shall be communicated to the Chief Inspector and communication
of closure must be intimated within 15 days from the closing of the
establishment.
• The validity of certificate of registration is for a specified period,
which may be renewed from time to time.
• Opening and Closing Time prescribed under the act
are as follows-
• Shops dealing wholly in milks, vegetables, fruits,
fish, bread etc- Opening : NBF 5.00am Closing: NLT
8.30 pm
• Shops dealing in goods other than those prescribed
above- Opening : NBF 7.00am Closing: NLT
11.00pm
• Commercial Establishments- Opening : NBF
8.30am Closing: NLT 8.30pm
• Customer who is being served or waiting to be
served at closing time may be served within 15
min.
• WEEKLY HOURS AND HOLIDAYS
• Working Hours -No employee is allowed to work MT 9hrs in a day or for 48
hrs in a week
• An employee may be allowed to work upto 3 hrs a week over and above
this limit and upto 26 hrs or NMT 6 days in a year for purposes of making of
accounts, stock taking settlements or prescribed occasions.
• No employee is allowed to work for more than 5 hrs at a stretch unless he is
given rest for half an hour if in case of commercial establishment engaged in
manufacturing process, and 1 hr in any other cases.
• The spread over of an employee in shop ‘d not exceed 11 hrs on any day.
• Every shop or establishment shall –
• work in accordance with rules prescribed in relation to the hours of work
per day and week.
• conduct business only between 9 am and 9 pm unless different provision is
made by a particular State Government.
• remain closed if the Chief Inspector in public interest and subject to the
direction of the State Government specifies a particular day as a weekly
holiday for that particular area.
• display a notice indicating weekly holiday at the main entrance or other
convenient place either in Hindi or other language understood by majority
of employees.
• remain closed on national holidays and the employees shall be entitled to
normal wages.
 HEALTH AND SAFETY CONDITIONS
• The employer of a shop or establishment must ensure
that the premises of the shop or establishment must be
kept clean and hygienic.
• It must be sufficiently lighted and ventilated.
• Premises to be clean and free from effluvia arising
from any drain or privy or other nuisance and shall be
cleaned at such times and by such methods as may be
described which may include, lime washing, color
washing, painting, varnishing, disinfecting and
deodorizing.
• Every establishment to be well lighted and follow
prescribed precautions against fire.
• A first aid box to be maintained at every establishment
where manufacturing process is carried out.
• Closing Day - Every shop or commercial
establishment ‘d remain closed on any one day of
the week.
• The list of closing days ‘d be notified to the
Inspector and displayed in the premises of the
establishment.
• A shop or establishment may remain open on the
notified closing day provided it remains closed on
any other day of the week and this change ‘d be
notified to the Inspector atleast a week in
advance.
• Pharmacists, Chemists and Druggists shops are
exempted from these provisions relating to closing
day.
• SPREAD OVER
• Every employer of a shop or establishment should follow guidelines
laid down for spread-over, of work interval, of rest opening and
closing hours of work, number of closed days, national and religious
holidays, overtime work. Generally the working hours and rest
intervals on the whole in a day should not be spread over for more
than eight hours in case of a child, ten hours in case of an young
person and 12 hours in the case of adult employee.
• EMPLOYMENT OF STAFF
• Every employer of a shop or establishment shall subject to rules
prescribed under this Act prohibit employment of –
• children below 12 years of age, sec 13
• young person and women during the night,
• a person in two or more establishments or an establishment and a
factory at the same time.
• No child or young person shall be required to work whether as an
employee or otherwise –
• before 7 am or after 10 pm. Sec 14
• for more than 5 hours in a day or 30 hours in a week or (7 hours in a
day or 42 hours in a week respectively).
• LEAVE
• The employees under this Act shall in accordance with rules made
there under avail annual leave, maternity leave, sickness and casual
leave, etc. and the employer shall not deduct any amount from wages
in respect of leaves allowable under the rules.
• the employees can claim wages for leave not availed.
• The State Government is empowered to exempt the application of
certain provisions of the Act in case of certain establishment if it is of
the opinion that they are less favorable to the employees.
• An employee who has worked for not less than 3 months in a year is
allowed for leave not less than 5 days for every 60 days on which he
has worked and for a period of not less than 21 days for every 240
days on which he works during an year.
• Such leave may be accumulated for a maximum of 63 days.
• In addition every employee is entitled to i) casual leave for 7 days a
year; ii) medical leave for 7 days a year; iii) leave for not more than4
days a year on any of national or festival holidays as specified by State
Govt. These leaves are with wages.
• Wages
• The provisions of payment of Wages Act, 1936 and the Workmen’s
compensation Act, 1932 are applicable regarding the payment of wages of
employees.
• The wages payment period to be fixed by every employer and not exceed
one month.
• All wages ‘to be paid in cash within 7 days of expiry of the wage day.
• Due wages of an employee terminated by an employer to be paid within a
day of the termination.

• Following deductions are allowed from the wages of the employees

• Absence from duty
• Fines
• Advance or overpayment of wages
• House accommodation and other amnesties & services provided by the
employer Loss or damage of goods due to negligence of employee
• Deductions to an insurance scheme appointed by the Govt or for payment
of Cooperative society.
• Income tax deduction
• Deduction required to be made by an order of court or any other
competent agency.
• DISMISSAL, DISCHARGE AND TERMINATION
OF SERVICE
• The employer of a shop or establishment shall
issue a letter of appointment to every
employee, at the same time is also required to
give notice before terminating employment,
likewise the employee is also required to a give
a similar notice before leaving the service.
• However, such notice is not necessary where
an employee is dismissed on the charge of
prescribed misconduct supported by
satisfactory evidence recorded at an enquiry
held for the purpose.
• REGISTERS AND RECORDS
• The employer of a shop or establishment shall maintain the required registers, records and statements in the
manner prescribed.
• Notices may be displayed in the premises as may be prescribed under the rules of the Act.
• The employer is required to produce such records for inspection when demanded.
• Enforcement and Inspection
• Enforcement of the provisions of this Act is the responsibility of local authorities in their respective
jurisdiction and of State Govt. in respective areas.
• Local authority or state Govt. may appoint necessary number of inspectors for the purpose of this Act. An
Inspector must possess the prescribed qualifications.
• An Inspector may- Enter at all reasonable times with such assistants in any place in which he has reason to
believe is an establishment.
• Make examination of premises and of any prescribed registers, records and notices and take on spot or
otherwise evidence he may deem necessary
• Exercise such other powers as may be necessary for carrying out the purpose of Act
• INSPECTING OFFICERS
• The State Government is empowered to appoint a Chief Inspecting Officers and Inspecting Officers for the
purposes of the Act.
• The District Magistrate and Subdivisional Magistrate may be appointed as Inspecting officers within the limits
of their respective jurisdiction.
• The Inspecting officer has the same powers as vested in a civil court regarding summoning and enforcing the
attendance of witnesses and compelling the production of documents for the purposes of an inquiry under the
Act.
• Every employer of a shop or establishment should co-operate with the Inspector in the course of his inspection
proceedings.
 OFFENCES AND PENALTIES
• Sec 34-If an employer contravenes any provision of the Act or any rules made there under and no other penalty is provided
for the offence.
• (Punishment with a fine which may extend to Rs.250 and to Rs.500 for every subsequent offence after the first conviction.)
• Sec 32-If any person voluntarily obstructs an Inspecting officer in exercise of the powers conferred on him or any person
lawfully assisting him or who fails to comply with any lawful direction made by the inspecting officer.
• (Imprisonment for a term of month or with a fine which may extend to Rs.250 or with both.)

• Section 28(3) - Any malicious or vexatious application made by a person to a prescribed authority in respect of deduction
of wages or delayed payment.
• (The employer or the person responsible for payment of wages shall be liable to a penalty not exceeding Rs.25.)
• Failing to send statement to Inspector within specified period Employer and manager can be punished with fine of Rs. 25
to 250
• • Failing to apply for renewal of registration certificate
• • Failing to notify change within specified period •
• Failing to notify closing of establishment • Contravention in provisions relating to opening and closing
• • Holidays in a week •
• Cleanliness, ventilation, lighting, precautions against fire •
• Daily and weekly hours of work
• If contravention relating to registration is continued, after 15 th day after conviction, employer shall be punishable with a
further fine upto Rs.
• For each day of contravention. An enhanced penalty of Rs. 50 to 500 for second conviction and Rs. 75 to 750 for third
conviction In exceptional cases, small fine
• Employment of Children, young persons and women -- Not providing registers and records • Not maintaining registers
and records • Knowingly permitting double employment or in a holiday during a leave.
Telangana Shops and Establishments
Act, 1988
• Earlier- Andhra Pradesh Shops and
Establishments Act, 1966.
• The said Act in force in the combined State, as
on 02.06.2014, has been adapted to the State
of Telangana, under section 101 of the Andhra
Pradesh Reorganisation Act, 2014.
• Registration, certificate of registration sec 3
licensing, renewal sec 4 same .
• Revocation /suspension of certificate-if
certificate obtained by fraud or
misrepresentation, inspector to revoke /cancel
certificate under sec 5.
• Appeal-to be made against above within 30
days to appellate authority appointed under
the act. Authority to dispose off appeal within
2 months.
• Opening and Closing hours of shops.-shop to be
closed/open after previous publication, be fixed by the
Government by a general or special order in that behalf.
• The Government may, for the purposes of this section,
fix different hours for different classes of shops or for
different areas or for different time of the year.
• Selling outside prohibited, before opening and after
closing hours of shops.sec 8
• It shall not apply to the sale of -
• (i) News papers;
• (ii) flowers;
• (iii) pan;
• (iv) vegetables and fruits; and
• (v) such other goods as the Government may, by
notification, specify from time to time.
• 9. Daily and weekly hours of work in shops. - (1) Subject to other provisions of this
Act, no employee in any shop shall be required or allowed to work therein for more
than eight hours in any day and forty-eight hours in any week.
• (2) Any employee may be required or allowed to work in a shop for any period in
excess of the limit fixed under subsection (1) on payment of over-time wages,
subject to a maximum period of six hours in a week.
• (3) For the purpose of stock-taking and preparation of accounts, an employer may,
with the previous intimation to the Inspector, require or allow any employee to
work in a shop for not more than any six days in a year in excess of the period fixed
in sub-section (1), on payment of over-time wages; so however, that the excess
period shall not in aggregate, exceed twenty-four hours.
• 10. Interval for rest. - No employee in any shop shall be required or allowed to work
therein for more than five hours in any day unless he has had an interval for rest of
at least one hour:
• Provided that, an employee who was serving a customer at the commencement of
the interval may be required to serve him during the quarter of an hour immediately
following such commencement.
• 11. Spread over periods of work. - The periods of work of an employee in a shop
shall be so arranged that along with his intervals for rest, they shall not spread over
for more than twelve hours in any day:
• Provided that, where an employee works on any day for the purpose of stock-taking
and preparation of accounts, the spread over shall not exceed fourteen hours in any
such day on payment of over-time wages.
• 12. Closing of shops and grant of holidays. - (1) Every shop, whether with or without employees, shall
remain closed on every Sunday which shall be a holiday for every employee in the shop:
• Provided that the Chief Inspector may, by notification, specify in respect of any shop or class of shops
or in respect of shops or class of shops in any area any day in the week instead of Sunday on which day
such shop or class of shops shall remain closed.
• (2) (a) The Chief Inspector may, by notification, require in respect of any specified class of shops that
they shall in addition to the weekly holiday mentioned in sub-section (1), be closed for one half day in
a week, as may be fixed by the Government;
• (b) Every employee in any shop to which a notification under clause (a) applies, shall be allowed in
each week an additional holiday of one half day fixed for the closing of the shop under clause (a).
• (3) The Chief Inspector may, for the purposes of subsection (2), fix different hours for different classes
of shops or for different areas or for different times of the year.
• (4) The weekly day on which a shop is closed in pursuance of a requirement under sub-section (2) shall
be specified by the employer in a notice prominently exhibited in a conspicuous place in the shop.
• (5) It shall not be lawful for the employer to call an employee at or for the employee to go to his shop
or any place for any work in connection with the business of his shop on any day or part of the day on
which it has remained closed.
• (6) No deduction shall be made from the wages of any employee in a shop on account of any day or
part of a day on which it has remained closed; and if such employee is employed on the basis that he
would not ordinarily receive wages for such day or part of a day he shall none the less be paid for such
day or part of a day the wages he would have drawn had the shop not remained closed, or had the
holiday not been allowed, on that day or part of a day.
• 13. Closing of shops in public interest during special occasions. - In addition to the holidays
mentioned in section 12 the Chief Inspector may, by notification and during with the previous
approval of the Government, require in respect of any specified class of shops that they shall be closed
on any specified day or days in the public interest.
 Establishments other than Shops.
• OPENING/ CLOSING -No establishment shall on any day
be opened earlier, or closed later, than such hour as
may, after previous publication, be fixed by the
Government by general or special order in that behalf:
• In the case of a restaurant or eating house, any
customer who was being served or was waiting to be
served therein at the hour fixed for its closing may be
served during the quarter of an hour immediately
following such hour.
• Govt to fix diff hours for diff establishments, diff areas,
at diff times in a year.
• Daily and weekly hours of work. - not for more
than eight hours in any day and forty eight hours in
any week.
• Any employee may be required or allowed to work
in an establishment for any period in excess of the
limit fixed above, on payment of over-time wages,
subject to a maximum period of six hours in any
week.
• For the purposes of stock taking and preparation of
accounts, an employer may, with the previous
intimation to the Inspector, require or allow any
employee to work in an establishment for not
more than any six days in a year,
• On payment of overtime excess period not to
exceed 24 hrs.
• Interval for rest –not to work in such establishment for more
than five hours in any day unless he has had an interval for
rest of at least one hour:
• Chief Inspector may, in the case of an establishment whose
daily hours of work are less than eight hours, reduce
interval for rest to half-an-hour on an application made by
the employer, with the consent of the employees.
• they shall not spread over for more than twelve hours on
any day:
• Spread over of period of work-Provided that, where an
employee works on any day for the purpose of stock taking
and preparation of accounts the spread over shall not
exceed fourteen hours on any such day on payment of over-
time wages
• Holiday- each week a holiday of one whole day. No
deduction shall be made from the wages of any employee in
an establishment on account of any day or part of a day on
which a holiday has been allowed.
 Employment of Women, Children and
Young Persons.
• Children not to work in establishment. - No Child shall be required or allowed to work in any
establishment.
• 21. Special provision for young persons. - No young person shall be required or allowed to work in any
establishment before 6 a.m. and after 7 p.m.
• 22. Daily and weekly hours of work for young persons. - Notwithstanding anything in this Act, no
young person shall be required or allowed to work in any establishment for more than 7 hours in any
day and forty-two hours in any week nor shall such person be allowed to work overtime.
• 23. Special provision for women. - No Woman employee shall be required or allowed to work in any
establishment before 6-00 a.m. and after 8-30 p.m.
• 24. Maternity leave. - The periods of absence from duty in respect of which a women employee is
entitled to maternity benefit under section 25, shall be treated as authorised absence from duty, and
the women employee shall be entitled to maternity benefit, but not to any wages for any of those
periods.
• 25. Maternity benefit. - Every woman who has been for a period of not less than six months preceding
the date of her delivery in continuous employment of the same employer whether in the same or
different shops or commercial establishments, shall be entitled to receive from her employer for the
period of-
• (a) six weeks immediately preceding the day of delivery; and
• (b) six weeks following the day of delivery; such maternity benefit and in such manner as may be
prescribed:
• Provided that, no woman employee shall be entitled to receive such benefit for any day during any of
the aforesaid periods, on which she attends work and receive wages thereof.
 Health and Safety.
• Clean lines. - The premises of every establishment shall be kept clean and free from effluvia arising
from any drain or privy or other nuisance and shall be cleaned at such times and by such methods as
may be prescribed.
• 27. Ventilation. - The premises of every establishment shall be ventilated as provided for in the laws
relating to the municipalities, gram-panchayats or other local authorities for the time being in force.
• 28. Precautions for the safety of employees in establishments. - (1) In every establishment other
than such esablishment or class of establishments as the Government, may by notification, specify,
such precautions against fire shall be taken as may be prescribed.
• (2) If power driven machinery is used, or any process which, in the opinion of the Government, is
likely to expose any employee to a serious risk of bodily injury is carried on in any establishment,
such precautions including the keeping of first aid box shall be taken by the employer for the safety
of the employees therein, as may be prescribed.
• 29. Maximum permissible load. - (1) No employee in any establishment shall be required or allowed
to engage in the manual transport of a load therein which by reason of its weight is likely to
jeopardise his health or safety.
• (2) The Government may, for the purposes of this section prescribe different maximum limits of
weight for different classes of employees in any establishment.
• Explanation. - For the purposes of this section, the term "manual transport of a load" means any
transport in which the weight of the load is wholly borne by one employee, inclusive of the lifting
and putting down of load.
• 30. Leave. - Every employee who has served for a period of two
hundred and forty days or more during a continuous period of twelve
months in any establishment shall be entitled during the subsequent
period of twelve months, to leave with wages for a period of fifteen
days, provided that such leave with wages may be accumulated upto
a maximum period of sixty days in a year.
• employee who has served for a period of not less than two hundred
and forty days during a continuous period of twelve months in any
establishment shall be entitled for encashment of eight days of leave
with wages that has accrued to him under sub-section (1) during the
subsequent period of twelve months.
• Every employee in any establishment shall also be entitled during his
first twelve months of continuous service and during every
subsequent twelve months of such service
• (a) to leave with wages for a period not exceeding twelve days on the
ground of any sickness or accident and (b) to casual leave with wages
for a period not exceeding twelve days on any reasonable ground.
 Mines Act 1952
• It applies to whole of India – come into force by 31st Dec.1953.
• Central Act aims to amend and regulate the law relating to regulation
of labour and safety in mines.
• It seeks to regulate the working conditions in mines by providing
measures relating to health and safety of mine workers, hours and
limitation of employment, leave with wages .
 Aims and objectives
• 1. To make provisions- as to health, safety of workers employed in mines –
drinking water, conservancy, medical apapliances, responsibility of owner,
agent, or manager to give notice of accidents to proper authority.
• 2. To make provision relating to hours and limitation of work such as
weekly day rest, compensatory day of rest, hours of work above& below
ground. Night shift, extra wages for overtime work , limitation of daily
hours of work,
• 3. Prohibition of presence presence of persons below 18 yrs of age,
employment of women.
• 4. It seeks to achieve fair and healthy environment in the mines through
inspecting staff. The Act prescribes the duties of the owner to manage
mines and mining operation and the health and safety in mines.
• For efficient administration chief inspector and inspectors who are
assigned powers and functions.
• 5. appointment of authority to enquire into accidents, hear and decide
appeals. For this purpose committees constituted by the central govt.
• 6. It aims to acheive due compliance of law of min es. –it provides for
penalties and procedures.
 Mines Def
• “Mine” means any excavation where any operation for the purpose of searching for or obtaining
minerals has been or is being carried on and includes.

• (i) all borings, bore holes, oil wells and accessory crude conditioning plants, including the pipe
conveying mineral oil within the oilfields;
•
(ii) all shafts, in or adjacent to and belonging to a mine, whether in the course of being sunk or
not;
•
(iii) all levels and inclined planes in the course of being driven;
•
(iv) all open cast workings;
•
(v) all conveyors or aerial rope ways provided for the bringing into or removal from a mine of
minerals or other articles or for the removal of refuse therefrom;
• (vi) all adits, levels, planes, machinery, works, railways, tramways and
sidings in or adjacent to and belonging to a mine;
•
(vii) all protective works being carried out in or adjacent to a mine;
•
(viii) all workshops and stores situated within the precincts of a mine and
under the same management and used primarily for the purposes connected
with that mine or a number of mines under the same management;
•
(ix) all power stations, transformer sub-stations, convertor stations, rectifier
stations and accumulator storage stations for supplying electricity solely or
mainly for the purpose of working the mine or a number of mines under the
same management;
•
(x) any premises for the time being used for depositing sand or other
material for use in a mine or for depositing refuse from a mine or in which
any operations in connection with such sand, refuse or other material is
being carried on, being premises exclusively occupied by the owner of the
mine;
•
(xi) any premises in or adjacent to and belonging to a mine on which any
process ancillary to the getting, dressing or preparation for sale of minerals
or of coke is being carried on
• “minerals” means all substances which can be
obtained from the earth.
• by mining, digging, drilling, dredging,
hydraulicing, quarrying or by any other
operation and includes mineral oils (which in
turn include natural gas and petroleum.)
• "owner", when used in relation to a mine, means any person who is
the immediate proprietor or lessee or occupier of the mine
• or of any part thereof and in the case of a mine the business
whereof is being carried on by a liquidator or receiver, such
liquidator or receiver.
• but does not include a person who merely receives a royalty, rent or
fine from the mine,
• or is merely the proprietor of the mine, subject to any lease, grant
or license for the working thereof,
• or is merely the owner of the soil and not interested in the
minerals of the mine; but (contractor or sub-lessee] for the working
of a mine or any part thereof shall be subject to this Act in like
manner as if he were an owner, but not so as to exempt the owner
from any liability;
 Act not to apply in certain cases
• The provisions of this Act shall not apply to:
• any mine or part thereof in which excavation is being made for prospecting
purposes only and not for the purpose of obtaining minerals for use or sale
provided that –
• not more than twenty persons are employed on any one day in connection with
any such excavation;
• the depth of the excavation measured from its highest to its lowest point does not
exceed six meters or fifteen meters in case of excavation for coal; and
• no part of such excavation extends below superjacent ground.
• any mine engaged in the extraction of kankar, murrum, laterite, boulder, gravel,
shingle, ordinary sand ordinary clay building stone, slate, road metal, earthy fullers
earth, marl chalk and lime stone provided that –
• the working do not extend below superjacent ground; or
• where it is an open cast working the depth of the excavation measured from its
highest to its lowest point does not exceed six meters, the number of persons
employed on any one day does not exceed fifty and no explosives are used in
connection with the excavation.
 Sec 5 and 11
• Administration of the Act
• The Central government as the administrative authority may, by notification in the
official Gazette, appoint the Chief Inspector of mines for all the territories to which
this Act extends and also appoint such persons as Inspectors of mines subordinate
to the Chief Inspector.
• Likewise the Central Government may appoint qualified medical practitioners to be
certifying surgeons for the purpose of this Act within such local limits or for such
mine or class or description of mines as it may assign to them respectively.
• Under Section 12 of the Act the Central Government shall, by notification in the
official Gazette, constitute for the purposes of this Act, a Committee consisting of –
• a person in the service of the Government, not being the Chief Inspector or an
Inspector, appointed by the Central Government to as Chairman,
• the Chief Inspector of mines,
• two persons to represent the interests of miners appointed by the Central
Government,
• two persons to represent the interests of owners of mines appointed by the Central
Government,
• two qualified mining engineers not directly employed in the mining industry,
appointed by Central Government.
 POWERS AND FUNCTIONS OF THE COMMITTEE
SEC 13,14,27
• The Committee –
• shall consider proposal for making rules and regulations under this Act and make appropriate
recommendations to the Central Government;
• shall conduct enquiry into such accidents or other matters as may be referred to it by the Central
Government and submit reports thereon. The Central Government may cause any report submitted
by a Committee extracts from report submitted and every report submitted by a Court of Inquiry be
published at such time and in such manner as it may think fit;
• shall hear and decide any appeals or objections against notices or orders issued under this Act.
• However, the Chief Inspector shall not as a member of the Committee participate in the
proceedings of the Committee with respect to any appeal or objection against an order on notice
made or issued by him.
• may exercise such of the powers of an Inspector under this Act as it thinks necessary or expedient
to exercise for the purposes of discharging its functions under this Act.
• For the purposes of discharge and its functions the cause same powers as are vested in a court
under the Code of Civil Procedure, 1908 when trying a suit in respect of the following matters,
namely:
• discovery and inspections;
• enforcing the attendance of any person and examining him on oath;
• compelling the production of documents; and
• such other matters as may be prescribed.
 Chief Inspector
• The Central Government may, by notification in the Official Gazette,
appoint such a person as possesses the prescribed qualifications to
be Chief Inspector of Mines for all the territories to which this Act
extends and such persons as possess the prescribed qualifications
to be Inspectors of Mines subordinate to the Chief Inspector.
•
No person shall be appointed to be Chief Inspector or an Inspector,
or having been appointed shall continue to hold such office, who is
or becomes directly or indirectly interested in any mine or mining
rights in India.
•
The district magistrate may exercise the powers and perform the
duties of an Inspector subject to the general or special orders of the
Central Government:
• The Chief Inspector and all Inspectors shall be deemed to be public
servants.
• Chief inspector may think fit to impose, by order
in writing, authorise any Inspector named or any
class of Inspectors specified in the order to
exercise such of the powers of the Chief Inspector
under this Act .
• The Chief Inspector may, by order in writing,
prohibit or restrict the exercise by any Inspector
named or any class of Inspectors specified in the
order of any power conferred on Inspectors
under this Act.
 SEC 7-Powers of Inspectors of Mines
• a) make such examination and inquiry as he thinks fit in order to ascertain whether the provisions of this Act and
of the regulations, rules and bye-laws and of any orders made thereunder are observed in the case of any mine;
•
(b) with such assistants, if any, as he thinks fit, enter, inspect and examine any mine or any part thereof at any time
by day or night:
Provided that the power conferred by this clause shall not be exercised in such a manner as unreasonably to
impede or obstruct the working of any mine;
•
(c) examine into, and make inquiry respecting, the state and condition of any mine or any part thereof, the
ventilation of the mine, the sufficiency of the bye-laws for the time being in force relating to the mine, and all
matters and things connected with or relating to the health, safety and welfare of the persons employed in the
mine, and take whether on the precincts of the mine or elsewhere, statements of any person which he may
consider necessary for carrying out the purposes of this Act;
•
(d) exercise such other powers as may be prescribed by regulations made by the Central Government in' this
behalf:
Provided that no person shall be compelled under this sub-section to answer any question or make any statement
tending to incriminate himself.
•
(2) The Chief Inspector and any Inspector may, if he has reason to believe, as a result of any inspection,
examination or inquiry under this section, that an offence under this Act has been or is being committed, search
any place and take possession 1[of any material or any plan, section, register or other record] appertaining to the
mine, and the provisions of the 2[Code of Criminal Procedure, 1973 (2 of 1974)] shall so far as may be applicable,
apply to any search or seizure under this Act as they apply to any search or seizure made under the authority of a
warrant issued under 3[section 94] of that Code.
 Management of Mines –sec 16,17,18
• MANAGEMENT OF MINES
• Notice
• The owner, agent or manager of a mine shall, at least one month before the commencement of any mining
operation, give a notice in writing in the prescribed form containing the required particulars to the Chief
Inspector, the Controller, Indian Bureau of Mines and the District Magistrate of the district in which the mine is
situated.
• Appointment of Managers
• Unless otherwise prescribed, the owner or agent of every mine shall appoint a person having the prescribed
qualifications to be the sole manager. Subject to any instruction confirmed in writing to him by or on behalf of
the owner or agent of the mine, the manager except in case of emergency shall be responsible for the overall
management, control, supervision and direction of the mine.
• Duties and Responsibilities of Owners, Agents, and Managers
• The owner, agent and manager of mine are responsible –
• for making financial and other provisions,
• to ensure compliance with the provisions of this Act and the regulations, rules, bye-laws and orders made
thereunder,
• in respect of matters exclusively carried out by the owner and agent of the mine and by such person (other
than the manager) whom they may appoint for securing compliance with the aforesaid provisions,
• if the carrying out of any instructions given otherwise than through the manager, be liable for the
contravention of the provision concerned,
• to see that all operations carried on in connection with the mine are conducted in accordance with the
provisions of this Act and of the regulations, rules, bye-laws and orders made thereunder,
• be deemed to be guilty in the event of any contravention by any person unless he proves that he had used due
diligence to secure compliance with the provisions and had taken reasonable means to prevent such
contravention provided that any of the persons aforesaid may not be proceeded against if it appears on
enquiry and investigation that he is not prima facie liable,
• not be a defence in any proceedings brought against themselves.
• Obligations of Persons Employed in a Mine-
Section 72
• A person employed in a mine is under an
obligation not to willfully –
• interfere with or misuse any appliance provided
in a mine for the purpose of securing the
health, safety or welfare of the person
employed therein;
• do any thing likely to endanger himself of
others unless there is a reasonable cause; and
• neglect to make us of any appliance or other
thing provided in the mine.
 Health and Safety Provisions
sec 19,20
• DRINKING WATER AND OTHER FACILITIES
• Every mine shall, subject to rules made by the Central Government –
• provide and maintain effective arrangement of sufficient supply of cold and
wholesome drinking water at suitable points conveniently situated for all
persons employed therein;
• in case of persons employed below ground the Chief Inspector may, permit
any other effective arrangements for such supply;
• ensure that the place should be legibly marked ‘DRINKING WATER’ in a
language understood by a majority of the persons employed in the mine;
• make certain that any washing place, urinal or latrine is situated within six
metres unless a shorter distance is approved in writing by the Chief
Inspector;
• provide separate and a sufficient number of latrines and urinals of prescribed
types for males and females; and
• provide such latrines and urinals at convenient places, adequately lighted,
ventilated and maintained in a clean and sanitary condition in the interests of
the health of the persons employed.
• MEDICAL AND ACCIDENT PROVISIONS- SEC 21
• Every mine shall –
• provide and maintain during all working hours such
number of first-aid boxes or cupboards equipped with
such contents as may be prescribed.
• keep such first aid box in the charge of a responsible
person trained in first-aid treatment and available during
the working hours of the mine.
• make such arrangements as may be prescribed for the
conveyance to hospitals or dispensaries of persons who,
while employed in the mine suffer bodily injury or
become ill.
• where more than one hundred and fifty persons are
employed provide and maintain a first-aid room of such
size with such equipment and be placed in the charge of
trained medical and nursing staff as may be prescribed
by the government.
 The powers of Inspector or in absence of any express provision in
relation to employment of persons on dangerous processes
• The powers of Inspector or in absence of any express provision in relation to
employment of persons on dangerous processes: sec 22
• part thereof or any matter, thing or practice in or connected with the mine, or with
the control, supervision, management or defective so as to threaten, or tend to, the
bodily injury of any person;
• Issue a notice in writing to the owner, agent or manager of the mine stating in the
notice the particulars in respect of which the mine or part thereof or the matter,
thing or practice is considered to be dangerous or defective and require the same to
be remedied within such time and in such manner as specified in the notice;
• Where the owner, agent or manager of a mine fails to comply with the terms of a
notice within the period specified, the Chief Inspector or the Inspector, may by
order in writing, prohibit the employment in or about the mine or any part thereof
any person whose employment is not in his opinion reasonably necessary for
securing compliance with the terms of the notice;
• The Chief Inspector or the Inspector sending a notice or making an order shall
forthwith report the same to the Central Government; and
• If the owner, agent or manager of the mine is not satisfied with the notice of the
Inspector, they may within ten days after the receipt of the notice or order, may
make an appeal against the same to the Chief Inspector who may confirm, modify or
cancel the notice or order.
• OBLIGATIONS OF THE OWNER, AGENT OR MANAGER
OF THE MINE (SECTION 23)
• The owner, agent or manager of the mine shall –
• give notice of the occurrence of accident to such
authority in such form and within such time as may be
prescribed;
• display one copy of the notice on a special notice-board
in the prescribed manner at a place where it may be
inspected by trade union officials;
• ensure that the notice is kept on the board for not less
than fourteen days from the date of such posting; and
• enter in a register occurrence of an accident causing
reportable injury to any person in the prescribed form
and copies of such entries shall be furnished to the Chief
Inspector once in quarter.
• Notice of accident:
• A notice has to be given by the employer to the authority about:
• an accident causing loss of life or serious bodily injury, or
• an explosion, ignition, spontaneous heating, outbreak of fire or irruption or inrush of water or other liquid
matter, or
• an influx of inflammable or noxious gases, or
• a breakage of ropes, chains or other gear by which persons or materials are lowered or raised in a shaft or an
incline, or
• an over-winding of cages of other means of conveyance in any shaft while persons or materials are being
lowered or raised, or
• a premature collapse of any part of the workings, or
• any other accident which may be prescribed.
• On receipt of the notice relating to an accident causing loss of life, the authority shall
• make an inquiry into the occurrence within two months of the receipt of the notice.
• if the authority is not the Inspector, the authority itself shall cause the Inspector to make an inquiry within the
said period.
• if a notification in the Official Gazette is given by the Central Government directing that accidents which cause
bodily injury and resulting in the compulsory absence from work of such injured person for a period exceeding
twenty-four hours be recorded, have the details entered in a register in the prescribed form.
• require a copy of the entries in the register be sent by the owner, agent or manager of the mine, on or before
the 20th day of January in the year to the Chief Inspector.
• ensure that the place of accident shall not be disturbed or altered before the arrival or without the consent of
the Chief Inspector or the Inspector to whom notice of the accident is required to be given under Section
23(1).
• permit the work to resume where the Chief Inspector or the said Inspector fails to inspect the place of
accident within seventy-two hours of the time of the accident.
 Sec 23,24-inquiry of accidents
• Under Section 24 of the Act if the Central Government is of opinion
that a formal inquiry into the causes of and circumstances attending
the accident as referred to under Section 23 ought to be held, it has
the power to appoint a competent person to hold court of enquiry in
cases of accidents and may also appoint one or more persons
possessing legal or special knowledge to act as assessor or assessors
in holding the inquiry. The person so appointed shall have all the
powers of
• a civil court under the Code of Civil Procedure 1908 (Act V of 1908),
for the purpose of enforcing the attendance of witnesses and
compelling the production of documents and material objects.
• an Inspector under this Act as he may think it necessary or expedient
to exercise for the purposes of the inquiry.
• make a report to the Central Government stating the causes of the
accident and its circumstances, and adding any observations, which
he or any of the assessors may think fit to make
• DISEASES-SEC 25
• Where any person employed in a mine contacts any
disease notified by the Central Government in the official
Gazette as a disease connected with mining operations
the owner, agent or manager of the mine, as the case
may be, shall –
• send notice thereof to the Chief Inspector and to such
other authorities in such form and within such time as
may be prescribed.
• send the report in writing of medical practitioner without
delay to the Chief Inspector stating the name and address
of the patient, the disease from which the patient is or is
believed to be suffering and the name and address of the
mine in which the patient is or was last employed.
• on receipt of the certificate of a certifying surgeon by the
Chief Inspector, pay the fee to the medical practitioner as
an arrear of land revenue.
 Working of hours and conditions of employment- 28-32
• WORKING AND REST HOURS
• Subject to provision prescribed by the Central Government –
• No person shall be allowed to work in a mine for more than six days in any one week.
• Any person deprived of any of the weekly days of rest shall be allowed to avail compensatory days of rest equal
in number to the days of rest deprived within that particular month or within the two months immediately
following that month.
• No adult employed above ground in a mine shall be required to work for more than forty-eight hours in any
week or for more than nine hours in any day except with the previous approval of the Chief Inspector.
• The periods of work along with the interval for rest shall not in any day spread over more than twelve hours
unless the Chief Inspector may, for reasons to be recorded in writing and subject to such conditions as he may
deem fit to impose, permit the spread over to extend over a period not exceeding fourteen hours in any day.
• No worker shall work for more than five hours continuously before he has had an interval for rest of at least half
an hour.
• No person working for two or more shifts shall be allowed to do work of the same kind above ground at the
same time unless they receive their intervals for rest at different times.
• No person employed below ground in a mine shall be allowed to work for more than forty-eight hours in any
week or for more than eight hours in any day except with the previous approval of the Chief Inspector.
• Where a person employed in a mine works on a shift which extends beyond midnight, a weekly day of rest shall
mean period of twenty-four consecutive hours beginning when his shift ends. While the following day shall be
deemed to be the period of twenty four hours beginning when such shifts ends the hours he has worked after
midnight shall be counted in the previous day.
• The manager of every mine shall cause to be posted outside the office of the mine a notice in the prescribed
form stating the time of the commencement and of the end of work at the mine and, if it is proposed to work
by a system of relays, the time of the commencement and of the end of work for each relay.
 EXTRA WAGES FOR OVERTIME
-SEC 33
• EXTRA WAGES FOR OVERTIME
• Where a person works above ground for more than nine hours in any
day or works below ground for more than eight hours in any day or
works for more than forty-eight hours in any week. he shall in respect
of such overtime work be entitled to wages at the rate of twice his
ordinary rate of wages the period of overtime work being calculated
on a daily basis or weekly basis whichever is more favourable to him;
• Where any person is employed in a mine on piece rate basis, the time-
rate shall be taken as equivalent to the daily average of his full-time
earning for the days on which he actually worked during the week
immediately preceding the week in which overtime work has been
done, exclusive of any overtime, and such time-rate shall be deemed
to be the ordinary rate of wages of such person;
• Provided that if such person has not worked in the preceding week on
the same or identical job, the time rate shall be based on the average
for the day he had worked in the same week excluding the overtime or
on the daily average of his earnings in any preceding week whichever
is higher.
 Conditions of employment- Sec 43 -46
• CONDITIONS OF EMPLOYMENT
• No person below eighteen years of age shall be allowed to work in any mine or part thereof.
• No apprentices and other trainees below sixteen years of age may be allowed to work, except
under proper supervision of the manager and prior approval of the Chief Inspector or an Inspector
obtained.
• If an Inspector is of the opinion that a person employed in a mine otherwise than as apprentice or
other trainee is not an adult or that any person employed in a mine as an apprentice or other
trainee is either below sixteen years of age or is no longer fit to work, serve on the manager of the
mine a notice requiring that such person shall be examined by a certifying surgeon.
• On issuance of the certificate, such certificate shall, for the purpose of this Act, be conclusive
evidence of the matters referred therein.
• No woman shall be employed in any part of a mine which is below-ground or if employed above
ground except between the hours 6 am and 7 am.
• Every woman employed in a mine above ground shall be allowed an interval of not less than eleven
hours between the changeover of employment.
• No woman shall be employed between the hours 10 pm and 5 am.
• A register of all the persons employed shall be maintained in the prescribed form and place
showing all the particulars required.
Section 40
• Section 43
• Section 46
• EXEMPTION FROM PROVISIONS REGARDING EMPLOYMENT
– SEC 38,39
• In the following circumstances the manager, permits persons
to be employed in contravention of prescribed provisions
regarding employment:
• in case of an emergency involving serious risk to the safety of
the mine or of persons employed therein, or
• in case of an accident, where actual or apprehended, or in
case of any act of God, or
• in case of any urgent work to be done to machinery, plant or
equipment of the mine as the result of break-down of such
machinery, plant or equipment.
• In each of the cases the manager shall record together with
the circumstances relating thereto and submit a report
thereof to the Chief Inspector or the Inspector. The Central
Government is empowered to make rules exempting certain
conditions to be fulfilled in respect of all or any of the
persons in similar circumstances mentioned above.
• ANNUAL LEAVE WITH WAGES- SEC 50,51,52
• Every person employed in a mine who has completed a
calendar year’s service therein shall be allowed, during
the subsequent calendar year leave with wages,
calculated –
• in the case of a person employed below ground, at the
rate of one day for every fifteen days of work performed
by him, and
• in any other case, at the rate of one day for every twenty
days of work performed by him.
• For the purposes of the Act –
• Leave shall not include weekly days of rest or holidays or
festivals or other similar occasions whether occurring
during or at either end of the period.
• Calendar year shall mean the period of twelve months
beginning with the first day of January in any year.
 Computation of leave
• In computing the leave the following points should be borne in mind:
• any days of lay-off by agreement or contact or as permissible under the standing order;
• in case of a female employee, maternity leave for any number of days not exceeding twelve
weeks; and
• the leave earned in the year prior to that in which the leave is enjoyed shall be deemed to be the
days on which the employee has worked in mine for the purpose of computation of the
attendances, but he shall not earn leave for these days.
• where a person whose service commences otherwise than on the first day of January shall be
entitled to leave with wages in the subsequent calendar year at the rates specified below –
• in case of a person employed below ground in a mine, who has put in attendances for not less
than one half of the total number of days during the remainder of the calendar year; and
• in any other case, if he has put in attendances for not less than two-thirds of the total number of
days during the remainder of the calendar year;
• where any person has not taken leave to which he is entitled in any one calendar year such
number of days shall be added to the leave to be allowed during the succeeding calendar year;
• if the employment of a person employed in a mine is terminated by the owner, agent or manager
of the mine before he has taken the entire leave to which he is entitled or if such person having
applied for and having not been granted such leave, quits his employment before he has taken
the leave, the owner, agent or manager of the mine shall pay him the amount payable in respect
of the leave not taken before the expiry of the second working day after such termination, and
where a person himself quits his employment, on or before the next pay day.
 Computing wages-Sec 53,54
• In computing the wages during leave the following points must be borne in
mind:
• Where a person employed in a mine goes on a leave, he shall be paid wages at
a rate equal to the daily average of his total full-time earnings for the days on
which he was employed during the month immediately preceding his leave.
• If no such average earning are available, then the average shall be
computed on the basis of the daily average of the total full time earnings of all
persons similarly employed for the same months.
• Any person employed in a mine who has been allowed leave for not less than
four days shall be entitled to receive his payment of wages in advance.
• Where the person employed in a mine is discharged or dismissed from service
or quits his employment or is superannuated or dies while in service, he or his
heirs or wages in lieu of leave due to him calculated.
• Any fraction of leave of half day or more, half a day shall be omitted.
• Unless the Central Government otherwise provides, any person employed in
the mine can recover any sum due to him from the owner, agent or manager
of a mine as delayed wages in accordance with the provisions of the Payment
of Wages Act, 1936.
• POWERS OF CENTRAL GOVERNMENT
• The Central Government may, by notification
in the official Gazette is empowered to make
any regulations, rules and by-laws consistent
with this Act for all or any of the purpose of
prescribing or regulating as the case may be
for efficient operation of Mines.
 Offences and Penalties

• If any person obstructs the Chief Inspector or

Inspector or refuses wilfully neglects to afford the
Chief Inspector, Inspector or such person any
reasonable facility for making any entry,
inspection, examination or inquiry authorized by
or under this Act. (Punishable with imprisonment
of a term which may extend to three months, or
with fine which may extend to five hundred
rupees, or both.
Section 63(1)
• If any person refuses to produce any registers
or other or prevents or attempts to prevent or
does any thing which he has reason to believe
to be likely to prevent any person from
appearing before or being examined by an
inspecting officer acting in pursuance of his
duties under this Act.
• Punishable with fine which may extend to
three hundred rupees. Section 63(2)
• If any person who –
• counterfeits or knowingly makes a false statement in
any certificate, or any official copy of a certificate, or
• knowingly uses as true any such counterfeit or false
certificate, or
• makes or produces or uses any false declaration,
statement or evidence knowing the same to be false,
• falsifies any plan, section, register or record-
• Punishable with imprisonment for a term which may
extend to three months or with fine which may extend
to one thousand rupees or with both. Section 64
• If any person knowingly uses or attempts to use as a
certificate of fitness granted to him.
• Punishable with imprisonment for a term, which may
extend to one month, or with fine, which may extend
to two hundred rupees, or with both. Section 65
• Any person who, without reasonable excuse omits to
make or furnish in the prescribed form or manner or at
or within the prescribed time any plan, section return,
notice, register; record or report.
• Punishable with fine, which may extend to one
thousand rupees. Section 66
• Unless any provision under Section 38 provides
otherwise, contravention of any provision of this Act or
of any regulation rule, by-law or of any order made
there under prohibiting restricting or regulating the
employment or presence of persons in or about a mine.
• Punishable with imprisonment for a term, which may
extend to three months, or with fine, which may extend
to one thousand rupees, or with both. Sec 67
• If a person below eighteen years of age is employed in a
mine in contravention of Section 40.
• The owner, agent or manager of such mine shall be
punishable with fine, which may extend to five hundred
rupees. section 68
• Failure to appoint a manager in contravention of Section 17.
• Punishable with imprisonment for a term which may extend to three
months or with fine which may extend to two thousand and five hundred
rupees, or both.-sec 70
• Failure to give notice of any accidental occurrence or to post a copy of the
notice on the special notice board.
• Punishable with imprisonment for a term which may extend to three
months, or with fine which may extend to five hundred rupee or with both.
–sec 69
• If no penalty is provided in the Act for contravening any provision of this Act
or of any regulation, rule or by-laws or of any order made there under.
• Punishable with imprisonment for a term which may extend to three
months, or with fine which may extend to one thousand rupees, or with
both. –sec 73
• If any person who has been convicted for an offence punishable under the
Act is again convicted for an offence committed within two years of the
previous conviction and involving a contravention of the same provision.
• Punishable for each subsequent conviction with double the punishment to
which he would have been liable for the first contravention of such
provision. –sec 74
• EXEMPTIONS OF THE OWNER, AGENT OR MANAGER
• In the case of the owner, agent or manager –
• No prosecution shall be instituted against the owner, agent or manager of mine for
any offence under this Act except –
• at the instance of the Chief Inspector or the District Magistrate or by an Inspector
authorized in this behalf by general or special order in writing by the Chief Inspector.
• before instituting such prosecution the Chief Inspector or the District Magistrate or
Inspector must be satisfied that the owner, agent or manager had failed to exercise
all due diligence to prevent the commission of such offence.
• Where any person alleges that either of has to is the actual offender, the owner,
agent or manager of the mine, as the case may be, has to prove to the satisfaction
of the court that –
• he has used due diligence to enforce the execution of the relevant provisions of this
Act, and
• the other person committed the offence in question without his knowledge, consent
or connivance, then the said other person shall be convicted of the offence and that
such other person shall be liable to the like punishment as if he were the owner,
agent or manager of the mine and the owner, agent or manager, as the case may be,
shall be acquitted.
• Cognizance of offences –
• No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the
first class shall try any offence under this Act which is alleged to have been
committed by any owner, agent or manager of a mine or any offence which is by this
Act made punishable with imprisonment Section 75, Section 77
G.J.C.M.P.,Vol.5(2):16-21 (March-April, 2016) ISSN: 2319 – 7285

Coal is Gold: The ‘Coalgate’ Scam

Dr. Pooja Dasgupta* & Tushar Kumrawat**
* Asst. Professor, Indore Institute of Law.
** Sem II – B.A.L.L.B. (Hons), Indore Institute of Law

Abstract
India is a land of diversities and cultures. It is a democratic nation and elects its own Government to rule it and
formulate policies and implement them for the benefit of its people. It also deals with collection, allocation and
disbursement of funds for the purpose of development of the economy. India being rich in mineral ores, has a huge
market for the same. But in the past few years, many unwanted scams and cheats have been seen in the economy. One
such scam is the ‘Coalgate’ scam which involves crores of rupees. This paper intends to find out the view of general
public and their level of awareness about such an event which is shocking to the entire country.

Introduction
The coal allocation scam, popularly known as ‘Coalgate’ in media. It is a political scandal that was surrounded by
the UPA govt. in 2012.
As we all know India is a country rich of minerals, spices , and so does has a huge deposits of coal. There are many
blocks of coal in India which is under government control.
The government allocates these coal blocks to public and private individuals or enterprise for use. The proper
procedure of allocating these blocks is that there must be an auction held for these coal blocks and the interested
enterprises can participate in those auctions. The highest bidder is given the coal block for his or his enterprise’s use.
This is/was the legal and correct way to allocate the coal blocks.
But in this scam the government allocated 194 coal blocks wrongly to private enterprises for their captive use but
the right procedure was to that the interested private enterprises has to bid in the auction.
It came to light when the Comptroller and Auditor general of India (CAG) accused the government that without
being the auctions conducted the 194 coal blocks were allocated to private individuals/enterprise for captive use.
This scam is considered the biggest scam in India and has involvement of many high profile people in this scam.

What is Coal Allocation Scam?

The coal allocation scam, or ‘Coalgate’ as it is popularly referred to in the media, is a political scandal that engulfed
the UPA government in 2012. The scam came to light after the Comptroller and Auditor General of India (CAG) accused
the government of India for allocating 194 coal blocks to public and private enterprises for captive use in a flawed,
between 2004 and 2009.

CAG Say-
The premise of the CAG’s argument was that the exchequer suffered a huge loss and public and private entities
enjoyed windfall gains, because the government’s policy of allocating coal blocks was non transparent. It alleged that
despite having the opportunity to bring in transparency, the government did not introduce the process of competitive
bidding. It also found that many politicians lobbied for allotment to certain private players raising questions about crony
capitalism. The CAG also said some private players got more coal blocks than needed for their captive operations and
several companies sold coal meant for internal use in the open market. Many firms were also found to be squatting on
blocks for years on end.

Facts & Figures

The CAG initially estimated a Rs. 10.6 lakh crore loss, but the final report tabled in the parliament put the figure at
Rs. 1.86 lakh crore.

Facts
India is a country which is facing the problem of corruption since many decades. And it has also faced many scams
and scandals. There are many scams that occur in the country out of which some are detected and many are not known to
the common public.
There are many scams that have taken place in our country. Few of them are:
- 2G Spectrum Scam – 2008 – 1.76 L Crore
- Wakf Board Land Scam – 2012 – 1.5-2L Crore
- Commonwealth Games Scam – 2010 – 70,000 Crore
- Satyam Scam – 2009 – 14,000 Crore
- Bofors Scam – 1980s & 90s – 100 to 200 Crore
- The Fodder Scam – 1990s – 1,000 Crore
- The Hawala Scandal – 1990-91 – 100 Crore

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G.J.C.M.P.,Vol.5(2):16-21 (March-April, 2016) ISSN: 2319 – 7285
There are many more hundreds of scams and scandals but the ones mentioned here are those which have taken a
huge troll in the country and affected the country massively.
And the coal allocation scam is the biggest scam ever detected in the country as in this scam the country suffered a
loss of 1.86 lakh crores.

Coalgate
Coal allocation scam or coalgate is a major political scandal regarding the allocation of coal blocks to public sector
entities and private companies, without competitive bidding .
It came to light when Comptroller and auditor general of India (CAG), indicted the government of India of
allocating coal blocks in a wrong manner during the period 2004–2009. Over the Summer of 2012, the opposition BJP
filed a complaint resulting in a Central Bureau Of Investigation (CBI) probe into whether the allocation of the coal
blocks was in fact influenced by corruption.
Government had the authority to allocate coal blocks by a process of competitive bidding, but chose not to do so
this is the motive of CAG’s argument. Which resulted both public sector enterprises (PSEs) and private companies paid
less than they might have paid .
The CAG initially estimated a Rs. 10.6 lakh crore loss to the exchequer, but the final report tabled in the parliament
put the figure at Rs. 1.86 lakh crore.
At the initial report of CAG only said that the blocks of coal could have been allocated with more efficiency and the
government could have earned more profit. At no point he says that there was any corruption in the allocation.
The question of corruption arose by the complaint of BJP by which the Central bureau of Investigation (CBI) was told to
investigate the matter.
The CBI has named 12 Indian firms in a First information report (FIR), the first step in a criminal investigation.
These FIRs blame them of exaggerating their net worth, failing to tell past coal allocations, and hoarding rather than
developing coal allocations. The CBI officials investigating the case have guessed that bribery may be involved.
The matter received large media response and reaction from public. And in a session of parliament the BJP
questioned government way of handling all these and asked Prime minister’s resignation. Also they refused to have any
debate due to which there were only 7 sessions which had to be 20.
The government said that the delay in introducing the auction process was a result of coalition politics. It also
alleged that opposition ruled states opposed the auction methodology. The government defended its allocation policy
saying maximization of revenue shouldn’t necessarily be the government’s prime motive, as an auction can lead to higher
prices hurting consumers. Prime Minister Manmohan Singh has rebutted the CAG’s report and claims there was no
misdoing.

What has been the output?

A complaint filed by the BJP resulted in the CBI starting a inquiry into described corruption in the allocation of
coal blocks. The CBI has so far lodged 14 cases against individuals and firms including high profile industrialists like
Naveen Jindal and his company JSPL, Kumaramangalam Birla, Congress MP Vijay Darda and his brother Rajendra
Darda, JLD Yavatmal Energy Limited, AMR Iron & Steel Private Limited, Vini Iron & Steel Udyog among others. The
CAG report also resulted in the formation of an Inter-Ministerial Group (IMG) to decide on de-allocation of coal blocks
that were not developed on time. The IMG recommended de-allocation of 13 blocks and forfeiture of bank guarantees of
14 allottees including the likes of Tata Sponge, GVK, Arcelor Mittal, Monnet Ispat & Energy, Adhunik Metaliks etc. A
Standing Committee report has suggested that allocation of all coal blocks between 1993 and 2008 was unlawful,
searching licenses of those mines where production hadn’t started to be cancelled, in effect prosecuting both the NDA
and UPA administration.

Coal Allocation Guidelines

The guidelines for the Screening Committee suggest that preference be given to the power and steel sectors (and to
large projects within those sectors). They further suggest that in the case of competing applicants for a captive block, a
further 10 guidelines may be taken into consideration:
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G.J.C.M.P.,Vol.5(2):16-21 (March-April, 2016) ISSN: 2319 – 7285
 status (stage) level of progress and state of preparedness of the projects;
 net worth of the applicant company
 production capacity as advised in the application;
 maximum recoverable reserve as proposed in the application;
 date of enabling of captive mine as proposed in the application;
 date of completion of detailed exploration (in respect of unexplored blocks only) as proposed in the
application;
 technical experience (in terms of existing capacities in coal/lignite mining and specified end-use);
 recommendation of the administrative ministry concerned;
 recommendation of the state government concerned (i.e., where the captive block is located);track record and
financial strength of the company.
These were the guidelines which has/was to be followed for allocation of the coal blocks to public companies or
private companies by the government but these were not followed fully .

The CAG Report

The CAG report, leaked to the press in March as a draft and tabled in Parliament in August, is a performance audit
focusing on the allocation of coal blocks and the performance of Coal India in the 2005–09 period. The Draft Report,
stretching to over 100 pages—far more detailed and containing more explosive allegations than the toned-down Final
Report of some 50 pages—was the document that sparked the Coalgate furore. The Draft Report covers the following
topics:
 Overview
 Audit Framework
 Institutional Framework
 Gaps in Supply and Demand
 Coal Blocks-Allocation and Production Performance
 Production Performance of CIL
 Conclusion and Recommendations
 Annexures
As far as Coalgate is concerned, the key passages of the Draft Report are in Chapter 5, where the CAG charges that:
 In 2005 the Government had the legal authority to allocate coal blocks by auction rather than the Screening
Committee, but chose not to do so.
 As a result of its failure to auction the coal blocks, public and private companies obtained "windfall gains" of
₹ 10673 billion ), with private companies obtaining₹ 4795 billion and government companies obtaining ₹ 5078
billion

CBI and Income Tax Investigation

 On 31 May 2012, Central Vigilance Commission(CVC) based on a complaint of two BJP Member of
Parliament directed a CBI enquiry.IT dept. also started an enquiry based on the reference by the two BJP MP's
 There were leaks of the report in media in March 2012 which claimed the figure to be around rs,10600 billion
. It is called by the media as the Mother of all Scams. Discussion about the issue was placed in the Parliament on 26
Aug 2012 by the Prime Minister, Manmohan Singh with wide protests from the opposition.
 According to the Comptroller and Auditor General of India(CAG) this is a leak of the initial draft and the
details being brought out were observations which are under discussion at a very preliminary stage. On 29 May
2012, Prime Minister Manmohan Singh offered to give up his public life if found guilty in this scam.

Survey
In order to find out the awareness of general public in relation with this scam, we have conducted a short survey
amongst few people within a small region of learned respondents. A questionnaire was designed for the same and
circulated amongst these respondents and the results are as follows:
Disclaimer: The survey conducted was only an attempt to check awareness & opinion of the general public. The
questionnaire was not made to hurt or challenge the decisions, actions or opinions of any person or legal
phenomenon. The intention of the survey is purely academic and statistical and is not used for any other purpose. The
authors do not take any responsibility of the outcome of the survey what so ever.
1. Are you aware of the coal allocation scam?

Series 1
150

100

50 Series 1

0
Category 1 Category 2

As seen in the above graph, all the respondents are very well aware of the ‘Coalgate’ scam.
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G.J.C.M.P.,Vol.5(2):16-21 (March-April, 2016) ISSN: 2319 – 7285
2. How much our economy was affected due to this scam?

Series 1
15

10

Series 1
5

0
Not Affected Minorly Majorly

The scam has majorly affected the nation’s economy. This question was introduced to find out the level of damage
our nation thinks the scam has done. According to the survey 71% respondents believe that it has majorly affected the
nation. 29% believe that the scam has minorly affected the nation and nobody believes that this has not affected the
nation at all. This shows that the scam has definitely affected the nation at large.
3. Is CAG’s (Comptroller and Auditor General of India) report authentic according to you?

Series 1
8
6
4
Series 1
2
0
Yes No Can't Say

As per the above graph, it is clear that people have equal opinion about the authenticity of the CAG’s report. 42%
people have put their faith in the CAG’s report and another 42% are neutral about the report. 16% of the respondents do
not accept the CAG report to be true.
4. It was considered as the biggest scam of India, so, for avoiding more such scams is/has the government taking
sufficient actions?

Series 1
8

4
Series 1
2

0
Yes No Can't Say

The above graph shows that 28% respondents feel that the Government has taken proper initiatives for avoiding and
curbing such crimes and scams. 50% respondents still do not feel that sufficient action had been taken for the same.
Whereas, 22% have neutral opinion.
5. Do you think the CBI will be able to investigate properly as there are names of many high profile people included in
the scam?

Series 1
10

5
Series 1
0
Yes No Can't Say

This question deals with the investigation of CBI in the matter and there is equal response for people who think the
investigation is moving in the proper direction and for those who do not believe in the investigation i.e. there is 50%
response for both and nobody is neutral about this question.

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G.J.C.M.P.,Vol.5(2):16-21 (March-April, 2016) ISSN: 2319 – 7285
6. Do you think ‘Coalgate’ is more vast and has deeper roots than it is showed to us?

Series 1
14
12
10
8
6 Series 1
4
2
0
Yes No Can't Say

As seen above, 93% people believe that this scam is much deeper than what it is known presently.
7. Is there lack of transparency in our system?

Sales

Yes
No

79% respondents agree to the fact there is lack of transparency in our system whereas 21% respondents believe that
our system is transparent and clear to understand.
8. Has media played an important role in this scam?

Sales

Agree
Disagree

As seen above, 71% respondents feel that media has played a very important and vital role in the whole scenario whereas
29% respondents disagree to the role of media played in this entire scam.
9. Do you think that one of the following mentioned steps will be helpful in preventing these acts in the future?
 Strict punishment
 Minimum qualification for politicians
 High level vigilance committee should be formed

Sales

Strict
Punishment

As seen above, 29% respondents believe that stringent punishment should be decided for such scams; 22% people
say a minimum level of qualification should be decided for politicians to attain a particular post. 49% respondents
believe thebest step taken should be forming a high level vigilance committee to investigate the matter properly.
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G.J.C.M.P.,Vol.5(2):16-21 (March-April, 2016) ISSN: 2319 – 7285

Conclusion
There are many scams in past that our country has suffered but this one that is “Coalgate scam”, was a very big and
huge scam. This scam was from 2004-2009 ,and was of 1.86 lakh crore rupees. This is a very huge amount. This is also
the biggest scam in India till date. During the research, many respondents also were of the opinion that it becomes the
prime responsibility of the Government to keep in check all such records and not act only when the damage has been
done.

Reference
1)https://en.m.wikipedia.org/wiki/Indian_coal_allocation_scam
2) http://m.indiatoday.in/gallery/coal-scam-how-india-lost-rs-1.86-lakh-crores/1/7610.html

21
Workmen Compensation Act 1923
now Employee Compensation Act
1923
The Workmen’s Compensation Act, 1923 is one of the
important social security legislations.
It aims at providing financial protection to workmen
and their dependants in case of accidental injury by
means of payment of compensation by the employers.
 Historical survey
• Europe-propagation of marxists, revolt among workers against miserable conditions.
• Germany-new law provided benefits such as right to receive compensation from their employers
for injuries suffered in the course of employment irrespective of any fault/breach of duty on the
part of employers.
• In case of fatal accidents, their families and has set up an insurance system.
• England-laissez faire existing-employers in the name of freedom of contract imposing harsh terms
on the employees.
• No relief in the case of injuries in employment.
• For death/disablement by industrial injuries the only legal remedy was damages at common law.
• But the claim could be allowed only if he was able to establish some negligence/breach of duty on
the part of employer.
• It was not easy to prove as there was always an implied term in a contract of service that the
servant agreed to accept the risk of injury from the negligence of fellow servant.
• The growing demand for legislative protection to workers for compensation made parliament to
enact the Workmen’s Compensation Act 1897. then the 1900,1906,1923 and 1925 Act followed.
• USA- There was dissatisfaction among workers and resulted in investigations by various
government commissions.
• In 1910-the first New York Act was passed with compulsory coverage of certain hazardous
employments. But this Act was declared unconstitutional and in 1913 constitutional amendment
was adopted. 1917 US Supreme court held that law of compensation was constitutional. 1920-
most of states adopted compensation Acts.
• INDIA-Under British rule. Industries under control of britishers. The question of
granting compensation for fatal/serious accidents arose in 1884.
• Govt of India took initiative in 1920 and in 1921-public opinion was invited.
Workers and trade union leaders were influenced by changes in other parts of the
world. The only legislation was the Fatal Accidents Act 1855, which was not
sufficient to cover all the situations arising out of accidental injuries /death.
• ILO-adopted convention relating to WC , followed by other conventions on the
same subject.
• After detailed examination of question of compensation by govt of India , local
govts were addressed.. Majority local govts and employers and workers
associations accepted .
• The matter was referred to a committee in June 1922 consisting legislative
assembly, employers, workers, representatives, medical and insurance experts
prepared framework of Act, after minor modifications proposals were drafted as a
bill in 1923 by a joint select committee which was passed by assembly in the shape
of WC Act 1923.it was amended many times . In 2009 it was name as Employees
Compensation Act 1923.
 Object of Act
• To provide for the payment of compensation by certain
classes of employers to their employees, for injury and
accident.
• To impose legal obligation on the employers to pay
compensation to workmen in case of accident arising out of
and in the course of employment.
• Azad University of Agriculture and Technology vs Court of
Workmen Compensation Commissioner, 2003 ,Lab IC 140
(All), it has been observed that the Employees
Compensation Act is a welfare legislation and its object is
that the compensation for injuries/death sustained by
workman be paid to him or his family members without
any delay.
 Application of the Act
• Originally the Act applies only to workers employed otherwise than in
clerical capacity and receiving monthly wages not exceeding 300 in
factories, mines and ports to those engaged on railways, tramways on
loading/unloading/coaling ships at docks etc. where mechanical power
was used in building trade, construction of bridges, telegraph and
telephone lines and ports and overhead electric cables in connection with
sewers and in the brigade services.
• In 1984-the wage limit is removed.
• Schedule –II lists out 32 categories of workmen to be covered.
• Govt is given power to add any other class of workers by 3 months notice
in advance.
• The Act also applies to specified occupational deceases of
• Schedule –III and govt of India empowered to extend list of diseases as
well as to hazardous occupations.
• After enactment of Employees State Insurance Act 1948, the Employees
Compensation Act does not apply to those areas covered by ESI Act 1948.
• Not applicable to members of armed forces, casual
workers, for workers employed otherwise than for
employers trade/business.
• Mechanically Propelled Vehicles, Construction Work
and certain other Hazardous Occupations and specified
categories of Railway Servants.
• The Act extends to the whole of India except the
States/Union Territories of Arunachal Pradesh,
Mizoram, Nagaland, Sikkim and Daman & Diu and
Lakshadweep.
• The coverage of this Act is also to cooks employed in
hotels and restaurants.
 Salient features
• 1. It is the first labor welfare and social security legislation contains 36 sections and 4
schedules and it has been repealed now and it has 44 sections, 4 chapters and 4
schedules.
• 2. The title of the Act has been replaced by the word ‘Employees’ by the amend
2009. now it is Employees Compensation Act.
• 3. object of Act to provide for payment of compensation by certain classes of
employers, to their employees for injury by accident.
• 4. is modelled on British pattern.
• 5. The employee/his dependent may claim compensation, if the personal injury has
been caused by accident arising out of and in the course of employment and if such
accident cannot be attributed to him having been at the time of accident under
influence of drink/drugs or if it is not caused due to willful disobedience of
rule/orders/disregard of any safety device.
• 6. The various classes of employees are specified in the def of employee sec 2
(1)(dd) and in schedule II. Persons employed in administrative/clerical capacity are
excluded from the benefit of the Act.
• 7. amount of compensation (a) where death results from an injury shall be an
amount equal to 50% of monthly wage of the deceased employee multiplied by
relevant factor or 1,20,000 which ever is more. (b) where permanent total
disablement results from an injury shall be an amount equal to 60% of the monthly
wages of the injured employee multiplied by relevant factor or an amount of
1,40,000 which ever is more.
• 8. The term wages for the purpose of the Act includes any
privilege/benefit which is capable of being estimated in
money, other than a travelling allowance or the value f any
travelling concession/contribution paid by the employer
towards provident fund/ a sum paid to an employee to
cover any special expenses entailed by him by nature of his
employment. It includes over time pay, and the value of any
concessions /benefits in form of food, clothing free
quarters etc.
• 9. Whenever compensation payable has to be worked out ,
the employees monthly wages are determined as per sec 5
and then the amount of compensation is decided by
reference to sec 4 and schedule IV.
• 10. To protect the interest of dependants in case of
fatal accidents certain provisions are made –i) all cases
of fatal accidents are to be brought to the notice of the
commissioner. Ii) if the employer admits his liability ,
the amount of compensation is to be deposited with
commissioner. Iii) if the employer admits his liability
and at the same there are grounds to believe , then the
dependants get information to enable them to judge if
they should make a claim or not.
• 11. A sub contractor may indemnify his contractor, if he
has had to pay compensation either to a principal /to a
workman.
• 12. the commissioner may deduct not less than 5,000rs
from the amount of compensation and pay the same to
the person who has incurred funeral expenses of the
deceased.
• 13. state govt has power to make rules regarding
arrangement with other countries for the transfer of
money paid as compensation u/sec 35 of Act.
• 14.It gives cheap and quick remedy to dependants
• 15. Civil courts are excluded from jurisdiction.
• 16.The definition of employee is wider than workman.
• 17.The Act clearly defines, injury, accident, arising out
of and in the course of employment.
 Definitions
• Employer-sec 2 (1) (e)
• Any body of persons whether incorporated or not
and
• Any managing agent of an employer; and
• The legal representative of a deceased employer
and
• When services of employee are temporarily
lent/let on hire to another person by the person
with whom the employee has entered into
contract of service or apprenticeship.
 Sec 2 (1) (dd)
• Employee- as per 2010 amendment clerks included to claim compensation. earlier
it was not allowed. now as per amendment of schedule –II
• Employee- Any person who is (a) a railway servant as defined in clause (34) of
section 2 of The Railways Act 1989 not permanently employed in administrative,
district or sub-divisional office of a railway and employed in any such capacity as is
specified in schedule II or,
• (b) a master, seaman, or other member of the ship or crew.
• A captain or other member of crew of an aircraft.
• A person recruited as driver/helper, mechanic, cleaner or in any other capacity in
connection with motor vehicle.
• A person recruited for work abroad by a company and who is employed outside
India in any such capacity as is specified in schedule II and the ship, aircraft/motor
vehicle/company as the case may be is registered in India or
• Any person employed in any such capacity as is specified in schedule –II.

• It does not include a person whose employment is of a casual nature.

 Wages
• wages” includes any privilege or benefit which is
capable of being estimated in money, other than
travelling concession or a contribution paid by
the employer to the workman towards any
pension or provident fund or a sum paid to a
workman to cover any special expenses entailed
to him by the nature of his employment.
• But includes overtime wages and concessions
provided for food, clothing shelter.
 Dependent
• Means any of the following relatives of a deceased workman, namely
• First Category
• (i) a widow, a minor legitimate or adopted son, and unmarried legitimate or
adopted daughter, or a widowed mother; and
• Second category (ii) if wholly dependent on the earnings of the workman at the
time of his death, a son or a daughter who has attained the age of 18 years and
who is infirm
• Third category : (iii) if wholly or in part dependent on the earnings of the
workman at the time of his death
• ,(a) a widower
• ,(b) a parent other than a widowed mother,
• (c) a minor illegitimate son, an unmarried illegitimate daughter or a daughter
legitimate or illegitimate or adopted if married and a minor or if widowed &minor,(
• d) a minor brother or an unmarried sister or a widowed sister if a minor,(e) a
widowed daughter-in-law,
• (f) a minor child of a pre-deceased son,
• (g) a minor child of a pre- deceased daughter where no parent of the child is alive,
• (h) a paternal grandparent if no parent of the workman is alive.
 Disablement
• Disablement means any loss of capacity to work or move
• May result in loss or reduction of his earning capacity
• Disablement may be- Total {sec 2.1(l) (1)- Partial}- {sec.2.1(g) Temporary /
permanent
• Disablement, is said to be total when if Incapacitates a worker for all work he was
capable of doing at the time of the accident resulting in such disablement
• "Total disablement“ is considered to be permanent if a workman, as a result of an
accident, suffers from the injury specified in Part I of Schedule I or suffers from such
combination of injuries specified in Part l of Schedule I as would be the loss of
earning capacity when totaled to one hundred per cent .
• Partial Disablement- where the disablement is of temporary nature, and such
disablement reduces the earning capacity of an employee in any employment in
which he was engaged at the time of the accident resulting in the disablement.
• permanent partial disablement- Disablement is said to be permanent partial when
it reduces for all times, the earning capacity of a workman in every employment
which he was capable of undertaking at the time of the accident. Every injury
specified in Part II of Schedule I is deemed to result in permanent partial
disablement
• Temporary partial disablement- Where the disablement is of a temporary nature
and reduces the earning capacity of a workman in the employment in which he was
engaged at the time of the accident it is "temporary partial disablement.
• TEST OF DETERMINING DISABLEMENT
• To determine whether the injury is permanent or temporary the courts have to
see whether the injury has incapacitated the workman from every employment
which he was capable of undertaking at the time of accident or merely from the
particular employment in which he was at the time of the accident resulting in
disablement. The following propositions are helpful in deciding the nature of
disablement:
• earning is not the same as earning capacity. There is difference between earning
of a person and his capacity to earn.
• rise in earning may be because of various factors and rise in wages is not decisive
of no loss of earning capacity.
• loss of physical capacity or physical incapacity may be relevant in assessing to
what extent there is loss of earning capacity for every employment which the
workman was capable of undertaking at that time of accident.
• In General Manager G.R.P. Railways, Bombay vs. Shankar, a railway servant
working on A-I post lost one eye and two teeth as a result of collision between
two engines. He was declared by the Medical Officer as unfit for A-I and B jobs
but fit for C-2 job because of his defective vision. Class C-2 job was offered to him
by the railway administration. He refused the offer and claimed compensation on
the basis of total disablement. It was held that, the workman was entitled to
compensation not on the basis of total but partial disablement.
• Calcutta Licensed Measures Bengal Chamber vs. Md. Hossain, AIR 1969 Cal. 378.
• General Manager G.R.P. Railways, Bombay vs. Shankar, AIR 1950 Nag. 201.
 Case laws
• Sukkai v Hakam Chand Jute Mills ltd, AIR,1957
cal.60-it has been held that whenever an injury
mentioned in the schedule is suffered by a
workman as a result of an accident he becomes
entitled to compensation.
• Though the capacity to work may remain quite
unimpaired but his eligibility as an employee may
be dismissed/lost.
• The Act is not limited only to physical capacity of
disablement, but extends to the reduction of
earning capacity as well.
• Calcutta electric supply corporation v HC Das,
1968,2 LLJ,69-it has been held that no
compensation can be granted for any physical
disability unless that was loss of earning
capacity.
• It is only in the case of a scheduled injury that
such loss is presumed. Where the injury is not
a scheduled injury the loss of earning capacity
must be proved by evidence.
• EMPLOYER’S LIABILITY FOR COMPENSATION
• Section 3 of the Act casts a legal duty on the employer to pay
compensation at the prescribed rate, in a case where a personal injury is
caused to a workman by accident arising ‘out of’ and ‘in the course of’
employment.
• However, the employer is not liable to pay compensation except in the
event of death of the injured workman, if the injury is directly attributable
to any of the following:
• the workman having been at the time of accident under the influence of
drink or drugs;
• the willful disobedience of the workman to an order expressly given, or to
a rule expressly framed for the purpose of securing safety to the
workman; or
• the willful removal or disregard by the workman of any safety guard or
other device which he knew to have been provided for the purpose of
securing safety of workmen.
 EMPLOYER’S LIABILITY IN CASE OF
OCCUPATIONAL DISEASES
• Section 3 (2) deals with the payment of compensation when there is any injury caused due to
occupational diseases.
• The list of the occupational diseases is contained in Schedule III of the Act. Schedule III is
divided into three parts which is as follows:
• Part A of Schedule III: An Employer is liable to pay compensation to the workman
• if he/she workman contracts any disease, and
• that has been specified as an occupational disease which is peculiar to that employment.
• The contracting of such occupational disease is considered to be an injury arisen out of and in
the course of employment. If a workman contracts an occupational disease as specified under
the Act he would not be considered to be eligible for any compensation.
• Part B of Schedule III: Under this part a workman is eligible to receive compensation from
the employer under the following cases:
• if he is in the service under him for a continuous period of not less than six months in any
employment, and
• that has been specified in Part B of Schedule III to the Act.
• Part C of Schedule III:
• When a workman contracts any disease specified in Part C of
Schedule III the employer shall be liable:
• if a workman for such continuous period was in the service of one
or more employers in any employment specified in Part C of
Schedule III, and
• if he contracts any disease specified therein as an occupational
disease peculiar to that employment.
• in case the above two conditions are fulfilled, then the contracting
of the disease shall be deemed to be an injury by accident within
the meaning of Section 3 of the Act and unless contrary is proved
the accident would be deemed to be have occurred out of and in
the course of the employment
• PERSONAL INJURY
• Injury generally refers to a physical injury. But ‘Personal Injury’
means not only physical injury but includes mental injury also, for
example a nervous shock, a strain that is hazardous to health.
• In case of personal injury caused to a workman by an accident
arising out of and in the course of employment unless the right to
compensation is taken away under Section 3(5) the employer
becomes liable to pay the compensation.
• In Indian News Chronicle Vs Mrs. Lazarus-AIR 1961 Punjab 102- an
employee employed as an electrician had frequently to go to a
heating room from the cooling plant was attacked by Pneumonia
and died after a short illness of five days. The court held that injury
caused by an accident is not confined to physical injury and the
injury in the instant case was due to his working and going from a
heating room to a cooling plant and it was his indispensable duty.
 Accident
• Accident is not defined in the Act.
• It means any unexpected mishap , untoward event ,or
consequence brought about by some
unanticipated/undesigned act, which could not be
provided against.
• The basic and indispensable ingredient of the accident
is the non-expectation.
• Whether a particular occurrence is accident or not , it
must be looked upon not only from the point of view
of the person who causes it but also from the point of
view of the person who suffers it.
• ARISING ‘OUT OF’ AND ‘IN THE COURSE OF’ EMPLOYMENT
• The expression ‘arising out of’ and ‘in the course of’ employment has proved
to be most controversial in determining claims for compensation for work-
injuries. A workman is entitled to compensation only when the following two
conditions are satisfied:
• Firstly, the accident should be arising ‘out of’ employment; and
• Secondly, it must occur ‘in the course of’ employment.
• The first refers to the casual connection between accident and employment,
and
• the second refers to the time of occurrence of the accident.
• It is possible that an accident may arise out of employment but may occur
during the course of employment, or that it may occur in the course of
employment but does not arise out of employment.
• ARISING ‘IN THE COURSE OF’ EMPLOYMENT
• There are two or three circumstances under which it becomes difficult to
prove whether the accident arose in the course of employment. The
circumstances relate mainly to:
• Interruptions in the course of employment, for example, power failure,
• The gap between the arrival time and scheduled time for the
commencement of work, as also between the departure time and the
scheduled time for ending work and time spent in traveling to and from work.
• ARISING ‘OUT OF’ EMPLOYMENT
• An accident can be calculated as it arises out of employment when it occurs by reason of the nature or
conditions or obligations of employment or by reason of anything which is necessarily incidental to the
employment. In general, if it is shown that an accident has arisen in the course of employment, it also
presumably arises out of employment unless, the evidence is to the contrary.
• An accident does not arise out of employment in the following cases:
• If the workman does something different from the work actually assigned to him. This is commonly
known as performing ‘arrogated duties’. However the accident is said to arise out of employment if the
workman does another person’s work on the orders of a superior whose orders he is required to obey.
• If the workman is doing something which is not required by or incidental to his normal duties and which
is done for his own personal purposes.
• If the workman indulges in rashness as distinct from mere carelessness.
• If the workman meets an accident from a danger which he shares in common with persons not in the
same employment. For instance injury by lightning, and so on, unless he is exposed to a danger by the
nature of employment.
• If the workman is injured as a result of his state of health like an injury sustained by an epileptic during
his fit. If, however, the fit is caused by strain of work, or if the injury results from dangers at the place of
work or is aggravated by the nature of work-place, the accident arises out of employment;
• If the workman receives an injury entirely due to his drunken condition, except in cases of fatal
accidents;
• If the workman is injured on being assaulted while he is at work.
• In Management of Sree Lalithambika Enterprises, Salem vs. S. Kailasam the Madras High Court held
that an accident on a holiday while cleaning machinery is accident arising out of and in the course of
employment.
• Management of Sree Lalithambika Enterprises, Salem vs. S.Kailasam (1994) 1 LLJ 838 (Madras).
• Chaitram vs steel authority of India Bihar 1991, 2 LLJ 144 (MP) –it has been held
that the burden of proving intentional disobedience on the part of the employee is
on the employer who claims the benefit of the provision under sec 3(1) of the Act.
• He can avoid liability only if the accident is due to wilful disobedience /disregard of
rules by the employee.
• Bhurangya Coal Co.Ltd vs Sahebjan Mian AIR 1956 Pat.299. – it has been held that
sec 3(1) (b)(ii) of the Act applies to only those cases of injuries which do not result in
death. Where therefore the injury has resulted in death , the question as to
disobedience of any rule/order is not material at all so long as it can be reasonably
held that the accident arose out of and in the course of employment. In order to
bring a case under this provision a number of conditions has to be fulfilled.
• 1. rule/order is disobeyed
• 2. that rule/order was in force at the time of accident.
• 3. that the substantial purpose of rule/order is to securing safety of employee.
• 4. that the order/rule is couched in words which on their face fairly and clearly
indicated the purpose.
• 5. that its terms were brought to the notice of individual injured,
• 6. that the order/rule is disobeyed.
• 7. that the disobedience of the rule/order by that employee was wilful and
deliberate and not only the result of mere negligence / due to a mistake mode of
doing a particular task/ due to a wrong decision in an emergency.
• 8. That the accident was directly attributable to the aforesaid disobedience.
• Aryamuni vs Union of India- 1963, 1LLJ,24-
• the employee sustained injury to his due to spark. The
Company ‘s notice written in ENGLISH required the use
of goggles for such work.
• Goggles were not provided to the workman nor was
asked so by the supervisor.
• The employee injured did not know english.
• under these circumstances , it was held that the
employee was not wifully disobedient as he did not
know english and so he could not know the contents
of the notice nor it was explained to him.
 AMOUNT OF COMPENSATION-SEC 4(1)

• The following four categories: Where injury results in --

• A) Death :
• an amount equal to 50 percent of the monthly wages of the deceased workman
multiplied by the relevant factor or an amount of Rs.1,20,000 whichever is
more.
• B)Permanent Total Disablement :
• an amount equal to 60 percent of the monthly wages of the injured workman
multiplied by the relevant factor or an amount of 1,40,000 which ever is more.
• C) Permanent Partial Disablement :
• i) In case of an injury specified in Part II of the Schedule I of the Act such
percentage of the compensation which would have been payable in case of
permanent total disablement as specified therein as being the percentage of
loss of earning capacity caused by that injury and
• ii) In case of an injury not specified in Schedule-I , such percentage of the
compensation payable in the case of permanent total disablement as is
proportionate to the loss Of earning capacity (as assessed by medical
practitioner) permanently caused by the injury.
D) where temporary disablement, whether total or partial, results
from an injury –
• a half-monthly payment of the sum equivalent to 25
percent of monthly wages of the employee , to be paid
in accordance of with the provisions of sub sec (2).
• (2) It shall be payable on the sixteenth day from the
date of disablement where such disablement lasts for a
period of 28 days or more.
• If disablement lasts for less than 28 days, payment is to
begin from the sixteenth day after the expiry of the
waiting period of three days from the disablement and
• thereafter half monthly during the disablement or
during a period of five years , which ever period is
shorter.
• PAYMENT FOR FUNERAL EXPENSES-SEC 4(4)
• if the injury of the workman results in his death-
• the employer is also required to deposit with the
commissioner a sum of Rs. 2,500 for payment to
the eldest surviving dependant of the workman
towards funeral expenses of the deceased
workman.
• If the workman did not have a dependant, the
payment is to be made to the person who
actually incurred the expenditure.
 SCHEDULE I of the Act

• List of injuries - result in Permanent Total Disablement provided

under PART I of the Act [Sections 2(1) and (4)]:
• Part I Description of Injury
• Percentage of loss of earning capacity
• 1. Loss of both hands or amputation at higher sites. ---100%
• 2.Loss of a hand and foot.----100%
• 3.Double amputation through leg or thigh, or amputation through
leg or thigh on one side and loss of other foot.---- 100%
• 4.Loss of sight to such an extent as to render the claimant unable to
perform any work for which eye sight is essential-----100%
• 5. Very severe facial disfigurement. ------100%
• 6.Absolute deafness-100%
• Amputation Cases - Upper limbs - Either arm
• 1. Amputation through shoulder joint- 90%
• 2. Amputation below shoulder with stump less than 20.32 cms. from tip of
acromion.---80%
• 3. Amputation from 20.32 cms. from tip of acromion to less than 4” below tip of
olecranon. ---70%
• 4. Loss of a hand or of the thumb and four fingers of one hand or amputation from
11.43 cms. below tip of olecranon.----60%
• 5.Loss of thumb.—30%
• 6.Loss of thumb and its metacarpal bone----40%
• 7. Loss of four fingers of one hand----50%
• 8. Loss of three fingers of one hand------30%
• 9. Loss of two fingers of one hand-----20%
• 10. Loss of terminal phalanx of thumb------20%
• Amputation cases - Lower limbs
• 10A.---Guillotine amputation of tip of thumb
without loss of bone.------10
• 11.Amputation of both feet resulting in end
bearing stumps.----90
• 12.Amputation through both feet proximal to the
metatarso-phalangeal joint.----80
• 13.Loss of all toes of both feet through the
metatarso-phalangeal joint.----40
• 14. Loss of all toes of both feet proximal to the
proximal inter-phalangeal joint.
 Part –II-List of injuries deemed to result in permanent partial disablement

• Other injuries
• 25. Loss of one eye, without complications, the other being normal.--40
• 26.Loss of vision of one eye, without complications or disfigurement of
eyeball, the other being normal.-30
• 26A.Loss of partial vision of one eye-10
• Loss of - A - Fingers of right or left hand--Index finger
• 27.Whole—14%
• 28.Two phalanges-11%
• 29.One phalanx- 9%
• 30. Guillotine amputation of time without loss of bone.-5%
• Middle finger
• 31. Whole---12%
• 32. Two phalanges—9%
• 33. One Phalanx-7%
• 34. Guillotine amputation of tip without loss of bone.---4%
• Ring or little finger

• 35.Whole-----7
• 36.Two phalanges--6
• 37.One Phalanx---5
• 38.Guillotine amputation of tip without loss of bone.-2

• B - Toes of right or left foot

• Great toe

• 39.Through metatarso- phalangeal joint.---14

• 40.Part, with some loss of bone--3
• Any other toe

• 41.Through metatarso-phalangeal joint--3

• 42.Part with some loss of bone—1

• Two toes of one foot, excluding great toe

• 43.Through metatarso-phalangeal joint.--5

• 44.Part, with some loss of bone.--2

• Three toes of one foot, excluding great toe

• 45.Through metatarso-phalangeal joint.---6

• 46.Part, with some loss of bone.---3

• Four toes of one foot, excluding great toe

• 47.Through metatarso-phalangeal joint.---9

• 48.Part-with some loss of bone.--3

• Note – Complete and permanent loss of the use of any limb or member referred to in
this Schedule shall be deemed to be equivalent to the loss of that limb or member.
Doctrine of reasonable /notional
extension of employment
• The term employment u/sec 3 (1) of the Employees
Compensation carries exhaustive meaning.
• It is not limited to work spot or to the premises of the
employer.
• It extends to public places also.
• Therefore the phrase ‘arising out of and in the course
of employment’ is not limited to the accidents which
may occur in the employer’s premises, but may also
extend to outer sphere of his area and makes him
liable to pay.
• This is called as doctrine of notional extension of.
• Under this doctrine—
• there may be reasonable extension in both time and
place and an employee may be regarded as in the
course of his employment even though he had not
reached /had left his employer’s premises.
• For ex-in the course of employment , a workman, may
leave the premises to take food /to drink tea/to answer
nature’s call, etc. while doing so if workman meets with
accident, such accident is deemed to have arisen in the
course of employment.
• Courts evolved the doctrine through several case laws.
• In General Manager , BEST vs Mrs. Agnes—AIR, 1964,SC,193.
• It has been held that the employment does not necessarily end when the tool
down signal is given or when the employee leaves the actual workshop where he
is working.
• There is notional extension at both entry and exit by time and space.
• In this case the standing rules of BEST undertaking enable employees to keep
punctuality and to discharge their obligation, give the facility to travel in any bus
belonging to the undertaking for going to the depot or returning to their house.
• The accident in this case occurred during the course of employment and his widow
is entitled compensation.
• Dedhiben Dharamshi vs New Jehangir Vakil Mills Co. Ltd- AIR, 1976,SC,357.- in
this case the employee along with other employees were on the way to work in
shift which would start at 3.30pm. While the employee is at 10 -15 feet away from
the gate of the mill, a motor cyclist came speedily and dashed him at 3.20pm and
the employee died on the spot. The SC held that the accident arose out of in the
course of employment under the doctrine of notional extension and ordered
payment of compensation to the dependants.
• In J.F.Pareira vs Eastern Watch Co.Ltd- 1985,1 LLJ, 472
Bom—
• In this case a salesman working in the company on the
ground floor sought a few minutes permission to go out .
• Subsequently he was found unconscious in the third floor
of the building and died in hospital.
• It was held that while on duty an employee can be out for
smoke or to visit conveniences or to enjoy a cup of tea.
• So long as he does not go out for his personal or on a
frolic of his own, he would be deemed to be on the
premises of the employer by the notional extension of the
term premises and accident to him shall deem to arise in
the course of employment.
Works manager, carriage and wagon shop ,
EIR V. Mahabir, AIR, 1954 All.132
• In this case mahabir an employee of carriage and wagon workshop, Alambagh
,used to come from his home station Malhaur to lucknow station in an employees
,special train provided by the railway.
• From Lucknow station he has to proceed to Alambagh workshop, about a mile
away after crossing the railway line.
• This was the shorter way in preference to the alternate subway and over bridge
routes available to him.
• On the fatal day mahabir was coming to the railway station to catch the train after
finishing his duty at 5.30am.
• When he was just a short distance of the station platform , he was run over by a
shunting engine at 6.30 am while crossing the line to reach the platform.
• His legs were crushed and were later on amputated.
• It was held that the accident arose out of employment .
• The word employment is of wider import than the word work /duty.
• The expression in the course of employment means not only the actual work
which he is employed to do but what is incidental to it in the course f his service.
• It would not only include the period when he is doing the work actually allotted
to him but also the time when he is at a place where he would not be but for his
employment .
 Steel authority of India Ltd , Rourkela plant vs
Kanchanbala mohanty-1994,IILLJ 1167, Orrisa
• Mohanty an employee met with an accident and died when he was
on his way to a house under construction.
• His actual residence was in the opposite direction and at far-off
place from the place of accident.
• In this case the employee adopted a route which was not normal.
• It was held that the accident occurred while the employee was on
his way back from place of work to his residence by taking a
different route and as such his dependants are not entitled to
compensation.
• Normal route need not be the shortest route but it has to be most
convenient route.
• It was observed that travelling a far distance in opposite direction
and taking a circuitous route cannot be said to be normal route.
 Doctrine of added peril
• Peril means danger to take risk.
• Added peril means a peril voluntarily super induced on what arose out of
employment .
• It is a peril to which the employee is neither required nor his authority to
expose himself.
• If the employee in the course of his employment has to be in a particular
place and by reason of his being in that particular place he has to face a peril
and the accident is caused by reason of the peril which he has to face, then
the causal connection is established between the accident and employment.
• The peril which he faces should not be personal to him , the peril must be
incidental to his employment.
• He must not by his own act add to the peril or extend the peril.
• Once the peril is established it is for the employer then to establish either
that the peril was brought about by the employee by himself , that he added
or extended the peril, or that the peril was not a general peril but a peril
personal to the employee.
• The doctrine of added peril helps the employer to escape his liability to pay
compensation.
• In Bhurangya Coal Co v. Sahebjan Mian –AIR,1956,Pat.299-
• it has been established that the principle of added peril
means that if a workman while doing his employer ‘s work,
trade or business engages himself in some other work,
which he is not ordinarily required to do under the contract
of his employment and which act involves extra danger, he
cannot hold his master liable for the risk arising thereof.
• Where an employee is on duty , he does some more acts
which he is not supposed to do, and expose himself to
danger, under such circumstances employer could not be
held liable.
 R.B Moondra Co vs Mst Bhanwari AIR
1970, RAJ .111
• Deceased person employed as driver of a truck used for purpose of carrying
petrol in a tank.
• On the previous day he reported to his employer that the tank was leaking
and so water was put in it to detect leakage.
• The next morning the deceased was asked to enter the tank and to see from
where it leaked.
• He entered the tank which had no petrol in it and for the purpose of
detecting leakage he lighted a match stick.
• The tank caught fire and deceased received burn injuries and later on he
died.
• It was contended that the employee himself added t his peril by negligently
and carelessly lighting a match stick.
• It was held by the court that the accident arose out of employment and the
act of lighting a match stick even if rash /negligent would not debar his
widow from claiming compensation.
• It was observed that because the tank was empty and was partly filled with
water on the previous night , he could not have little reason to foresee the
risk involved.
 Nexus between injury and
employment – causal connection
• To interpret the phrase ‘arising out of and in the course of
employment’ the maxim nexus between injury and employment
has been evolved.
• In Jayantilal Dhanji & Co v ESI Corp, AIR,1963 AP 210. in this case
though a trained fitter was appointed to operate the crushing
machine, an unskilled worker, who was appointed to feed the oil
mill tried to stop the crushing machine and was pulled upon and
thrown down causing his spontaneous death.
• Employer contended that it was not the duty of the unskilled
worker to stop the machine.
• But the court examined as whether there was any nexus between
the injury and employment and held that the death was an
employment injury arising out of and in the course of employment,
as there was a direct, intimate and causal connection between the
accident and the employment.
Smt Koduri v. Polangi Atchamma-1969
,Lab IC,1415 A.P
• A person was an employee in the lorry belonging to his employer carrying
quarry material from the quary site to the work spot of the PWD.
• His duties were to load the material n to the lorry and to go along with the
same for unloading the material at work spot.
• While the lorry was moving he attempted to hit a rabit passing on the road
and in the attempt he fell down from the lorry and died.
• His wife claimed compensation for the loss of his life.
• It was held that she is not entitled for Compensation..
• It was observed that the act which resulted in the accident must have some
connection with the work for which the employee is employed .
• The employee must be doing something which is part of his service though
it need not be his actual work, it should be work naturally connected with
the class of work and the injury must result from it.
• Applying the principle hitting the rabit is not part of service of the employee
for which he was employed.
• The mere fact that he was travelling in the truck with the quarry material
from the quarry site to the work is not enough .
 Other provisions
• Sec 4 –A – payment of compensation when falls due.
• Where the employer does not accept liability to the extent claimed,
he shall be bound to make provisional payment based on the extent
of liability.
• Where any employer is in default in paying the compensation within
one month from the date it fell due the commissioner shall –direct
that the employer shall, in addition to the amount of arrears, pay
simple interest thereon at the rate of 12%p.a or at such higher rate
not exceeding the maximum rates of lending banks as specified by
central govt.
• If there is no justification for delay direct that in addition to the
amount of arrears and interest thereon, pay a further sum not
exceeding 50% of such amount by way of penalty.
• A reasonable opportunity to be given to employer.
• The interest and the penalty shall be paid to employee or his
dependent.
• Sec-8 -Distribution of Compensation-in case where the employer made to any
dependent advances on account of compensation f an amount equal to three months
and it shall be deducted by the commissioner and paid repaid to employer if it is
excess paid.
• On the deposit of money in case of death by the employer ,the Commissioner , if he
thinks necessary cause notice to be published or to be served on each dependent ,
ask them to appear before them on such date and he may fix for determining the
distribution of compensation.
• If no dependent exists after an inquiry, he shall repay the balance of money to the
employer by whom it was paid.
• The amount of compensation will be distributed among dependents in such
proportion as the commissioner thinks fit.
• If the compensation is payable to a woman or a person under legal disability , such
sum may be invested, applied or otherwise dealt with for the benefit of the woman,
or of such person during his disability as the commissioner thinks fit for the welfare of
these people.
• Where he receives any complaint or if children are neglected o r on account of
variation of circumstances of any dependent or for any other sufficient cause the
commissioner can make variation of former order.

• Sec -9- no lump sum /half monthly payment payable under this Act be assigned,
attached or charged or pass to any other person other than the employee by
operation of law nor shall any claim be set off against the same.
• Sec 20– Appointment of commissioner by state govt.
• Sec 30 – An Appeal shall lie to a High Court against order s of a commissioner.
• Penalties –
• Sec 18 A- whoever fails to maintain a notice book which
is required to maintain under sec 10(3) or fails to send
commissioner a statement which is required under sec
10 A(1) or fails to send a report under sec 10-
B(regarding fatal accidents/bodily injuries) or fails to
make a return under sec 16- shall be punishable with
fine which may extend to 5,000rs.
• No prosecution to be made except by or previous
sanction of commissioner and no court shall take
cognizance of any offence under this section , unless
complaint is made within 6 months of the date which
the alleged commission of offence came to the
knowledge of commissioner.