A person who has ultimate control over the affairs of the factory under Factories Act, 1948 is called as | AIBE XVII
A person who has ultimate control over the affairs of the factory under Factories Act, 1948
is called as
A) Occupier
(C) Chairman
(B) Managing Director
(D) Manager
Answer is Occupier
Under the Factories Act, 1948, the term “occupier” holds central importance. As defined in Section 2(n) of the Act, the occupier is the person who has ultimate control over the affairs of a factory. This individual bears primary legal responsibility for ensuring compliance with the safety, health, and welfare measures mandated by the Act.
Who is an Occupier?
According to Section 2(n):
“Occupier” of a factory means the person who has ultimate control over the affairs of the factory.
The explanation further lays down:
In the case of a firm or other association of individuals, any one of the partners or members shall be deemed the occupier.
In the case of a company, any one of the directors shall be deemed the occupier.
In the case of a factory owned or controlled by the government, the person appointed to manage the affairs of the factory shall be the occupier.
Key Responsibilities of the Occupier:
Compliance with the Act: The occupier is the primary person responsible for ensuring that all provisions of the Factories Act are observed.
Health, Safety & Welfare: The occupier must maintain a healthy and safe working environment. This includes provisions for cleanliness, disposal of wastes, ventilation, lighting, and sanitation.
Appointment of Managers: While the occupier holds overall responsibility, a manager can be appointed for day-to-day operations (under Section 7). However, this does not absolve the occupier of legal accountability.
Reporting and Registration: The occupier must ensure the factory is registered and must submit all necessary notices and returns to the Inspector of Factories.
Provision of Safety Measures: Safety provisions such as fencing of machinery, precautions against fire, and employment of young persons are also the occupier’s responsibility.
Accident Reporting: Any accidents or dangerous occurrences in the factory must be reported to authorities under rules made by the State Government.
Legal Significance of the Role
The occupier is not just a symbolic figure. Courts in India have consistently held the occupier to be liable for violations of the Act. This includes both civil and criminal liabilities. Even if the factory is run by a manager, the occupier remains responsible for compliance.
Real-World Example:
Let’s say ABC Textiles Ltd. operates a factory in West Bengal. Mr. Rajesh Gupta, one of the directors, is declared as the occupier under Form No. 2 and is responsible for ensuring safety and legal compliance.
If an industrial accident occurs due to negligence, and it’s found that the safety norms were not adhered to, Mr. Gupta—as the occupier—may be held liable, even if he was not physically present at the factory.
Court Interpretation:
In the landmark case J.K. Industries Ltd. vs Chief Inspector of Factories, the Supreme Court held that in the case of a company, the occupier must be one of the directors. Delegation to an officer or employee of the company does not meet the statutory requirement.
Importance of Declaring the Occupier:
Before beginning operations, the factory must notify the Chief Inspector of Factories of:
The name of the occupier,
The name of the manager,
The nature of manufacturing processes,
The maximum number of workers,
The date of commencement.
This must be done in Form No. 2, and only after the Inspector is satisfied can the factory be registered.
Summary
In simple terms, the occupier is the legal face of a factory, responsible for compliance with all legal, safety, and operational mandates under the Factories Act, 1948. Whether it's a private firm, government entity, or company, there must be one individual clearly identified as having ultimate control.
By placing accountability on a single person, the Act ensures that there is always someone answerable for worker safety, environmental conditions, and legal procedures—ultimately leading to better governance in the industrial sector.
