Penalties & Procedure Supplemental | Business Law - B Com PDF Download

Penalties under the Factories Act, 1948

Chapter X of the Factories Act, 1948 outlines the penalties for various offences under the Act. There are nine sections, from Section 92 to Section 99, that specify penalties for different situations.

General Penalty for Offences

Section 92 of the Factories Act, 1948 specifies the general penalties for offences as follows:

• Occupier and Manager's Responsibility: In case of any violation of the Act's provisions, both the occupier and the manager of the factory will be held equally responsible for the breach.
• Penalty: They will face a penalty of up to two years of imprisonment and a fine of up to Rs. 2 lakhs.
• Continuing Offence: If the offence is repeated, they will be fined Rs. 10,000 for each day the violation continues.

Liability of Factory Premises Owners

Section 93 of the Factories Act, 1948 outlines the liability of premises owners under specific circumstances.

• When a factory is leased to multiple occupiers or lessees, the owner is still responsible for providing and maintaining essential services such as drainage, approach roads, water supply, power, lighting, and sanitation.
• The chief inspector has the authority to issue orders to premises owners to enforce these requirements.

Penalty for Repeat Offences under the Factories Act, 1948

• General Offences: If a person commits a general offence in a factory and then repeats it, they could face a penalty of up to three years in prison, a fine of at least Rs. 10,000, or both.
• Offence Count: When determining penalties under this section, managers must consider offences committed in the two years leading up to the most recent offence.

Penalty for Obstructing an Inspector

• Definition: Section 95 of the Factories Act, 1948 outlines penalties for obstructing an inspector in the performance of their duties.
• Offences:. person may be held liable and face punishment if they:
  • Prevent an inspector from exercising their powers under the Act,
  • Fail to appear before an inspector when requested,
  • Stop a worker from approaching or being inspected by an inspector in a factory.
• Penalties: Offenders may be subject to imprisonment for up to six months, a fine of up to ten thousand rupees, or both.

Penalty for Wrongful Disclosure of Analysis Results

• Definition: Section 96 of the Factories Act, 1948 imposes penalties for wrongfully disclosing the results of an analysis performed under Section 91 of the Act.
• Offence: Individuals who publish or disclose the results of an analysis conducted using samples to another person are committing an offence.
• Penalties: Offenders may face imprisonment for up to six months and a minimum fine of Rs. 10,000.

Penalties for Violating Specific Provisions

Section 96A of the Factories Act, 1948 outlines the penalties for violating certain provisions, specifically Sections 41B, 41C, and 41H.

• Imprisonment and Fines: Anyone found guilty of violating the rules set out in Sections 41B, 41C, or 41H can face up to 7 years in prison and a fine of Rs. 2,00,000.
• Continued Offenses: If the offender continues to commit the same offense after the initial conviction, they will incur an additional fine of Rs. 5,000 for each day the offense persists.
• Extended Violations: If the violation continues for more than a year after the conviction, the offender could face an increased prison sentence of 10 years.

Worker’s Offences

According to Section 97 of the Factories Act, 1948, a worker's offence is defined as follows:

• If a worker in a factory violates the rules or provisions of the Act, and this breach causes liabilities for other workers, they can be fined a minimum of Rs. 500.
• When a worker is found guilty of an offence, the factory owner or manager is not held responsible for the violation unless it is proven that they failed to take reasonable precautions to prevent it.

False Certificate of Fitness

Section 98 of the Factories Act, 1948, addresses the issue of false certificates of fitness.

• A fitness certificate assesses a person's suitability for a specific job or work, and it is crucial in the context of factories.
• If someone secures a false certificate of fitness, they may face a minimum fine of Rs. 10,000 or a two-month prison sentence. In some cases, they could encounter both fines and imprisonment as penalties.

Double Employment of Children in Factories

Definition: According to Section 99 of the Factories Act, 1948, double employment of children refers to the situation where a child works in a factory on the same day they have already worked in another factory.

Penalties: If a child is found working in multiple factories in one day, the following penalties apply:

• Parents or Guardians: If the child’s parents or guardians benefit from the child’s wages, they face a fine of Rs. 1000.
• Court Exception: The fine does not apply if the court determines that the child worked without the consent of their parents or guardian.

Offences and Penalties Under the Factories Act, 1948

• Contravention by Worker: Imprisonment for up to 2 years, a fine of Rs. 1,00,000, or both.
• Continuation of Contravention: Fine of Rs. 1000 per day.
• Safety Violations Leading to Death: Minimum fine of Rs. 25,000.
• Safety Violations Leading to Serious Injury: Minimum fine of Rs. 5,000.
• Subsequent Contravention of Provisions: Imprisonment up to 3 years or a fine between Rs. 10,000 and Rs. 2,00,000.
• Obstructing Inspectors: Imprisonment up to 6 months, a fine up to Rs. 10,000, or both.
• Wrongful Disclosure of Analysis Results: Imprisonment for 6 months, a fine up to Rs. 10,000, or both.
• Contravention of Sections 41B, 41C, and 41H: Imprisonment up to 7 years with a fine up to Rs. 2,00,000, with a daily fine of Rs. 4000 for continuation. Imprisonment for 10 years if the contravention continues for one year.