Supreme Court Dismisses Appeal by Factory Manager in Factories Act Offence; Upholds High Court's Decision That Complaint Was Within Limitation. Accident Report Under Rule 103 Failed to Disclose Ingredients of Section 21(1)(iv)(c) Factories Act, 1948, So Inspector's Knowledge of Offence Commenced Only on Inquiry Date, Not on Receipt of Report.

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Case Note & Summary

This appeal by special leave arose from a criminal revision where the Gujarat High Court set aside the Chief City Magistrate's dismissal of a complaint filed by the Inspector of Factories against the manager of Arun Mills Ltd. under Section 92 of the Factories Act, 1948. The manager was accused of permitting a dangerous part of machinery to remain unfenced, contrary to Section 21(1)(iv)(c) of the Act. A worker, Chandrakant Jethalal, suffered severe injury to his right hand on 27 February 1968 while cleaning a clip stentering machine with a rag; his hand slipped into the bevel gears, leading to amputation of fingers. The accident report was sent to the Inspector on 28 February 1968, but the Inspector visited the factory and conducted an inquiry only on 30 July 1968, and filed the complaint on 20 September 1968. The appellant raised a preliminary objection that prosecution was barred by time under Section 106 of the Factories Act, which requires a complaint to be made within three months of the date on which the alleged commission of the offence came to the knowledge of the Inspector. The Magistrate accepted that objection, holding that the report itself conveyed knowledge of the commission of an offence, and dismissed the complaint. The High Court reversed this decision, finding that the report did not give knowledge of the offence, and the Inspector gained such knowledge only on the date of inquiry. Before the Supreme Court, the core question was whether the accident report contained sufficient facts to convey knowledge of commission of an offence under Section 21(1)(iv)(c). The Court examined the requirements of that provision: every dangerous part of machinery must be securely fenced by safeguards of substantial construction, kept in position while in motion or in use, unless it is in such position or of such construction as to be safe to every person employed. The report stated that while cleaning the clip stenter machine near the bevel gears, the rag and right palm slipped inside the gear and crushed the palm; it also mentioned that the machine was moved by mechanical power. However, it did not state that the dangerous part was not securely fenced, not safely positioned, or that safeguards were absent while in motion. The Court reasoned that anyone reading the report could not conclude that an offence under Section 21(1)(iv)(c) had been committed, as the essential elements of the offence were absent. It further held that knowledge of an accident is not knowledge of an offence. The Court interpreted Section 106 strictly, noting that the period of limitation begins from the date of actual knowledge of the commission of the offence, not from the date on which the Inspector ought to have acquired knowledge with diligence. Since the Factories Act does not prescribe any duty to inquire into the accident or a time limit for such inquiry, the Inspector's knowledge of the offence could only be treated as commencing on the inquiry date, 30 July 1968. The complaint filed on 20 September 1968 was accordingly within the three-month period. The Court dismissed the appeal, upholding the High Court's order, and ruled that the prosecution was not barred by limitation.

Headnote

A) Factories Act, 1948 - Offences Under Section 21(1)(iv)(c) - Dangerous Machinery Fencing Requirement - Section 21(1)(iv)(c) of Factories Act, 1948 - The accident report in Form 21 did not state that dangerous parts of machinery were not in such position or construction as to be safe as securely fenced, not securely fenced by substantial construction, or not kept in position while in motion or use; it only disclosed an accident to a worker cleaning a clip stentering machine where his hand was caught in bevel gears; Held that the report did not reveal the necessary elements constituting the offence under Section 21(1)(iv)(c), and mere knowledge of accident could not be equated with knowledge of commission of offence (Paras 2-4).

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Issue of Consideration

Whether the facts mentioned in the accident report sent to the Inspector of Factories under Rule 103 Form 21 were sufficient to convey knowledge of commission of an offence under Section 21(1)(iv)(c) of Factories Act, 1948, so as to start limitation under Section 106 of the Act from the date of receipt of report.

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Final Decision

Appeal dismissed; High Court order upheld; complaint not barred by limitation. Knowledge of accident is not knowledge of commission of offence; Inspector gained knowledge of offence only on inquiry date, 30-07-1968.

Law Points

  • Knowledge of accident is not knowledge of commission of offence
  • limitation under Section 106 Factories Act starts from date of actual knowledge of offence
  • not from date of constructive knowledge
  • report under Rule 103 Form 21 did not reveal essential ingredients of offence under Section 21(1)(iv)(c)
  • no statutory duty on Inspector to inquire within a period
  • equity and hardship not relevant in interpreting limitation provision
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Case Details

1972 LawText (SC) (10) 26

Criminal Appeal No. 91 of 1970

1972-10-25

K.K. Mathew, H.R. Khanna

1973 AIR 309, 1973 SCR (2) 714, 1973 SCC (3) 524

S.T. Desai, N.N. Keswani for appellant; S.K. Dholakia, B.D. Sharma for respondent

P. D. Jambekar

State of Gujarat

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Nature of Litigation

Criminal appeal by special leave against High Court's order setting aside Magistrate's dismissal of complaint

Remedy Sought

Appellant sought dismissal of complaint as barred by limitation; respondent sought continuation of prosecution

Filing Reason

Worker sustained injury on 27-02-1968 due to dangerous machine part; Inspector filed complaint for offence under Section 92 Factories Act for violation of Section 21(1)(iv)(c)

Previous Decisions

Chief City Magistrate Ahmedabad dismissed complaint as time-barred; Gujarat High Court in Criminal Revision Application No. 244 of 1969 set aside dismissal, holding complaint was within limitation

Issues

Whether accident report was sufficient to convey knowledge of commission of offence under Section 21(1)(iv)(c) Factories Act, 1948 Whether complaint filed on 20-09-1968 was within three months of Inspector's knowledge of commission of offence under Section 106

Submissions/Arguments

Appellant argued that prosecution was barred by time as report conveyed knowledge of offence to Inspector on 28-02-1968; complaint filed more than three months later. Respondent argued that report only disclosed accident, not ingredients of offence; knowledge of offence only on inquiry on 30-07-1968; complaint within time.

Ratio Decidendi

For an offence under Section 21(1)(iv)(c), the report must disclose that dangerous part of machinery was not securely fenced and not safe by position or construction. Mere report of accident not containing these averments does not give knowledge of commission of offence. Limitation under Section 106 runs from actual knowledge of commission of offence, not from constructive knowledge or date when Inspector ought to have known. No statutory duty of inquiry or time limit for inquiry exists, so court cannot impose one.

Judgment Excerpts

Knowledge of the accident is not knowledge of an offence It would be difficult for any one reading the report to come to the conclusion that an offence under s. 21 (1) (iv) (c) has been committed. As s. 106 makes the date of knowledge of the commission of the offence the starting point of the period of limitation, it is difficult to read the section so as to make the date on which the Inspector would or ought to have acquired knowledge of the commission of the offence, bad he been diligent, the starting point of limitation especially when the statute does not provide for an inquiry into the accident or the period within which the inquiry has to be made.

Procedural History

Complaint filed by Inspector of Factories on 20-09-1968 before Chief City Magistrate, Ahmedabad under Section 92 Factories Act. Accused raised preliminary objection under Section 106; Magistrate dismissed complaint as time-barred. State filed Criminal Revision Application No. 244 of 1969 before Gujarat High Court; High Court set aside order, holding complaint within limitation. Appellant then filed Criminal Appeal No. 91 of 1970 by special leave before Supreme Court.

Acts & Sections

  • Factories Act, 1948: Section 21(1)(iv)(c), Section 92, Section 106
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