High Court of Karnataka Quashes Criminal Prosecution of Occupier and Factory Manager Under Factories Act, 1948 Due to Lack of Employer-Employee Relationship. Deceased Cleaner of Transporter Held Not a 'Worker' Under Section 2(l) as He Was Not Employed by or Involved in Manufacturing Process of Factory.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Accused
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Case Note & Summary

The case involved a criminal petition under Section 482 of the Code of Criminal Procedure, 1973 filed by the occupier and factory manager of Grasim Industries Limited seeking to quash the proceedings in C.C.No.430/2018 before the Prl. Civil Judge and I Addl. JMFC, Ranebennur, for alleged offences under Section 7A of the Factories Act, 1948 punishable under Section 92. The company had sold sodium sulphate to a buyer in Andhra Pradesh, who engaged a transporter to lift the goods. On 13.8.2018, a lorry sent by the transporter entered the factory premises for loading; the deceased cleaner was an employee of the transporter. After loading, while the lorry was moving, the cleaner attempted to board the moving vehicle, slipped, and was fatally injured. The police registered a case under Section 304A IPC against the driver. The Assistant Director of Factories issued a show cause notice on 10.10.2018 alleging contravention of the Factories Act, and despite a detailed reply, lodged a complaint against the petitioners. The core legal issue was whether the deceased cleaner was a 'worker' as defined under Section 2(l) of the Factories Act, 1948, and whether the petitioners could be held liable for violation of Section 7A. The petitioners contended that the deceased was not employed by them, had no role in the manufacturing process, and the accident was due to his own negligence. The respondent State argued that the petitioners had remedies under Section 101 and should have informed authorities about the persons responsible. The High Court, after considering precedents, held that the deceased was not a 'worker' because there was no employment relationship, no control or supervision by the factory, and no involvement in manufacturing or incidental work. The show cause notice and complaint did not allege that the deceased was a worker. Thus, the essential ingredients of the offence were missing, and the prosecution was an abuse of process. The court relied on decisions in State of Kerala v. V.M. Patel, D. Kumarswamy v. State of Karnataka, and The Factory Manager, Cimmco Wagon Factory v. Virendra Kumar Sharma to conclude that the occupier and manager could not be vicariously liable. Accordingly, the petition was allowed and the proceedings in C.C.No.430/2018 were quashed.

Headnote

A) Labour and Industrial Law - Definition of 'Worker' - Section 2(l) Factories Act, 1948 - The deceased cleaner, an employee of an independent transporter hired by a third-party purchaser, was not a 'worker' as he was not employed by the factory or involved in any manufacturing process or work incidental thereto - Held, the occupier and factory manager cannot be prosecuted for violation of safety provisions as the relationship of master and servant did not exist (Paras 10-11).

B) Criminal Law - Quashing of Proceedings - Section 482 Code of Criminal Procedure, 1973 - The complaint and show cause notice did not allege that the deceased was a worker or that the petitioners contravened Section 7A of the Factories Act; initiation of proceedings in the absence of essential ingredients amounted to abuse of process - Held, proceedings liable to be quashed (Paras 10, 15).

C) Factories Act - Liability of Occupier and Manager - Sections 7A, 92 Factories Act, 1948 - For prosecution under Section 92 for breach of Section 7A, the victim must be a 'worker'; where the deceased had no employment relationship with the factory and the accident resulted from his own negligence while trying to board a moving lorry, the occupier and manager could not be held liable (Paras 12-14).

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Issue of Consideration

Whether the deceased cleaner was a 'worker' as defined under Section 2(l) of the Factories Act, 1948, and consequently whether the petitioners (occupier and factory manager) could be prosecuted under Sections 7A and 92 of the Act for the fatal accident in the factory premises.

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Final Decision

The High Court allowed the criminal petition and quashed the proceedings in C.C.No.430/2018 before the Prl. Civil Judge and I Addl. JMFC, Ranebennur. It held that the deceased was not a worker under the Factories Act, the essential ingredients of the offence were missing, and the prosecution was an abuse of process.

Law Points

  • Definition of 'worker' under Section 2(l) Factories Act
  • 1948 requires employment by the factory directly or through an agency
  • involvement in manufacturing process or incidental work
  • and existence of master-servant relationship
  • occupier and manager not liable for accident to a person not a worker
  • prosecution under Sections 7A and 92 Factories Act cannot be sustained without material showing deceased was a worker
  • proceedings amount to abuse of process if essential ingredients of offence not made out
  • High Court can quash such proceedings under Section 482 CrPC
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Case Details

2020 LawText (KAR) (01) 42

Criminal Petition No. 100117/2019

2020-01-27

Justice P.G.M. Patil

Gangadhar S. Hosakeri (for petitioners), Raja Raghavendra Naik (for respondent)

Mr. Shailendra K. Jain (Occupier) and Mr. Ajay Gupta (Factory Manager)

State of Karnataka through Asst. Director of Factories, Division-2, Hubballi

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Nature of Litigation

Criminal prosecution under Factories Act, 1948

Remedy Sought

Petitioners (occupier and factory manager) sought quashing of criminal proceedings in C.C.No.430/2018 initiated by the respondent for violation of Section 7A read with Section 92 of the Factories Act.

Filing Reason

The Assistant Director of Factories lodged a complaint alleging that a fatal accident to a lorry cleaner in the factory amounted to contravention of safety provisions under the Factories Act; petitioners claimed the deceased was not a worker and they were wrongly prosecuted.

Previous Decisions

No prior judicial order mentioned; the Assistant Director of Factories issued a show cause notice, considered the reply, and then filed the complaint, on which the trial court took cognizance.

Issues

Whether the deceased cleaner was a 'worker' as defined under Section 2(l) of the Factories Act, 1948. Whether the occupier and factory manager could be prosecuted under Sections 7A and 92 of the Factories Act for the fatal accident. Whether the proceedings initiated against the petitioners amounted to abuse of process of law.

Submissions/Arguments

Petitioners argued that the deceased was not employed by them, had no privity of contract, and was not involved in any manufacturing process or incidental work; thus, he was not a worker under Section 2(l) and the provisions of the Act did not apply. They contended that the accident was due to the deceased's own negligence and the prosecution was harassment. Respondent argued that the petitioners had an opportunity to provide information under Section 101 of the Act about persons responsible for the death and could have given notice to the public prosecutor after appearing before the trial court.

Ratio Decidendi

For an occupier or manager to be prosecuted under Sections 7A and 92 of the Factories Act, 1948, the victim must be a 'worker' as defined under Section 2(l) implying a relationship of employment and involvement in the manufacturing process or work incidental thereto. Where the deceased was an employee of an independent third-party transporter and had no employment nexus with the factory, and the accident resulted from his own negligent act, no contravention can be attributed to the occupier or manager. The absence of these essential ingredients renders the prosecution an abuse of process warranting quashing under Section 482 CrPC.

Judgment Excerpts

It is not disputed that the petitioners company M/s.Grasim Industries Limited had sold sodium sulphate to one of their customers ... and they had engaged the service of M/s.Parmar Roadlines, for lifting the said goods ... the deceased Ramaswamy was the cleaner in the said lorry. ... The respondent has issued a show cause notice ... wherein it is not at all stated that the deceased was workman of the petitioners ... The entire material on record goes to show that the deceased was not a workman under the petitioners as defined under section 2(l) of the Act. The ruling thus gave a restricted meaning to the words of the definition 'employed in any manufacturing process', and laid emphasis upon the word 'employed' as denoting the relationship of master and servant, between the factory and the person employed in the manufacture. Therefore it is a clear case of misuse of process of law by the respondent in initiating the proceedings against the petitioners.

Procedural History

On 10.10.2018, the Assistant Director of Factories issued a show cause notice to the petitioners alleging contravention of the Factories Act, 1948. Petitioner No.2 submitted a detailed reply. Despite the reply, the respondent lodged a complaint before the Prl. Civil Judge and I Addl. JMFC, Ranebennur, which was registered as C.C.No.430/2018 for offences under Section 7A read with Section 92 of the Factories Act. The trial court took cognizance. The petitioners then filed Criminal Petition No.100117/2019 under Section 482 CrPC before the High Court of Karnataka seeking quashing of the proceedings.

Acts & Sections

  • Factories Act, 1948: 2(l), 7A, 92, 101, 103
  • Code of Criminal Procedure, 1973: 482
  • Indian Penal Code, 1860: 304A
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