SC rules laundry business is a ‘Manufacturing Process’ under Factories Act 1948, affecting compliance regulations.
SC RULED LAUNDRY BUSINESS IS A ‘MANUFACTURING PROCESS’ UNDER FACTORIES ACT 1948
Headline
SC ruled laundry business is a ‘Manufacturing Process’ under Factories Act 1948 and holds factory premises rules apply in the case of ‘THE STATE OF GOA & ANR. VERSUS NAMITA TRIPATHI’.
Summary
The Supreme Court stated that services like washing, dry-cleaning, and laundry qualify as a Manufacturing Process under the Factories Act 1948 if power-operated machines are used & 10 or more workers are employed.
Key Facts
- Case Name: THE STATE OF GOA & ANR. vs. NAMITA TRIPATHI
- Judges: Justice BR Gavai and Justice KV Viswanathan
- The issue raised was whether a laundry business qualifies as a Manufacturing Process and will come under the regulation of Factory Premises.
- The Supreme Court of India upheld the appeal of the Goa government, stating that laundry businesses fulfilling the statutory criteria qualify as factories under the Factories Act 1948.
Legal Insights
The Supreme Court ruled that under Section 2(k) of the Factories Act 1948, washing and cleaning are Manufacturing Processes, as they are related to treating articles for use or delivery. The verdict overturned the findings of the High Court that laundry services are not a factory operation.
Impact
This decision of the Supreme Court brings laundry businesses under Factory Premises regulations,influencing compliance, labor laws, and operational standards for businesses engaged in washing and dry cleaning services.
Why It Matters
The ruling of the Supreme Court shed light on the legal status of laundry businesses, for proper regulation under the Factories Act 1948, influencing businesses, workers, and compliance needs nationwide.
Source
Also read–SUPREME COURT OVERTURNS CONVICTION DUE TO UNRELIABLE EVIDENCE AND INVESTIGATIVE LAPSES
