Here is a detailed breakdown and explanation of Section 6 of the Factories Act, titled “Approval, licensing and registration of factories”, based on the image provided:
Overview of Section 6
Section 6 lays down the legal framework and procedure for obtaining prior approval, registration, and licenses required to set up, operate, or expand a factory. It empowers the State Government to formulate specific rules to regulate these activities, ensures timely legal processing through the “deemed approval” provisions, defines an appeal process for applicants facing rejection, and clarifies what does and does not constitute a factory extension.
Detailed Clause-by-Clause Analysis
1. Sub-section (1): Rule-Making Power of the State Government
The State Government holds the authority to make rules governing the setup and operation of factories, including:
- Submission of Plans [Clause (a)]: Requires applicants to submit plans of any class or description of factories to the Chief Inspector or the State Government.
- Prior Written Permission [Clause (aa)]: Mandatory requirement to obtain prior written permission from the State Government or Chief Inspector regarding:
- The site where the factory is to be situated.
- The construction or extension of any factory or class of factories.
- Submission of Detailed Specifications [Clause (b)]: Requires applicants to submit detailed plans and specifications along with their permission applications.
- Certification Standards [Clause (c)]: Prescribes the nature and standards of these plans and specifications, along with specifying who is authorized to certify them.
- Registration, Licensing, and Fees [Clause (d)]: Governs the process of registering and licensing factories, prescribing the fees payable for both initial registration/licensing and subsequent renewals.
- Prerequisite Notice Requirement [Clause (e)]: Mandates that no license shall be granted or renewed unless the mandatory notice specified under Section 7 (Notice by Occupier) has been submitted.
- Condition: An application for permission (with requisite plans/specifications) must be sent to the State Government or Chief Inspector by registered post.
- Timeframe: If no official order (approval or refusal) is communicated to the applicant within three months from the date the application was sent, the permission is deemed to have been granted automatically by operation of law.
- Time Limit: Appeals must be filed within thirty days from the date of receiving the refusal decision.
- Appellate Forum:
- If the refusal order was passed by the State Government, the appeal lies before the Central Government.
- If the refusal order was passed by the Chief Inspector (or any other authority), the appeal lies before the State Government.
- General Rule: Simply replacing existing plant/machinery or adding new plant/machinery does not automatically count as an extension.
- Conditions for Exemption: Replacements or additions will not be treated as an extension only if:
- They do not reduce the minimum clear space required for safe working around the plant or machinery.
- They do not adversely affect environmental conditions through increased evolution or emission of steam, heat, dust, or fumes that are injurious to health.
- Regulatory Control: The State Government and Chief Inspector exercise full control over factory location, design, and safe working parameters before operations commence.
- Accountability Mechanism: The 3-month “deemed approval” rule prevents bureaucracy from halting industrial development indefinitely.
- Safety & Health Focus: Clarifies that machine additions/replacements must maintain safe clearances and environmental standards to avoid triggering new full-scale approval procedures.
