WORKMEN OF SWATANTRA BHARAT MILLS CANTEEN, NEW DELHI Vs. MANAGEMENT OF SWATANTRA BHARAT MILLS, NEW DELHI

JUDGEMENT

(1.) Messrs. Delhi Cloth and General Mills Company Limited is a company duly . incorporated under the Companies Act. Besides its various other activities, it owns a textile mill known as 'Swatantra Bharat Mills' (hereinafter referred to as 'the Management'), situate at Najafgarh Road, New Delhi. About 5,000 workmen are on the rolls of the Management.

(2.) Section 46 of the Factories Act, 1948, which came into force on April 1, 1949, empowers the State Government to make rules requiring that in any specified factory wherein more than two hundred and fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of the workers. Rules 65 to 71 of the Delhi Factories Rules 1950 deal with the subject. Rule 65 imposes a statutory obligation on the occupier of every factory notified by the State Government, and wherein more than two hundred and fifty workers are ordinarily employed, to provide in or near the factory an adequate canteen according to the standards prescribed in the rules. Rule 70 requires that the manager shall appoint a Canteen Managing Committee which shall be consulted from time to time as to (a) the quality and quantity of foodstuffs to be served in the canteen; (b) the arrangement of the menus; (c) times of meals in the canteen and (d) any other matter pertaining to the canteen as may be directed by the Committee. However, where the canteen; is managed by a Co-operative Society registered or deemed to be registered under the Maharashtra Co-operative Societies Act, 1960, it shall not be necessary to appoint a Canteen Managing Committee. Under sub-rule (2) the Canteen Managing Committee shall consist of an equal number of persons nominated by the occupier and elected by the workers themselves. Non-compliance of this statutory obligation invites penalty under Section 92 of the Factories Act.

(3.) "Occupier" of a factory under Section 2 (n) of the Factories Act means the person who has ultimate control over the affairs of the factory, and where the said affairs are entrusted to a managing agent, such agent shall be deemed to be the occupier of the factory. The Management admittedly has the ultimate control over the affairs of the factory and admittedly is 'occupier' within the meaning of Section 2 (n). It is also not disputed that more than two hundred and fifty workers are ordinarily employed in this factory and it had been notified by the State Government under the rules. Thus the Management is under s statutory obligation to provide a canteen conforming to the rules. The Management in compliance of the said statutory obligation has provided a canteen within its premises.