IDL CHEMICALS LTD Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) That batch of Writ Petitions is filed assailing the constitutional validity of Rule 3 read with Rule 5 of A.P. Factories Rules and the amendment of the Schedule under Rule 5 vide G.O.Ms.No. 154 dated 26-7-1994 increasing the licence fee payable under Rule 7(3) for obtaining licence and renewal of licence for the factories.

(2.) The petitioners herein are the licencees of the factories in this State. They obtained licence under the Factories Act (the Act), 1948 by paying requisite fee upto 1987. The maximum licence fee levied was Rs. 10,000/- basing on the installation of Horse Power (H.P.) and man power. In the year 1994 the Schedule to Rule 5 was amended and there was a change in the slab system. The new slab system starts with 7,500 H.P. installation with 10,000 workers. The maximum installation of H.P. is 3 lakhs and above and the maximum man power is over and above 20,000. The maximum fee fixed is Rs. 18 lakhs. In the new schedule there is an increase of licence fee from 2 to 3 times for medium and small scale factories and for the hazardous and heavy industries, the licencee fee is enhanced as mentioned in the schedule. This is challenged in all these Writ Petitions.

(3.) Since the provisions of the Act and the Rules are challenged, we feel it is not an out of place to look into the scope and objects of the Act.