Dear Girija,
In our opinion publishing companies like 'India Today' are covered under the Factories Act,1948 & not under Shop Act. Publishing unit comes under the definition of factory [section 2(m)(i) ] under the F. Act,1948 while offices situated at different places will come under the perview of Shops & Establishment Act.
Regards,
R.N.Khola
Sr.Associate
Skylark Associates,Gurgaon (Haryana)
From India, Delhi
363In our opinion publishing companies like 'India Today' are covered under the Factories Act,1948 & not under Shop Act. Publishing unit comes under the definition of factory [section 2(m)(i) ] under the F. Act,1948 while offices situated at different places will come under the perview of Shops & Establishment Act.
Regards,
R.N.Khola
Sr.Associate
Skylark Associates,Gurgaon (Haryana)
From India, Delhi
This matter is under consideration before a larger bench of the Hon'ble Supreme Court of India. In the case of WP No. 3133 of 1993 titled Management of Cholamandalam Software Ltd. v/s. Presiding Officer, 1 Additional Labour Court Madras, the Hon'be High Court of Madras while addressing a question under the ID Act, also addressed the question whether the company was a 'factory' and engaged in any 'manufacturing process'. The Hon'ble Judge found that the Explanation II to section 2(m) of the Factories Act, 1948 clearly exclude the premises on which electronic data processing or computer units are installed and wherein no other manufacturing process is being carried on, from the scope of the definition of 'factory'.
A Division Bench of the Madras High Court, upheld this judgement. The agrieved workmen filed appeal befefore the Hon'ble Supreme Court. The Supreme Court noticed that the key question in this case is whether the activity of data processing and preparation of software falls within the meaning of 'manufacturing process' under the Factories Act, 1948. The Hon'ble Supreme Court further referred the matter to a larger bench for consideration. The decision of Hon'ble Apex is is still awaited.
Regards
Jpratap
From India, Chandigarh
A Division Bench of the Madras High Court, upheld this judgement. The agrieved workmen filed appeal befefore the Hon'ble Supreme Court. The Supreme Court noticed that the key question in this case is whether the activity of data processing and preparation of software falls within the meaning of 'manufacturing process' under the Factories Act, 1948. The Hon'ble Supreme Court further referred the matter to a larger bench for consideration. The decision of Hon'ble Apex is is still awaited.
Regards
Jpratap
From India, Chandigarh
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ESI applicable to software development companies - Bom HC 2012.pdf