Dear All,

Kindly go through the judgment of the Bombay High Court in the case of Wardha Power Company Ltd vs. State of Maharashtra reported in 2017 (1530 FLR 139) and the judgment of the Madhya Pradesh High Court in the case of Vippy Industries Ltd. vs. Assessing Officer reported in 2017 (153) FLR 951. Both of these judgments are by Division Bench, where the matters related to the existing factory and the applicability of the BOCW Act. This should clarify the issue.

Thanks,

S. Sensharma

Industrial Law Consultant, Meerut

From India, undefined
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Dear Shri Sensharma, I appreciate & offer my thanks for bringing the facts to my knowledge. Regards
From India, Mumbai
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KK!HR
1655

Dear Prabhat,

The judgments of the High Court are contradictory. While in Vippy Industries, the MP High Court clearly holds that the BOCW Act would apply even if the construction is in the existing factory premises, in Wardha Power, the Bombay High Court answers, "... after the manufacturing process starts, the work on a factory building or any other civil work therein which can be subjected to provisions of the Factories Act 1948, shall not attract provisions of Act No.27/1996 or the Cess Act."

Both the judgments are of the Division Bench. The MP High Court is the later one, but the Bombay judgment was not considered. So the issue is still open. I think the final word can be said only after the Supreme Court decides on the issue. I believe there is a strong case in favor of the exclusion of liability.

Kind regards,
[Your Name]

From India, Mumbai
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