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Once Manufacturing Starts, Factories Act Would Apply For Workers

In Larsen and Toubro Limited vs State of Chhattisgarh, the issue was challenging notices issued to it demanding that it be registered under provisions of BOCW Act and that it pays 1% Cess charges under the Building and Other Construction Workers Welfare Cess Act, 1996.

The question now posed before the Court was whether the provisions of the BOCW Act would be applicable to a factory, where the manufacturing process has started and the provisions of Factories Act are already in force.

Answering the question in the negative, the Court relied on the judgment in the case of Lanco Anpara Power Limited v. State of Uttar Pradesh and Ors, wherein the Supreme Court had held that the provisions of the Factories Act would apply “only when the manufacturing process starts for which the building/project is being constructed”.

Article referred: http://www.livelaw.in/manufacturing-starts-factories-act-apply-instead-building-construction-workers-act-chhattisgarh-hc-read-judgment/

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