Indian Kanoon - Search engine for Indian Law

12. Section 2(12), defining "factory" consist of two parts joined conjunctively by the phrase "and". The first part deals with the number of persons with which we are not concerned in the present appeal and the second part deals with premises in which a manufacturing process is carried on. The phrase "manufacturing process" is defined by Section 2(14-AA) of the ESI Act which in turn refers to the definition under the Factories Act.

13. Section 2(k)(vi) of the Factories Act, 1948 defines manufacturing process to mean any process for preserving or storing any article in cold storage.

14. Definition of "manufacturing process" means any process for preserving or storing any article in cold storage. In my view, the mere act of preserving or storing any article in cold storage would not amount to manufacturing process. The act of preserving or storing any articles in cold storage is preceded by "process for" preserving or storing any articles in cold storage. It is the process for preserving or storing which amounts to manufacturing process and not the mere act of Sharada 45-FA-291-2016.doc preserving or storing.

15. The word "process" is not defined by the Factories Act or by the ESI Act but the word "process" would mean some activity should be carried out on the product and that activity should be for preserving or storing any article in cold storage.

16. If the legislature intended act of preserving or storing per se as a "manufacturing process" then the phrase used in Section 2(k)(vi) of the Factories Act would have been manufacturing process means any process "of" and not process "for". There is a distinction between "of" and "for" which I have analysed in detail later on. In the instant case, the definition uses the phrase "for" and therefore mere preserving or storing any article in cold storage would not amount to manufacturing process because it is not preceded in the instant case by any process. The Appellant is only a trader. He buys medicines from pharmaceutical companies, stores the same in refrigerator and sells to various druggist or chemist. There is no process involved in the activity of the Appellant prior to preserving or storing in cold storage nor it is the case of the Respondent that any such activity is being carried on. Therefore, in my view the mere act of preserving or storing medicines in cold storage in the facts of the present case of the Appellant who is merely a trader would not fall within the meaning of the term "manufacturing process"

18. In the context of Section 2(k) of the Factories Act, 1948, the phrase "any" precedes "process" and is followed by "for." The word "for" means "for the purpose of." Section 2(k)(vi) of the Factories Act, 1948 if read in its entirety, then the word "for" would create a condition precedent. The phrase "any process for" read with "preserving or storing any article in cold storage," would contemplate that the factory or establishment should carry out some activities, eventhough it may be miniscule, on certain articles for the purpose of preserving or storing in cold storage. The phrase "process" cannot be read in isolation for the purpose of Section 2(k) but has to be read alongwith the words "any" and "for".