Industries (Development and Regulation) Act, 1951

3. Definitions

In this Act, unless the context otherwise requires,-

(a) "Advisory Council" means the Central Advisory Council established under section 5;

(aa) ‘ancillary industrial undertaking’ means an industrial undertaking which in accordance with the proviso to sub-section (1) of section 11B and the requirements specified under that sub-section, is entitled to be regarded as an ancillary industrial undertaking for the purposes of this Act;

(ab) ‘current assets’ means bank balances and cash and includes such other assets or reserves as are expected to be realized in cash or sold or consumed within a period of not more than twelve months in the ordinary course of business, such as stock-in-trade, amounts due from sundry debtors for sale of goods and for services rendered, advance tax payments and bills receivable, but does not include sums credited to a provident fund, a pension fund, a gratuity fund or any other fund for the welfare of the employees, maintained by a company owning an industrial undertaking;

(ac) "current liabilities" means liabilities which must be met on demand or within a period of twelve months from the date they are incurred; and includes any current liability which is suspended under section 18FB;

(b) "Development Council" means a Development Council established under section 6;

(bb) "existing industrial undertaking" means-

(a) in the case of an industrial undertaking pertaining to any of the industries specified in the Schedule I as originally enacted, an industrial undertaking which was in existence on the commencement of this Act or for the establishment of which effective steps had been taken before such commencement, and

(b) in the case of an industrial undertaking pertaining to any of the industries added to Schedule I by an amendment thereof, an industrial undertaking which is in existence on the coming into force of such amendment or for the establishment of which effective steps had been taken before the coming into force of such amendment;

(c) ‘factory’ means any premises, including the precincts thereof, in any part of which a manufacturing process is being carried on or is ordinarily so carried a on-

(i) with the aid of power, provided that fifty or more workers are working or were working thereon on any day of the preceding twelve months; or

(ii) without the aid of power, provided that one hundred or more workers are working or were working thereon on any day of the preceding twelve months and provided further that in no part of such premises any manufacturing process is being carried on with the aid of power;

(cc) "High Court" means the High Court having jurisdiction in relation to the place at which the registered office of a company is situate;

(d) "industrial undertaking" means any undertaking pertaining to a scheduled industry carried on in one or more factories by any person or authority including government;

(dd) "new article" in relation to an industrial undertaking which is registered or in respect of which a license or permission has been issued under this Act, means-

(a) any article which falls under an item in Schedule I other than the item under which articles ordinarily manufactured or produced in the industrial undertaking at the date of registration or issue of the license or permission as the case may be, fall;

(b) any article which bears a mark as defined in the Trade Marks Act, 1940², or which is the subject of a patent, if at the date of registration, or issue of the license or permission, as the case may be, the industrial undertaking was not manufacturing or producing such article bearing that mark or which is the subject of the patent;

(e) "notified order" means an order notified in the Official Gazette;

(f) "owner" in relation to an industrial undertaking, means the person who, or the authority which, has the ultimate control over the affairs of the undertaking, and, where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent shall be deemed to be the owner of the undertaking;

(g) "prescribed" means prescribed by rules made under this Act;

(h) "Schedule" means a Schedule to this Act;

(i) "scheduled industry" means any of the industries specified in the Schedule I;

(j) "small scale industrial undertaking" means an industrial undertaking which, in accordance with the requirements specified under sub-section (1) of section 11B, is entitled to be regarded as a small scale industrial undertaking for the purposes of this Act;

(k) words and expressions used herein but not defined in this Act and defined in the Companies Act, 1956 (1 of 1956), have the meanings respectively assigned to them in that Act.

Comment: The manufacturing process of appellant's business establishment is being carried out by only 22 workers. Consequently, the appellant's business undertaking cannot be treated as a factory nor an 'industrial undertaking' as defined under Section 3(d), of the Act. Ramnarayan Satyanarayan Agrawal Distilleries Pvt. Ltd. v. Associated Alcohols and Breweries Limited, AIR 1995 SUPREME COURT 1686

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