1991 (8) TMI 348 - HC - Indian Laws

Summary

Issues Involved:
1. Whether the activities at the service station, including cleaning, washing, and oiling of vehicles, fall within the definition of 'manufacturing process' under Section 2(k) of the Factories Act, 1948.
2. Whether the activity of pumping petrol/diesel at the petrol pump falls within the definition of 'manufacturing process' under Section 2(k) of the Factories Act, 1948.
3. The requirement of obtaining a license under Section 6 of the Factories Act, 1948, for the activities carried out by the petitioner's establishment.

Issue-wise Detailed Analysis:

1. Definition of 'Manufacturing Process' for Service Station Activities:
The court examined whether the activities of washing, cleaning, and oiling vehicles at the service station constitute a 'manufacturing process' under Section 2(k) of the Factories Act, 1948. The petitioner argued that these activities do not alter or adapt the vehicle in a way that would classify them as a 'manufacturing process.' However, the court referred to the definition of 'manufacturing process' which includes "oiling, washing, cleaning" and determined that these activities, when performed with a view to making the vehicle fit for use, transport, or delivery, fall within the scope of 'manufacturing process.' The court supported this interpretation by referencing the Bombay High Court's decision in Gateway Auto Services, which held that each activity mentioned in the definition should be read independently and not necessarily in conjunction with the words "otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery, or disposal."

2. Definition of 'Manufacturing Process' for Petrol Pump Activities:
The court considered whether the activity of pumping petrol/diesel at the petrol pump constitutes a 'manufacturing process.' The petitioner argued that pumping oil should be interpreted as pumping from beneath the earth and not merely lifting petrol/diesel from storage tanks to vehicles. The court agreed with this argument, distinguishing the casual act of pumping petrol/diesel for sale from principal or independent acts such as pumping oil from refineries or wells. The court endorsed the view of the Punjab and Haryana High Court in Bhag Singh's case, which held that selling petrol/diesel by a dealer does not fall within the definition of 'manufacturing process.'

3. Requirement of License under Section 6 of the Factories Act, 1948:
Given the court's findings, it was determined that the service station activities (cleaning, washing, oiling, lubricating, or repairing vehicles) are covered by the definition of 'manufacturing process.' Consequently, if the requisite number of workers are employed, the premises qualifies as a factory under Section 2(m) of the Factories Act, necessitating a license under Section 6. Conversely, the petrol pump activities do not require a license as they do not constitute a 'manufacturing process.'

Conclusion:
The court allowed the petition partly, setting aside the lower courts' view regarding the petrol pump but maintaining the conviction for the service station activities. The petitioner was rightly convicted and sentenced for running the service station without the required license, with the fine being deemed lenient and requiring no interference.