The Supreme Court of India has ruled that activities such as washing, cleaning, and dry-cleaning of clothes fall under the definition of "manufacturing process" as per the Factories Act, 1948. This decision has significant implications for businesses involved in laundry services, as it brings them under the purview of the Factories Act if they employ 10 or more workers and use power-operated machinery for cleaning and washing clothes.

The bench, comprising Justices BR Gavai and KV Viswanathan, delivered this judgment while hearing an appeal filed by the State of Goa against a decision by the Bombay High Court. The High Court had earlier quashed an order by the Judicial Magistrate First Class (JMFC) in Panaji, which had issued a process against the respondent, Namita Tripathi, for alleged violations of the Factories Act, 1948.

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Background of the Case:

The case revolved around whether a laundry business, which primarily involves washing and dry cleaning clothes, could be classified as a "factory" under the Factories Act, 1948. The State of Goa argued that the respondent's laundry business, which employed more than nine workers and used power-operated machinery, qualified as a factory under Section 2(m) of the Act. The State further contended that the process of washing and cleaning clothes constituted a "manufacturing process" as defined under Section 2(k) of the Act.

On the other hand, the respondent argued that dry cleaning and washing clothes did not amount to a manufacturing process, as these activities did not result in the creation of a new tangible product. Instead, the respondent claimed that the business was a service and should be registered under the Shops and Establishments Act, not the Factories Act.

The Supreme Court, however, found merit in the State's argument. In its judgment, the Court emphasized that the Factories Act, 1948, is a social welfare legislation aimed at protecting the health, safety, and welfare of workers employed in factories. The Court noted that the definition of "manufacturing process" under Section 2(k) of the Act includes any process for washing, cleaning, or treating articles with a view to their use, sale, transport, delivery, or disposal.

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The Court observed that the laundry business involves washing and cleaning clothes, which are then delivered to customers for use. This process, according to the Court, clearly falls within the definition of a "manufacturing process" under the Factories Act. The Court rejected the respondent's argument that the absence of a new tangible product meant that the business did not qualify as a manufacturing process.

"The Act of 1948 defines 'manufacturing process,' and we clearly find that 'washing, cleaning,' and the activities carried out by the respondent with a view to its use, delivery, or disposal are squarely attracted. The contention of the respondent that dry cleaning does not make any product usable, saleable, or worthy of transport, delivery, or disposal has only to be stated to be rejected," the Court stated.

The Court further held that since the respondent's business employed more than nine workers and used power-operated machinery, it met the definition of a "factory" under Section 2(m) of the Act. Consequently, the Court set aside the High Court's order and restored the JMFC's order, allowing the complaint against the respondent to proceed.

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This judgment has far-reaching implications for businesses involved in laundry services. It clarifies that even if a business does not produce a new tangible product, it can still be classified as a "factory" under the Factories Act if it engages in processes like washing and cleaning with the aid of power and employs a certain number of workers. This means that such businesses will now have to comply with the health, safety, and welfare regulations prescribed under the Factories Act, 1948.

The Court also emphasized that the Factories Act is a beneficial legislation intended to protect workers from occupational hazards and ensure their well-being. By bringing laundry businesses under the ambit of the Act, the Court has reinforced the importance of adhering to labor laws and ensuring safe working conditions for employees.

Case Title: THE STATE OF GOA & ANR. VERSUS NAMITA TRIPATHI