Government-controlled factories: deemed occupier follows ultimate control, and the Government-appointed manager prevails over the general company rule.

Factories that are in substance owned and controlled by the Central Government fall within the Government-factory deeming rule in the first proviso to section 2(n) of the Factories Act, 1948, because the definition of "occupier" turns on ultimate control over the factory's affairs. The special treatment for Government-owned or Government-controlled factories prevails over the general company rule, so the person appointed by the Central Government to manage such a factory is the deemed occupier. The contrary view applying the company provision was rejected, and the factories concerned were treated as Government-controlled for identifying the occupier.

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Issues: Whether the factories run by a Government company, effectively owned and controlled by the Central Government, fall within clause (iii) of the first proviso to section 2(n) of the Factories Act, 1948, so that the person appointed by the Central Government to manage the factory is deemed to be the occupier, rather than clause (ii) which applies to companies.

Analysis: The definition of "occupier" in section 2(n) is founded on the concept of ultimate control over the affairs of the factory. The first proviso contains deeming rules for different classes of factories, and the separate treatment of factories owned or controlled by the Central Government, State Government or local authority shows that the Legislature intended a distinct rule for Government factories. The earlier scheme under section 100 of the Factories Act, 1948 and its replacement by the amended section 2(n) also support that the person managing a Government-owned or Government-controlled factory is to be identified as occupier where the factory is in reality run by Government through a corporate form. Applying that principle, the Corporation's factories were found to be effectively and really owned and controlled by the Central Government.

Conclusion: Clause (iii) of the first proviso to section 2(n) applies, and the persons appointed by the Central Government to manage the factories are the deemed occupiers. The contrary view that clause (ii) governs was rejected.

Final Conclusion: The appeals succeeded and the High Court's view was reversed to the extent that the factories at Namkum were directed to be treated as Government-controlled factories for the purpose of identifying the occupier.

Ratio Decidendi: Where a factory is in substance owned and controlled by the Central Government, the deeming provision for Government-owned or Government-controlled factories prevails over the general company provision, and the Government-appointed manager is the occupier for purposes of the Factories Act, 1948.

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