Independent industries in one factory can trigger provident fund coverage if one activity falls within Schedule I.

A factory carrying on two independent industries on the same licence is covered by section 1(3)(a) of the Employees' Provident Funds Act, 1952 if any one industry is listed in Schedule I and the statutory employee requirement is met. The composite factory character does not exclude coverage merely because one activity is non-Schedule I, larger in output, earlier in origin, or stronger in employment. The dominant-and-primary-industry test applies only where the secondary activity is merely incidental or a feeder to one integrated business. On that basis, the engineering works brought the factory within the Act and the appeal failed.

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Issues: Whether a factory carrying on two separate and independent industries on the same and under the same licence, one of which falls within Schedule I, is an establishment to which section 1(3)(a) of the Employees' Provident Funds Act, 1952 applies.

Analysis: The statutory scheme under sections 1(3)(a), 2(g), 2(i) and 6 was read together with the earlier construction placed on the Act. The decisive inquiry was whether the factory, as an establishment, was engaged in an industry specified in Schedule I. Where the industries carried on are independent and distinct, the factory is to be treated as a composite factory, and the presence of a non-Schedule I industry does not exclude the application of the Act merely because another activity may be larger in output, earlier in origin, or numerically stronger in employment. The dominant-and-primary-industry test is relevant only where the subsidiary activity is merely a feeder or incidental department of a primary business.

Conclusion: The appellant's factory fell within section 1(3)(a) because the engineering works was an independent industry covered by Schedule I, and the appeal therefore failed.

Ratio Decidendi: A factory carrying on independent industries is within section 1(3)(a) of the Employees' Provident Funds Act, 1952 if any one of those industries is specified in Schedule I and the statutory employee requirement is satisfied; the dominant or subsidiary character test applies only where the activities are integrated parts of one primary business.

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