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Issues: (i) Whether sugar factories employing 500 or more workers only during the crushing season could be treated as ordinarily employing 500 or more workers for the purposes of Section 49 of the Factories Act, 1948. (ii) Whether Rule 6, prescribing grades and scales of pay for Welfare Officers, fell within the rule-making power under Section 49(2) of the Factories Act, 1948. (iii) Whether Rules 5, 7, 8 and 9, which regulated selection and appointment of Welfare Officers, were validly made under Section 49(2) or could be sustained under Section 112 of the Factories Act, 1948.
Issue (i): Whether sugar factories employing 500 or more workers only during the crushing season could be treated as ordinarily employing 500 or more workers for the purposes of Section 49 of the Factories Act, 1948.
Analysis: The expression "ordinarily" was construed in the setting of the Act and with reference to the nature of the factories to which it applied. Factories that carry on manufacturing only for a limited season but use the remaining period for ancillary activities do not cease to be factories during the off-season. The same contextual meaning had to govern Section 49, and seasonal working did not exclude sugar factories from its operation.
Conclusion: The contention was rejected; Section 49 applied to the sugar factories.
Issue (ii): Whether Rule 6, prescribing grades and scales of pay for Welfare Officers, fell within the rule-making power under Section 49(2) of the Factories Act, 1948.
Analysis: Rule 6 dealt with classification of Welfare Officers into grades and the corresponding scales of pay. These matters were held to relate to the conditions of service of the officers. The provision did not travel beyond the authority to prescribe duties, qualifications and conditions of service.
Conclusion: Rule 6 was upheld as valid.
Issue (iii): Whether Rules 5, 7, 8 and 9, which regulated selection and appointment of Welfare Officers, were validly made under Section 49(2) or could be sustained under Section 112 of the Factories Act, 1948.
Analysis: Rules 5, 7, 8 and 9 were concerned with recruitment and appointment, not with duties, qualifications or conditions of service. The expression "qualifications" was confined to qualifications of the officer himself, such as academic or professional attainments, and did not extend to the method of recruitment or the inclusion of names in a selection list. Section 112 also did not validate the rules, since the notification showed that the Government had acted only under Section 49 and had not consciously exercised the wider power under Section 112.
Conclusion: Rules 5, 7, 8 and 9 were held ultra vires and invalid.
Final Conclusion: The petitions succeeded in part: the challenge to Rule 6 failed, while the challenge to Rules 5, 7, 8 and 9 succeeded, and mandamus issued restraining their enforcement.
Ratio Decidendi: In construing delegated legislative power, expressions such as "ordinarily" and "qualifications" must be read contextually, but a power to prescribe qualifications and conditions of service does not authorise regulation of recruitment and appointment unless such wider power is expressly and consciously exercised.