Statutory canteen workers count as factory employees, and pre-1980 service qualifies for pensionary computation.

Workers employed in statutory canteens established under Section 46 of the Factories Act, 1948 are treated as employees of the factory establishment where the occupier retains the obligation to provide and maintain the canteen, including appointment and overall control. The canteen managing committee's role is only advisory and does not make it the real employer. On that basis, service rendered in such canteens before 22.10.1980 could not be excluded from pensionary computation, and the period counted as qualifying service for pension. Retired employees were therefore entitled to recomputation of pension accordingly.

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Issues: Whether the service rendered by workers in canteens established under Section 46 of the Factories Act, 1948 prior to 22.10.1980 was required to be treated as qualifying service for pension.

Analysis: The canteens were statutory canteens established for the use of factory workers and formed an integral part of the defence establishments. Under Section 46 of the Factories Act, 1948 and the relevant rules, the obligation to provide and maintain the canteen rested on the occupier, while the canteen managing committee had only an advisory role in management. The occupier was responsible for appointment and overall control, and the committee could not be treated as the real employer. In these circumstances, the workers engaged in such canteens were held to be employees of the factory establishment, and there was no basis to exclude the service rendered before 22.10.1980 from pensionary computation.

Conclusion: The period of service rendered before 22.10.1980 in the statutory canteens was held to be part of the qualifying service for pension, and the pension of retired employees was required to be recomputed accordingly.

Ratio Decidendi: Employees working in a canteen established under Section 46 of the Factories Act, 1948 as part of an industrial establishment are employees of the occupier, and their service in that canteen counts towards qualifying service for pension.

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