Factory worker count under exemption notification includes contractor's labour inside the premises, defeating the 49-worker limit.

Workers employed by a contractor operating inside the manufacturer's factory premises were treated as working within the precincts of that factory for Notification No. 88 of 1977-C.E. Because the contractor used the manufacturer's machines and electricity and the premises remained under the manufacturer's possession, those workers had to be included in the worker count. The inclusion pushed the total beyond the 49-worker limit, so the exemption was not available.

---

---

Issues: Whether, for the purpose of Notification No. 88 of 1977-C.E., workers employed by a contractor working inside the appellant's factory premises had to be counted while determining whether not more than 49 workers were working in the factory including its precincts.

Analysis: The notification exempted footwears manufactured by or on behalf of a manufacturer in one or more factories, including the precincts thereof, where not more than 49 workers were working on any day of the preceding 12 months. The agreement showed that the contractor was operating within the appellant's premises, using the appellant's machines and electricity, while the premises remained under the appellant's possession. In that situation, the contractor's workmen were working within the precincts of the appellant's factory and had to be included in the worker count for the notification.

Conclusion: The workers of the contractor were rightly counted, the statutory limit of 49 workers was exceeded, and the appellant was not entitled to the exemption.

---