Lawful occupation requirement bars factory registration and licence when supporting title or lease documents are absent.

Factory registration and a new factory licence may be refused where the applicant fails to prove lawful occupation of the premises under the applicable factory rules. The court accepted that supporting documents such as a patta, sale deed, valid lease deed, or subsisting rental agreement are necessary to establish entitlement to occupy and run the unit. On the facts, the petitioner's relied-upon lease was limited to GST registration and had expired, and the business transfer agreement did not confer occupation rights. The rejection of the application was therefore sustained because lawful occupation was not established.

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Issues: Whether the rejection of the application for registration and grant of a new factory licence was justified for want of proof of lawful occupation of the premises.

Analysis: The application for factory registration and licence was considered in the context of the occupier's entitlement to run the premises. The materials showed that the property belonged to the fourth respondent and that the third respondent was the lawful lessee. The lease relied on by the petitioner was found to be only for the limited purpose of GST registration and had expired, while the business transfer agreement did not confer any right of occupation over the premises. The relevant factory rules were read as requiring supporting documents for occupation, and the Court accepted that proof such as a patta, sale deed, valid lease deed, or subsisting rental agreement was necessary before registration or grant of licence.

Conclusion: The rejection of the petitioner's application was upheld, as the petitioner failed to establish lawful occupation of the premises.

Final Conclusion: The writ petition failed, and the impugned order refusing registration and a new factory licence stood sustained.

Ratio Decidendi: A factory licence application can be rejected where the applicant does not produce acceptable proof of lawful occupation of the premises required for registration under the applicable factory rules.

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