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J. K. SHAH CLASSES C.S. EXECUTIVE – INDUSTRIAL & LABOUR LAWS
CHAPTER – 1 THE FACTORIES ACT, 1948
Aim: To ensure adequate safety measures and promote health and welfare of
workers of factory.
Applicability of the Act: Whole of India including J & K
Applicable to all factories including any premises and precincts where manufacturing
process is carried on
OR
With aid of power without aid of power
Only if no. of workers are ≥ 10 Only if no. of workers are ≥ 20
an any single day in preceding an any single day in preceding
12 months 12 months
Premises = ‘Open land’ or ‘land + building’ or ‘building’
Precincts = Space enclosed by walls.
Manufacturing process Sec 2 (k) : Any Process of :-
(i) Making, altering, repairing, ornaments, furnishing, packing, oiling, washing,

cleaning, breaking up, demolishing or otherwise treating or adopting any article
or substance with a view to its use, sale, transport, delivery or otherwise
(ii) Pumping oil, water or otherwise or any other substance or
(iii) Generating, transforming, transmitting power
(iv) Composing types for printing, printing by better press, lithography,

photogravure, or book binding.
(v) Constructing, reconstructing, repairing, refitting, furnishing or breaking up ships

or Vessel
(vi) Preserving or storing any article in cold storage.
:1:
Imp points:
(1) Ghee brought from various customers where sampled chemically, analysed
and packed in terms for transportation to HO of the concern for sale in market
(manufacturing process).
(2) Salt manufacturing from sea water by using various process (manufacturing
process)
(3) Sun cured tobacco leaves subjected to process of moistening, stripping,
breaking up, packing with the view to transport them to companies main
factory for their use in manufacturing cigarette. (manufacturing process)
(4) Cutting of woods or converting the woods into planks (manufacturing activity)
(5) Construction of railway i.e. laying down railway line (manufacturing process)
(6) Process undertaken in zonal and sub-stations and electricity generating station,
transforming and transmition electricity (Not manufacturing activity)
(7) Preparation of food and beverages and its sale to members of club
(manufacturing process)
(8) Receiving products in bulk and packing as per clients requirements
(manufacturing process)
Following are not manufacturing process :-
(i) Exhibition of film process
(ii) Industrial school or Institute giving training.
(iii) Producing cloth not with a view to sell.
(iv) Preliminary packing of raw material for delivering it to factory.
(v) Finished goods and packing thereof.
(vi) Receiving of news from various sources on a real in a teleprinters of a
newspaper office.
Worker: Any person appointed for any work in connection with the factory excluding
member of Armed Forces of Union.
Piece rated workers are ‘workers’ but they should be regular workers and not
workers who come and work according to their will
Munim and workmen in canteen in factory are ‘workers’
Occupier : Person having ultimate control over affairs of factory
If factory is owned by a company, then only any one of the director of Company
is occupier.
:2:
Duties of occupier:
(1) Ensure health, safety and welfare of all workers
(2) He shall provide :
(i) Proper maintenance of plants for safety
(ii) Safety arrangement with regards to use, handing and transportation of
substance
(iii) Training & supervision for ensuring safety
(iv) Safe access to all places of work
(v) Adequate facilities and arrangement for welfare of the workers in the
factory
(3) Make a written statement of the policy adopted by him for above and even
make the workers aware about the same.
Additional facilities in case of large factories required:
1) If workers are ≥ 500 ambulance room
2) If workers are ≥ 250 canteen
3) If workers are ≥ 150 Rest rooms / centres with drinking facilities
4) If women workers are ≥ 30 Crèches
5) If workers are ≥ 500 Full time welfare officers
6) If workers are ≥ 1000 Safety officer
Child : Age below 15 years

Adolescent : Age ≥ 15 but < 18
Adult : Age ≥ 18 years
Young person : Child or an adolescent
Working hours for an adult:

− Max 48 hours a week
− Weekly holiday compulsory
If he worked on a holiday he should take holiday an any 1 of the 3 days
immediately after the holiday.
− Max 9 hours a day
10½ hours a day (include break)
− Break of ½ hours after every 5 hours
Overtime wages:
− If workers works > 9 hours in a day or > 48 hours a week
Overtime Wages : Double the normal wages

− Overtime hours maximum : 60 hours a week
Overtime wages not payable on tours.
:3:
Leave:
− 1 leave for every 20 days of work (only if he worked for ≥ 240 days)
− For a child worker (≥ age 14 but < 15) →1 leave for every 15 days work
− Working days include:
1. Maternity leave (Max. 3 months)
2. Lay off period
But leave shall not be earned on these days
− Accumulation of leave:
Leave can be accumulated upto 30 days adult
Leave can be accumulated upto 40 days child
− Leave is exclusive of holidays.
Employment of Children:
− Child below 14 years of age cannot be employed
− Child ≥ 14 but < 15 can be employed for 4.5 hours per day only.
Cannot be employed between 10 p.m. to 6 a.m.
− Adolescent can be employed as an adult only if he has been certified fit by
certifying surgeon
Cannot be employed between 7 p.m. to 6 a.m.
Employment of women:
− Woman worker cannot be employed between 7 p.m. to 6 a.m.
− SG can extend the time.
But still woman cannot be permitted to work during 10 p.m. to 5 a.m.
Female child can be employed during 8 a.m. to 7 p.m.
Notice display on notice board:
− Notice of an abstract of Factories Act, 1948 and the rules in English and in local
language shall be displayed by occupier.
− Name and address of Inspector of factories and certifying surgeon shall also be
displayed.
Administration of the Act is done by State Government through:
Inspecting Staff Certifying Surgeons Welfare Officers Safety Officers

(only if no. of workers (only if no. of workers
are ≥ 500) are ≥ 1000)
:4:
Powers of Inspectors:
Following powers within the local limits for which he is appointed :
1. Enter any place which is used or which he believes is used as factory.
2. Examination of premises, plant and machinery etc.
3. Inspect register or any document of the factory.
4. Take measurement and photos for examination.
Powers of Certifying Surgeons:
1. Examination and certification of young persons and other workers engaged in
hazardous processes
2. Exercise medical supervision as prescribed.
Licencing and approval of Factories:
1. Obtain prior permission of State Government for setting up a factory.
2. Make an application for approval of any extension of factory to State
Government/ Chief Inspector. If no reply is received within 3 months then it is
automatically approved.
Provisions relating to hazardous processes :
Hazardous Process :- Process / activity which :
(i) Causes material impairment to the health of the workers
(ii) Result in the pollution of the general environment.
Rules:-
1. Committee naming Site Appraisal committee by SG to advise the govt. for
examining applications for establish of factories involving hazardous processes.
2. Every occupier shall disclose all the information regarding dangers, including
health hazards to the workers, the Chief Inspector, general public in vicinity.
3. Responsibility of the occupier to maintain accurate and up to date health
records or medical records of the workers who are exposed to any chemical
toxic or any other harmful substances.
4. In any extra ordinary situation, CG may appoint Inquiry committee to inquire the
standards of health and safety observed in the factory to find out any failure to
adopt the safety.
5. CG may lay down emergency standards in respect of hazardous process.
6. 2nd schedule indicates maximum permissible limits of exposure of chemical and
toxic substances in manufacturing process in any factory.
7. Occupier shall set up a safety committee having equal number of
representatives of workers and management to promote co-operation between
workers and management in maintaining safety and health at work.
8. Workers may bring any imminent danger to lives or health to notice to occupier.
:5:
Measures to be taken by factories for:
Health Safety Welfare

of workers of workers of workers
Facilities for health of workman:

1. Factory should be kept clean
2. Arrangement to dispose off waste and effluents
3. Ventilation should be adequate
4. Reasonable temperature for comfort of employees should be maintained.
5. Dust and times should be controlled below permissible limit
6. Artificial humidification should be at prescribed limits
7. Overcrowding should be avoided.
8. Adequate lighting, drinking water, toilets and spittons be provided, etc.
Facilities for safety of workman:

1. Provide fencing of machinery, provide adequate safety measures in case of
dangerous and self-acting machineries
2. Provide safe lifts and hoists.
3. Floors, stairs, etc should be of sound construction and there should not be any
unreasonable pits and openings.
4. Provide protection of eyes.
5. Protection against dangerous fumes, gases, explosives, dust, etc.
6. Provide protection against fire.
Facilities for welfare of workman:

1. Provide facilities for sitting, washing, storing and drying clothes.
2. Provide first aid appliances.
3. Provide canteens, rest rooms, shelters, creches etc.
:6:
CHAPTER 2 – THE MINIMUM WAGES ACT, 1948
Aim :
To prevent exploitation of labour so the act provides for fixing of minimum rates of
wages.
Applicability of the act: Scheduled employments
Employment specified in schedule given by Government

Contractor is also regarded as ‘employer’.
Outworkers are also regarded as ‘employees’.
Wages:
Includes Excludes
All cash remuneration. 1. Travelling allowance
It also includes HRA 2. Gratuity
3. Contribution by Employer to any
Pension Fund/other Fund
4. Perquisites
5. Sum paid to defray special expenses
incurred by him because of the
nature of his employment
Who fixes minimum wages?
Appropriate Government(AG) fixes minimum wages
Appropriate government may revise the minimum wages at intervals not
exceeding 5 years.
Appropriate Government:
AG=CG AG=SG
for for
1.Establishments under Any other establishments
Authority of CG
2. Mines, oilfields
: 24 :
Procedure for fixing and revising minimum rate of wages:
Committee Method(1st Method) Notification Method

(2nd Method)
AG will appoint committee AG shall publish its proposals via
Notification in Official Gazette
Committee will advise AG
Wait for 2 months or more for
considering proposals
AG shall notify minimum wages
in official Gazette
via notification AG will consider the representations
received
Date of effect = Date specified in
Notification
If no date specified then take date after Consult Advisory Board
3 months of notification
Notify minimum wages in
Official
Gazette via notification
Date of effect
= Date specified in
notification
If no date specified then take
date after 3 months of
notification.
Manner of Fixation:-
1. Minimum Time Rate
2. Minimum Piece Rate
3. Guaranteed Time Rate
4. Overtime Rate
: 25 :
Minimum wages are to be paid in cash only:
It can be paid in kind if it is customary in kind and authorized by AG.
Minimum wages are to be fixed on the basis of standard normal working hours
of 48 hours a week:
If employee work > 48 hours a week, then overtime wages shall be paid for
the excess.
If employee works <48 hours a week, then he shall be paid for full week.
If employee is engaged in piece work for which minimum time rate has been
fixed and not minimum piece rate has been fixed, then wages = Minimum time
rate.
Important points:
Living wages = wages to maintain basic food, shelter and clothing
Subsistence Wages = Wages during suspension of workman, pending investigation
Minimum wages = Wages fixed as per Minimum Wages Act
Fair wage = Wage that ensures maintenance of health and decency in a civilized
community
If employer cannot afford to pay minimum wages then he has to close

the unit.
: 26 :
CHAPTER 3 – PAYMENT OF WAGES ACT, 1936
Aim :
To regulate payment of wages to workers and to protect them against unauthorised
deductions and unjustified delay in payment.
Applicability of the Act
Factories Establishment
1. Motor transport undertakings
2. Air transport undertakings other than Air
Force
3. Dock wharf
4. Inland vessel
5. Mines
6. Oil fields
7. Plantations
8. Railways
Employer is responsible for payment of wages to persons employed:

1. Employer
Factory Establishments
Employer= Manager of Employer = Person with
factory Control ultimate authority and
2. Persons employed
= Persons appointed for any kind of work + their legal representative
3. Wages
Includes Exclude
1. Settlement amount 1. Perquisites
2. Overtime allowance 2. Contribution by employer to
3. Bonus PF/Pension Funds
(Only if paid in terms of employment) 3. Travelling allowance
4. Gratuity
5. Sum paid to defray special
expenses incurred
by him due to nature of his
work
: 34 :
Time Limits for paying wages:

Establishment
1. Dock wharf Any other establishment

2. Mines
No. of employees are < 1000 No. of employees are ≥
1000
Within 7 days
Within 7 days Within 10 days
If the employment is terminated within 2 days from the date of termination
Payment of wages will be on a working day only.
Wages are payable in cash unless authorized to pay by cheque direct credit to
his bank account.
Deductions allowed from wages:

(i) Fines
(ii) Absence from duty
(iii) Damage to or loss of goods entrusted to the employee
(iv) Recovery of advance/loans/adjustments for overpayment
(v) Contribution of employee to PF
(vi) Income tax
(vii) Insurance premiums, NSS payments
(viii) House accommodation
(ix) Amenities /services
(x) Payment to co-operative society
(xi) Any other deduction with written authorisation of employee.
Fines:
− Amount of fine in 1 wage period should be ≤ 3% of wages in that wage period
− No fine on person employed whose age is < 15 years
− Opportunity by being heard should be given before imposing fine
− Notice of do’s and don’ts to be put up at the place of employment.
− Maintain fines register
− Apply the money collected by way of fines for the benefits of person employed
: 35 :
Registers to be maintained:
Regarding :-
(i) Persons employed
(ii) Wages paid
(iii) Deductions made, etc.
Disputes:
Dispute between employer and persons employed
Apply within 12 months to authority notified by AG in Official Gazette
Authority shall give opportunity of being heard.
Give directions (conclusion) within 3 months

Direct the party responsible to pay compensation to other party.
If party is
Employee Employer
Compensation payable : Compensation payable :
≥ 1,500 but < 3,000 ≤ 10 times of employee’s amount
deducted
No compensation if the default was a genuine error or in emergency, etc.
: 36 :
s CHAPTER 4 – EQUAL REMUNERATION ACT, 1976
Aim : To provide for payment of equal remuneration to men and woman workers for
same work or work of similar nature and preventing discrimination against
women employee while recruitment.
1. Applicability of the Act: All employments
It is applicable to whole of India
Act is having overriding effect over other laws or any agreement or

contract of service which were made before or after commencement of
act.
2. It is duty of employer to pay equal remuneration to men and woman

workers for same work of a similar nature
Remuneration = Basic salary + emoluments in cash or kind
Same work or work of a similar nature = Work where skill, effort as same of
man and woman.
3. Discrimination while recruiting man and woman :
Such discrimination is prohibited except where employment woman is restricted

by law time being in force.
It is not applicable to scheduled castes or scheduled tribes.
4. Maintain registers of woman
5. Dispute
Apply to Labour officer
: 50 :
MULTIPLE CHOICE QUESTIONS
Q. 1. The main objective of Equal Remuneration Act., 1976 is

(a) Remuneration (b) Fair remuneration
(c) Equal remuneration (d) Fair and equal remuneration
Q. 2 . Equal Remuneration Act, 1976 is applicable to

(a) Whole of India
(b) Whole of India except state of Maharashtra
(c) Whole of India as well as out of India
(d) Whole of India except states as exempted by Central Government
Q. 3. Equal Remuneration Act, 1976 is applicable to _______ in India

(a) All establishments (b) All factories
(c) All workmen (d) All of the above
Q. 4. Equal Remuneration Act, 1976 has_____ effect over other laws

(a) Overriding (b) Similar
(c) Same (d) Temporary
Q. 8. Equal Remuneration Act, 1976 provides for the payment of equal

remuneration to men and women workers and for the prevention of
discrimination _______ against women.
(a) On ground of designation (b) On ground of sex
(c) Both of the above (d) None of the above
Q. 9. Advisory committee is constituted by

(a) Appropriate Government (b) Central Government
(c) State Government (d) Parliament
Q. 10. Advisory committee constituted by appropriate government under Equal

Remuneration Act consists of members.
(a) 5 (b) 10 (c) 12 (d) 15
Q. 11. Advisory committee constituted by appropriate government under Equal

Remuneration Act consists of 10 members out of which _____shall be
women.
(a) 5 (b) 10 (c) 12 (d) 15
: 51 :
Q. 12. For any offence under Equal Remuneration Act, 1976, employer is
punishable with
(a) Fine (b) Imprisonment
(c) Fine and imprisonment (d) Any one of the above
Q. 13. An employer is liable to be punished under Equal Remuneration Act,

1976, when
(a) He makes any recruitment in contravention of the provisions of Act
(b) He makes any payment of remuneration at equal rates to men and
women workers for the same work or work of a similar nature
(c) both of the above
(d) none of the above
Q. 14. When an employer is not liable to be punished under Equal

Remuneration Act,1976?
(a) He makes any discrimination between men and women workers in
contravention of the provisions of Act
(b) He omits or fails to carry out any direction made by the appropriate
Government
(c) Both of the above
(d) None of the above
: 52 :
CHAPTER – 5 EMPLOYEE PROVIDENT FUND AND

MISCELLANEOUS PROVISION Act, 1952
Aim: The act covers following benefits:
i. Employee Provident Fund Scheme (EPF Scheme)

ii. Employee Pension Funds Scheme
iii. Employee Deposit linked with Insurance Scheme (EDLI Scheme)
Applicability of the Act
Factories Establishments
1. Having ≥ 20 Employees on any
Single day in an accounting year. Having ≥ 20 Employees Notified
AND on any single days in an by Central
2. Activity is specified in Schedule I accounting year. Govt. in
official Gazette
having no.
Employees < 20.
Once the act is applicable it is always applicable even if no. of employees fall
below 20.
Employee:
Any person appointed for any kind of work except an apprentice.
It includes any person employed by/ through a contractor
It includes a part-time employee
Non Applicability of the Act:
Cooporative Society Establishment under Establishment Set New set up

1. having no. of authority of CG / SG up under central for a period of
establishment 3 years
Employees < 50
And Provisional State Act. for a period
of 3 years.
2. Working without Provided employees of such establishment are

the aid of power already getting benefits of contributory PF or
old age pension.
: 53 :
Basic Wages (BW):
Includes Excludes
All payments to the employee for the 1) Bonus
Work alone by him. 2) Commission
3) Cash value of free food
4) Presents by the employer
5) Any other allowance
SCHEMES UNDER THE ACT:
1) Employee Provident Fund Scheme:

1. Introduced by: Central Government
2. Managed by: Central Board Of Trustees
3. Who will contribute in the Every employee except an ‘Exempted
Scheme: Employee’
‘Excluded Employee’: (i) An employee
who has withdrawn the full amount of the
fund.
(ii) An employee whose salary is >5000 pm
(iii) Apprentice
4. How much is the Employee: Minimum: 10% (BW + DA + RA)

contribution: Maximum: Any amount
Employer: 10% (BW + DA + RA)
If Central Government notifies 12%
instead of 10% then take 12% for
both contribution.
5. When the amounts can The amounts in the Fund can be withdrawn
be withdrawn: for following reasons:
i. Paying premium of LIC
ii. Purchasing/ constructing house
iii. Refund for temporary closure of
business
iv. For treatment of diseases and
surgeries thereof.
v. For own/ children’s/ sibling’s
marriage or education
vi. Refund for suffering by cut in
electricity
vii. For property damaged in national
calamity
viii. For repayment of loans in special
cases
ix. For purchasing special equipments
for handicapped people
: 54 :
2) Employee Pension Fund Scheme:
1. Introduced by: Central Government

3. When pension will i. Retirement
be received: ii. Superannuation
iii. Permanent Disability / Disablement
iv. Death
v. Children Pension
vi. Orphan Pension
4. How much pension Minimum 10 years contributory service is required
will be received: for pension.
Pension: Pensionable salary X (Pensionable service + 2)
70
Pensionable salary: Average of last 12 months wages
Pensionable Service: If it is >10 but <20 then take it as 20
The amount calculated shall be reduced by 3% for every
year whose benefit is received extra (Maximum
reduction:25%)
3) Employee Deposit linked with Insurance Scheme:
1. Introduced by: Central Government to provide Life Insurance

benefits to employees
3. How much is the Employee : Nil
contribution: Employer : 1% (BW + DA + RA)
(+)
0.01% (BW + DA + RA) as administration charges
4. When the amount On death by nominee
will be received:
5. How much amount Step 1: Average amount in Fund in preceding 12 mths
will be received? Or
Average amount in the Fund of total period of
membership
Whichever is less.
Step 2: If above amount is >50000,
Then amount payable= 50000 + 40% of balance.
Step 3: If above amount is >100000 then amount
payable is
100000.
: 55 :
Legal Protections to the fund:
If the employee If employer becomes Employer cannot adjust

becomes insolvent then insolvent or the salary of the
no order of any court company winds up employees in reduce the
can attach the amounts then amounts quantum of benefits
order to Receivable payable under this receivable under the Act.
under the Act Act will be deemed
to be paid in priority
Amount after employees
death belongs to the
nominee & it is free from
all the debts incurred by
the employee or the
nominee.
Dispute:
There is a dispute between employer and employee.
Matter is taken to the officer.
Officer will conduct enquiries pass the order
Any party aggrieved by the above order can apply to the Tribunal
Recovery:
Employer fails to pay the amounts under this act.
Employer / AP / LR will apply to Authorised officer.
Authorised officer will issue a certificate to a recovery officer.
Recovery officer will recover the amounts in the following manner.

Arrest the employer and detain him in imprisonment.
Attach and sell his movable and immovable properties.
Appoint a receiver for management of sale of assets.
: 56 :
Recovery by principal employer and contractor.

1. Principal employer can recover the amounts paid under this act on behalf of the
contractor. It can be adjusted from the contract price.
2. Contractor can recover its employees contribution from the salaries of its
employees.
Transfer of Employee:
When the employee leaves one organisation and joins another then the amount of
the fund will be transferred to new establishment.
: 57 :
CHAPTER 6 – PAYMENT OF BONUS ACT, 1965
Aim : This act requires mandatory payment of bonus by certain employers to certain
employees.
Applicability of the Act:-
Having no. of Employees ≥ 20 on any Notified by Appropriate

Government
single day in an accounting year. (AG) in official Gazette
only if number of
employees are < 20 but
≥ 10 on any single day in
an accounting year.
• Once the act is applicable it is always applicable even if number of employees

fall below 20 or 10.
Employer
Employer = Factory owner or his agent or his Employer = Person with ultimate
authority
Legal Representative and Control or factory manager
Employees: Any person appointed for any kind of work except an apprentice and
having salary/wages ≤ 10,000 per month.
Accounting Year:
Establishment
Corporation Company Others
Year end on which Book Period for which financial statement 1st April 31stMarch
of Accounts are are prepared and laid at Annual OR
balanced and closed. General Meeting. Any other year
followed by the employer
• Option chosen should be consistently followed. If the year is to be changed it
can be charged after permission of AG.
: 64 :
Appropriate Government :
Establishment
OR
Specified in Industrial Dispute Act Not Specified in Industrial Disputes Act.
AG = Central Government AG = State Government of the

state in which the establishment
is located
Departments / Undertaking and Branches :
Situation 1 Situation 2
Some P& L is prepared from consolidated Different P & L is Prepared
(total) profits
It will be considered as different
It will be considered as same establishment establishments.
Salary / Wages :
Includes Excludes
All payments to the employee for the 1. House Rent Allowance
work done by him. It specially includes: 2. Overtime Allowance
1. Basic 3. Perquisites
2. Dearness Allowances 4. Ex-gratia payments
3. Free food Allowances/ value of free food. 5. Bonus
6. Leave Travel Allowance
7. Commission
8. Conveyance
9. Contribution by Employer
to Provident Fund /
Pension Fund.
10. Any Other allowance
Non applicability of the Act :
Act is not applicable to the following
1. LIC
2. Financial Institution like NABARD, SIDBI, etc.
3. Inland water transport operating on routes which are passing through other
countries.
4. Seamen defined under Merchants Shipping Act.
5. Established under Authority of Central Government/State Government.
Authority = Ownership and not merely management.
6. Charitable Institutions like universities, hospitals, NPOS.
7. RBI
8. Employees covered under Dock Worker Act.
: 65 :
Applicability of the Act to Public Sector Establishment (PSE):
OR
Generally Act is Not Applicable Act is applicable only if following
conditions are fulfilled :
1) It is doing business in competition
with Private Sector Establishment
AND
2) Income from such business is ≥
20% of total income.
Public Sector Establishment (PSE):
OR
Government Company incorporated Establishment in which ≥ 40% of paid
Under Section 6/7 of Company Act up share capital is jointly or individually
owned by:
CG / SG RBI Establishment
owned by
CG/SG/RBI
Private Sector Establishments: Establishment other than Public Sector

Establishment
Eligibility to receive bonus: Employee should have worked for ≥ 30 working days in
an accounting year
Disqualification:
An employee is disqualified from receiving current year’s bonus as well as previous
years bonus (only if outstanding) if he has been dismissed because of:
a) Act of violence
b) Riotous act.
c) Theft, fraud or sabotage to employer’s assets.
Reduction:
Misconduct by employee
Employer suffers financial losses
Bonus payable = Bonus calculated – Financial Loss
Both should be of the same accounting year.
: 66 :
Minimum Bonus :
Age of Employee
< 15 years ≥ 15 years
Minimum : 8. 33% Bonus X Salary/wages Minimum : 8.33% Bonus X Salary /

wages
OR OR
60 p.a. 100 p.a.
whichever is higher whichever is higher
• Minimum Bonus should be paid even if employer suffers losses
Maximum Bonus : 20% of Salary / Wages

• Maximum Bonus can be paid only if allocable surplus > Minimum bonus.
Restriction of salary:
For the purpose of calculation of Bonus of salary / wages exceed 3500 then it shall be
restricted to 3500 p.m.
Allocable Surplus (AS):

Establishment
Company Other
But AS = 60% of Available surplus
1. Not a banking Company
AND
2. Such company should not
have declared or paid dividend
in India
AS = 67% of Available surplus
Calculation of Available Surplus:
Gross Profit U/s. 4

XX
Less : Prior Charges U/s 6
1. Tax Paid XX
2. Reservation allowed as expenditure under Income Tax Act XX
3. Other Charges under Schedule III XX
4. Depreciation as per Section 32 of Income Tax Act XX
(XX)
Add : Tax Savings on Previous years Bonus paid XX
Available Surplus XX
: 67 :
Proportionate deduction:
If the employee is not working for the entire accounting year then 100 / 60 will be
proportionately reduced.
Calculation of Working Days:

Following are deemed as working days :-
1. Lay off period
2. Paid Leave
3. Temporary disablement (At the time of employment)
4. Maternity Leave
Set on and Set off:

Set on – if allocable surplus is greater than maximum bonus than surplus to the extent
of 20% of salary / wages will be utilised for next 4 accounting years.
Set-off if allowable surplus is less than minimum bonus or these is no allocable than
deficit will be utilized for next 4 accounting years.
Adjustment of Bonus :
If the Bonus is paid in the same accounting year before due date then following
bonuses can be adjusted :
a) Customary bonus,
b) Interim bonus,
c) Puja bonus
Time Limit to pay Bonus:
OR
Matter is under a dispute Matter is not under a dispute

Bonus is payable within 1 month Bonus is to be paid within 8 months
From the date of settlement from the end of accounting year.
Maximum extension of time limit by AG is 2 years (interest is payable).

Bonus cannot be paid in kind
Recovery:
Employer fails to pay bonus.

Employee / Authorised person (AP) / Legal Representation (LR) will apply to AG
AG will issue a certificate to a collector
Collector will collect bonus as if it was arrears of land revenue.
: 68 :
Penalty:
Fine up to 1000
OR
Imprisonment upto 6 months
OR
Both
Bonus Based on production /productivity:

1. Contract between employer and employee that bonus payable will be based on
production OR productivity and not based on profits
Valid Contract
2. Contract between employer and employee that the bonus payable will be less
than minimum bonus or more than maximum bonus
Void contract
Exemption:
AG may exempt an employer whose financial condition is weak and if such exemption
is in public interest by notifying in OG.
: 69 :
CHAPTER 7 – PAYMENT OF GRATUITY ACT, 1972
Aim: Gratuity is a retirement benefit payable to the employee for his past services on
termination of employment
Applicability of the Act:
1. Factories Establishment
2. Mines
3. Oilfields Having ≥ 10 employees on any Notified by Central Govt.
4. Ports single day in an accounting year. In official Gazette only if
number of
5. Plantations number ofemployees are ≥ 10
6. Railways on any single day in an

accounting
List of Notified Establishments by CG:
1. Clubs
2. Motor transport undertaking
3. Local Bodies
4. Chamber of Commerce and Industry
5. Circus Industries
6. Inland water transport
7. Solicitor’s office
Once the act is applicable it is always applicable even if number of employees fall
below 10.
Employee:
Any person appointed for any kind of work except an apprentice- it excludes all the
Government employees who are already receiving benefits of Gratuity under some other
acts or rules.
Recent Amendment: ‘Teacher’ is regarded as employee.
When is gratuity payable?

1. An employee is eligible for gratuity only if he has worked for ≥ 5 years in the same
establishment .
2. Gratuity is payable to the employee on following termination of employment.
a) Retirement
b) Superannuation
c) Permanent Disability
d) Death
e) Resignation
3. 5 years limit is not applicable in the case of permanent disablement and death.
: 76 :
Computation of gratuity:
Gratuity = 15 / 26 x LDW x CYS
LDW = Last Drawn wages
CYS = Continuous years of services. If CYS is in fraction and if it is ≥ 6 months then

it will be rounded off to the next accounting year otherwise previous year.
Continuous years of Service (CYS)
Condition 1 (to be fulfilled for 1 year 16 months) Condition 2 (to be fulfilled only if Condition 1 is not fulfilled)
Mines Any other establishment Seasonal
OR establishment
Uninterrupted service Interrupted Service Establishment working
for < 6 days a week Calculation of 1 year Calculation of 6 month
Following interruptions Calculation of Calculation of Employee should have Employee should have
are allowed : 1 year 6 month worked for ≥ 240 days worked for ≥ 120 days
1. Sickness
2. Accident Employee should Employee should
3. Strike have worked for have worked for
4. Lay – off period ≥ 190 days ≥ 95 days
5. Paid Leave
6. Lock – out – period Employee
7. Employee not because should have
of his fault worked for >
75% of total
period of season
: 77 :
Wages
Includes Excludes
All payment to the employee 1) Commission
for the work done by him 2) Bonus
+ 3) House Rent Allowance
Dearness allowance 4) Overtime Allowance
5) Any other Allowance
Maximum gratuity:
Maximum gratuity can be paid = 10 Lakhs
Forfeiture of gratuity:
If the termination of employment is due to dismissal because of
1. Deliberate Act. OR 1. Act of Violence

2. Wilful emission 2. Riotous Act
3. Negligent in Performing duties 3. Misconduct
4. Acts involving moral
turpitude
Gratuity will be forfeited only to the extent of
loss suffered by the employer Gratuity will be wholly /
Partially forfeited
depending upon the employer.
Disputes:
There is a dispute between employer and employee
Matter is taken to the controlling Authority (Controlling Authority will consider the
matter only if employer deposits the amount which he is ready to pay)
Controlling authority will pass the order
Any party aggrieved by the above order can apply to Appropriate government within
60 days from date of order (1) AG can grant extra 60 days extention. 2) AG will
consider the matter only if employer deposits the amount determined by the
controlling authority)
: 78 :
Appropriate Government
AG = CG AG = SG
1. Establishments under authority of CG for any other
2. Establishments operating in more than 1 state establishment
3. Ports, railways, mines and oilfields.
Employer:
Establishment
Under authority of CG / SG authority of local bodies any other

establishment
Person appointed by CG / SG Person appointed by bodies
If no person is appointed If no such person is appointedPerson with the
ultimate
Head of the ministry then CEO or by whatever name authority and
he is called control
Recovery:
Employer fails to pay Gratuity
Employee / AP / LR will apply to AG / Controlling authority
Controlling Authority / AG will issue a certificate to a collector
Collector will collect gratuity as if it was arrears of hand Revenue along with
compound interest.
Legal Protection to gratuity:

If employee becomes insolvent then no order of any court can attach the amount of
gratuity receivable under the act.
Exemption:
AG may exempt the employer if employer’s own gratuity scheme is more beneficial
than the Act. N Act, 1952
: 79 :
CHAPTER – 8 EMPLOYEE’S (WORKMEN’S)COMPENSATION ACT , 1923
Aim : To provide compensation by employers to employees for injury by accident.

Applicability of the Act: Act is applicable to all the factories, establishments which
are not covered under ESI Act, 1948.
Employer:
- Any body of persons incorporated or not
OR Agent
OR Legal representative
- Contractor is also ‘employer’
• Employer’s liability when contractor is engaged :
Employer is liable for compensation to employees hired by contractor :-
(i) Contractor is doing work which is part of business of employer.
(ii) Employees were engaged for Employers business.
(iii) Accident is in employer’s premises

Employee:
1. Railway servant
2. Crew of ship/air craft
3. Driver, cleaner, mechanic of vehicles
4. Employees recruited abroad
5. Factory workers
It excludes member of Armed Forces
Compensation:
Employer’s liability to pay Compensation :-
• If there is personal injury to the employee by accident arising out of and
in course of his employment.
• If employee dies or suffers permanent total disablement.
• If employee contracts any specific occupational disease while he is in
service of the employer for at least 6 months.
• Employer is liable to pay even if he is not at fault.
: 86 :
Employer is not liable to pay compensation in the following cases :

• If employee is working under influence of alcohol/ drugs
• Wilful disobedience of express orders of safety.
• Wilful removal of safety guards or devices.
• Disablement upto 3 days
Amount of compensation
Event Minimum compensation Maximum
Compensation
Death 1,20,000 50% (Monthly wages) x
Age Factor
Permanent Total 1,50,000 60% (Monthly wages)
Disablement Wages is restricted
(Permanently disabled to 8,000 p.m.
to do any work)
Temporary 25% x Month wages
Disablement 2
(Disabled in engaged
employment only)
Funeral Expenses 5,000
• Employee will get compensation + actual medical expenditure incurred.

• If compensation is received, then no case can be filed
• Suicide is not ‘accident’. But if it is because of employment then
compensation can be claimed.
• Any Contract where an employee relinquishes any right of
compensation from employer is VOID.
• If a workman suffers as a result of an injury from a physical defect
which does not in fact reduce his capacity to work but at the same time
makes his labour unsaleable in any market, he can establish a right to
compensation, provided he proves it by satisfactory evidence that he
has applied to a reasonable number of likely employers for
employment, but had been turned away on account of the results of the
accident visible on his person
Wages
Includes Excludes
1. DA 1. Travelling Allowance
2. Overtime 2. Contribution by employer to PF/ Pension
Fund
3. Free accommodation 3. Sum paid to cover any special expenses
entailed by the nature of employment
4. All other payments
: 87 :
Medical Examination:
1) Employee has to submit himself within 3 days from notice of an accident for
medical examination
2) If Employee refuses for medical examination then right to compensation is
suspended.
Who will decide the amount of compensation?
Commissioner
He will :
1. Settle disputed claims
2. Dispose cases of injures involving death
3. Revise periodical payments
- Claim should be made within 2 years of accident / death
Commissioner shall disposal of the matter with 3 months.
- Employer is required to send a report to commissioner for the
compensation within 7 days of death / accident.
Special provisions relating to masters and seamen/captain and members of
crew of aircrafts/ employees working abroad along with motor vehicles:
• In the case of the death of the seamen/ other member of the crew, the claim
for compensation shall be made within 1 year after the news of the death has
been received. If the ship/aircraft is lost then within 18 months.
• No compensation under this Act if they are already receiving benefits under
some other Act or rules.
• If any such employee is discharged or left behind in any part of India or
foreign country then such removal should be authenticated by any Judge/
Magistrate/ Consular OfficerSI
: 88 :
CHAPTER – 9 EMPLOYEE’S (WORKMEN’S)COMPENSATION ACT , 1923
Aim : To provide compensation by employers to employees for injury by accident.

Applicability of the Act: Act is applicable to all the factories, establishments which
are not covered under ESI Act, 1948.
Employer:
- Any body of persons incorporated or not
OR Agent
OR Legal representative
- Contractor is also ‘employer’
• Employer’s liability when contractor is engaged :
Employer is liable for compensation to employees hired by contractor :-
(i) Contractor is doing work which is part of business of employer.
(ii) Employees were engaged for Employers business.
(iii) Accident is in employer’s premises

Employee:
1. Railway servant
2. Crew of ship/air craft
3. Driver, cleaner, mechanic of vehicles
4. Employees recruited abroad
5. Factory workers
It excludes member of Armed Forces
Compensation:
Employer’s liability to pay Compensation :-
• If there is personal injury to the employee by accident arising out of and
in course of his employment.
• If employee dies or suffers permanent total disablement.
• If employee contracts any specific occupational disease while he is in
service of the employer for at least 6 months.
• Employer is liable to pay even if he is not at fault.
: 96 :
Employer is not liable to pay compensation in the following cases :

• If employee is working under influence of alcohol/ drugs
• Wilful disobedience of express orders of safety.
• Wilful removal of safety guards or devices.
• Disablement upto 3 days
Amount of compensation
Event Minimum compensation Maximum
Compensation
Death 1,20,000 50% (Monthly wages) x
Age Factor
Permanent Total 1,50,000 60% (Monthly wages)
Disablement Wages is restricted
(Permanently disabled to 8,000 p.m.
to do any work)
Temporary 25% x Month wages
Disablement 2
(Disabled in engaged
employment only)
Funeral Expenses 5,000
• Employee will get compensation + actual medical expenditure incurred.

• If compensation is received, then no case can be filed
• Suicide is not ‘accident’. But if it is because of employment then
compensation can be claimed.
• Any Contract where an employee relinquishes any right of
compensation from employer is VOID.
• If a workman suffers as a result of an injury from a physical defect
which does not in fact reduce his capacity to work but at the same time
makes his labour unsaleable in any market, he can establish a right to
compensation, provided he proves it by satisfactory evidence that he
has applied to a reasonable number of likely employers for
employment, but had been turned away on account of the results of the
accident visible on his person
Wages
Includes Excludes
1. DA 1. Travelling Allowance
2. Overtime 2. Contribution by employer to PF/ Pension
Fund
3. Free accommodation 3. Sum paid to cover any special expenses
entailed by the nature of employment
4. All other payments
: 97 :
Medical Examination:
1) Employee has to submit himself within 3 days from notice of an accident for
medical examination
2) If Employee refuses for medical examination then right to compensation is
suspended.
Who will decide the amount of compensation?
Commissioner
He will :
1. Settle disputed claims
2. Dispose cases of injures involving death
3. Revise periodical payments
- Claim should be made within 2 years of accident / death
Commissioner shall disposel of the matter with 3 months.
- Employer is required to send a report to commissioner for the
compensation within 7 days of death / accident.
Special provisions relating to masters and seamen/captain and members of
crew of aircrafts/ employees working abroad along with motor vehicles:
• In the case of the death of the seamen/ other member of the crew, the claim
for compensation shall be made within 1 year after the news of the death has
been received. If the ship/aircraft is lost then within 18 months.
• No compensation under this Act if they are already receiving benefits under
some other Act or rules.
• If any such employee is discharged or left behind in any part of India or
foreign country then such removal should be authenticated by any Judge/
Magistrate/ Consular OfficerSI
: 98 :
CHAPTER 10 – CONTRACT LABOUR (REGULATION AND

ABOLITION ACT), 1970
Aim : Protection of Interest of contract Labour
Establishment / Contractor
Having ≥ 20 employees on Notified by Appropriate

Government in any single Official Gazette only if no.
day. in an accounting year of employees are < 20 on
any single day in an
accounting year.
Not applicable to those establishments where only casual work is of intermittent

nature
Intermittent nature :
Non seasonal Seasonal
Work ≤ 120 days in last 12 months Work ≤ 60 days in the year
Contract labour:
Workman hired for such work by or through contractor with / without knowledge of
principal employer.
Appropriate Government:
Establishment
Specified under Industrial Dispute Act Not specified under Industrial

Disputes Act
AG = CG AG = SG
: 107 :
Principal Employer (PE):
Establishment
Factory Govt. / Local Authority Others
Manager/ Occupier HOD Person with ultimate
authority and control
Duties of PE:
1. Maintain register of contractors
2. Ensure health, safety and welfare of contractor
3. Provide amenities, if contractor fails to do so and recover the same from

the contractors.
Contractor: Person who undertake to produce given result for establishment.
Duties of Contractors:
1. Maintain registers and records
2. Payment of wages, in the presence of Authorised Representative of PE
Wages in cash for max 1 month in the presence of Authorised

Representative of PE.
3. Provide canteen, first aid, restroom, drinking water, latrine and washing
facilities as per directions of SG.
Prohibition of employment of contract labour:
AG will prohibit contract labour after considering following factors:
1. Whether process / operation / work is incidental / necessary for establishment.
2. Whether it is of perennial nature
3. Whether it is done through regular workmen in similar establishment.
4. Whether it is sufficient to employ considerable whole time workmen.
: 108 :
Workman:
Any person appointed for any kind of work except:
1. Managerial / admin work
2. Supervisor having wages > 500 p.m.
3. Outworker
Mandatory Licensing and Registration:

− Contractor has to obtain license.
If a contractor fails to obtain a license then he cannot execute any work
through contract labour.
− PE has to register establishment.
If a PE fails to get himself registered then he cannot employ contract
labour.
Inspectors:
AG appoints inspectors.
Powers of Inspectors:
Following powers within the local limits for which he is appointed :
1. Enter any place which is used or which he believes is used as factory.
2. Examination of premises, plant and machinery etc.
3. Inspect register or any document of the factory.
4. Take measurement and photos for examination.
Applicability of other labour laws to contract labour besides this act:

1. Factories Act
2. Industrial Disputes Act
3. Workmen Compensation Act
4. Payment of Wages Act
5. Employees Provident Fund Act
6. Employees State Insurance Act.
: 109 :
CHAPTER – 11 MATERNITY BENEFIT ACT , 1961
Aim : Providing maternity benefits to woman employees.
1. Mines Shops and Establishment
2. Factories
3. Circus Industry Having 10 employees Notified by SG
4. Plantations
All the woman employees who are not covered under ESI Act Maternity
Benefit Act.
Employment /work by woman prohibited during certain period:
6 weeks after delivery/miscarriage/ abortion.
If requested by pregnant woman, she shall not be given any work which is
ardous in nature during 1 month proceeding above 6 weeks.
Maternity benefit by the employer
Maternity Benefit = Maternity Leave x Wages
Maternity Leave:
− Maximum 12 weeks total
Maximum 6 weeks before expected delivery
− If woman dies
Before delivery During / after delivery
Maternity benefit upto death Child is alive Child also dies
Maternity benefit for the entire period Maternity benefit
upto the death of

child
: 122 :
Wages:
= Last 3 months minimum wages or 10↑
3
Notice for claiming maternity benefit:

Woman employee Notice Employer
Notice
− In writing
− Notice will state the date from which she will be absent from which she will be
absent (max 6 weeks before expected delivery)
Employee will not work elsewhere during her maternity benefit.

Maternity benefit preceding delivery will be paid in advance only if
pregnancy proof is given.
Otherwise, will be paid 48 hours after delivery.
Nursing break:
After employee resumes back to work, she will get rest intervals + 2 breaks of
prescribed duration for nursing the child till child attains age of 15 months.
Abstract of the act and rules to be put up in local language in every
establishment where such woman employees are employed.
Penalty:
Offence Penalty
1. Fails to provide maternity benefit / Fine : Min 2000 upto 5000
dismisses on account of her absence AND imprisonment : Min 3
months upto 1 year
2. Contravention of any provision of the act Fine : upto 5000
OR
Imprisonment : upto 1 yr.
OR
Both
: 123 :
J. K. SHAH CLASSES C.S.EXECUTIVE– INDUSTRIAL &LABOUR LAWS
CHAPTER 12 – CHILD LABOUR ( PROHIBITION

AND REGULATION ) ACT, 19861986
Aim : Prohibition employment of children below 14 years in dangerous occupation

and processes specified in the schedule.
Child: Person whose age is <14 years
Employment of children is allowed where any process is carried on by the
occupier with the help of his family or to any school established by
government.
Period of work:
− Total hours per day = 6 hrs. (including break)
− Break of 1 hour after every 3 hours of work
− Child will not work from 7 p.m. to 8 a.m.
− Child will not work overtime.
− On same day, a child cannot work in 2 establishments.
− 1 weekly holiday to be given to the child.
1. Notice to inspector:
Occupier who employs any child
Apply to inspector within 30 days,

a written notice containing various particulars of establishment
Register to be maintained by occupier containing details of children working.
Inspector can inspect this register at any time.
Every occupier will display abstract of prohibition of child labour and penalty
payable under this act in english language + local language at the place of
work.
2. Penalty
Offence Penalty
1. Employs child Fine: Min 10,000 upto 20,000
Or
Imprisonment : Min 3 months upto 1 year.
Or
Both
2. Contravention of any other Imprisonment : upto 1 month
provision of the act Or
Fine
: 129 :
CHAPTER 13 – INDUSTRIAL EMPLOYMENT

(STANDING ORDERS ) ACT, 1946
Aim: Act requires employers in establishment to define conditions of employment

under them and make them known to workman.
Industrial Establishment Notified by AG

having ≥ 100 workman having < 100 workman
Act requires every employer to post standing orders at entrance in English

and in regional language.
Standing order:
Rules relating to classification of workman, attendance rules, holidays, etc.
Appropriate Government (AG):
AG= Central Government AG= State Government
for for
1. Establishments under authority of CG Any other Establishment

2. Railways, ports, mines, oilfields
Subsistence Allowance:
If worker is suspended pending certain inquiry/ investigation.
Subsistence allowance will be paid to him

Subsistence allowance = 50% of wages for 1 st 90 days
+
75% of wages for remaining period
Wages = ‘Wages’ as per Industrial Disputes Act.
: 139 :
Procedure for certification:
Act becomes applicable to an industrial establishment
Within 6 months
Employer will submit 5 copies of draft standing order to certifying officer
[should be as per model standing orders]
Certifying officer forwards a report to trade union / workman
Trade union / workman may object within Trade union/workman may not
object
7 days
Opportunity of Being heard will be given
to them and orders will be amended accordingly
Copies of certified standing orders will be sent to Employer / worker representative

within 7 days.
Becomes effective on expiry of 30 days.
Model standing orders are applicable from the period standing from
applicabilty of act.
Standing orders cannot be modified once they are certified upto 6

months from the date on which the standing order was last modified /
certified.
: 140 :
Interpretation of standing orders:

Questions related to interpretation of standing orders
Labour court as per Industrial Disputes Act
Labour court will decide after giving opportunity of being heard.
Temporary application of Model Standing Orders:
• For the period starting from the date on which this Act becomes applicable till
the date on which the Standing Order are finally certified, the Model Standing
Orders are deemed to be applicable.
: 141 :
CHAPTER 14 – INDUSTRIAL DISPUTE ACT, 1974
Aim :- To provide law for investigation & settlement of all industrial disputes.
I) Industry :
Place there where is (1) Systematic activity

(2) Organized by cooperation between
employer &employee
(3) for production / distribution of goods and
service to satisfy human wants.
Profit motive is irrelevant
Hospitals, educational institution, charitable institutions, legal consultancy forms, etc

are ‘industry’.
Following are not ‘industry’:
1. Post and Telegraphs Department

2. Telecom Department
3. Central Institute of Fisheries
4. Construction and Maintenance of National & State Highways
5. Trade Unions.
Industrial Dispute:
Dispute / Difference between
(i) Employers & Employers

(ii) Employers & Workmen
(iii) Workmen & Workmen
Which is connected with
i) employment or
ii) non- employment or
iii) terms / Conditions of employment or
iv) conditions of labour of any person.
Dispute between employers & a single workmen ≠ Industrial dispute

But dispute between employers & Single Workmen for dismissal, discharge,
retrenchment, termination of services = Industrial dispute
: 150 :
Workman:
Any person appointed for any kind of work except:-
(i) Person appointed in managerial administrative capacity.

(ii) Persons employed in a supervisory capacity having wages > 1600 p.m.
(iii) Persons under Army Act, Navy Act, Air force, Act or those employed in police or
an officer/employee of prison.
Strike:
• It means cessation of work by body of persons employed in industry acting in

combination or a concerted refusal or a refusal under a common understanding
of any number of persons who are employed
• Workmen cannot go on strike in the following cases:
1) During pendency of conciliation proceedings & 7 days thereafter.
2) During pendency of proceedings before labour court Industrial tribunal /

National Tribunal.
3) During period of arbitration proceedings
4) During period when settlement / award is in operation.
• In case of public utility services (hospitals, railways, telephone ,etc) employees

are required to give 14 days notice for strike, strike is to be commenced within 6
months from notice otherwise fresh notice is required If notice is received by
receive by employers, then he should inform Government Authorities within 5
days of receipt of notice.
• Wages payable in strike period only if it is both legal & justifiable.
• If strike is illegal then penalty to workmen
Fine: 50 per day
AND
Imprisonment: upto 1 month.
: 151 :
Types of Strike
Stay in , Go Slow Sympathetic Hunger Work

Sit down Strike Strike to
Pen down , not strike rule
Tool down but Not doing Fast
Strike serious Work on/near No
Misconduct in support place strike
Workmen of demands of
After taking of workmen work / residence
Seats belonging
Refuse to to other
Do work employer
Lock – out:
• It Means temporary closing of a place of employment.
• Lockout is opposite of strike.

In strike → workers don’t work for their demands & in Lock out → employer
close down for their demand
• Employer cannot go for lock-out in the following cases:-

(Same as strike)
• If the Lock-out is legal & justified, then no wages to workmen for lock-out period
If lock out is illegal, then penalty to employer:
Fine: upto 1000
OR
Imprisonment: upto 1 mth
OR
Both
: 152 :
Lay – off:
• It means refusal / inability of an employer to give work to workmen because of:-
Shortage of coal, raw materials
OR
Accumulation of stocks
OR
Break down of machinery
OR
Natural calamity
OR
any other connected season.
• It means not giving employment with in 2 hrs after reporting to work lay off can
be for half day also. Where in the worker shall be asked to come in second half
of the shift.
Factory
Having Having
≥ 50 but ≥ 100 employees
< 100
employees
can lay off its workmen Can lay off its workmen
who have only after prior approval of
completed 1 yr of CG
service CG’s approval is not
required
compensation
= 50% of sal / wages if lay off is due to
• Employer can offer him alternate employment if it does not require special skill
But it employee refuses above
→ then no compensation.
• Financial stringency cannot constitute a ground for lay off.
• Lay off is to provided either by contract of employment or by law.
Lock out Lay off

1 Deliberate Closure 1 Due to certain reason
2 Business Closer temporary 2 Business Contunies
3 Weapon for bargaining demands 3 Result of trade reasons
4 No compensation unless 4 Compensation
unjustified
: 153 :
Retrenchment:
• Termination of employment by employer excluding:

1) VRS
2) Retirement / Superannuation
3) Disablement
4) Termination as a result of non- renewal of contract of employment.
5) Punishment
• It means discharge of surplus labour / staff It will be done on LIFO basic.
• Retrenchment of workman who has completed 1 yr of service.

↓
Give 1 mth’s salary / notice +
Retrenchment compensation
• Retrenchment compensation:
AVG of last 3 mths wages x 15 days x CYS

=
3
• Retrenchment should not be a result of any victimization or any unfair labour

practice.
Closure:
Permanent closing down of place of employment.
Machineries for settlement of Industrial Disputes:
Workers Committee
↓
Conciliation officers Conciliation
↓
Boards of Conciliation
↓
Court of Inquiry Arbitration
↓
Labour Tribunals
↓
Industrial Tribunals Adjudication
↓
National Tribunals
: 154 :
1) Conciliation
→ Friendly intervention of a neutral person to settle differences peacefully.
(i) Workers committee:-

Committee will be formed if no. of workers are ≥ 100
Which is like partnership between employer and workmen
(ii) Conciliation Officer

Appointed by AG in official Gazatte who mediates & promotes
settlement.
(iii) Board of Conciliation

Ad hoc body appointed by AG in OG comprising 2 – 4 persons for
promoting settlement of industrial dispute.
Settlement = settlement (judgement) of conciliation proceedings
2) Arbitration
Court of inquiry :-
- Ad hoc body appointed by AG in OG
- It is only for matter referred by AG
- Report within 6 months and has to publish report within 30 days of
receipt.
- Voluntary reference of disputers to arbitration:-
By agreement between parties
only if not referred to court / tribunal)
Agreement to be forwarded to AG
Arbitrator will investigate to AG

Submit the award signed by him.
Award = Determination (judgement) of disputers by court / tribunal /

arbitration.
In following cases disputes are referred to arbitrators:-
(i) Illegal / irregular strike / lock out
(ii) When other legal remedy is not available.
(iii) When there is victimization
(iv) Unfair labour practices.
(v) Violation of standing orders
(vi) Principles of natural justice - not followed.
(vii) Injustice in conciliation.
: 155 :
3) Adjudication
↓
Matter are referred to adjudication only on request and only if conciliation fails.
(i) Labour Courts;-

↓
Consists of 1 person appointed by AG
- Labour Court is for adjudication of industrial disputers specified in
schedule II.
- Submit its award to AG.
(ii) Tribunals:-
↓
Consists of 1 person appointed by AG
- Tribunal is for adjudication of industrial disputer specified in
schdule III or any other function.
Reference of disputes to various authorities:
Reference by Reference to National Reference

AG Tribunal only if :- by
Parties
on
1) Involves application
Any ques of
National imp
2) > 1 state is
Interested
Recovery:
(Recovery of amounts of awards / Settlement )
Same as POBA
: 156 :
CHAPTER 15- INDIAN TRADE UNION ACT, 1926
Aim : Regulating Trade Unions.

Trade Union: Voluntary organization of workers formed for the purpose of regulating
relations between workman and employer.
Registration:
≥ 7 members of Trade Union by subscribing their names to rules of Trade
Union
(Only if ≥ 10% or ≥ 100 whichever is less are employed by the respective
employer)
Apply
Registrar
Registrar will not register unless an executive for this act has been
appointed.
Executive will provide for name of trade union, rules, minimum
subscription, dissolution, etc. of the trade union.
Registrar on satisfaction will issue a certificate of registration which will be a

conclusive evidence that Trade Union has been duly registered.
Executive: Body to which management of affairs of trade union is entrusted.
Registered Trade Union:
Body corporate having perpetual succession with a common seal and

having separate legal entity.
Cancellation of Registration:
Cancellation by registrar if:
1. On Application by Trade Union
2. Registration was obtained by fraud / mistake or Trade union has contravened
the act.
3. Trade union ceases to have required members.
Returns by trade union:
A general statement of receipts and expenditure and assets and liabilities as on 31 st
Dec audited shall be sent annually to Registrar
(+)
Copy of alteration with 15 days of alteration of rules if any to Registrar.
: 170 :
CHAPTER –16 THE LABOUR LAWS (EXEMPTION FROM FURNISHING RETURNS

AND MAINTAINING REGISTER BY CERTAIN ESTABLISHMENT ) ACT,
1988
Aim : This act provides for exemption of Employers in relation to establishments

employing a small number of persons from furnishing returns and maintaining
registers under certain labour laws.
Small establishments Very Small

establishments
Having ≥ 10 but < 20 employee Having < 10 employees
Exemption:
Employer is exempted from furnishing return or maintain registers under the

following :-
1) The Payment of Wages Act, 1936
2) The Weekly Holidays Act, 1942
3) The Minimum Wages Act, 1948
4) The Factories Act, 1948
5) The Plantation Labour Act, 1951
6) The Working Journalist and other Newspaper Employees (Conditions of

Service) and Miscellaneous Provisions Act, 1955
7) The Contract Labour (Regulation and Abolition) Act, 1970
8) The Sales Promotion Employees (Conditions of Service) Act, 1976
9) Equal Remuneration Act, 1976
: 178 :
But for the above exemption such Employer is required to :
1) Furnish a core return in Form A.
2) Maintain registers in
Form B, C, D Form D, E
For Small establishments For Very small establishments
Penalty
1st Offence :- Fine : upto 5,000
2nd Offence :-
Fine : Min. 10,000 upto 25,000
OR
Imprisonment : Min 1 month upto 6 months
OR
Both
: 179 :
CHAPTER –17 EMPLOYMENT EXCHANGES (COMPULSORY

NOTIFICATION OF VACANCIES ) ACT, 1959
Aim : This act provides for compulsory notification of vacancies to employment

exchanges.
Employment Exchanges :
Office maintained by Govt. for collection and furnishing of information respecting
(i) Person who seek to engage employees
(ii) Person who seek employment
(iii) Vacancies who may be appointed
Public sector establishments Private sector establishments

− Having non-agricultural activity
And
− Having no. of employees ≥ 25
Non-applicability of the Act:
Act is not applicable in relation to vacancies in any employment :-
(i) In agriculture / horticulture in private sector establishments
(ii) In domestic service
(iii) Where period of employment is < 3 month
(iv) To do unskilled office work.
(v) Connected with staff of Parliament.
(vi) Proposed to fill through promotion / absorption of surplus staff
(vii) Where salary/wages is < 60 p.m.
Penalty:
Fails to notify :-
First Offence : Fine upto 500
Second offence : Fine upto 1,000
Laws to Furnish information / return :-

First offence : Fine up to 250
Second offence : Fine upto 500
It is mandatory for employers only to notify but it is not mandatory for them to
recruit any person through employment exchange
: 185 :
CHAPTER –18 APPRENTICES ACT, 1961

Aim : To regulate the training of Apprentices.
Apprentice : Person undergoing training in any industry or establishment under a

contract of apprenticeship.
− He should be ≥ 14 years of age
− He should satisfy the standards, education and prescribed physical fitness.
Contract of apprenticeship:
Contract of Apprenticeship
Entered by
OR
Apprentice if major Parents / Guardians if apprentice is minor
Obligations of Employers :
1) To provide training
2) Person in charge of training should have prescribed qualifications
3) To have qualified staff to provide practical and theoretical training.
4) To carry out his obligations under the contract of apprenticeship.
Obligations of apprentice :
1) To learn his trade diligently
2) To attend practical and instructional classes regularly
3) To carry lawful orders of employer and seniors
4) To carry out his obligations under the contract of apprenticeship.
: 190 :
* Apprentices are trainees & not worker
∴ No labour law is applicable to apprentices
Regulations of the act:
1) Employer to maintain records and furnish returns to such authorities at such

regular intervals.
2) Payment to apprentice :-
Apprentices SHALL NOT be paid by his employer on basis of piece work nor he
kwill be required to take part in an output bonus or incentive scheme.
3) Apprentice shall not be allowed to work overtime except with approval of

Apprenticeship Advisor.
Disputes:
Dispute between Employer & an apprentice
Apply to Apprenticeship Adviser for decision
Any party aggrieved by the above order within 30 days can apply to
Apprenticeship councils (final decision)
: 191 :
CHAPTER –19 AUDIT UNDER LABOUR LEGISTATION

LEGISLATION
Aim : To detect non-compliance of various Labour laws.
Labour Audit :- Systematic check of records under labour laws by
Practising company Secretary (PCS)
Audit report to AG
Scope of Audit:-
Covers all labour legislations applicable to an industry / factory / establishment.
Benefits of Labour Audit
To Labour To Employer To Government

1) Boosts morale 1) Increased 1) Ensures
& ensures productivity of compliance
commitment employees will
increase profit
2) Increase Social Security 2) Increased status 2) Increases revenues
3) Secured timely payment of 3) Eliminates penalty / 3) Reduction in

wages, gratuity etc. fines by Government staff like
inspector etc.
4) Improved Labour relations 4) Improved image of India.
: 202 :
-----------------------------------
KRISHAN COMMERCE LASSES
9 YEARS OF
EXCELLENCE
M.N- 98887-45849
---------------------------------------
CONSTITUTION OF INDIA
Came into force on 26th January,1950

contains Articles – 395
Parts – 22
Schedules - 12
Preamble to Constitution India to be a Sovereign, Socialist, Secular, Democratic
Republic and secures to all its citizens Justice, Liberty,
Equality and Fraternity. It is declared that the Constitution
has been given by the people to themselves, thereby
affirming the republican character of the polity and the
sovereignty of the people.
Preamble Sovereign – Socialist Secular Democratic Republic
Justice - Social, Economic, Political
Liberty – of Thought, Expression, belief, Faith and
Worship
Equality – of Status and of opportunity
Fraternity – assuring the dignity of the individual and the
unity and integrity to the nation
Whether federal or unitary It is basically federal in character with striking unitary

features
Federal Features of 1. Dual Government – Union government & State
constitution Government
2. Distribution of powers between Union & State
Government
3. Independent Judiciary
4. Largest Written Constitution
5. Supremacy of Constitution
6. Rigid procedure to change the constitution
Unitary Features 1. Single citizenship throughout country
Add:- (1) Krishna Nagar, Near Aarti Chowk, Ludhiana (2) Urban Estate Phase – I, Dugri, Ludhiana
2. Power of Union Government to make law in state list in
certain
circumstances
3. Unified Judiciary and public services
4. Union can create new states by altering boundaries of
existing
states.
Lists
- List-I Union List – Matters on which Only Union can legislate
- List-II State List Matters on which Only SG can legislate
- List-III Concurrent List – Matters on which both Union & State
can legislate
Residuary powers i.e Only parliament can legislate on those matters.
which are not given in
either of abovementioned
3 lists
Cases in which Parliament (a) In the National Interest
can make laws on matters (b) During a proclamation of emergency
covered under State List (c) Breakdown of Constitutional Machinery in a State
(d) On the request of two or more States
(e) Legislation for enforcing international agreements
Definition of State i. the government and parliament of India
ii. the government and legislature of each state
iii. all local or other authorities under the control of GOI
note: local authorities refers to authorities like
municipalities, District boards, panchayats etc.
Protection in respect of 1. Ex-post facto laws- A person cannot be punished for
conviction of offences those act which were not offences at the time when it was
committed, but later on it fell to definition of offence.
2. Self- Incrimination – A person in police custody cannot
be forced to accept his guilt.
3. Double jeopardy - A person should not be punished
more than once for the same offence. But if a person
was let off without being punished, then later on case
can be reopened.
6 Fundamental Rights (1) Right to Equality (Article 14-18)
(2) Right to Freedom (Article 19-22)
(3) Right against Exploitation (Article 23-24)
(4) Right to Freedom of Religion (Article 25-28)
(5) Cultural and Educational Rights (Article 29 and 30)
(6) Right to constitutional Remedies (Article 32)
6 Fundamental Freedoms 1. Right to freedom of speech and expression

2. right to assemble peacefully and without arms
3. Right to form association or unions
4. Right to move freely throughout the territory of India
5. Right to reside and settle in any part of the territory of
India
6. Right to practice and profession, or to carry on any
occupation, trade or business
Existing Laws Pre-Constitutional Laws
Future Laws Post-Constitutional Laws
Doctrine of Severability  Any part of the existing law which is inconsistent
with the fundamental rights will be severed and
declared invalid.
 The rest of the act is declared valid.
 If after separation of such inconsistent part,
remaining statute does not carry any meaning, then
entire such existing law shall become void.
Doctrine of eclipse  If provision of any existing law is inconsistent with

the fundamental rights given in the constitution of
India, then such inconsistent provision shall get
eclipsed.
 But if later on on amendment of the constitution,
such inconsistent provision becomes consistent
with the constitution, then these provision shall
come into force.
Doctrine of Colourable Which cannot be done directly must not be done
Legislation indirectly.
Harmonious Construction Different entries in the different lists are to be interpreted
in such a way that a conflict between them is avoided and
each of them is given effect.
Doctrine of waiver A person cannot without any of his fundamental rights.

Preventive Detention  The object of the preventive detention is to detain a
person with the intention of preventing him from
committing an offence.
 It can be done without the charge being proven.
 Generally, it is for the defence purposes, public
order and security and continuance of supply of
essentials
 No person can be detained beyond a period of 6
months unless period is extended by parliamentary
law or specified .advisory board.
 Person detained must be intimated the grounds of
detention.
 He must be given fair chance of presenting his
case.
Ordinance making power 1. This power is to be exercised by the President on
of President Article 123 the advice of his Council of Ministers.
2. The Ordinance must be laid before Parliament
when it re-assembles, and shall automatically
cease to have effect at the expiration of 6 weeks
from the date of re-assembly or before resolutions
have been passed disapproving the Ordinance.
3. The Ordinance-making power will be available to
the President only when both the Houses of
Parliament have been prorogued or is otherwise
not in session, so that it is not possible to have a
law enacted by Parliament. However, Ordinance
can be made even if only one House is in Session,
when law cannot be made by that House in session
alone. The President’s Ordinance making power
under the Constitution is not a co-ordinate or
parallel power of legislation along with
Legislature.
Delegated Legislation  Delegated Legislation may be defined as “rules of
lawmaking under the authority of an Act of
Parliament”.
 Although laws are to be made by legislature i.e
parliament/legislative assembly, the legislature by
statute delegate its powers to other body or persons.
 Such statute is known as the enabling Act and lays
down the broad principles and leaves the detailed
rules to be provided by regulations made by a body
or persons.
 Delegated legislation may be in the form of rules,
regulations, orders or bye laws.
 Delegated Legislation must be in printed form.
Types of Delegated 1. Executive Legislation e.g- CBDT,CBEC etc.
Legislation 2. Judicial Legislation- Rules framed by the High Courts
under the Guardians of Wards Act, Insolvency Act,
Succession Act and Companies Act, etc.
3. Municipal Legislation
4. Autonomous Legislation - e.g – Panjab University
5. Colonial Legislation - e.g – British India
Type of Meaning of Purpose of issue
Writs Writ
Habeas To have a To release a person who has been detained unlawfully
Corpus body whether in prison or in private custody.
Mandamus We To secure the performance of public duties by lower
command court, tribunal or public authority.
Certiorari To be To quash the order already passed by inferior court,
certified tribunal or quasi judicial authority.
Prohibition Commands To prohibit an inferior court from continuing the
inactivity proceedings in a particular case where it has no
jurisdiction to try.
Quo What is To restrain a person from holding a public office which he
Warranto your is not entitled.
authority?
Interpretation of Statutes
 A statute is “the written will of the legislature”. Legislature knows the

will of the people
 Interpretation or construction is the process by which the Court’s seek
to ascertain the exact will of the legislature
 Primary Rules
(a) The Literal Construction: the words, phrases and sentences of a
statute are ordinarily to be understood in their natural, ordinary
sense. No words to be discarded as surplus. No words to be
added.
(b) The Mischief Rule or Heydon’s Rule: Law is enacted to
prevent some mischief. Court tries to find what was the mischief
taking place before the law was enacted and how legislature
prevented it.
(c) Rule of Reasonable Construction i.e. Ut Res Magis Valeat Quam
Pareat: If the Court considers that the litera legis is not clear, it,
must interpret according to the purpose, policy or spirit of the
statute (ratio-legis). It is, thus, evident that no invariable rule can
be established for literal interpretation.
(d) Rule of Harmonious Construction. Where in an enactment,
there are two provisions which cannot be reconciled with each
other, they should be so interpreted that, if possible, effect may be
given to both.
(e) Rule of Ejusdem Generis: the ejusdem generis rule is that, where
there are general words following particular and specific words,
the general words following particular and specific words must be
confined to things of the same kind as those specified, unless
there is a clear manifestation of a contrary purpose.
 Other Rules of Interpretation
(a) Expressio Unis Est Exclusio Alterius: The rule means that express mention of
one thing implies the exclusion of another
(b) Contemporanea Expositio Est Optima Et Fortissima in Lege: The maxim
means that a contemporaneous exposition is the best and strongest in law
(c) Noscitur a Sociis: Meaning of a word should be known from its accompanying
or associating words
 The same words bear the same meaning in the same statute
 Internal and external aids in interpretation
A. Internal Aids in Interpretation: All internal aids are only helpful so long as
they are not contrary to main text.
(a) Title: The long title of an Act is a part of the Act and is admissible as an aid
to its construction. The long title sets out in general terms, the purpose of
the Act and it often precedes the preamble
(b) Preamble: The preamble may be legitimately consulted in case any
ambiguity arises in the construction of an Act and it may be useful to fix
the meaning of words used so as to keep the effect of the statute within its
real scope.
(c) Heading and Title of a Chapter
(d) Marginal Notes some clue as to the meaning and purpose
(e) Definitions” of certain words and expressions used elsewhere in the body
of the statute.
(f) Proviso. The proper function of a proviso is to except and to deal with a
case which would otherwise fall within the general language of the main
enactment, and its effect is confined to the case.
(g) Illustrations attached to sections are part of the statute and they are
useful so far as they help to furnish same indication of the presumable
intention of the legislature. An explanation is at times appended to a
section to explain the meaning of words contained in the section. It
becomes a part and parcel of the enactment.
(h) The schedules form a part of the statute and must be read together
with it for all purposes of construction.
(i) The statement of objects and reasons as well as the ‘notes on clauses
of the Bill relating to any particular legislation. These are helpful in
applying mischief rule of interpretation.
B. External Aids in Interpretation: Parliamentary History and Reference to
Reports of Committees help in knowing what mischief parliament wanted to
prevent, Reference to other Statutes helps to what is the general scheme of
law. Dictionaries h e l p i n understanding the ordinary meaning of the
word. Use of foreign decisions of countries following the same system of
jurisprudence as ours and rendered on statutes in pari-materia has been
permitted by practice in Indian Court.
TORTS
Tort A civil wrong
Types of Torts Private Wrong - breaches of private law, i.e., wrongs

against individuals.
Public Wrong - wrongs which are made
punishable under the penal law which belong to the public
law group.
General conditions for(i) a wrongful act or omission of the defendant;

liability of a Tort (ii) the wrongful act must result in causing legal damage to
another; and
(iii) the wrongful act must be of such a nature as to give rise to
a legal remedy.
Damnum Sine Actual Loss without Legal Injury e.g someone starts
Injuria business and you loses your clients.
Injuria Sine Damno – Legal Injury without Actual Loss e.g Defamation, preventing
someone from voting
Strict or Absolute Liability

In some torts, the defendant is liable even though the
(Liability with or without harm to the plaintiff occurred without intention or negligence
fault) on the defendant‘s part. In other words, the defendant is held
liable without fault. Categories of such Liabilities
(i) Liability for Inevitable Accident

(ii) Liability for Inevitable Mistake
(iii) Vicarious Liability for Wrongs committed by others
Conditions for applying (i) Escape
Strict Liability Rule (ii) Non-natural use of Land:
Exceptions to the Rule of (i) Damage due to Natural Use of the Land
Strict Liability (ii) Consent of the plaintiff
(iii) Act of Third Party
(iv) Statutory Authority
(v) Act of God
(vi) Escape due to plaintiff‘s own Default
Vicarious Liability (a) Principal and Agent [Specific authority]

(b) Partners
(c) Master and Servant [Authority by relation]
(d) Employer and Independent Contractor
(e) Where Employer is Liable for the acts of Independent
Contractor
(f) Where Employer is not Liable for the acts of an Independent
Contractor
(g) Liability for the acts of Servants
Torts or Wrongs to Personal Safety & Freedom
a. Battery – To constitute a tort of battery, two things are necessary: 1. Use of force however
trivial it may be without the plaintiff’s consent 2. Without lawful justification.
b. Assault – when the defendant by his act creates the apprehension in the mind of plaintiff
that he is going to commit battery against him, the tort of assault is committed. The law of
assault is substantially the same that of battery except that apprehension of contact, not the
contact itself has to be established.
c. Bodily harm – A wilful act or statement of defendant calculated to cause physical harm to
the plaintiff and in fact causing physical harm to him, is a tort.
d.. False Imprisonment – A person is confined within certain limits so that he cannot move
about and so this person liberty is infringed.
e. malicious Prosecution – malicious prosecution constitute in instigating judicial proceedings

(usually criminal) against another, maliciously and without reasonable and probable cause,
which terminate in favour of that other and which results in damage to his reputation,
personal freedom or property.
f. Nervous shock – when a person may get physical injury not by an impact, e.g., by stick,
bullet or sword but merely by the nervous shock through what he has seen or heard.
g. Defamation – Slander & Libel
Remedies against Torts

1. Self Defence 2. Prevention of trespass 3. Re-entry on land 4. Reception of goods 5.
Abatement of nuisance 6. Distress damage feasant
CODE OF CRIMINAL PROCEDURE ACT, 1973
The Code of Criminal Procedure creates the nec essar y m ac hiner y f orapprehending the
criminals, investigating the criminal cases, their trials before the criminal courts and imposition of
proper punishment on the guilty person
It is an adjective law but also contains provisions of substantive nature (e.g. Chapters VIII, IX, X
and XI). It’s object is to provide a machinery for determining the guilt of and imposing punishment
on offenders under the substantive criminal law, for example, the Indian Penal Code (I.P.C.). The
two Codes are to be read together.
Mens rea - A guilty mind
- A subjective matter
- An essential ingredient in every criminal case
A bailable offence Means as an offence which is shown as bailable in First Shedule

or which is made bailable by any other law for the time being
in force.
Non-bailable offence Any other offence
Cognizable offence - Serious offences
- Arrest without warrant.
Judicial Proceeding" includes any proceeding in the course of which evidence is or
may be legally
taken on oath. It includes inquiry and trial but not investigation.
Pleader when used with reference to any proceeding in any Court,

means a person authorized by or under any law for the time
being in force, to practice in such Court, and includes any other
person appointed with the permission of the Court to act in such
proceeding;
Public Prosecutor means any person appointed under section 24, and includes any
person acting under the directions of a Public Prosecutor;
Arrest without warrant(Section - Committed cognizable offence & credible information

- 41) available
- implement of housebreaking found in possession
- proclaimed offender
- in possession of stolen property
- obstructs any police officer from doing his duty
- deserter from any of the Armed Forces of the Union
- any act committed o/s India, had it been committed
in Indian would have been an offence
- Released convicts violates rules of release
- For whose arrest requisition received from any other
police
officer
Arrest by a private person - may arrest or cause to be arrested any person who in
his presence commits a non-bailable and cognizable
offence or who is a proclaimed offender
Production of arrested a) can be kept into custody for a period not exceeding 24
person without hours, and
warrant b) before the expiry of that period he is to be produced
before the nearest Magistrate,
c) who can under Section 167 order his detention for a
term not
exceeding 15 days, or he can be taken to a Magistrate,
under whose jurisdiction he
is to be tried, and
d) such Magistrate can remand him to custody for
a term which may exceed 15 days but not more
than 60 days.
Non-cognizable offence - Less serious offence
- Arrest with the permission of magistrate
Complaint - Written or oral made to magistrate
- Does not include police report but if made
after investigation then included-
Bail release of the accused from the custody of the officers of law
Anticipatory bail - granted by the High Court or a Court of Session,
- to a person who apprehends arrest for having
committed a non-
Bailable offence,
- but has not yet been arrested
Investigation, inquiry or trial - firstly investigation is conducted, then inquiry or trial
Inquiry - means every inquiry other than a trial
- it stops when trial begins
- made by a magistrate or court
investigation - by police officer or any officer authorized by
magistrate but cannot be conducted by
magistrate himself
- purpose – collection of evidence
Warrant case means an offence - death or
punishable with - imprisonment for life or
- imprisonment for a term exceeding two years
Summon case - Other than a warrant case i.e an offence punishable
with 2 years or less imprisonment
Classes of criminal courts - 5
Classes of criminal courts 1) High Courts;
2) Courts of Session;
3) Judicial Magistrates of the first class,
and, in any metropolitan area;
Metropolitan Magistrates
4) Judicial Magistrates of the second class; and
5) Executive Magistrates;
Besides this, the Courts may also be constituted under
any other law. The Supreme Court is also vested with
some criminal powers. Article 134 confers appellate
jurisdiction on the Supreme Court in regard to criminal
matters from a High Court in certain cases.
Courts/Authority Powers
High Court - any sentence authorized by law
Session judge or additional - any sentence authorized by law, but death sentence
session judge subject to confirmation of High Court
An Assistant Sessions Judge any sentence authorised by law except
- death sentence
- life imprisonment
- imprisonment for exceeding 10 years
Chief Judicial Magistrate any sentence authorised by law except
- death sentence
- life imprisonment
- imprisonment for exceeding 7 years
Magistrate of the first class - a sentence of imprisonment for a term not exceeding
three years or
- of a fine not exceeding five thousand rupees, or
- of both
Magistrate of the second class - a sentence of imprisonment for a term not exceeding
one year, or
- of fine not exceeding one thousand rupees, or
- of both
Chief Metropolitan Magistrate shall have the powers of the Court of a Chief Judicial
Magistrate and that of a
Metropolitan Magistrate, and the powers of the Court of a
Magistrate of the First class.
-
Sentence of imprisonment Court of a Magistrate may award such term of imprisonment in
in default of fine default of payment
of fine as is authorised by law provided the that the term:
(i) is not in excess of the powers of the Magistrate
under Section 29; and
(ii) where imprisonment has been awarded as part of
the substantive sentence, it should not exceed
1/4th of the term of imprisonment which the
Magistrate is competent to inflict as punishment
for the offence otherwise than as imprisonment in
default of payment of the fine.
-
SUMMON PARTICULARS
Purpose - either for appearance or for producing a document or
thing
Issued to - to an accused person or witness
Written or oral - always in writing
To be signed by - presiding Officer of such Court or
- by such officer as is authorised by the High Court and
- shall bear the seal of the Court
Service of summon - by a police officer or
- by an officer of the Court or
- other public servant
If service cannot be effected - the serving officer can perform substituted service
by the exercise of due by affixing one of the duplicates of the summons
diligence to some conspicuous part of the house or
homestead in which person summoned ordinarily
resides
Service of summon on - on the secretary,
corporation including - local manager or
incorporate - other principal officer of the corporation,
company/society/body
corporate
WARRANT
purpose - only for protection of a person before the concerned
Court and not before
the police officer
Conditions a) must be in writing.
b) must bear the name and designation of the person who
is to execute it;
c) must give full name and description of the person to be
arrested;
d) must state the offence charged;
e) must be signed by the
presiding officer; and f)
must be sealed.
g) police officer or other person executing the warrant of
arrest shallbring the person arrested before the Court
without unnecessary delay provided that such delay
shall not in any case exceed 24 hours exclusive of the
time necessary for the journey from the place of arrest
to the Magistrate’s Court.
If warrant remains unexecuted Code provides for two remedies:
1) issuing a proclamation (Section 82); and
2) attachment and sale of property (Section 83).
SEARCH WARRANT a search warrant can be issued
only in the following cases:
a) where the Court has reason to believe that a person
summoned to produce any document or other thing will
not produce it;
b) where such document or thing is not known to the
Court to be in the possession of any person; or
c) where a general inspection or search is necesary.
However, a search warrant may be general or restricted
in its scope as to any place or part thereof.
Note: But such warrant shall not be issued for searching a
document, parcel or
other thing in the custody of the postal or telegraph
authority, by a magistrate other than a District Magistrate or
Chief Judicial Magistrate, nor would such warrant be issued
so as to affect Sections 123 and 124 of the Indian Evidence
Act, 1872 or the Bankers’ Book Evidence Act, 1891.
Cognizance of an offence Any Magistrate of first class and of the second class
specially empowered may take cognizance of an offence
upon:
1) receiving a complaint of facts constituting such offence;
2) a police report of such facts;
3) information received from any person other
than a police officer; (4) his own knowledge
that such offence has been committed.
Limitation period no Court shall take cognizance of an offence after the
(6 months – Fine only) expiry of the period of limitation mentioned below:
(1 year- Imprisonment upto 1 y) a) six months, if the offence is punishable with fine only.
(3 years- imprisonment upto 3 b) one year, if the offence is punishable with
y) imprisonment for a term not exceeding one year;
and
c) three years, if the offence is punishable with
imprisonment for a term exceeding one year
but not exceeding three years.
Summary Trial (upto 2 years Summary trial means the “speedy disposal” of cases. By
imprisonment cases only) summary cases is meant a case which can be tried and
disposed of at once. Generally, it will apply to such offences
not punishable with imprisonment for a term exceeding two
years.
Section 260(1) of the Criminal Procedure Code sets out the
provisions for summary trials. It says:
(a) any Chief Judicial Magistrate;
(b) any Metropolitan Magistrate;
(c) any Magistrate of the First class who is specially
empowered in this behalf by the High Court, may, if he thinks fit,
try in a summary way all or any of the following offences:
a. offences not punishable with death, imprisonment for life
or imprisonment for a term exceeding two years;
b. theft under Section 379, Section 380 or Section 381 of the
Indian Penal Code, where the value of the property stolen
does not exceed Rs. 200;
a. receiving or retaining stolen property, under Section 411 of the
Indian
Penal Code, where the value of such property, does not
exceed Rs. 200;
d. assisting in the concealment or disposal of stolen
property, under Section 414 of the Indian Penal Code,
where the value of such property does not exceed Rs.
200; (v) offences under Sections 454 and 456 of the
Indian Penal Code;
e. insult with intent to provoke a breach of the peace, under
Section
504 of the Indian Penal Code;
f. abetment of any of the foregoing offences;
g. an attempt to commit any of the foregoing offences,
when such attempt is an offence;
h. any offence constituted by an act in respect of which a
complaint may be made under Section 20 of the Cattle
Trespass Act, 1871.
Sub-section (2) states that when in the course of a summary
trial it appears to the Magistrate that the nature of the
case is such that it is undesirable to try it summarily, the
Magistrate shall recall any witnesses who may have been
examined and proceed to re-hear the case in the manner
provided in this Code. Summary trial is a speedy trial by
dispensing with formalities or delay in proceedings.
Section 262 envisages procedure for summary trials. Sub-
section (1) lays down that in all summary trials the
summons-case procedure should be followed irrespective
of the nature of the case i.e. whether it is a summons- case
or a warrant case. Sub-section (2) laying down the limit of
the sentence of imprisonment states that no sentence of
imprisonment for a term exceeding 3 months shall be
passed in any conviction in summary trials.
RIGHT TO INFORMATION
Right to information is a necessary ingredient of participatory democracy. The Right to

Information, Act 2005 provides a remedy effectuating the right to information recognised
under article 19 of the Constitution of India. The Right to Information Act, 2005 is a law
empowering the citizens a right to access to information under the control of public
authorities. RTI Act comes into force on October 12, 2005.
Following are the main objectives of the act:
(a) It provides access to the information to the citizens who desires to have it.
(b) Promote transparency and accountability in the working of every public authority.
(c) To hold government and their authorities accountable to the public at large.
Salient features of the RTI Act 2005:

 The Act extends to whole of India except Jammu and Kashmir.
 It is applicable to the public authorities.
 It provides a very definite day for its commencement i.e. 120 days from enactment.
 All the citizens shall have right to information, subject to the provisions of the act.
 The act provides for the appointment of Public Information Officers/Assistant Public
Information Officers.
 PIO/APIO will be responsible to deal with the request for information and also to
assist persons seeking information.
 Fee will be payable by the applicant depending on the nature of information sought.
 Certain categories of information have been exempted from disclosure under Section
8 and 9 of the Act.
 Intelligence and security agencies specified in Schedule II to the Act have been
exempted from the ambit of the Act, subject to certain conditions.
Definitions:
1. Information Means any material in any form, including records, documents,
memos, e-mails, opinions, advices, press releases, circulars, orders,
logbooks, contracts, reports, papers, samples, models, data material
held in any electronic form.
2. Record Includes:
 any document, manuscript and file;
 any microfilm, microfiche and facsimile copy of a document;
 any reproduction of image or images embodied in such microfilm
(whether enlarged or not); and
 any other material produced by a computer or any other device;
3. Right to Means the right to information accessible under this Act which is held
information by or under the control of any public authority and;
includes the right to –
 taking notes, extracts, or certified copies of documents or
records; (ii) inspection of work, documents, records;
 taking certified samples of material;
 obtaining information in the form of diskettes, floppies, tapes,
video cassettes or in any other electronic mode or through
printouts where such information is stored in a computer or in
any other device;
4. Third party Means a person other than the citizen making a request for
information and includes a public authority.
Public authority
“Public authority” means any authority or body or institution of self government
established or constituted –
 By or under the Constitution;
 By any other law made by Parliament;
 By and other law made by State Legislature;
 By notifications issued or orders made by the appropriate government.
Obligations of public authority:
Section 4 of this act makes it obligatory on every public authority to maintain records and
publish manuals, rules, regulations, instructions in its possession as prescribed under
the act. Public authority should publish all relevant facts while formulating policies or
announcing the decision which affects the public at large, and they are also duty bound
to give reasons for its judicial and quasi-judicial decisions which affect public.
Every public authority has to publish the following:
i. The particulars of its organisation, functions and duties;
ii. Following information regarding its officers and employees:-
(a) A directory of its officers and employees;
(b) The powers and duties of its officers and employees;
(c) The monthly remuneration received by each of its officers and employees,
including the system of compensation as provided in its regulations;
(d) Rules, regulations, instructions, manuals and records used by its employees
for discharging its functions;
iii. The procedure followed in its decision making process, including channels of
supervision and accountability;
iv. The norms set by it for the discharge of its functions;
v. A statement of the categories of the documents held by it or under its control;
vi. Particulars of recipients of concessions, permits or authorizations granted by it;
vii. The particulars of any arrangement that exists for consultation with, or
representation by the members of the public, in relation to the formulation of policy
or implementation thereof;
viii. Details of the information available to, or held by it, reduced in an electronic form;
ix. A statement of the boards, councils, committees and other bodies consisting of
two or more persons constituted by it. Additionally, information as to whether the
meetings of these are open to the public, or the minutes of such meetings are
accessible to the public;
x. The budget allocated to each of its agency, indicating the particulars of all plans,
proposed expenditures and reports on disbursements made;
xi. The particulars of facilities available to citizens for obtaining information,
including the working hours of a library or reading room, if maintained for public
use;
xii. The names, designations and other particulars of the Public Information Officers.
xiii. Such other information as may be prescribed; and thereafter update the
publications every year.
Public Information Officer (PIO)

Every public authority has to –
 Designate in all administrative units or offices Central or State Public Information
Officers to provide information to persons who have made a request for the
information.
 Designate at each sub-divisional level or sub-district level Central Assistant or
State Assistant Public Information Officers to receive the applications for
information or appeals for forwarding the same to the Central or State Public
Information Officers.
 No reason to be given by the person making request for information except those
that may be necessary for contacting him.
Duties of Public Information Officer:
 Every PIO shall deal with requests from persons seeking information and render
reasonable assistance to them.
 If the information requested for is held by or its subject matter is closely connected
with the function of another public authority, the PIO shall transfer, within 5 days, the
request to that other public authority and inform the applicant immediately.
 The PIO may seek the assistance of any other officer as he considers it necessary
for the proper discharge of his duties.
 The PIO shall provide information within 30 days from the receipt of request, where
the information requested for concerns the life or liberty of a person, the same shall
be provided within forty-eight hours of the receipt of the request.
 If the PIO fails to give decision on the request within the period specified, he shall
be deemed to have refused the request. Where a request has been rejected, the
PIO shall communicate to the requester - (i) the reasons for such rejection, (ii) the
period within which an appeal against such rejection may be preferred, and (iii) the
particulars of the Appellate Authority.
 PIO shall provide information in the form in which it is sought unless it would
disproportionately divert the resources of the Public Authority or would be
detrimental to the safety or preservation of the record in question.
 If allowing partial access, the PIO shall give a notice to the applicant, informing:
(a) That only part of the record requested, after severance of the record
containing information which is exempt from disclosure, is being provided;
(b) The reasons for the decision, including any findings on any material question
of fact, referring to the material on which those findings were based;
(c) The name and designation of the person giving the decision;
(d) The details of the fees calculated by him or her and the amount of fee which
the applicant is required to deposit; and
(e) His or her rights with respect to review of the decision regarding non-
disclosure of part of the information, the amount of fee charged or the form of
access provided.
 If information sought has been supplied by third party or is treated as confidential
by that third party, the PIO shall give a written notice to the third party within 5 days
from the receipt of the request. Third party must be given a chance to make a
representation before the PIO within 10 days from the date of receipt of such notice
Manner for obtaining information under RTI, Act 2005

The RTI Act, 2005 specifies the manner in which requests may be made by the citizen to
the authority for obtaining information. It also provides for transferring the request to the
other concerned public authority who may hold the information.
 Application is required to be submitted in writing or electronically, along with
prescribed fee, to Public Information Officer (PIO).
 Information to be provided within 30 days.
 Information to be provided within 48 hours where life or liberty is involved.
 If the request is made to Assistant Public information officer, information is to be
provided within 35 days.
 Time taken for calculation and intimation of fees excluded from the time frame.
 No action on application for 30 days is a deemed refusal.
 If the interests of a third party are involved then time limit will be 40 days (maximum
period + time given to the party to make representation).
 No fee for delayed response.
Exemption from disclosure/denial from providing information

Following categories of information have been exempted from disclosure:
 Where disclosure prejudicially affect the sovereignty and integrity of India;
 Where disclosure affect the security, strategic, scientific or economic interests of the
State, relation with foreign State or lead to incitement of an offence;
 Information which has been expressly forbidden by any court or tribunal or the
disclosure of which may constitute contempt of court;
 Where disclosure would cause a breach of privilege of Parliament or the State
Legislature;
 Information including commercial confidence, trade secrets or intellectual property,
where disclosure would harm competitive position of a third party, or available to a
person in his fiduciary relationship, unless larger public interest so warrants;
 Information received in confidence from a foreign government;
 Information the disclosure of which endangers life or physical safety of any person or
identifies confidential source of information or assistance;
 Information that would impede the process of investigation or apprehension or
prosecution of offenders;
 Cabinet papers including records of deliberations of the Council of Ministers,
Secretaries and other officers before the decisions are taken.
Information Commissions
Basis of Central Information State Information Commission(SIC)
difference Commission(CIC)
1. Constituted  Central Government through  State Government through
by gazette notification. gazette notification.
2. Composition  1 Chief Information  One State Chief Information
Commissioner and; Commissioner and;
 Not more than 10 Information  Not more than 10 State
Commissioners. Information Commissioners
(SIC).
Chief information State information

commissioner/information commissioner
commissioner
Appointment  Appointed by President on the  Appointed by the Governor on
recommendations of a the recommendations of a
committee consisting of Prime committee consisting of the
Minister who is the chairman of Chief Minister who is the
the committee, leader of Chairman of the committee.
opposition in Lok Sabha and a Other members include the
union cabinet minister Leader of the Opposition in
nominated by PM. the Legislative Assembly and
one Cabinet Minister
nominated by the Chief
Minister.
Qualification  Having knowledge and experience in law, science and technology,
social service, management, journalism, mass media or
administration and governance.
 CIC/SIC shall not be a Member of Parliament or Member of the
Legislature of any State or Union Territory.
He shall not hold any other office of profit or connected with any
political party or carrying on any business or pursuing any profession.
Office Headquarters: In Delhi. Headquarters: At such place as
Other offices: May be established the State Government may
in other parts of the country with specify.
the approval of the Central Other offices: May be
Government. established in other parts of the
state with the approval of the
State Government.
Salary Same as that of the Chief Election Salary of State Chief Information
Commissioner. Commissioner will be the same
as that of an Election
Commissioner.
And of state information
commissioner same as that of
the Chief Secretary of the State
Government.
Tenure  5 years from the date of appointment; or
 Up to the age of 65 years.
Whichever is earlier
Powers of information commission:

1. This is the duty of Central Information Commission/State Information Commission to
receive the complaints of person:
(a) Who has not been able to submit an information request because a PIO has not
been appointed;
(b) who has been refused information that was requested under the act;
(c) Who has not been given any response to request for information or access to
information within time limit specified under the act.
(d) Who thinks the fees charged are unreasonable;
(e) Who thinks information given is incomplete or false or misleading; and
(f) Any other matter relating to obtaining information under this law.
2. If the Commission feels satisfied, an enquiry may be initiated and while initiating an
enquiry the Commission has same powers as vested in a Civil Court.
3. The Central Information Commission or the State Information Commission during the
inquiry of any complaint under this Act may examine any record which is under the
control of the public authority, and no such record may be withheld from it on any
grounds.
Appellate Authorities
Appeal against the orders of PIO
Time Limit Authority
First Within 30 days from the expiry of Officer senior in rank to the
Appeal specified time limit or from the receipt of PIO in the concerned Public
decision. Delay may be condoned by Authority
the Appellate Authority if sufficient
cause is shown
Second Within 90 days from the decision of Central Information
Appeal first appellate authority. Commission or the State
Delay may be condoned by the Information Commission as
Commission if sufficient cause is shown the case may be.
Third party can also make the first appeal and second appeal against the orders of PIO.
Barden of proving that denial of information was justified rest with PIO
The Appeals must be disposed of within 30 days from the receipt of order. Time period
could be extended by 15 days if necessary.
Penalties
Every PIO will be liable for fine of Rs. 250 per day, up to maximum of Rs. 25000 for the
following:-
 Not accepting an application for information;
 Non Furnish of information within specified time;
 Delaying information release without reasonable cause;
 Malafidely denied the request for information;
 Knowingly giving incomplete, incorrect, misleading information;
 Destroying information that has been requested; and
 Obstructing furnishing of information in any manner.
A reasonable opportunity of being heard shall be given to Public Information Officer before
any penalty is imposed on him.
The Information Commission (IC) at the Centre and at the State levels will have the power to
impose this penalty. They can also recommend disciplinary action for violation of the law
against the PIO for persistently failing to provide information without any reasonable cause
within the specified period.
Role of State/Central Government in Right to Information Act, 2005

1. To develop and organize programmes for the public especially disadvantaged
communities on RTI.
2. Encourage public authorities to participate in the development and organisation of such
programmes.
3. Train officers and develop training material.
4. Publish names, designation, postal addresses and contact details of PIOs and other
information such as notices regarding fees to be paid, remedies available in law if
request is rejected etc.
5. Promote timely and effective dissemination of accurate information by the public
authorities
6. Compile and disseminate a User Guide for the public in the respective official language.
LIMITATION ACT, 1963
Preamble
The Limitation Act,1963 is an Act to consolidate and amend the law for the limitation
of suits and other proceedings and other purposes connected therewith. It contains
provisions for limitation of suits, appeals and applications, computation of period of
limitation, acquisition of ownership by possession and other miscellaneous provisions
in connection with the period of limitation.
The statute of Limitation is a statute of repose, peace and justice. Comment.
The Limitation Act,1963 came into force on 1st January,1964.

 It is a procedural Law.
 It extends to whole of India except the State of Jammu and Kashmir.
 It helps in guiding an aggrieved party to pray for justice.
 It applies to all civil proceedings and to criminal proceedings to a limited
extent.
 It is applicable when the period of limitation has expired.
 It prescribes period of limitation for different suits, petitions etc.
 It does not provide any right to an aggrieved party but interposes a bar to a
suit for enforcement of an existing right after the period of limitation has
expired.
 The statute of limitation is based on the principle of public policy which
required that the redressal of violated rights should he sought in a court
without unreasonable long delay.
 The statute of limitation is a statute of repose because they extinguish stale
demands and quiet titles by laying at rest claims which might otherwise have
disturbed the peace of community.
 When the period of limitation has expired, it provides justice by allowing the
aggrieved party to pray for relief.
 When the period of limitation has expired, it provides justice by allowing the
aggrieved party to pray for relief.
 It is, therefore, said that the law of limitation is a statute of repose, peace and
justice.
Limitation Bars Remedy, But Does Not Extinguish Rights (7-J,

The Law of limitation bars the remedy in a Court of law only when the period of
limitation has expired, but it does not extinguish the right that it cannot be enforced
by judicial process (Bombay Dying & Mfg. Co. Ltd. v. State of Bombay, AIR 1958 SC
28).Thus if a claim is satisfied outside the Court of law after the expiry of period of
limitation, that is not illegal as the right to cause of action always remains. Similarly,
even if the defence of limitation is not set by the other party, the Court cannot accept any
suit, appeal or application beyond the period of limitation.
There is however, one exception to this rule provided by section 27 of the Limitation
Act,1963 stating that at the determination of the period hereby limited to any person or
instituting a suit for possession of any property, his right to such property shall be
extinguished. Thus, where a person’s right to institute a suit for the possession of any
property has become barred by limitation, his right to the property itself shall be
extinguished.
Binding Nature of the Limitation Act
The Courts in India are bound by the specific provisions of the Limitation Act and are
not permitted to move outside the ambit of these provisions.
BAR OF LIMITATION
Duty of the Court - Section 3 of the Act provides that any suit, appeal or application if
made beyond the prescribed period of limitation, it is the duty of the Court not to
proceed with such suits irrespective of the fact whether the plea of limitation has been
set up in defence or not. The provisions of Section 3 are mandatory. The Court can
suo motu take note of question of limitation. The question whether a suit is barred by
limitation should be decided on the facts as they stood on the date of presentation of
the plaint. It is a vital section upon which the whole limitation Act depends for its
efficacy.
The effect of Section 3 is not to deprive the Court of its jurisdiction.
Therefore, decision of a Court allowing a suit which had been instituted after
the period prescribed is not vitiated for want of jurisdiction. A decree passed in a
time barred suit is not a nullity.
EXTENSION OF TIME IN CERTAIN CASES

Doctrine of sufficient cause
(i) Section 5 provides that any appeal or any application, other than an application
under any of the provisions of Order XXI of the Code of Civil Procedure, 1908,
may be admitted after the prescribed period if the appellant or the applicant
satisfies the court that he had sufficient cause for not preferring the appeal or
making the application within such period.
(ii) The Court may admit an application or appeal even after the expiry of the
specified period of limitation if it is satisfied with the applicant or the appellant,
as the case may be as to sufficient cause for not making it within time.
(iii) The Court has no power to admit a time barred suit even if there is a sufficient
cause for the delay. It applies only to appeals or applications as specified
therein. The reason for non- applicability of the Section to suits is that, the
period of limitation allowed in most of the suits extends from 3 to 12 years
whereas in appeals and application it does not exceed 6 months. For the
applicability of Section 5, the ―
prescribed period should be over..
( i v) The party applying for condonation of delay should satisfy the Court for
not making an appeal or application within the prescribed period for sufficient
cause. The term sufficient cause has not been defined in the Limitation Act. It
depends on the circumstances of each case. However, it must be a cause which is
beyond the control of the party. once the period of limitation expires then the
appellant has to explain the delay made thereafter for day by day and if he is
unable to explain the delay even for a single day, it would be deemed that the
party did not have sufficient cause for delay.
(v) It is the Court‘s discretion to extend or not to extend the period of limitation
even after the sufficient cause has been shown and other conditions are also
specified. However, the Court should exercise its discretion judicially and not
arbitrarily.
(vi) The quasi-judicial tribunals, labour courts or executive authorities have no
power to extend the period under this Section.
What is sufficient cause and what is not may be explained by the following
Judicial observations:
1. Wrong practice of High Court which misled the appellant or his counsel in
not filing the appeal should be regarded as sufficient cause under
Section 5;
2. In certain cases, mistake of counsel may be taken into consideration in
condonation of delay. But such mistake must be bona fide;
3. Wrong advice given by advocate can give rise to sufficient cause in
certain cases;
4. Mistake of law in establishing or exercising the right given by law may
be considered as sufficient cause. However, ignorance of law is not
excuse, nor the negligence of the party or the legal adviser constitutes a
sufficient cause;
5. Imprisonment of the party or serious illness of the party may be
considered for condonation of delay;
6. Time taken for obtaining certified copies of the decree of the judgment
necessary to accompany the appeal or application was considered for
condoning the delay.
7. Non-availability of the file of the case to the State counsel or Panel
lawyer is no ground for condonation of inordinate delay (Collector and
Authorised Chief Settlement Commissioner v. Darshan Singh and
others, AIR 1999 Raj.84).
8. Ailment of father during which period the defendant was looking after
him has been held to be a sufficient and genuine cause.
Persons under legal disability – Section 6

1. Where a person entitled to institute a suit or make an application for the execution
of a decree is a
a. minor or
b. insane or
c. an idiot
he may institute the suit or make the application within the limitation period after the
disability has ceased.
2. where such person is,
a. affected by two such disabilities, or
b. where, before his disability has ceased, he is affected by another disability.
He may institute the suit or make the application within the same period after both
disabilities have ceased, as would otherwise have been allowed from the time so
specified.
Suit by legal representatives of legally disable person – section 6

a. where the disability of a legally disable person i.e minor, insane or idiot, continues
upto the death of that person, his legal representatives may institute the suit or make
the application within limitation period after his death.
b. where the legal representative is, at the date of the death of the person whom he
represents, affected by any such disability, he may institute the suit or make the
application within the period of limitation specified in the schedule after the disability
has ceased.
c. where a person under disability dies after the disability ceases but within the period
allowed to him, his legal representative may institute the suit or make the application
within the limitation period after the death, as would otherwise have been available to
that person had he not died.
d. For the purpose of this section, ‘minor’ includes a child in the womb.
Period of Limitation in case of disability of any of the joint persons (Section – 7)

a. where one of several persons jointly entitled to institute a suit or make an
application for the execution of a decree is under any disability, and discharge can be
given without the concurrence of such person, time will run against them all.
b. the period of limitation will be applied if the suit or application is not made before
expiry of the period of limitation.
c. where no such discharge can be given without the concurrence of such person,
time will not run as against any of them until one of them become capable of giving
such discharge without the concurrence of the other or until the disability has ceased.
The manager of a HUF governed by the Mitakshara law shall be deemed to be
capable of giving a discharge without the concurrence of the other members of the
family only if he is in management of the joint family properly.
CONTINUOUS RUNNING OF TIME – Section 9

(i) According to Section 9 of the Act where once time has begun to run, no
subsequent disability or inability to institute a suit or make an application can stop
it The period of limitation will expire at the end of period of limitation.
(ii) However where letters of administration to the estate of a creditor have been
granted to his debtor, the running of the period of limitation for a suit to recover
debt shall be suspended while the administration continues.
(iii) The applicability of this Section is limited to suits and applications only and does
not apply to appeals unless the case fell within any of the exceptions provided in
the Act itself.
(iv) In general, the period of limitation begins to run when the cause of action accrues. In
certain circumstances a cause of action may be completed so that the time begins to run,
even though the action itself cannot be brought because of some reason not part of the
cause of action.
Case Law:- B owed money to A on a bond which fell due in 2009. A died in 2000
without having brought any suit, and was succeeded by C, his 14 year old son. Is C
entitled to any extension of time on account of his minority?
Ans:- The cause of action was in 2009 and the period of limitation expires after3 years. At
the time of death of B his son was 14 years olf and he attainedmajority 4 years later. Section
9 of the Limitation Act,1963 provides where oncetime has begun to run, no subsequent
disability or inability to institute a suit ormake an application can stop it The period of
limitation will expire at the
end of period of limitation. the period of limitation in the given case,has already
run out and in terms of said section, the suit cannot bemaintainable and C is not
entitled to any extension of time on accountof his majority.
COMPUTATION OF PERIOD OF LIMITATION
In case of Legal Proceedings Exclusions while computing period

of limitation
any suit, appeal or application the day on which the time begins to
run.
an appeal or an application for The day on which the judgement
leave to appeal or for revision or for complained of was pronounced and
review of a judgement. the time requisite for obtaining a
copy of the decree, sentence or
order appealed from or sought to be
revised or reviewed
an application made for leave to The time requisite for obtaining a
appeal from a decree or order copy of the judgement
an application to set aside an time required for obtaining a copy of
award the award
Where the suit or application is until the plaintiff or applicant has
based upon the fraud or mistake of discovered fraud or mistake subject
the defendant or respondent or his to certain exceptions.
agent
In case of death of a person before the period of limitation shall be
the right to institute a suit accrues, computed from the time when there
is a legal representative of the
deceased capable of instituting
such suit or making such
application. The same rule applies
in case if defendant dies.
(ii) Exclusion of time during which leave to sue or appeal as a pauper is

applied for (Section 13).
(iii)Exclusion of time bona fide taken in a court without jurisdiction. (Section
14)
The relief to a person is given by Section 14 of the Act when the period of
limitation is over, because another civil proceedings relating to the matter in
issue had been initiated in a court which is unable to entertain it, by lack of
jurisdiction or by any other like cause. The following conditions must co-exist for
the applicability of this Section:
(a) that the plaintiff or the applicant was prosecuting another civil
proceedings against the defendant with due diligence;
(b) that the previous suit or application related to the same matter in issue;
(c) that the plaintiff or the applicant prosecuted in good-faith in that court; and
(d) that the court was unable to entertain a suit or application on
account of defect of jurisdiction or other like cause.
(iv) Exclusion of time in certain other cases
(a) When a suit or application for the execution of a decree has been
stayed by an injunction or order, the time of the continuance of the injunction or
order, the day on which it was issued or made and the day on which it was
withdrawn shall be excluded. [Section 15(1)]
(b) The time required to obtain the sanction or consent of the Govt. required,
or a notice period shall also be excluded in case of suits. [Section 15(2)]
(c) In a suit or an application for execution of a decree by any receiver or
interim receiver or any liquidator, the period beginning with the date of
institution of such proceeding and ending with the expiry of three months from
the date of their appointment shall be excluded. [Section 15(3)]
(d) The time during which a proceeding to set aside the sale has
been prosecuted shall be excluded in case of a suit for possession by a
purchaser at a sale in execution of a decree. [Section 15(4)]
(e) The time during which the defendant has been absent from India and
from the territories outside India administered by the Central Government,
shall also be excluded. [Section 15(5)]
EFFECT OF ACKNOWLEDGEMENT ON THE PERIOD OF LIMITATION

Section 18 of the Act deals with the effect of acknowledgement of liability
in respect of property or right on the period of limitation. The following
requirements should be present for a valid acknowledgement as per Section
18:
1. There must be an admission or acknowledgement;
2. Such acknowledgement must be in respect of any property or right;
3. It must be made before the expiry of period of limitation; and
4. It must be in writing and signed by the party against whom such
property or right is claimed.
If all the above requirements are satisfied, a fresh period of limitation shall
be computed from the time when the acknowledgement was signed.
EFFECT OF PAYMENT ON ACCOUNT OF DEBT OR OF INTEREST ON LEGACY
As per Section 19 of the Act where payment on account of a debt or of
interest on a legacy is made before the expiration of the prescribed period
by the person liable to pay the debt or legacy or by his agent duly authorised in
this behalf, a fresh period of limitation shall be computed from the time when
the payment was made. The proviso says that, save in the case of payment
of interest made before the 1st day of January, 1928 an acknowledgement of
the payment must appear in the handwriting of, or in a writing signed by the
person making the payment.
According to the explanation appended to this Section:
(a) where mortgaged land is in the possession of the mortgagee, the receipt of the
rent or produce of such land shall be deemed to be a payment;
(b) debt‘ does not include money payable under a decree or order of a court for the
purpose of this Section.
Thus, according to this section a fresh period of limitation becomes

available to the creditor from the date of part payment when part-payment of
debt is made by the debtor before the expiration of the period of limitation.
COMPUTATION OF TIME MENTIONED IN INSTRUMENTS
All instruments shall for the purposes of this Act be deemed to be made with
reference to the Gregorian Calendar. (Section 24)
ACQUISITION OF OWNERSHIP BY POSSESSION

Section 25 applies to acquisition of easements. It provides that the right to access and
use of light or air, way, watercourse, use of water, or any other easement which have been
peaceably enjoyed without interruption and for twenty years (thirty years if property belongs
to Government) shall be absolute and indefeasible. Such period of twenty years shall be a
period ending within two years next before the institution of the suit.
LIMITATION AND WRITS UNDER THE CONSTITUTION
The subject of limitation is dealt with in entry 13, List III of the Constitution of India. The
Legislature may, without violating the fundamental rights, enact statutes prescribing
limitation within which actions may be brought or varying or changing the existing rules of
limitation either by shortening or extending time provided a reasonable time is allowed for
enforcement of the existing right of action which would become barred under the amended
Statute.
The Statute of Limitation is not unconstitutional since it applies to right of action in future. It is
a shield and not a weapon of offence (34 American Jurisprudence, P. 16).
The State cannot place any hindrance by prescribing a period of limitation in the way of an
aggrieved person seeking to approach the Supreme Court of India under Article 32 of the
Constitution. To put curbs in the way of enforcement of Fundamental Rights through
legislative action might well be questioned under Article 13(2) of the Constitution. It is
against the State action that Fundamental Rights are claimed (Tilokchand Motichand v.
H.P. Munshi, AIR 1970 SC 898).
The Limitation Act does not in terms apply to a proceeding under Article 32 or Article 226 of
the Constitution. But the Courts act on the analogy of the statute of limitation and refuse
relief if the delay is more than the statutory period of limitation (State of M.P. v. Bhai Lal
Bhai, AIR 1964 SC 1006). Where the remedy in a writ petition corresponds to a remedy in
an ordinary suit and latter remedy is subject to bar of a statute of limitation, the Court in its
writ jurisdiction adopts in the statute its own rule of procedure and in absence of special
circumstances imposes the same limitation in the writ jurisdiction.
If the right to property is extinguished by prescription under Section 27 of the Limitation Act,
1963, there is no subsisting right to be enforced under Article 32 of the Constitution. In other
case where the remedy only, not the right, is extinguished by limitation the Court will refuse
to entertain stale claims on the ground of public policy (Tilokchand Motichand v. H.P.
Munshi, AIR 1970 SC 898).
CLASSIFICATION OF PERIOD OF LIMITATION

Period Cases
30 years 1. Suits by mortgagors for the redemption or recovery of
possession of immovable property mortgaged;
2. Suits by mortgagee for foreclosure;
3. Suits by or on behalf of the Central Government or any State
Government including the State of Jammu and Kashmir.
12 years various kinds of suits relating to immovable property, trusts and
endowments.
3 years suits relating to accounts, contracts, declaratory suits, suits relating

to decrees and instruments and suits relating to movable property.
1-3 years suits relating to torts and other miscellaneous matters and suits for
which no period of limitation is provided in the schedule to the Act.
10 Days application for leave to appear and defend a suit under summary
procedure from the date of service of the summons.
30 Days appeals against a sentence of death passed by a court of session
or a High Court in the exercise of its original jurisdiction
60 Days(HC) appeal against any sentence other than a sentence of death or any
30(other Court) other not being an order of acquittal,
60 Days(HC) Period of leave to appeal as a pauper from the date of the decree
30 Days(other) Period of leave to appeal as a pauper from the date of the decree

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CHAPTER – 1 THE FACTORIES ACT, 1948

Applicability of the Act: Whole of India including J & K

With aid of power without aid of power

Only if no. of workers are ≥ 10 Only if no. of workers are ≥ 20

an any single day in preceding an any single day in preceding

Premises = ‘Open land’ or ‘land + building’ or ‘building’

Precincts = Space enclosed by walls.

Manufacturing process Sec 2 (k) : Any Process of :-

(i) Making, altering, repairing, ornaments, furnishing, packing, oiling, washing,

(ii) Pumping oil, water or otherwise or any other substance or

(iii) Generating, transforming, transmitting power

(iv) Composing types for printing, printing by better press, lithography,

(v) Constructing, reconstructing, repairing, refitting, furnishing or breaking up ships

(vi) Preserving or storing any article in cold storage.

Child : Age below 15 years

Working hours for an adult:

− If workers works > 9 hours in a day or > 48 hours a week

Overtime Wages : Double the normal wages

Inspecting Staff Certifying Surgeons Welfare Officers Safety Officers

Measures to be taken by factories for:

Health Safety Welfare

Facilities for health of workman:

Facilities for safety of workman:

Facilities for welfare of workman:

CHAPTER 2 – THE MINIMUM WAGES ACT, 1948

Employment specified in schedule given by Government

Procedure for fixing and revising minimum rate of wages:

Committee Method(1st Method) Notification Method

Minimum wages are to be paid in cash only:

It can be paid in kind if it is customary in kind and authorized by AG.

Living wages = wages to maintain basic food, shelter and clothing

Subsistence Wages = Wages during suspension of workman, pending investigation

Minimum wages = Wages fixed as per Minimum Wages Act

If employer cannot afford to pay minimum wages then he has to close

CHAPTER 3 – PAYMENT OF WAGES ACT, 1936

Applicability of the Act

Employer is responsible for payment of wages to persons employed:

Time Limits for paying wages:

1. Dock wharf Any other establishment

Deductions allowed from wages:

Apply within 12 months to authority notified by AG in Official Gazette

Authority shall give opportunity of being heard.

Give directions (conclusion) within 3 months

No compensation if the default was a genuine error or in emergency, etc.

s CHAPTER 4 – EQUAL REMUNERATION ACT, 1976

1. Applicability of the Act: All employments

It is applicable to whole of India

Act is having overriding effect over other laws or any agreement or

2. It is duty of employer to pay equal remuneration to men and woman

Remuneration = Basic salary + emoluments in cash or kind

3. Discrimination while recruiting man and woman :

Such discrimination is prohibited except where employment woman is restricted

It is not applicable to scheduled castes or scheduled tribes.

4. Maintain registers of woman

Apply to Labour officer

MULTIPLE CHOICE QUESTIONS

Q. 1. The main objective of Equal Remuneration Act., 1976 is

Q. 2 . Equal Remuneration Act, 1976 is applicable to

Q. 3. Equal Remuneration Act, 1976 is applicable to _______ in India

Q. 4. Equal Remuneration Act, 1976 has_____ effect over other laws

Q. 8. Equal Remuneration Act, 1976 provides for the payment of equal

Q. 9. Advisory committee is constituted by

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