TMI Blog1996 (3) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... ition that where the number of workers in a new unit is less than ten at the time it goes into production, such a unit would not be required to be registered under the Factories Act since under section 2(m) thereof, only those factories in which the number of workers are ten or more can be registered. His submission was that if the benefit is relatable to the date of the registration then such new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by Act 28 of 1991) (hereinafter called the Act ). The provision as it stood at the relevant point of time has been extracted in the judgment of the division Bench Reported as Sahu Stone Crushing Industries v. Divisional Level Committee [1995] 98 STC 66 (All.).. It would appear that the High Court while interpreting this provision went into the question as to whether the requirements of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ma facie, it seems to us that there is a discrimination between those persons to whom registration under the Factories Act is granted quickly and those to whom it is granted with considerable delay . According to the High Court, while the former may enjoy the full period of exemption effective from the date of registration, the latter will be denied the full period and would be entitled to the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y carries because we do not think that there is any discrimination of the type envisaged by the High Court. Even if the provision was taken to be directory and if the State refused to grant the benefit for the period during which the unit was unregistered on the assumption that the High Court s view is correct, one cannot say that the discretion was wrongly used. 2.. However, Mr. Puri, the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at question has not been squarely dealt with by the High Court. It is, therefore, necessary to remit the matter to the High Court for a fresh consideration. 3.. In the result, the appeal is allowed. The impugned order of the High Court is set aside and the matter is remitted to the High Court for disposing of the question based on the language of section 2(m) of the Factories Act and the argumen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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