Section 101 of the Factories Act 1948: Exemption of Occupier or Manager from Liability
Section 101 provided a special procedure under which an occupier or manager charged with an offence could identify the person alleged to be the actual offender and, on proving the statutory conditions, obtain discharge from liability for that offence.
Meaning and purpose of Section 101
The provision did not automatically excuse an occupier or manager merely because another person physically committed the contravention. It created a court-supervised defence. The occupier or manager had to follow the prescribed procedure and satisfy the court that due diligence had been used to enforce the Act and that the actual offender acted without the occupier's or manager's knowledge, consent or connivance.
Text of Section 101 of the Factories Act 1948
Where the occupier or manager of a factory is charged with an offence punishable under this Act, he shall be entitled, upon complaint duly made by him and on giving to the prosecutor not less than three clear days' notice in writing of his intention so to do, to have any other person whom he charges as the actual offender brought before the Court at the time appointed for hearing the charge; and if, after the commission of the offence has been proved, the occupier or manager of the factory, as the case may be, proves to the satisfaction of the Court:
(a) that he has used due diligence to enforce the execution of this Act; and
(b) that the said other person committed the offence in question without his knowledge, consent or connivance,
that other person shall be convicted of the offence and shall be liable to the like punishment as if he were the occupier or manager of the factory, and the occupier or manager, as the case may be, shall be discharged from liability under the Act in respect of that offence.
The first proviso permitted the occupier or manager to be examined on oath. His evidence and the evidence of supporting witnesses were subject to cross-examination by the person charged as the actual offender and by the prosecutor.
The second proviso required the court, where the alleged actual offender could not be brought before it at the appointed time, to adjourn the hearing from time to time for a period not exceeding three months. If that person still could not be brought before the court by the end of that period, the court was to proceed against the occupier or manager and, if the offence was proved, convict the occupier or manager.
Conditions for claiming the exemption
- The occupier or manager must already be charged with an offence punishable under the Act.
- A complaint must be duly made identifying another person as the actual offender.
- The prosecutor must receive at least three clear days' written notice of the intention to invoke the provision.
- The commission of the underlying offence must be proved.
- The occupier or manager must satisfy the court that due diligence was used to enforce the law.
- The occupier or manager must also establish that the actual offender acted without his knowledge, consent or connivance.
What does due diligence mean in this context?
For this statutory defence, due diligence concerns the practical steps taken to secure compliance. Relevant evidence may include safety and compliance systems, written instructions, supervision, training, inspections, maintenance records, corrective action and documented enforcement. Whether the requirement is met depends on the facts proved before the court.
Current law: Section 108 of the OSHWC Code 2020
Section 108 of the Occupational Safety, Health and Working Conditions Code, 2020 preserves the central structure of the former Section 101 while extending its wording to the owner, agent or manager of a mine and to the occupier or manager of a factory. It retains the complaint procedure, the requirement of not less than three clear days' written notice, proof of due diligence, absence of knowledge, consent or connivance, cross-examination safeguards and the maximum three-month adjournment mechanism.
For current compliance and proceedings arising after the new Code took effect, readers should consult the OSHWC Code, 2020 and the applicable rules rather than relying only on the repealed Factories Act provision.
Repeal and savings
Section 143 of the OSHWC Code provides for repeal of the Factories Act, 1948 and twelve other enactments when the Code is brought into force. The savings clauses preserve specified earlier actions, rules, orders, appointments and other matters to the extent provided by law. The effect on an individual proceeding can therefore depend on when the cause of action, offence, prosecution or other legal step arose.
Official legal resources
India Code - official central legislation portal
Ministry of Labour and Employment - Occupational Safety, Health and Working Conditions Code, 2020
Updated: 26 September 2026. This page explains the former Section 101 and identifies the corresponding current provision. It is general legal information and not a substitute for advice on the facts of a particular case.