Aarohi Girish Dhumale
On 3rd March, 2025, the Supreme Court of India observed that cleaning, washing, and dry cleaning clothes is “manufacturing” under The Factories Act, 1948 in the case of The State Of Goa v. Namita Tripathi. The present matter was heard by a Division Bench of Justice Sanjay Karol and Justice B.R. Gavai which arises out of an appeal against the High Court of Bombay; Goa Bench’s judgment dated 6th September, 2021.
The High Court of Bombay quashed the order passed by the Judicial Magistrate First Class (JMFC) on 4th December, 2019, which issued summons against the Respondent, Namita Tripathi, for violating provisions of The Factories Act, 1948. The Appellant alleged that the Respondent’s laundry business operated as a factory without proper registration or license.
In May 2019, an inspection of the Respondent’s laundry business found violations of the Goa Factories Rules, 1985. The premises were used as a factory without required approvals, and the business employed more than 9 workers. The Respondent contended that the business was not a manufacturing unit but a service-oriented laundry business.
The Bombay High Court quashed the summons and agreed with the Respondent that “dry cleaning” was not a “manufacturing process” as defined under the Factories Act. The High Court emphasized that for a process to qualify as manufacturing, it must result in a transformation of the article into a new marketable commodity.
The Appellants challenged the decision. The primary issue is whether the respondent’s laundry business qualifies as a “factory” under the Factories Act, considering that washing and cleaning fall under the definition of a “manufacturing process.”
According to Section 2(g) of The Factories Act, 1948, “manufacturing process” means any process-
(i) for making, altering, repairing, ornamenting, finishing or packing, or otherwise treating any article or substance with a view to its use, sale, transport, delivery or disposal, or
(ii) for pumping oil, water or sewage, or
(iii) for generating, transforming or transmitting power.”
Thus, “manufacturing process” includes washing, cleaning, and treating articles for their use, sale, or disposal.
An additional factor to consider in this case is that the respondent is registered as a factory under the ESIC Act for the same premises.
The judgment, therefore, passed by the Bombay High Court was overruled and the respondent’s laundry business was held to be a factory under the 1948 Act.
Case Name: The State Of Goa v. Namita Tripathi
Case Number: Special Leave Petition (Crl.) No. 1959 Of 2022
Bench: Justice Sanjay Karol and Justice B.R. Gavai
Click here to access the order dated 03.03.2025
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