Section 67: Approval and licensing of factories

The Occupational Safety, Health and Working Conditions Code, 2020 (Act No. 37 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter X: Special Provisions for Factories, Mines & Plantations
Competent Labour Forum
Act No. 37 of 2020

Legal Commentary & Landmark Judgments: Section 67

Section 67 of the Code governs the approval, licensing, and registration of factories, establishing a streamlined digital approval process while retaining strict statutory oversight over site plans, plant designs, and environmental safety clearances.

  • Mandatory Prior Plan Approval & Siting Clearance: Requires occupiers to submit detailed engineering drawings, process flowcharts, and emergency response infrastructure plans to the Chief Inspector-cum-Facilitator prior to factory construction or expansion.
  • Electronic Time-Bound Licensing Framework: Provides for digital submission of licensing applications with statutory deemed-approval timelines to eliminate administrative delays and enhance ease of doing business.
  • Revocation & Suspension Safeguards: Empowers licensing authorities to suspend or cancel factory licenses upon discovery of material safety defaults, unauthorized structural additions, or failure to rectify inspector notices.
Key Landmark Precedents:
  • J.K. Industries Ltd. v. Chief Inspector of Factories (1996) 6 SCC 665: Supreme Court ruled that licensing authorities are fully entitled to require the nomination of a company director as occupier before granting or renewing factory licenses.
  • M.C. Mehta v. Union of India (1987) 1 SCC 395: Supreme Court held that hazardous industries cannot operate without prior comprehensive safety plan approvals and strict administrative licensing.
  • State of Gujarat v. Jayantilal Amratlal AIR 1965 SC 1477: Affirmed that manufacturing operations conducted without a valid factory license constitute a continuing offense under factory legislation.
Courtroom Practice & Strategic Litigation Guidance:

When executing plant expansions or adding manufacturing machinery, management must file updated engineering layout plans on the state single-window portal at least sixty days in advance. Never commence commercial production prior to obtaining the formal or deemed electronic license endorsement.