Section 74: Licence to industrial premises and person

Finin2min analysis — what the section actually does

Full statutory text — Section 74

74. Licence to industrial premises and person.—(1) Save as otherwise provided in this Part, no
employer shall use or allow to use any place or premises as an industrial premises unless he holds a valid
licence issued under section 119 for the purposes of this Part and no such premises shall be used except in
accordance with the terms and conditions of such licence.
   (2) Subject to the provisions of section 119, any person who intends to use or allows to use any place
or premises specified in sub-section (1) shall make an application to the authority referred to in
sub-section (1) of section 119, in such form and on payment of such fees as may be prescribed by the
State Government, for a licence to use, or allow to use, such premises as an industrial premises.
   (3) Subject to the provisions of section 119, the application shall specify the maximum number of
employees proposed to be employed at any time of the day in the place or premises and shall be
accompanied by a plan of the place or premises prepared in such manner as may be prescribed by the
State Government.
   (4) Subject to the provisions of section 119, the authority referred to in sub-section (1) thereof shall, in
deciding whether to grant or refuse to grant a licence, have regard to the following matters, namely:—
      (a) the suitability of the place or premises which is proposed to be used for the manufacture of
   beedi or cigar or both;
      (b) previous experience of the applicant or he has employed experienced person or has entered into
   agreement with the experienced person for employment for the period of licence;

       (c) the financial resources of the applicant including his financial capacity to meet the demands
   arising out of the provisions of the laws for the time being in force relating to welfare of labour;
      (d) whether the application is made bona fide on behalf of the applicant himself or in benami of any
   other person;
      (e) welfare of the labour in the locality, the interest of the public generally and such other matters
   as may be prescribed by the State Government.
    (5) Subject to the provisions of section 119, a licence granted under the said section for the purposes of
this section shall be valid for five years and may be renewed thereafter.
    (6) Subject to the provisions of section 119, an application for the renewal of a licence for the purposes
of this Part shall be made at least thirty days before the expiry of the period thereof, on payment of such
fees as may be prescribed by the State Government, and where such an application has been made, the
licence shall be deemed to continue, notwithstanding the expiry of the period thereof, until the renewal of
the licence, or, as the case may be, the rejection of the application for the renewal thereof:
    Provided that the authority referred to in sub-section (1) of section 119 shall not grant or renew a
licence unless it is satisfied that the provisions of this Part and the rules made thereunder have been
complied with:
   Provided further that the authority referred to in sub-section (1) of section 119 shall renew or refuse to
renew the licence within such period as may be prescribed by the State Government and in deciding
whether to renew a licence or to refuse a renewal thereof shall have regard to the matters specified in
sub-section (4).
    (7) Subject to the provisions of section 119, the authority referred to in sub-section (1) thereof may,
after giving the holder of a licence an opportunity of being heard, cancel or suspend any licence granted
or renewed under section 119 for the purposes of this Part, if it appears to it that such licence has been
obtained by misrepresentation or fraud or that the licence has contravened or failed to comply with any of
the provisions of this Part or the rules made thereunder or any of the terms or conditions of the licence.
   (8) The State Government may issue in writing to an authority referred to in sub-section (1) of section
119 such directions of a general character as that Government may consider necessary in respect of any
matter relating to the grant or renewal of licence under section 119 relating to this section.
   (9) Subject to section 119 and the foregoing provisions of this section, the authority referred to in
sub-section (1) of section 119 may grant or renew licence relating to this Part on such terms and
conditions as it may determine and where such authority refuses to grant or renew any licence, it shall do
so by an order communicated to the applicant, giving the reasons in writing for such refusal.

How to apply this provision

1. Primary statutory test — (1) Save as otherwise provided in this Part, no employer shall use or allow to use any place or premises as an industrial premises unless he holds a valid licence issued under section 119 for the purposes of this Part and no such premises shall be used except in accordance with the terms and conditions of such licence.
2. Additional operative limb — (2) Subject to the provisions of section 119, any person who intends to use or allows to use any place or premises specified in sub-section (1) shall make an application to the authority referred to in sub-section (1) of section 119, in such form and on payment of such fees as may be prescribed by the State Government, for a licence to use, or allow to use, such premises as an industrial premises.
3. Qualification / exception to test — Provided that the authority referred to in sub-section
4. Numerical or timing control — (3) Subject to the provisions of section 119, the application shall specify the maximum number of employees proposed to be employed at any time of the day in the place or premises and shall be accompanied by a plan of the place or premises prepared in such manner as may be prescribed by the State Government.
5. Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker, State Government, Authority / officer.

Rules, forms and cross-references

A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.

Worked example

Q&A — Section 74

Source & verification trail