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CMA Intermediate · Business Laws and Ethics · Factories Act, 1948

Under the Factories Act, 1948, which description of 'public emergency' is correct for Section 5?

Public emergency under Section 5 means a grave emergency in which the security of India or any part of its territory is threatened by war, external aggression or internal disturbance. Ordinary labour disputes, shortages or accidents do not qualify.

  1. AAny strike or lockout affecting production in a region
  2. BA grave emergency threatening the security of India or any part of it, by war, external aggression or internal disturbanceCorrect
  3. CAny shortage of raw materials declared by a State Government
  4. DAny accident causing death of workers in a factory

Explanation

The Explanation to Section 5 defines public emergency as a grave emergency whereby the security of India or any part of its territory is threatened, by war, external aggression or internal disturbance. Strikes, shortages or accidents are not covered.

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