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

Under the OSH Code, 2020, an application for permission for the site, construction or extension of a factory is sent in electronic mode to the State Government or the Chief Inspector-cum-Facilitator, with the required plans and specifications. If no order is communicated to the applicant within the period prescribed in the Code, what is the legal consequence?

The permission is deemed to have been granted. Under section 79(2) of the OSH Code, if no order is communicated within a period not exceeding thirty days on an electronic application with plans and specifications, the permission applied for is treated as granted.

  1. AThe application is deemed rejected and the applicant must reapply
  2. BThe permission applied for is deemed to have been grantedCorrect
  3. CThe application stays pending until an order is passed
  4. DThe applicant must obtain permission from the Central Government

Explanation

Section 79(2) provides that where no order is communicated within a period not exceeding thirty days, the permission applied for is deemed granted. Deemed rejection and indefinite pendency are contrary to this provision. Approaching the Central Government is relevant only for an appeal against a refusal by the State Government.

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