TO WHAT EXTENT DOES THE PRESENT STATUTORY CONCEPT OF ‘OCCUPIER’ UNDER THE FACTORIES ACT, 1948 EFFECTIVELY ENSURE CORPORATE CRIMINAL LIABILITY IN CASE OF INDUSTRIAL ACCIDENTS?

AUTHOR – VISWANATHAN.P, STUDENT AT TAMILNADU DR. AMBEDKAR LAW UNIVERSITY

BEST CITATION – VISWANATHAN.P, TO WHAT EXTENT DOES THE PRESENT STATUTORY CONCEPT OF ‘OCCUPIER’ UNDER THE FACTORIES ACT, 1948 EFFECTIVELY ENSURE CORPORATE CRIMINAL LIABILITY IN CASE OF INDUSTRIAL ACCIDENTS?, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (4) OF 2026, PG. 1031-1050, APIS – 3920 – 0001 & ISSN – 2583-2344

1. Introduction

Industrial development has been one of the most significant drivers of economic growth in modern societies, particularly in a developing country like India. With the expansion of manufacturing industries, factories have become central to employment generation and production. However, this rapid industrialization has also brought with it serious challenges, especially in relation to worker safety, occupational health, and industrial accidents. Instances of factory mishaps, ranging from minor injuries to major industrial disasters, have highlighted the urgent need for a strong legal framework to regulate working conditions and fix accountability.

In this context, the Factories Act, 1948 was enacted as a comprehensive piece of social welfare legislation aimed at ensuring the health, safety, and welfare of workers employed in factories. The Act imposes a range of statutory duties on those who are responsible for the management and control of factories. Among its many provisions, one of the most crucial and debated concepts is that of the “Occupier”, defined under Section 2(n) of the Act. The occupier is regarded as the person who has ultimate control over the affairs of the factory, and therefore, is held primarily responsible for ensuring compliance with the provisions of the Act.

The importance of the concept of occupier becomes particularly evident when dealing with cases of industrial accidents and violations of safety standards. Since a company, being a juristic person, cannot be physically punished in the same manner as an individual, the law identifies a natural person—namely, the occupier—who can be held criminally liable. This mechanism serves as a bridge between corporate functioning and criminal accountability, ensuring that responsibility does not remain diffused within the complex structure of a corporate entity.