R. J. SHAH, J. ( 1 ) IN the above petition the Gujarat Electricity Board has challenged the directions contained in the order dated 15/01/1979 passed by the second respondent and has prayed that the same be quashed and set aside. State of Gujarat is respondent No. 1. ( 2 ) ACCORDING to the petitioner it is engaged in the business of generation supply and distribution of electrical energy and for that purpose it has thermal power stations at several places. At the thermal power stations the work of generation of electricity is done. The petitioner has also got several sub-stations where conversion of high voltage into low voltage is done with the help of transformers and other devices which are installed at such sub-stations. No generation of electricity is done at the sub-stations. The petitioner contends that the sub-stations whether big or small are not factories and therefore the provisions of the Factories Act 1948 cannot apply to the substations. Since the office of the Factories Inspector was raising an objection in this connection and was insisting that the said sub-stations should be registered as factories even through no manufacturing activity was done at such sub-stations the petitioner had addressed a letter dated 13/11/1978 to respondent No. 1 State and had requested the Government to instruct the Chief Inspector of Factories not to compel the petitioner to get the sub-stations registered as factories under the said Act. It is respondent No. 2 who had replied to the same by his letter dated 15/01/1979 and opined therein that the workmen employed in the sub-stations are engaged in manufacturing process in a factory within the meaning of sec. 2 (k) and sec. 2 (m) of the Factories Act and sub-stations employing 10 or more workers would be covered within the definition of a factory under sec. 2 (m) (i) of the Factories ct 1948 and so would require registration under the said Act. Hence the present petition. ( 3 ) RESPONDENTS have not filed any affidavit in this matter. ( 4 ) THE term manufacturing process has been defined in sec. 2 (m) (i) of the Factories ct 1948 and so would require registration under the said Act. Hence the present petition. ( 3 ) RESPONDENTS have not filed any affidavit in this matter. ( 4 ) THE term manufacturing process has been defined in sec. 2 (k) of the said Act as under: (K) manufacturing process means any process for (i) making altering repairing ornamenting finishing packing oiling washing cleaning breaking up demolishing or otherwise treating or adapting any article or substance with a view to its use sale transport delivery or disposal or (ii) pumping oil water sewage or any ther substance or (iii) generating transforming or transmitting power; or (iv) composing types for printing printing by letter press lithography photogra vure or other similar process of book binding; or (v) constructing reconstructing repairing refitting finishing or breking up ships or vessels or (vi) preserving or storing any article in cold storagethe term factory has been defined in sec. 2 (m) of the said Act as under: (M) factory means any premises including the precincts thereof (i) Whereon ten or more workers are working or were working on any day of the preceding twelve months and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried on or (ii) Whereon twenty or more workers are working or were working on any day of the preceding twelve months and in any part of which a manufacturing process is being carried on without the aid of power or is ordinarily so carried on but does not include a mine subject to the operation of the Mines Act 1952 (XXV of 1952) or a mobile unit belonging to the armed forces of the Union a railway running shed or a hotel restaurant or eating place Explanation: For computing the number of workers for the purposes of this clause all the workers in different relays in a day shall be taken into account ( 5 ) IN order to appreciate the aforesaid definition of manufacturing process regarding electric energy it would be apposite to refer to Mcgraw-Hills Encyclopedia of Science and Technology Vol. 4 (1971 Edition) wherein on the subject under consideration it has been stated to the following effect:electric power generation generally implies large scale production of electric power in stationary plants designed for that purpose. 4 (1971 Edition) wherein on the subject under consideration it has been stated to the following effect:electric power generation generally implies large scale production of electric power in stationary plants designed for that purpose. The generating units in these plants convert energy from falling water coal natural gas oil and unclear fuels to electric energy. Most electric generators are driven either by hydraulic turbines for conversion of falling water energy; or by steam or gas turbines for conversion of fuel energy. Electric power generating plants are normally interconnected by a transmission and distribution system to serve the electric loads in a given area or region. The transmission system carries electric power efficiently and in large amounts from the generating stations to areas where it is consumed. Transmission circuits are designed to operate at voltages up to 765 0 depending on the amount of power to be carried and the distance. Power delivered by transmission circuits must be stepped down in facilities called sub-stations to voltages more suitable for use in industrial and residential areas. On transmission systems these facilities are commonly called bulk power sub-stations; on or near factories or mines they are termed industrial sub-stations; and where they supply residential and commercial areas distribution sub-stations. Basic equipment in a sub-station includes circuit breakers switches transformers lightning arresters and other protective devices instrumentation control devices and other apparatus related to specific functions in the power system. That part of the electric power system that takes power from a bulk-power substation to customers switches commonly about 40% of the total plant investment. is called distribution. 9this category includes distribution sub-stations sub-transmission circuits that feed them primary circuits that extend from distribution sub-stations to every street and alley distribution transformers secondary lines house service drops or loops street and highway lighting matering equipment and a wide variety of associated devices. Primary distribution circuits usually operate at 4160-34 500 volts line-to-line and may be overhead open wire on poles overhead or aerial cable or underground cable. These circuits supply large commercial institutional and some industrial customers directly. Smaller customers are supplied through numerous distribution transformers. At conveniently located distribution transformers in residential and commercial areas the voltage is stepped down again to 120 and 240 volts for secondary lines from which service drops or loops extend to every customers lights and appliances. These circuits supply large commercial institutional and some industrial customers directly. Smaller customers are supplied through numerous distribution transformers. At conveniently located distribution transformers in residential and commercial areas the voltage is stepped down again to 120 and 240 volts for secondary lines from which service drops or loops extend to every customers lights and appliances. An assembly of equipment in an electric power system through which electric energy is passed for transmission transformation distribution or switching is known as Electric power sub-station. Specifically sub-stations are used for one or more of the following purposes: (1) transformation from one voltage level to another (2) isolating faulted circuits; (3) controlling transmission voltage and power factor; (4) switching to change power flows to or from generating plants or interconnected power companies; (5) converting alternating current to direct current or vice versa; (6) converting from one frequency to another; (7) regulating voltage on feeder circuits; (8) automatic transfer to alternate sources of power; and (9) measuring and controlling electric power. Sub-stations are classified by the duty they perform. Transmission bulk-power or switching sub-stations are those associated with the higher voltage or transmission portion of the power system Distribution sub-stations are associated with the distribution system and the primary feeders for supply to residential commercial. and industrial loads. Customer substations are on the premises of utility customers such as shopping centers large office or commercial buildings and industrial plants. Load-center substations are located within large buildings or industrial plants as part of the distribution system within a large plant. (See pp. 483 497 498 and 491 in Mcgraw - Hills Encyclopedia of Science and Technology Vol. 4 (1971 Edition) thus electric power generating plants are normally interconnected by a transmission and distribution system and power delivered by transmission circuits has to be stepped down in facilities called sub-stations to voltages more suitable for use in industrial and residential areas. It is also noteworthy that sub-stations are classified by the duty they perform. At sub-stations electric power generating process is not undertaken. ( 6 ) SO far as distribution is concerned it will be useful to refer to Encyclopedia Britannica Vol. 8 1972 Edition. At page 216 under the caption Distribution it has been stated as under:the distinction between distribution and transmission circuits is somewhat vague. At sub-stations electric power generating process is not undertaken. ( 6 ) SO far as distribution is concerned it will be useful to refer to Encyclopedia Britannica Vol. 8 1972 Edition. At page 216 under the caption Distribution it has been stated as under:the distinction between distribution and transmission circuits is somewhat vague. It may be said that transmission implies larger blocks of power delivered at higher voltages to a few main sub-stations while distribution implies smaller blocks of power delivered at lower voltages to many smaller substations or to consumers. ( 7 ) THUS distribution in any ease will not fall within the definition of manufacturing process contained in the aforesaid see. 2 (k) of the said Act. ( 8 ) SUB-STATION is defined in sec. 2 (11-A) of the Electricity (Supply) Act 1948 which provides as under:sub-STATION means a station for transforming or converting electricity for the transmission or distribution thereof and includes transformers convertors switchgear capacitors synchronous condensers structure cables and other appurtenant equipments and any buildings used for that purpose and the site thereof a site intended to be used for any such purpose and any buildings used for housing the staff of the sub-station. Thus a generating station has not been included in the said definition. ( 9 ) IN the context of the aforesaid and considering the nature of the different activities carried on by sub-stations it will be apparent that the sub-stations cannot be regarded as places where any manufacturing process in the sense of electric power generating process is going on. ( 10 ) A Division Bench of the Bombay High Court had an occasion to consider the aforesaid definition manufacturing process contained in the said clause (k) of sec. 2 of Factories Act 1948 in RAMLANSHAN JAGESHAR V. BOMBAY GAS CO. LTD. (AIR 1961 BOMBAY 184 ). The commodity here was gas and not electric energy. It was observed that distribution or transport of an article after it was manufactured was not a manufacturing process and such work could not also be said to be incidental to or connected with a manufacturing process. ( 11 ) IN the case of THE NAGPUR ELECTRIC LIGHT AND POWER CO. LID. ETC. V. THE REGIONAL DIRECTOR EMPLOYEES STATE INSURANCE CORPORATION ETC. ( 11 ) IN the case of THE NAGPUR ELECTRIC LIGHT AND POWER CO. LID. ETC. V. THE REGIONAL DIRECTOR EMPLOYEES STATE INSURANCE CORPORATION ETC. (A. I. R. 1967 SUPREME COURT 1364) a Bench of three judges of the Supreme Court has however held while considering the said definition of manufacturing process in the context of electric energy that the process of transforming electric energy from a high to low potential and the process of transmitting the energy through supply lines are both manufacturing processes. The said conclusion was arrived at while considering whether the premises constitute a factory within the meaning of sec. 2 (12) of the Employees State Insurance Act 1948 ( 12 ) IN the case of WORKMEN OF DELHI ELECTRIC SUPPLY UNDERTAKING V. THE MANAGEMENT OF DELHI ELECTRIC SUPPLY UNDERTAKING (A. I. R. 1973 SUPREME COURT 365) another Bench of the Supreme Court also consisting of three judges had an occasion to consider the aforesaid definitions of manufacturing process and factory. After considering and distinguishing a Calcutta decision A. I. R. 1961 Cal. 248 and also considering the decision in Nagpur Electric Light and Power Company Limited (supra) the Supreme Court in para 18 of the judgment has propounded as under:sec. 2 (12) referred to in the above quotation (the quotation referred is from AIR 1967 SC 1364 mentioned above) is of the Employees State Insurance Act. It is clear from this decision that the factory must occupy a fixed site or premises. The evidence on record clearly shows that several sub-stations and zonal stations are left unattended. This will not be the case if a manufacturing process takes place in those premises. A perusal of the nature of the work that the concerned workmen have to do even as enumerated in their statement of claim before the Tribunal clearly shows that they have no part in any manufacturing process. Their functions appear to be to maintain the existing lines of generation transmission and transformation of power in their respective areas to attend to installation and other incidental matters when a new connection has been given to a consumer. They have to attend to daily complaints from the consumers keep regular reports and attend to the defects in the consumers premises. They have to attend to daily complaints from the consumers keep regular reports and attend to the defects in the consumers premises. They have to go out for field work and they have to sit in office for maintenance and preparation of the relevant records It cannot be said that any manufacturing process either takes place in the sub-stations or in the zonal stations and they do not satisfy the definition of factory under sec. 2 (m) of the Factories Act. Thus before reaching the said conclusion regarding the said definitions the facts of the case and the activities carried on at sub-stations have been closely examined by the Supreme Court as also the aforesaid decisions. The Supreme Court in this decision has not considered the said definitions divorced from the facts of the case. By doing so it has clearly pointed out that the said definitions require to be construed in the light of the facts of the case and the activities carried on at substations. Considering from this angle it does not seem that there is any real conflict between the aforesaid two Supreme Court decisions. ( 13 ) A single judge of the Andhra Pradesh High Court has also dealt with the said definition in the case of The Public Prosecutor. High Court of A. P. HYDERABAD V. B. BABU AND ANOTHER (AIR 1979 ANDHRA PRADESH 221) while hearing Criminal Revision Cases Nos. 360 of 1978 and 361 of 1978 and Criminal Revision Petitions Nos. 357 of 1978 and 358 of 1978. It was urged before the learned single judge on behalf of the respondent that there was no transformation of the electric energy received at the two sub-stations that what was done at the sub-stations was only to reduce the energy from a high potential to a low potential and that the process should not be regarded as transformation of energy within the meaning of sec. 2 (k) (iii) of the Factories Act 1948 Reliance was also placed upon the meaning of the word transformation contained in the Concise Oxford Dictionary (5th Edition ). 2 (k) (iii) of the Factories Act 1948 Reliance was also placed upon the meaning of the word transformation contained in the Concise Oxford Dictionary (5th Edition ). Transformation has been defined in the said dictionary as metamorphosis especially of insects; change from solid to liquid or from liquid to gaseous state or vice versa It was further submitted that all the three processes generation transformation and transmission of electric energy took place only at the power station and not at the sub-station where only conversion of thee electric energy from a high potential to low potential took place. The learned single judge accepted the submission that there was no transmission of electric energy in the sub-stations as laid down in The Management of Delhi Electric Supply Undertaking (supra ). The learned single judge also accepted the submission that there was no transformation of electric energy at the sub-stations. The learned single judge however felt that he was bound by the aforesaid earlier Supreme Court decision in the case of The Nagpur Electric Light and Power Company Limited. As stated above there is hardly any real conflict between thee aforesaid two Supreme Court decisions. ( 14 ) IN view of all the aforesaid it would seem that the approach and the view expressed in the said letter dated 15/01/1979 by respondent No. 2 cannot be endorsed and must be held to be erroneous. The petitioner cannot be required in the manner in which it is done to get all its sub-stations registered as factories. The directions contained in the said letter are therefore hereby quashed. We hereby direct respondent No. 2 to enquire into the facts of each individual sub-station of the petitioner in the light of what has been observed hereinabove and afford an opportunity of hearing to the petitioner before requiring it to get all or any of the sub-stations registered as a factory under the provisions of the Factories Act 1948 Petition therefore succeeds to the extent mentioned above. ( 15 ) RULE is accordingly made absolute to the extent mentioned above. In the circumstances of the case there will he no order as to costs. Petition partly allowed. .