Absence of delegated rule-making power in Central Government under Chapter VI

A careful examination of the scheme of the Factories Act reveals that the power to make exempting rules and orders under Chapter VI is exclusively vested in the State Government rather than the Central Government or its individual ministries. Sections 64 and 65 of the Act confer specific powers upon State Governments and designated authorities to regulate working hours and grant exemptions under strictly defined conditions. None of the provisions within Chapter VI or the supplemental provisions of Chapter XI empower the Central Government to issue binding clarifications or frame rules concerning the calculation of ordinary rate of wages under Section 59(2). The division of powers under the statute clearly demarcates the responsibilities of state authorities while leaving no operational space for central ministries to issue unilateral directives. Consequently, office memorandums issued by the Ministry of Defence, Ministry of Finance, or Ministry of Labour attempting to redefine overtime parameters are legally incompetent and ultra vires the statute. The statutory framework does not contemplate central executive interference in matters explicitly governed by uniform legislative standards and state-level execution rules. Recognizing such central administrative power would introduce systemic chaos and conflicting state practices contrary to the legislative design. Therefore, any central circular purporting to modify statutory wage calculations remains entirely without legal backing. (Union of India & Others v. Heavy Vehicles Factory Employees' Union and Another | 2026 INSC 74)