PUNJAB FAIR PRICE SHOPS (FACTORIES) ORDINANCE, 1971
(Ordinance XIII of 1971)
1. Short title,
extent and commencement.
3. Establishment of
fair price shops.
4. Keeping of
5. Display of list of
6. Monthly quota for
7. Purchase and
procurement of essential articles.
of essential articles.
9. Purchase of
articles on credit basis.
10. Constitution of
11. Functions of the
12. Appointment of
Inspectors and Chief Inspector and their functions.
14. Cognizance and
trial of offences.
17. Power to make
PUNJAB FAIR PRICE SHOPS (FACTORIES) ORDINANCE, 1971
(Ordinance XIII of
An Ordinance to provide for the establishment
fair price shops in
certain factories in the Punjab.
Preamble.– WHEREAS it is
expedient to provide for the establishment and maintenance of fair price
shops for the sale of certain articles of daily use at cheaper rates to the
workers employed in certain factories in the Punjab;
NOW, THEREFORE, in pursuance of the
Martial Law Proclamation of 25th March, 1969, read with the Provisional
Constitution Order, and in exercise of all powers enabling him in that
behalf, the Governor of the Punjab is pleased to make and promulgate the
1. Short title, extent and commencement.–
(1) This Ordinance may be called the Punjab Fair Price Shops (Factories)
(2) It shall extend to whole of the
(3) It shall come into force on such
date, in such areas and shall apply to such factories or class of factories
as Government may, by notification in the official Gazette, specify in that
In this Ordinance, unless the context otherwise requires, the following
expressions shall have the meanings hereby respectively assigned to them,
that is to say–
(a) “Chief Inspector” means a Chief
Inspector appointed under section 12 of this Ordinance and includes a person
appointed by Government to perform all or any of the functions of a Chief
Inspector in any area;
(b) “collective bargaining agent”
means a registered trade union of workers in a factory to act as agent or
representative of workers in matters of collective bargaining with the
employer and where there are more than one registered trade union in a
factory, the trade union which as a result of a referendum held under
section 22 of the Industrial Relations Ordinance, 1969, has been determined
as a collective bargaining agent;
means a person or body of persons whether incorporated or not, who or which
employ workers in a factory and includes an owner, occupier, manager, agent,
representative, or any other person who is ultimately in supervision,
control and management thereof;
articles” mean articles mentioned in the Schedule to this Ordinance and
include any other article which the Government may, by notification, declare
to be an essential article for the purposes of this Ordinance;
(e) “factory” means any premises
including a part thereof on which any manufacturing process is carried on
with the aid of power but does not include a mine;
(f) “fair price” means the price at
which an essential article is purchased or procured by the employer under
section 7 of the Ordinance, or controlled price, if any, fixed by the
Government for the same essential article, whichever is less, and where an
essential article manufactured or produced in a factory is to be supplied by
that factory for the fair price shop thereof, the ex-factory
wholesale price of such article;
(g) “fair price shop” means a shop
established and maintained by an employer in or near a factory for selling
essential articles at fair price to the workers of his factory and includes
any room or premises where stock of essential articles is kept or stored;
wife or husband, as the case may be, and children
of a worker; and
parents, brothers and sisters of a worker residing with and wholly
dependant upon him;
“Government” means Government of the Punjab;
(j) “Inspector” means an Inspector
appointed under section 12 of the Ordinance;
(k) “Managing Committee” means a
Managing Committee constituted under section 10 of the Ordinance;
means prescribed by rules framed under this Ordinance; and
(m) “worker” means a person, other
than an employer, employed in a factory for doing any skilled, unskilled,
manual or clerical work for hire or reward, and employed whether directly or
through a contractor, on the terms of employment either expressed or implied
and includes an apprentice and a laid off worker.
3. Establishment of fair price shops.–
Every employer of a factory to which this Ordinance is applied shall, within
one month from the date of its application, establish and maintain a fair
price shop for the workers of his factory:
Provided that Government may, for sufficient reasons, by an order in writing
extend the said period in respect of any factory or class of factories.
4. Keeping of sufficient stocks.– An
employer shall at all times keep and maintain or cause to be kept or
maintained in the fair price shop sufficient stock and quantity of all
essential articles to cater for the needs of the workers.
5. Display of list of fair prices.–
Every employer shall cause to be prepared in Urdu and displayed prominently
inside and outside the fair price shop, lists showing the fair price of each
and every essential article and no such article shall be sold or allowed to
be sold at a price higher than the price entered therein.
6. Monthly quota for a worker.–
A worker may in a month buy from the fair price shop of the factory in which
he is employed, such length, number or quantity of all or any of the
essential articles as may be determined by the Managing Committee.
7. Purchase and procurement of essential
articles.– (1) For the purpose of maintaining
adequate supply at a fair price shop, the employer shall purchase or procure
manufactured essential articles from the manufacturing factories at whole
sale ex-factory price and agricultural and other essential articles
from the nearest whole sale market at the minimum rates prevalent in such
market at the time of purchase or procurement.
(2) In the purchase or procurement of
essential articles under sub-section (1), the employer shall make
Sale of essential articles.–
The essential articles at the fair price shop shall be sold to the workers
at the fair price and the employer shall not charge or allow to be charged
any profit whatsoever thereon, nor he shall include or add to the price of
such articles any rent of the fair price shop, salary of the staff employed
therein, water and electricity charges in respect thereof, fees or
commission for auditing and maintenance of accounts, price of stationery,
furniture or fixtures used therein, or any packing, handling, transportation
or other incidental charges in respect of such articles.
Purchase of articles on credit basis.–
Notwithstanding anything contained in the Payment of Wages Act, 1936, a
worker shall, during every month, be entitled to purchase on credit basis
from the fair price shop, essential articles of the value not exceeding
twenty-five per cent of his monthly wages:
Provided that unless a worker has paid
the price of essential articles purchased on credit in a month, he shall not
be entitled to purchase such articles on credit in the following month or
months and the employer in that case shall be competent to deduct the
outstanding amount of credit from his monthly wages.
10. Constitution of Managing Committee.–
(1) As soon as may be, for every factory there shall be constituted a
Managing Committee consisting of four members and a Chairman:
Provided that Government may, for
sufficient reasons, by notification, increase or decrease the number of
members of such Committee [:]
further that if women are employed in a factory as workers, their
representation at the Managing Committee shall not be less than the
proportion of their numerical strength in the work force of the factory.]
(2) Out of the total number of the
members of the Managing Committee, half of the members shall be nominated by
the collective bargaining agent and the remaining half by the employer:
Provided that where the collective
bargaining agent or the employer, as the case may be, fails to nominate all
or any of their members to the Managing Committee within the time specified
by the Chief Inspector such members shall be nominated by the Chief
that where there is no collective bargaining agent in a factory, the
representatives of workers in the Managing Committee shall be elected in the
Members of the Managing Committee may, in the prescribed manner, unanimously
nominate in writing, a person other than a person from among themselves, to
be the Chairman of such Committee and shall convey their nomination to the
Chief Inspector within the prescribed period.
(4) In case the members are unable to
nominate the Chairman under sub-section (3), the Chief Inspector shall
nominate a person, other than a member of the Managing Committee, as the
(5) The normal term of the Managing
Committee shall be two years from the date of its constitution:
Provided that the Government may, for
sufficient reasons, reduce or enhance its normal term or dissolve it before
the expiry of the term and reconstitute it according to the provisions of
(6) The Chairman and the members of the
Managing Committee shall not be paid any remuneration or compensation for
the functions performed by them under this Ordinance and the rules made
11. Functions of the Managing Committee.–
(1) The functions of the Managing Committee shall be–
determine the quality and quantities of essential articles to be purchased
or procured by the employer at a time and the quantities of such articles
which should normally be available for sale to the worker at a fair price
(b) to check the quality of essential articles
sold at the fair price shop;
(c) to determine the length, number and quantity
of different essential articles which a worker shall be entitled to purchase
from the fair price shop for himself and his family during a month;
(d) to fix
opening and closing hours of the fair price shops and to
regularise transaction of business therein ; and
perform any function which the Government may, by a general or special
order, deem fit to assign.
(2) The provisions of clause (d) of
sub-section (1) shall take effect notwithstanding anything to the contrary
contained in the West Pakistan Shops and Establishments Ordinance, 1969, or
any other law for the time being in force.
12. Appointment of Inspectors and Chief
Inspector and their functions.– (1)
Government may appoint Inspectors for the purpose of this Ordinance and the
Inspector so appointed shall have jurisdiction in such area or areas as the
Government may direct.
(2) The Inspectors appointed under sub-section (1) shall have the
enter a fair price shop and to check the quantity and examine the quality of
essential articles being sold or stocked for sale therein; and
check and examine documents, record or registers kept and maintained in the
fair price shop and, if necessary to take extracts therefrom.
(3) Government shall appoint a Chief
Inspector for the Province or in any part thereof, who
in addition to his exclusive powers conferred on him under this Ordinance,
shall exercise all or any of the powers of an Inspector throughout the
Province or in any part thereof.
All the Inspectors and the Chief Inspector shall, while exercising powers
under this Ordinance and the rules made thereunder,
be deemed to be public servants within the meaning of section 21 of the
Pakistan Penal Code.
(1) Whoever contravenes any of the provisions of this Ordinance or rules
made thereunder, shall be punishable with imprisonment which may extend to
one year or with fine which may extend to five thousand rupees or with both,
and in case of a continuing offence, with a further fine which may extend to
one hundred rupees for every day after the first day during which the
(2) Whoever having been convicted of
any offence under this Ordinance again commits such offence shall, on
conviction, be liable to double the punishment provided for such offence
under this Ordinance.
14. Cognizance and trial of offences.–
(1) No court inferior to that of a magistrate of the first class shall try
any offence under this Ordinance or any rule made thereunder.
(2) No court shall take cognizance of
any offence under this Ordinance or the rules made thereunder, except on the
report in writing of the facts constituting such offence, made by the
No suit, prosecution, or other legal proceedings shall lie against any
person for anything which is in good faith done or intended to be done under
Government may, by notification in the official Gazette, exempt any factory
from all or any of the provisions of this Ordinance for such period and on
such conditions as it may deem fit.
17. Power to make rules.–
(1) Government may make rules for the purpose of carrying into effect the
provisions of this Ordinance.
(2) Without prejudice to the generality
of the power conferred by sub-section (1), such rules may provide for all or
any of the following matters:-
(a) Procedure for holding ballots
for the election of representatives of workers to the Managing Committee in
case there is no collective bargaining agent in any factory.
(b) Procedure for nominating the Chairman of a Managing Committee.
(c) Procedure for convening and
holding of meetings by the Managing Committee.
(d) Manner in which questions
raised before the Committee shall be decided, minutes of meetings shall be
recorded and decisions of the Committee shall be implemented.
(e) Manner and form in which the
record and accounts shall be maintained and scrutinized.
(f) Manner in which the Chief
Inspector and the Inspectors shall exercise their powers under the
(g) Any other matter consequential or incidental to the
Section 2 (d)]
Name of essential articles