SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1968 Supreme(SC) 198

SUPREME COURT OF INDIA
J.M. SHELAT, V. BHARGAVA AND C.A. VAIDIALINGAM, JJ.
Cricket Club of India, Appellant
Versus
Bombay Labour Union and another, Respondents.
Civil Appeal No. 833 of 1966 ,
D/- 7-8-l968.
Advocates appeared
M/s. S. D. Vimadalal and C. M. Mehta, Advocate and Mr. B. K. Agarwala, Advocate of M/s. Gagrat and for Appellant M/s. S. B. Naik K Rajendra Chaudhuri K. R. Chaudhuri and C. S. Srinivasa Rao, Advocates, for Respondent No. 1.

Advocates:
B.R.AGRAWAL, C.M.MEHTA, C.S.S.RAO, GAGRAT JANEDRA LAL, K.R.CHAUDHARY, K.RAJENDRA CHAUDHARY, S.B.Naik, S.D.VIMADALAL

Headnote:

Industrial Disputes Act, 1947 – Section 10 (2) and 2 (j) - Indian Companies Act, 2013 - Members Club - Demands made by Workman - Appealed Against Interim Award - Whether Club is an industry or not - Whether these charges made by Club from these organisations, like Catholic Gymkhana Ltd., or from spectators to whom tickets are sold, bring into existence an activity of nature of business or trade so as to convert it into an industry – Held, Court is not inclined to accept submission made on behalf of workmen that this activity by Club is an undertaking in nature of trade or business - It is, in fact, an activity in course of promotion of game of cricket and it is incidental that Club is able to make an income on these few occasions which income is later utilised for purpose of fulfilling its other objects as incorporated in Memorandum of Association - Holding of Test Matches is primarily organised by Club for purpose of promoting game of cricket - This activity by Club cannot, by itself, in Court opinion, lead to inference that Club is carrying on an industry - Though Club is incorporated as a Company, it is not like an ordinary Company constituted for purpose of carrying on business - There are no share-holders - No dividends are ever declared and no distribution of profits takes place - Admission to Club is by payment of admission fee and not by purchase of shares - Even this admission is subject to balloting - Membership is not transferable like right of shareholders - Membership is fluid - A person retains rights as long as he continues as a Member and gets nothing at all when he ceases to be a Member, even though be may have paid a large amount as admission fee - He even loses his rights on expulsion - In these circumstances, it is clear that Club cannot be treated as a separate legal entity of nature of a Limited Co. carrying on business - Club, in fact, continues to be a Members Club without any shareholders and, consequently, all services provided in Club for Members have to be treated as activities of a self serving institution – Court consider that Order made by Tribunal, holding that Club is an industry is incorrect and must be set aside - Appeal allowed.

Judgement

BHARGAVA, J.: The Deputy Commissioner of Labour, Bombay, referred for adjudication by the industrial Tribunal, Maharashtra, Bombay (hereinafter referred to as "the Tribunal"), under S. 10 (2) of the Industrial Disputes Act (hereinafter referred to as "the Act"), a dispute between the Cricket Club of India Ltd. (hereinafter referred to as "the Club") and the workmen employed by it in respect of various demands made by the workman relating to classification of employees, dearness allowance, leave facilities, payment for overtime, permanency, shift allowance, etc. A preliminary objection was taken on behalf of the Club that it is not an industry and, consequently, the provisions of the Act were inapplicable and no reference could be competently made under Sec. 10 (2) of the Act. The Tribunal rejected this preliminary objection holding that the Club came within the definition of "industry" in Section 2 (j) of the Act and made a direction that the case be set down for hearing on merits. The Club has appealed against this interim award of the Tribuanl of the preliminary question, by special leave.

2. The Club is admittedly a Members Club and is not a proprietary Club, though it is incorporated as a Company under the Indian Companies Act. At the relevant time, the Club had a membership of about 4800 and was employing 397 employees who claimed to be workmen. The principal objects of the Club are to encourage and promote various sports, particularly the game of cricket in India and elsewhere, to lay out grounds for the game of cricket, and also to finance and assist in financing cricket matches and tournaments. In addition, it provides a venue for sports and games as well as facilities for recreation and entertainment for the Members. It maintains Tennis Courts in pursuance of another outdoor activity. The indoor games for which provision is made include Billards, Table Tennis, Badminton and Squash. It also maintains a swimming pool. The Club has also provision for residence of members, for which purpose it has constructed 48 residential flats and 40 residential rooms some of which are air-conditioned. Persons occupying these residential flats and rooms are charged at different rates according to the accommodation provided. There is also a Catering Department which provides food and refreshments for the members coming to the Club as well as those residing in the residential portion, and it also makes arrangements or dinners and parties on special occasions at the request of Members. The affairs of the Club are managed by an Executive Committee and various honorary office-bearers.

3. As is usual in most Clubs, the membership is varied. There are life members, ordinary members, temporary members, service members and honorary members. Guests both local and from outstation, are admitted, but subject to certain restrictions and only when they are introduced by a member. The Club owns immovable properties of the value of about Rs. 67 lakhs from which an income in the range of about Rs. 4 lakhs a year accrues to the Club. The other regular source of income is the Club sub-scription paid by each member. Entrance paid by the members is treated as a contribution to the capital of the Club. There are regular games for members of the Club ; but apart from those games, in the cricket ground, which has a Stadium attached to it, matches and various tournaments are held, including Test Matches between the Indian teams and foreign teams visiting India. On these occasions, public are admitted to watch the matches on tickets sold by the Club. In addition, it appears that four sports organisations, amongst which mention may be made particularly of the Catholic Gymkhana Ltd., have been given the right, under agreements entered into with the Club, to exclusive use of a number of seats in the stadium whenever there are official and/or unofficial test matches and/or matches of similar status sponsored by the Board of Control for Cricket in India, or w

























Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top