SUPREME COURT OF INDIA
Y.V. CHANDRACHUD, P.K. GOSWAMI AND R.S. SARKARIA, JJ.
Chief Commissioner, Delhi and others, Appellants
Versus
Federation of Indian Chambers of Commerce and Industry, New Delhi and others, Respondents.
Civil Appeal No. 1604 of 1967, D/- 30-4-1974.
Delhi Shops and Establishments Act, 1954 - Section 2(5) - Constitution of India, 1950 - Article 226 - Indian Companies Act, 1913 - Section 26 - Chambers of Commerce and Industry - Commercial establishment – Meaning of - Trust or Trusts and/or appoint Trustees - Whether Federation of Indian Chambers of Commerce and Industry, New Delhi (Respondent 1) is a "commercial establishment" within meaning of Section 2(5) of Act, 1954 is sole question that falls for determination in this appeal by certificate directed against judgment of High Court of Delhi - Respondent 1 (Federation) is a Company registered under S. 26 of Act, 1913 - Primary objects of Federation as given in Memorandum of Association are - Held, Apply mutatis mutandis to activity of Federation - It will bear repetition that Federation also publishes periodicals, bulletins etc. and issues same to members free of charge and to non-member businessmen on payment - It holds commercial or industrial exhibitions, runs museums and makes profits - Of course, that profit is ploughed back for purposes of Federation as set out in its Memorandum of Association, and is not distributed among its members - For all foregoing reasons, particularly in view of the decision of this Court in R. K. Mittal s case, (1972) 3 SCR 353 we would hold that premises of Federation are a "commercial establishment" within meaning of S. 2(5) of the Act - Appeal allowed.
Judgment
SARKARIA, J.:- Whether the Federation of Indian Chambers of Commerce and Industry, New Delhi (Respondent 1) is a "commercial establishment" within the meaning of Section 2(5) of the Delhi Shops and Establishments Act, 1954 (for short the Act) is the sole question that falls for determination in this appeal by certificate directed against the judgment dated February 8, 1967 of the High Court of Delhi.
2. The facts bearing on this question may now be stated:
Respondent 1 (hereinafter referred to as the Federation) is a Company registered under S. 26 of the Indian Companies Act, 1913. The primary objects of the Federation as given in the Memorandum of Association are:
"(a) To promote Indian business in matters of inland and foreign trade, transport, industry and manufactures, finance and all other economic subjects and to encourage Indian banking, shipping and insurance.
(b) To encourage friendly feeling and unanimity among business community and association on all subjects connected with the common good of Indian business.
(c) To secure organised action on all subjects mentioned above.
(d) To collect and disseminate statistical and other information and to make effort for the spread of commercial and economic knowledge.
(e) To take all steps by lawful means which may be necessary for promoting, supporting or opposing legislation or other action affecting the aforesaid economic interests and in general to take the initiative to assist and promote trade commerce and industry.
(f) To provide for arbitration in respect of disputes arising in the course of trade, industry or transport or other business matters, and to secure the services of expert technical and other men to that end if necessary or desirable.
(g) To conduct, undertake the conduct of and participate in national and international exhibitions.
(h) To set up museums or showrooms, to exhibit the products of India and other countries and to participate in such activities.
(i) To secure the interests and well-being of the Indian business communities abroad.
(j) ....
(k) To attain those advantages by united action which each member may not be able to accomplish in its separate capacity.
(I) ....
(m) To help in the organisation of Chambers of Commerce or Commercial Associations in different commercial centers of the country.
(n).........................................................
(o).........................................................
(p).........................................................
(q).........................................................
(r)..........................................................
(s)..........................................................
(t)..........................................................
(u)..........................................................
(v)..........................................................
(w).........................................................
(x)..........................................................
(y) To sell or dispose of the undertaking of the Federation or any part thereof for such consideration as the Federation may think fit and in particular for shares, debentures, or securities of any other association or company having objects altogether or in similar to those of Federation.
(z) To take or otherwise acquired and hold shares in any other association or company having objects altogether or in part similar to those of the Federation.
(z1) To establish a Trust or Trusts and/or appoint Trustees thereof from time to time and vest the funds or the surplus income or any property of the Federation in the Trustees who shall hold and deal with the funds, surplus income or property in such manner as the Committee may decide.
(z2) ....
(z3) To draw, make, accept, discount, execute and issue bills of exchange, promissory notes, bills of lading, warrants, debentures and other negotiable instruments or securities.
(z4) ....
(4) The income and property of the Federation, whensoever derived, shall be applied solely tow
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