SUPREME COURT OF INDIA
E.S. VENKATARAMIAH AND K.N. SINGH, JJ.
M/s. Hindu Jea Band, Jaipur, Petitioner
Versus
Regional Director, Employees State Insurance Corporation, Jaipur, Respondent.
Spl. Leave Petn. (Civil) No. 1743 of 1987 and Civil Writ Petn. No. 197 of 1987, D/- 20-2-1987.
AND
M/s. Hindu Jea Band, Jaipur Petitioner
Versus
State of Rajasthan and other, Respondents.
Employees State Insurance Act, 1948 - Section 75 - Constitution of India,1950 – Articles 136 and 32 - Partnership firm - Claim any exemption - Arrears by Regional Director - Intermittent or seasonal character - Marriages and other social functions - Employees State Insurance Court rejected petition filed by petitioner and directed it to pay amount which had been computed as arrears by Regional Director of Employees State Insurance Corporation - An appeal filed against decision of Employees State Insurance Court by petitioner was dismissed by High Court of Rajasthan This petition under Art.136 of Constitution is filed against judgment of High Court - Petitioner has also filed a writ petition under Article 32 of Constitution questioning validity of subs. (5) of S.1 of Act and notification issued by State Government under it to which reference will be made hereafter - Held, Petitioner cannot rely on sub-s. (4) of S .1 of Act which refers to factories only in support of its case – Court are concerned in this case with a shop and not a factory as defined under S .2(12) of Act - Moreover services of employees of petitioner are not confined only to marriages - It cannot also be said that marriages take place only during a specified part of year - Nowadays marriages take place throughout year - Petitioner provides music at several other social functions also which may take place during all seasons - Definition of an employee under Act has a wider meaning - Employees who worked outside business premises but those whose duties are connected with business are also employees within meaning of S .2(9)( Court) of Act - (See Nagpur Electric Light & Power Co .Ltd Regional Director Employees State Insurance Corporation - Even those employees who are paid daily wages or those who are part time employees are employees for purposes - Writ Petition dismissed.
Judgement
VENKATARAMIAH, J. : - The petitioner M/s. Hindu Jea Band, Jaipur which is a partnership, firm carrying on the business of playing music on occasions, such as, marriages and other social functions questioned its liability to pay the contribution under the provisions of the Employees State Insurance Act, 1948 (hereinafter referred to as the Act) in a petition filed under S. 75 of the Act before the Employees State Insurance Court, Jaipur principally on two grounds (i) that the place where it was carrying on business was not a shop and (ii) that its business being one of intermittent or seasonal character the Act could not be extended to its business. The Employees State Insurance Court rejected the petition filed by the petitioner and directed it to pay the amount which had been computed as the arrears by the Regional Director of the Employees State Insurance Corporation, Jaipur. An appeal filed against the decision of the Employees State Insurance Court, Jaipur by the petitioner was dismissed by the High Court of Rajasthan, This petition under Art. 136 of the Constitution is filed against the judgment of the High Court. The petitioner has also filed a writ petition under Art.. 32 of the Constitution questioning the validity of sub-s. (5) of S. 1 of the Act and the notification issued by the State Government under it to which reference will be made hereafter.
2. The Act did. not apply to shops and such other establishments straightway on the Act coming into force in the State of Rajasthan. But by the notification dt. September 20, 1975 issued under sub-s. (5) of S. 1 of the Act the Government of Rajasthan extended all the provisions of the Act to certain classes of establishments and areas in the State notification. Item 3(iii) in the Schedule to the, said notification brought within the purview of the Act shops in which 20 or more persons had been employed for wages on any day of the preceding 12 months and appointed on October 26, 19,75, as the date from which the said, notification would come into force. The petitioner as held by the Employees State Insurance Court had employed 23 persons on wages, during the relevant period, Since the petitioner did not comply with the provisions of. the Act the authorities of the Employees State Insurance Corporation, Jaipur called upon the petitioner to make contributions as required by the Act with effect from October 26, 1975. The petition before the Employees State Insurance Court was filed by the petitioner on such a demand being made on it questioning the validity of the said demand.
3. The first contention. urged in support of the petition is that since the petitioner was hot selling any goods in the place of its business but was only engaged in arranging for musical performances, on occasions such as marriages, etc., its business premises cannot be called a shop. We do not agree with the narrow construction placed by the petitioner on the expression shop which appears in the notification issued under S. 1(5) of the Act which is a beneficent legislation. The word shop has not been defined in the Act. A shop is no doubt an establishment (other than a factory) to which the Act can be extended under S. 1(5) of the Act provided other requirements Are satisfied. In Collins English Dictionary the meaning of the word shop is given thus : "(i) a place esp. a small building for the retail sale of goods and services and (ii) a place for the performance of a specified type of work; workshop". It is obvious from the above meaning that a place where services are sold on retail basis is also a shop. It is not disputed that the petitioner has been making available on payment of the stipulated price the services of the members of the group of musicians employed by it on wages. We, therefore, hold that the place where the petitioner has been carrying on business is a shop to which the Act is applicable by virtue of the notification referred to above. The first contention, therefore, fails.
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