Important pointThe Tata Main Hospital at Jamshedpur is covered by the word ‘establishment’ within the meaning of Section 2(6) of the Bihar Shops and Establishment Act, 1953.

Judgment

A.K. Mathur, J.—Both these appeals raise common question of law, therefore they are disposed off by this common order.

Civil Appeal No. 37 of 1998

2. This appeal is directed against an order passed by the Division Bench of the Patna High Court dated February 14, 1997 whereby the Division Bench of the High Court held that the Tata Main Hospital at Jamshedpur (hereinafter referred to as the ‘Hospital’) is an establishment­ within the meaning of Section 2(6) of the Bihar Shops and Establishments Act, 1953 (hereinafter to be referred to as the “Act”) and it is covered by the aforesaid Act. Aggrieved by the aforesaid order this appeal has been filed by the appellant.

3. Brief facts which are necessary for the disposal of this appeal are that the Hospital was established by the Management of Tata Iron & Steel Company Ltd. in the year 1908 for providing medical facilities to the employees as well as their families and dependent of the Company, and its associated companies namely, TELCO, Tata Yodogawa, Tata Robin Fraser and their employees at Jamshedpur. It is also alleged that apart from catering for the employees of the appellant and its associated industries it also caters for the Government employees, on payment of charges about Rs. 50/- per day and from other private patients at the rate of Rs. 120/- per day. It is alleged that 75 of the patients treated are either employees of the appellant or its associated companies or family members of the employees of the appellant or its associated companies. 15 of the patients are Government employees and the rest 10 of the patients are outsiders. It is alleged that a letter was sent by the Labour Superintendent, Jamshedpur to the appellant on November 7, 1995 for registration of the Hospital as an establishment under the provisions of the Act. An objection was taken by the appellant to the effect that since it is providing medical service to its employees and its associated industries and it is not involved in the commercial activities, as such it is not an establishment within the meaning of the Act and it cannot be covered by the aforesaid Act. This objection was overruled by the authorities. Hence the present writ petition was filed.

4. The Division Bench of the Patna High Court after considering necessary provisions of the Act and the Rules framed there under affirmed the order of the authority and held that the establishment is covered by the Act. Hence the present appeal by way of special leave before this Court.

5. We have heard learned counsel for the parties. Principally two submissions have been made; (i) that the present Hospital does not fall within the definition of ‘establishment’ as defined in Section 2(6) of the Act and (ii) that under section 4(2) read with Schedule 1 of item No.2 it is a charitable hospital and therefore it is exempted under the aforesaid section.

6. Before we advert to the facts of the case, we may mention here that a statement of revenue and expenditure of the budget of the Medical Division has been furnished by the appellant and it has been pointed out that there is always deficit in the medical account under the Hospital head. It is also admitted position that the Hospital is one of the Divisions of the appellant. It has also given the details as to the numbers of patients of the appellant and its associated companies are taken care and number of Government servants and private patients are also being treated by the Hospital.

7. Intervenors have also filed a statement showing what are the charges effective from April 1, 2000 for non-entitled category of ­patients and it has been pointed out that admission charge of Rs. 75/- has been revised to Rs. 1000/-, charges in the general ward is Rs. 400/- per bed, VIP cabin is charged at Rs. 1250/- and ICU cabin charge is Rs. 2250/- per day. Likewise, the details for each of the medical speciality charges are being levied varying from Rs. 100/- to Rs. 1000/-. It is an admitted position that the Hospital is