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

2009 Supreme(SC) 397

THE HONOURABLE MR. JUSTICE LOKESHWAR SINGH PANTA & THE HONOURABLE MR. JUSTICE V.S. SIRPURKAR
Grand Kakatiya Sheraton Hotel & Towers Employees & Workers Union
Versus
Srinivasa Resorts Ltd. & Others
Civil Appeal No.6499 of 2002
Decided on : 27-02-2009

Advocates appeared:
For the Appellant:Naveen R. Nath, A Dasharatha, Advocates. For the
Respondents:L. Nageshwar Rao, Sr. Advocate, C.R. Sridharan, Rajan Narain, Raj Rajeshwari Shukla, Advocates.

Headnote:Andhara Pradesh Shops and Establishments Act, 1988 Sections 40, 47(3) and 47(4) - Conditions for terminating the service of an employee and payment of gratuity – Challenge to the constitutionality of provision of act - Whether Section 47 (3) and 47(4) are unconstitutional, discriminatory and violative of Article 14 and 19(1)(g) ? - Definations of "Commercial Establishment" and "Establishment" – Difference of – Definition under the Shops Act shows that there are always two sets of employees in an establishment administrative or clerical and technical employees - Owner would be required to pay the gratuity to the employee working in the factory only on his completing five years of continuous service - Employee working on the administrative or clerical side of the factory or office - Merely one year of service or even lesser than that would be sufficient - Provision discriminatory and unreasonable – Liable to be strucked down.

Judgment :-

V.S. Sirpurkar, J.

This appeal is directed against the judgment and order passed by the High Court, whereby, Sections 47(3) and 47(4) of the Andhra Pradesh Shops & Establishments Act, 1988 (hereinafter referred to as `the Shops Act) are declared unconstitutional, discriminatory and violative of the Articles 14 and 19 (1)(g) of the Constitution of India. Following facts would be necessary to understand the controversy.

2. Respondent No. 1 M/s. Srinivasa Resorts Ltd. is a company incorporated under the Companies Act, while the respondent No. 2 is a shareholder of the said company. Respondent No. 1 company is engaged in business of managing and running hotels. They have hotel in the name and style of "ITC Kakatiya Sheraton", which is being run by the ITC Hotels Ltd., which is another company incorporated under the Companies Act. The said hotel is registered under the provisions of the Shops Act. The appellant is the Union of employees and workers of the said hotel. Assistant Labour Officer, respondent No. 4 herein, visited the hotel at the instance of the appellant Union on 31.5.2001 and as required by him, the respondent Nos. 1 & 2 furnished information regarding the employees, who had left the service of the hotel during last 2-3 years, as also the amounts paid to them towards full and final settlement of the dues. The respondent company, by letter dated 6.8.2001, also furnished the receipts signed by the employees who had left the hotel in token of the amounts received by them. It seems that, thereafter, there was lot of correspondence between the respondent No. 1 company and respondent No. 4 Assistant Labour Officer on the issue, whereby, the Assistant Labour Officer was insisting upon the respondent Company to furnish the final settlement statements of the employees, who had left the service of the hotel, in order to know whether any service compensation had been paid to them or not in accordance with the provisions of the Shops Act. It was pleaded by the respondent company that no further documents except those, which were already produced, were available with them. However, the Assistant Labour Officer, by his letter dated 7.8.2001, called upon the respondent company to show cause as to why penal action should not be taken under Section 16(3) of the Act for failure to furnish the required documents. It is at this juncture that a Writ Petition came to be filed before the Andhra Pradesh High Court by the respondent Nos. 1 & 2 herein, whereby, constitutional validity of the provisions of Sections 47(3) and 47(4) of the Shops Act in question, was challenged on the ground that they are illegal, invalid, inoperative and unsustainable in law and violative of Article 13, 14 and 19(1)(g) of the Constitution of India. Since the action against the respondent company was initiated by the appellant Grand Kakatiya Sheraton Hotel & Towers Employees & Workers Union (hereinafter referred to as `the Union for short), the said Union joined as a party, as the respondent No. 3 to the Writ Petition. An injunction was also sought for against the concerned authorities under the Act and more particularly, the State Government and the Assistant Labour Officer, restraining them from inferring the provisions of Sections 47(3) and 47(4) of the Shops Act against the respondent company. This Writ Petition was allowed by the High Court, whereby, the High Court declared the two aforementioned provisions as unconstitutional and amounting to unreasonable discrimination and violative of Article 14 of the Constitution of India.

3. The original respondent No. 3 Union has filed the present appeal, challenging the impugned judgment.

4. There was one other appeal being Civil Appeal No. 2746 of 2006, which was attached with the present Civil Appeal No. 6499 of 2002, however, when the matter was called for hearing on 5.11.2008, nobody remained present for arguing that appeal, which was dismissed for non-prosecution with no orders as to the costs. We are

















































































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