The word 'shop' in the notification issued by the Government of Maharashtra under sub-section (5) of section 1 of the Employees' State Insurance Act, 1948 should be interpreted in a restrictive sense, referring only to places where goods are sold and/or services rendered in a manner that is accessible to the general public.

Headnote:
EMPLOYEES' STATE INSURANCE ACT, 1948 - SECTION 1(3), 1(5) - SHOPS - INTERPRETATION - ADVERTISING CONSULTANCY FIRM NOT A SHOP - NOT COVERED BY THE ACT.
Fact of the Case:

The issue before the court was whether the office premises of an advertising concern can be called a shop and thus be covered under the Employees' State Insurance Act, 1948.
Finding of the Court:

The court held that the office premises of an advertising concern cannot be called a shop and thus is not covered under the Employees' State Insurance Act, 1948.
Issues: Whether the office premises of an advertising concern can be called a shop and thus be covered under the Employees' State Insurance Act, 1948.
Ratio Decidendi: The court interpreted the word 'shop' in the notification issued by the Government of Maharashtra under sub-section (5) of section 1 of the Act in a restrictive sense, holding that it refers only to places where goods are sold and/or services rendered in a manner that is accessible to the general public.
Final Decision: The court allowed the appeal and declared that the appellant's establishment is not a shop within the meaning of the notification dated 18-9-1978 issued by the Government of Maharashtra under sub-section (5) of section 1 of the Act.

JUDGMENT - V.V. VAZE, J.:---The Employees' State Insurance Act, 1948 ('the Act') is a welfare legislation designed to provide for certain benefits to employees in case of sickness, maternity and employment injury. Sub-section (3) of section 1 of the Act which deals with the commencement and territorial application provisions enables the Central Government by a notification in the Official Gazette to bring the Act into force for different States or for different parts thereof. The Act applied in the first instance to all factories but sub-section (5) of section 1 enables the State and Central Government to extend the provision of the Act to any other establishment or class of establishments by notification in the Official Gazette.

2. In exercise of powers conferred by sub-section (5) of section 1 of the Act the Government of Maharashtra issued a notification on 18-9-1978 extending with effect from 12-11-1978 all the provisions of the Act to classes of establishments given in the Schedule. Item 3 of para 3 of the schedule speaks of "shops" as a class of establishment to which the Act shall apply.

3. M/s. Dattaram Advertising Private Limited ('the Company') of Ready money Mansion, Veer Nariman Road, Bombay purport to act as 'advertising consultants'. They have been registered under the Bombay Shops and Establishment Act, 1948 and employ more than 20 workers. The Regional Director of Maharashtra Employees State Insurance Corporation ('Corporation') held that the company is a shop within the meaning of notification dated 18-9-1978 issued by the Government of Maharashtra and as such the Employees State Insurance Act, 1948 applies to it. On this basis the Corporation claimed the employer's special contribution and employees contribution together with interest as envisaged by the Act. An application under section 75 of the Act before the Employees State Insurance Court at Bombay having been dismissed the Company files the present appeal.

4. The decision of this appeal veers round a question whether the office premises of an advertising concern can be called a shop. The concept of advertising is as old as the hills and the dales. With a greater fashion consciousness that has swept the affluent world, a philosophy has developed even amongst the not-so-rich that one had as good be out of the world as out of the fashion. The keeping with the Joneses fever has gripped a very large segment of the populace and the Ad people tell the world what the Joneses do. It is just flattering the vast body of consumers with delicacy.

5. An advertising consultancy or agency has various departments; a small unit of creative copy writers and visualizers form the core. They and the art directors plan the strategy for the client and after visuals are approved by him the execution work is taken over by the team of artists and models. The media managers take care of the planning of a successful live wire sales promotion strategy. Needless to say advertising agency like any other business does have an administrative department to look after day-to-day work.

6. The Canons of statutory construction are sufficiently accordion like to permit a restrictive or expansive interpretation depending upon the purpose of the statute. The present statute does not impinge upon the fundamental rights of any person and all that it does is to impose on the employer and employee a compulsory contract of insurance. Even if this Act was not on the statute book nothing prevented an employer from taking out a policy of group insurance for the benefit of his workers after arriving at an arrangement with their Union. But the legislature in its wisdom thought that it should interfere and impose an obligation rather than leaving it to the will of the employer to have an insurance cover for the workers. The original bills as drafted was entitled "the Workmen's State Insurance Bill" and the Central Labour Minister said it was "beginning of social security". After the bill was referred to the Se

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