IN THE HIGH COURT OF BOMBAY
Pendse, J.
SHRI CUTCHI VISA OSWAL DERAWASI JAIN MAHAJAN AND ORS. - Appellant
Vs.
SHRI B.D. BORUDE, AND ORS. - Respondent
L.P.A. No. 1367 of 1982
Decided on : 22-07-1986
INDUSTRIAL DISPUTES ACT, 1947 - SECTION 2(J) - TRUST - INDUSTRY - RELIGIOUS ACTIVITIES - COMMERCIAL ACTIVITIES - WORKMEN - AWARD - VALIDITY:
Fact of the Case:
A trust formed in 1958 with aims to achieve unity among a particular community, establish temples, and raise funds through donations, subscriptions, and contributions, employed 42 workmen for various duties. The workmen formed a union, submitted demands for pay scales and other conditions of service, and sought a reference under the Industrial Disputes Act, 1947. The Industrial Tribunal raised the preliminary issue of whether the trust was an industry under the Act.
Finding of the Court:
The Industrial Tribunal concluded that the trust was an industry under the Act, considering the extensive properties it possessed, the employment of 50 persons, the services rendered not only charitable but also commercial, and the significant aspect of economic adventure.
Issues: 1. Whether the trust was an industry under the Industrial Disputes Act, 1947? 2. Whether the activities of the trust were purely religious or included commercial aspects?
Ratio Decidendi: 1. The definition of 'industry' under Section 2(j) of the Industrial Disputes Act, 1947, is wide and includes any trade, business, undertaking, or manufacture, or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen. 2. The aims and objects of the trust were not purely religious but also included objects for the advancement of members of the community, such as achieving unity, developing social and educational life, and raising funds through donations, subscriptions, and contributions. 3. The trust engaged 42 workmen to perform various duties, including cleaning, providing facilities to residents, and managing properties, which were commercial in nature. 4. The trust's activities of letting out godowns, halls, shops, and sanitorium rooms, and accepting donations and offerings before the deity, were commercial in nature and not purely spiritual.
Final Decision: The petition challenging the Industrial Tribunal's award declaring the trust as an industry under the Industrial Disputes Act, 1947, was dismissed. The court held that the trust's activities were not purely religious but included commercial aspects, and the employment of workmen for these activities brought it within the definition of an industry under the Act.
JUDGMENT :
Pendse, J.—By this petition filed under Article 226 of the Constitution of India, the petitioners-employer are challenging the legality of Award part-1 declared by the Industrial Tribunal on March 4, 1982 holding that the employer-trust is an undertaking and an industry within the meaning of Section 2(j) of the Industrial Disputes Act, 1947. The facts giving rise to filing of the petition are as follows.
2. The petitioner-trust was formed in the year 1958 and was registered as Society under the Societies Registration Act. The aims and objects of the Trust were to achieve unity amongst Cuthci Visa Oswal Derawasi Jain, to achieve development and progress to their religious, social and educational life and activities, to establish temples. Dharmashalas, educational institutions etc., to institute all acts and activities aimed for furthering fraternity and unity amongst Jain and to raise funds by acceptance of donations, subscriptions, contribution etc. The Trust possesses large number of properties in Bombay and had employed about 42 workmen in different sections for carrying out various duties. The workmen employed by the Trust formed a union and submitted the demands in respect of pay scales and other conditions of service. The demands were not accepted and thereupon the Union sought a reference and the Government of Maharashtra in exercise of powers conferred by Clause (d) of Sub-Section (1) of Section 10 of the Industrial Disputes Act made reference to the Industrial Tribunal. Bombay in respect of demands consisting of wages, dearness allowance and festival holidays.
3. The workmen's Union filed the Statement of Claim submitting that the activities of the employer are well organised to render service on the commercial basis after collecting required charges from the people, who receive the services which are rendered with the help and co-operation of the workmen employed by them. It was further claimed that the employer carries on activities of giving on hire and rent, the buildings, godowns, shops, meeting halls, marriage halls and other premises known as 'Atithee Griha' (guest house). The workmen claimed that out of the above activities, the employer is making huge profits collecting high charges, rents etc. and the profits are established at 3 lakhs in a year. The petitioner-Trust filed the written statement, inter alia, claiming that the petitioner Trust is not an undertaking which is an industry under the Act as the principal activity is to render services to the public at large and the services rendered are purely religious in nature. The petitioners denied that the Trust carries on commercial activities such as letting out the properties on hire or rent. The petitioners claim that the main income of the Trust is from donations and not from the rent recovered from various properties.
On these pleadings, the Industrial Tribunal raised the preliminary issue as to whether the petitioner Trust is an industry as contemplated under the Act. After recording evidence, both oral and documentary, the Tribunal came to the conclusion that the Trust has extensive properties which requires employment of about 50 persons and the services rendered are not only charitable in nature, but the Trust is conducting business of rendering services to the people of the community and in response gets donations, offerings and other sources of income. The Tribunal came to the conclusion that the petitioner Trust is carrying out adventure which has significant aspect of economic adventure. On the strength of the findings the answer to the preliminary issue was recorded in favour of the workmen and Award Part I was declared and that award is under challenge.
4. Dr. Kulkarni, learned counsel appearing on behalf of the workmen, raised preliminary objection to the maintainability of the petition submitting that this Court should not exercise writ jurisdiction to interfere with the award passed by determination of preliminary issue. The learned co
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