A charitable trust that carries on business, trade, or profession, whether for the purpose of gain or not, is a 'commercial establishment' under Section 2(4) of the Bombay Shops and Establishments Act, 1948, and is covered under Section 3(1)(a) of the Minimum Wages Act.

JUDGMENT :

1. The petitioners, who are the trustees of 'Maskati Charitable Property Trust', have filed this writ petition praying for the issue of a writ of certiorari quashing the Judgment and Order dated 29th October 1986 passed by the Authority under the Minimum Wages Act, Bombay.

2. The petitioners herein are the trustees of Maskati Charitable Property Trust' (hereinafter referred to as "the said Trust"), which owns a building known as 'Maskati Court', situated at Maharshi Karve Road, Churchgate, Bombay. Apart from the Maskati Court Building, the petitioners are also the owners of a few other properties with tenanted flats. Respondents No. 1, M. Abbas Ali Hussaini was employed by the said Trust as a Liftman-cum-water pump operator.

Respondent No. 1 contended that the said Trust was a "commercial establishment" within the meaning of the Minimum Wages Act, 1948 and hence he was entitled to the minimum wages permissible under the said Act.

3. Respondent No. 1 filed an application in the Court of the Authority under the Minimum Wages Act, Bombay, being Application (M.W.A.) No. 28 of 1985, contending that the said Trust was an "employer" within the meaning of Section 2(e) of the Minimum Wages Act and that the applicant was an "employee" within the meaning of Section 2(i). The said Trust was, therefore, obliged to pay him the minimum wages fixed under the Minimum Wages Act.

4. After hearing both the parties, the Authority under the Minimum Wages Act, Bombay, by his Judgment and Order dated 29th October, 1986 came to the conclusion that the said Trust was a "commercial establishment" and direct the Opposite party in the Trial Court, who are the petitioners herein, to deposit a sum of Rs. 2,254.50 Ps. as difference in wages together with Court Fees and costs.

5. Being aggrieved by the said Judgment and Order of the Authority under the Minimum Wages Act, the petitioners have now moved this Court under Article 226 of the Constitution of India praying that the said Judgment and Order be quashed as the same was based on a misinterpretation of law.

6. The short issue which needs to be decided in this writ petition is whether the said Trust was a "commercial establishment" under item 17 of Part I of the Schedule annexed to the Minimum Wages Act, and whether Respondent No. 1 herein would fall within the definition of an "employee" u/s 2(i) of the said Act.

7. Shri Dalal, learned Counsel appearing on behalf of the Trustees, the petitioners herein, contended that the Authority under the Minimum Wages Act had erred in coming to the conclusion that Maskati Charitable Property Trust was a "commercial establishment". Shri Dalal contended that the three criteria laid down by the Supreme Court for an establishment to be termed as "commercial establishment" were not satisfied in the case of the Trust and, therefore, the provisions of the Minimum Wages Act would not apply in the instant case. Shri Dalal contended that, firstly, there was no systematic activity; secondly, there was no organisation run by the co-operation between the employer and the employee; and thirdly, there was no production and/or distribution of goods and services calculated to satisfy human wants and wishes. Hence the Trust could not be termed as a "commercial establishment" and would not fall within the purview of the Minimum Wages Act.

8. In support of his submission, Shri Dalal has cited various authorities of the Supreme Court, our Court and the other High Courts. I shall deal with these authorities at a later stage. It will be pertinent, firstly to cite the provisions of the Minimum Wages Act as also of the Bombay Shops and Establishments Act, 1948.

9. It will be pertinent, in the first instance, to set out the definition of "employer" as defined in Section 2(e)(iv) of the Minimum Wages Act. Section 2(e)(iv) is in the following terms :

"2(e) (iv) : in any other case where there is carried on any scheduled employment in respect of which minimum rates of wages have been fixed under