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2026 Supreme(Bom) 51

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SANDEEP V. MARNE, J.
Apsara Co-operative Housing Society Ltd. - Petitioner
Versus 
Vijay Shankar Singh - Respondent
WRIT PETITION NO.3908 OF 2025, WRIT PETITION NO.4146 OF 2025
Decided On : 05-01-2026

Advocates Appeared:
For the Petitioner: Mr. Mahesh Shukla, With Mr. Udaybhan Tiwari I/b., Mr. Niraj Prajapati
For the Respondent: Mr. Ashish G. Nagwekar

Cooperative housing societies are neither classified as 'industries' under the ID Act nor 'establishments' under the PG Act due to their focus on maintenance without systematic commercial activity.

Headnote:(A) Industrial Disputes Act, 1947 - Section 2(j) - Payment of Gratuity Act, 1971 - Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 - Cooperative housing society not classified as an 'industry' or 'establishment' - The primary function of the society is the maintenance of residential premises, not commercial activity - Jurisdiction of Labour Court and Controlling Authority not applicable. (Paras 19, 20, 39, 41)

(B) Maintainability - The activities of a cooperative housing society do not amount to an industry or establishment as defined under the respective acts, as there is no systematic commercial activity involved. (Paras 18, 39)

Facts of the case:
The petitioner, a cooperative housing society, challenged the maintainability of claims from an ex-Manager for dues under the Industrial Disputes Act and Payment of Gratuity Act, asserting it is neither an 'industry' nor an ‘establishment' as per the relevant definitions. The society engages in maintenance work, not commercial operations. (Paras 1-4, 6)

Findings of Court:
The court ruled that cooperative housing societies, primarily focused on maintenance services for members, do not qualify as an 'industry' or 'establishment' under applicable law, retaining the authority's jurisdiction over the dispute as not maintainable. (Paras 27, 41)

Issues: The key issues revolved around whether the society constituted an 'industry' for the purposes of the ID Act or an 'establishment' under the PG Act, and whether the Labour Court or Controlling Authority had jurisdiction to hear the respondent's claims. (Paras 2, 3)

Ratio Decidendi: The ruling held that the cooperative housing society's purpose is maintenance of residences, devoid of any systematic trade or commercial activity, affirming it does not meet the definitions of an 'industry' or 'establishment'. (Paras 19, 41)

Result: Petitions allowed; applications dismissed. (Paras 42)

Table of Content
1. challenge based on maintainability of industrial and gratuity claims. (Para 3 , 4)
2. petitioner's arguments against categorization as 'industry' or 'establishment'. (Para 7 , 8 , 9)
3. respondent's counterarguments for 'industry' status and claims for benefits. (Para 10 , 11 , 12)
4. analysis of cooperative housing societies in relation to legal definitions. (Para 18 , 19 , 20 , 21 , 22)
5. precedents affirming non-industry status for housing societies. (Para 23 , 24 , 25 , 26 , 27 , 28 , 29)
6. definitions and implications of ‘establishment’ under relevant acts. (Para 30 , 31 , 32 , 33 , 34 , 35 , 36)
7. clarification on the applicability of statutory benefits to society employees. (Para 37 , 38 , 39)
8. conclusion on inapplicability of id and pg acts to the petitioner. (Para 40)
9. final orders and dismissals of applications. (Para 41 , 42 , 43)
JUDGMENT :

SANDEEP V. MARNE, J.

1) Rule. Rule made returnable forthwith. Respondent has appeared and has filed Affidavits-in Reply. He waives service of Rule. With the consent of the learned counsel appearing for parties, the Petitions are taken up for hearing and disposal.

ISSUES FOR DETERMINATION

2) Whether a housing society formed by flat owners for collective management of the building is an ‘industry’ for maintainability of proceedings before Labour Court under the Industrial Disputes Act, 1947 or an ‘establishment’ for maintainability of proceedings before the Controlling Authority under the Payment of Gratuity Act, 1971 are the issues which this Court is tasked upon to determine in these Petitions.

3) Petitioner is a cooperative housing society and questions maintainability of proceedings filed by its ex-Manager for payment of dues under Section 33 -C(2) of the Industrial Disputes Act, 1947 (the ID Act) and for payment of gratuity under the Payment of Gratuity Act, 1971 (the PG Act ). According to the Petitioner it is neither an ‘industry’ within the meaning of Section 2 (j) of the ID Act nor an ‘establishment’ within the meaning of (4) of the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (the Maharashtra Shops Act). According to the Petitioner, the Labour Court and Controlling Authority do not have jurisdiction to entertain any proceedings against the Petitioner. With this grievance, the present Petitions are filed.

THE CHALLENGE

4) These two Petitions challenge the orders dated 17 January 2024 passed by the Presiding Officer, 10th Labour Court, Mumbai, who is also Controlling Authority under the PG Act . Writ Petition No.3908 of 2025 challenges order passed on Application at Exh. C-4 filed by Petitioner in Application ( IDA ) No.111 of 2023, by which the Labour Court has rejected its prayer for dismissal of the proceedings filed under Section 33 -C(2) of the ID Act. In Writ Petition No.4146 of 2025, Petitioner has challenged order dated 17 January 2024 passed by the Controlling Authority under the PG Act rejecting its application below Exh. C-4 seeking dismissal of Application (PGA) No.186 of 2023 filed by the Respondent for payment of gratuity.

FACTS

5) Petitioner is a cooperative housing society registered under the provisions of Maharashtra Co-operative Societies Act, 1960 (MCS Act). The Respondent was working with the Petitioner as a Building Manager, who was appointed vide letter of appointment dated 5 August 2013. His services have been terminated by the Petitioner-Society vide letter dated 15 October 2022. The Respondent submitted Application in Form I claiming gratuity of Rs.4,67,308/- on 17 May 2023. He filed Application (PGA) No.186 of 2023 before the Controlling Authority seeking payment of gratuity of Rs.4,67,308/- together with interest. The Respondent also filed Application ( IDA ) No.111 of 2023 before 10th Labour Court under the provisions of Section 33 -C(2) of the ID Act claiming total amount of Rs.3,87,000/- being bonus and leave wages for the years 2020-21, 2021-22 and 2022- 23.

6) Upon receipt of no

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