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1986 Supreme(Pat) 178

PATNA HIGH COURT
Satyeshwar Roy, J.
Beldih Club
Versus
Joint Commissioner Of Labour
Civil Writ Jurisdiction Case No. 655 of 1986 ;
Decided On : MAY 14, 1986

A club that provides catering facilities to its members and guests is an establishment within the meaning of the Bihar Shops and Establishments Act, 1953.

Headnote:

BIHAR SHOPS AND ESTABLISHMENTS ACT, 1953 - SECTION 2(6), 2(12), 4(2) - CLUB AS ESTABLISHMENT - INTERPRETATION.

Fact of the Case:

The petitioner, Beldih Club, challenged the applicability of the Bihar Shops and Establishments Act, 1953 (the Act) to the club, arguing that it was not an establishment within the meaning of the Act.

Finding of the Court:

The court held that the petitioner club was an establishment within the meaning of the Act, as it carried on a systematic way having its own rules and constitution, time of opening and closing, and there were employees of the club.

Issues: Whether a Club is an establishment within the meaning of the provisions of the Act.

Ratio Decidendi: The court interpreted the definition of establishment under Section 2(6) of the Act, which includes any business, trade, or profession, and also includes shops, restaurants, residential hotels, and other places of public amusement or entertainment. The court held that the petitioner club, which provided catering facilities to its members and guests, was an establishment within the meaning of the Act, even though it was not a residential hotel as defined in Section 2(12) of the Act.

Final Decision: The court dismissed the petition, holding that the petitioner club was an establishment within the meaning of the Act and was therefore subject to its provisions.

Judgment

Satyeshwar Roy, J.

1. The petitioner in this writ petition under Article 226 of the Constitution of India, has prayed for appropriate writ for quashing annexue 12, letter dated 13th August, 1978 issued by respondent No. 3 to the Secretary of the petitioner directing the club to get the registration of the club renewed under the Bihar Shops and Establishment Act, 1953 (the Act) as the provisions of the Act applied to the Club. Annexure 12 was issued in pursuance of the direction as contained in annexure 13. Prayer was also made for quashing annexure 13, dated 11th August, 1978 communication between respondent No. 4 (the Chief Inspecting Officer) and respondent No. 2 under the Act.

2. The question that is involved in this writ petition is whether a Club is an establishment within the meaning of the provisions of the Act. By annexure 3, respondent No. 4 directed respondent No. 2 to direct the Beldih Club (the petitioner herein) and the United Club, Jamshedpur to get their registration under the Act renewed. The grounds on which the prayer for exemption from the Act was refused to the United Club are also the grounds on which the prayer of the petitioner was refused. The communication between respondent No. 4 dated 11th August, 1972 (annexure 3 herein) was also challenged by the United Club in C.W.J.C No. 619 of 1979 (R) Reported in 1986 BLT (Rep) 92. The grounds on which that communication was challenged which was also marked annexure 3 in that writ petition, have been reiterated in this writ petition. Learned Single Judge by judgment dated 10th October, 1985 Reported in 1986 BLT (Rep.) 92 while disposing of that writ petition held that the United Club is an establishment within the meaning of the Act. When I pointed out to Mr. Chatterjee, who had appeared for the United Club in that writ petition also, that this application is covered by the judgment in C.W.J.C. No. 619 of 1979 (R), he submitted that the reasonings given in that judgment are falacious and, therefore, prayed for allow him to make more submissions in this writ petition.

From the judgment of the United Club, (supra) it appears that in that application submission was made that as the Club was run with no motive of making profit, it could not be held that the Club was an establishment within the meaning of Sec.2(6) of the Act. That contention was repelled and it was held by the learned Judge with reference to the definition of business in Halsburys Laws of England and Dr. Deyendra M. Surti V/s. The State of Gujarat -- , that for the purpose of business or commercial establishment the presence of profit motive cannot be given an undue importance.

3. In this writ petition, Mr. Chatterjee drew my attention to Sec.2(6) of the Act which defines establishment and to Sec.2(12) which defines residential Hotel. He urged that the word Club appears only in Sec.2(12) of the Act and the Club in that sub-section means a Club is used for reception of guests and travellers desirous of dwelling or sleeping therein, and as in Beldih Club (the petitioner herein) there is no provision for the guests or travellers for dwelling or sleeping, the petitioner was not a Club within the meaning of Sec.2(12) of the Act.

4. The Act was enacted for regulating conditions of work and employment in shops and other establishments and for certain other purposes. The Act is a beneficial legislation and the provisions of the Act must be interpreted in such a way which "will further the intention of the legislature. By this Act provision has been made for regulating the working hours of an employee which shall not be more than 9 hrs. a day, or more than 48 hrs. in a week, exclusive of interval allowed for rest, and for payment of over-time wages in case an employee is required to work beyond that period. Various kinds of leave with wages, fixation of wage period, time of payment of wages, procedure to be followed in certain cases for dismissal or discharging an employee etc. have been laid down. I

















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