Educational institutions are not establishments within the meaning of the Bihar Shops and Establishments Act, 1953, as they do not carry on any trade or business.

R.A.Sharma, J.

1. Smt. Rudh Sore, (respondent No, 2 to this appeal) was a teacher in Seventh Day Advantists School, Baragoan, District Ranchi (hereinafter referred to as the school) established and managed by the Managing Committee of the East India Section of Seventh Day Advantists, Morabadi, District Ranchi. Her service was terminated with effect from 25.8.1980 by the Managing Committee. She thereafter filed an application under Sec. 26(2) of the Bihar Shops and Establishments Act, 1953, (hereinafter referred to as the Act) before the labour court, Ranchi, challenging the said order of termination of her service. Along with her application she also moved an application for condonation of delay in filing her claim. The labour court condoned the delay and allowed her application declaring that the order terminating her service passed by the Managing Committee is illegal having been passed without any reasonable cause in utter violation of the relevant rules framed by the Managing Committee itself. The labour court accordingly directed her reinstatement in service with full back wages and continuity in service. Being aggrieved by the above order of the labour court, the Managing Committee filed a writ petition (C.W.J.C. No. 1307/82 (R) which has been dismissed by the learned Single Judge, vide judgment dated 23rd December, 1988. Not being satisfied with the judgment of the learned Single Judge, it has now filed this appeal under clause 10 of the Letters Patent.

2. The learned counsel for the appellants has made two submissions in support of the appeal namely, (i) the Managing Committee and the school run by it are not establishment within the meaning of the Act and, therefore, the application filed by the respondent No. 2 before the labour court was not maintainable and (ii) in any case the appellants had terminated her service after giving salary for a period of three months in accordance with the service rule applicable and even if the school is treated to be an establishment within the meaning of the Act the order of termination of service was not liable to be interfered with by the labour court. The learned counsel for the respondent No. 2 has disputed the said submissions. It has further been contended by him that the very same judgment which has been impugned in this appeal has been approved in Beldih Club, Jamshedpur V/s. The Presiding Officer, Labour Court, Jamshedpur and others, 1991 (1) PLJR 81, wherein it was cited as a precedent.

3. The Act has been enacted "in order to provide for regulation or conditions of work and employment in shops and other establishments and for certain other purposes". Sec. 2(6) defines establishment as under :

"2(6) "establishment means an establishment which carries on any business, trade or profession or any work in connection with, or incidental or ancillary to, any business, trade, or profession and includes : (i) administrative or clerical service appertaining to such establishment;

(ii) a shop, restaurant, residential hotel, eating house, theatre or any place of public amusement or entertainment; and

(iii) such other establishment as the State Government may, by notification, declare to be an establishment to which the Act applies;

but does not include a motor transport undertaking as defined in clause (g) of Sec. 2 of the Motor Transport Workers Act, 1961 (27 of 1961)." Shop has been defined under Sec. 2(16) as follows :

"2(16) "Shop" means any premises where goods are sold, either by retail or wholesale or where services are rendered to customers and includes an office, store-room, godown, warehouse and work place, whether in the same premises or elsewhere used in connection with such sales or services, but does not include a restaurant, a residential hotel, eating house, theatre or other place of public amusement or entertainment."

Sec. 26 of the Act under which the respondent No. 2 filed her application before the labour court being relevant is also reproduced below :

"26