2000 Supreme(Cal) 312
High Court Of Calcutta
SATYABRATA SINGH, HRISHIKESH BANERJI
SAKAL GORE - Appellant
Versus
SECRETARY, BAR LIBRARY CLUB, HIGH COURT - Respondent
A. P. O. T. 514 Of 2000
Decided On : 07/03/2000
SAMRAT SEN, Sarkar
The Payment of Gratuity Act, 1972 is not applicable to associations of legal practitioners without a profit motive or commercial venture, as they do not fall within the definition of 'shop' or 'establishment' under the West Bengal Shops and Establishments Act, 1963.
Headnote:
PAYMENT OF GRATUITY ACT, 1972 - APPLICABILITY TO BAR LIBRARY CLUB - INTERPRETATION OF 'SHOP' AND 'ESTABLISHMENT' UNDER WEST BENGAL SHOPS AND ESTABLISHMENTS ACT, 1963 - SCOPE OF JUDICIAL REVIEW OF JURISDICTIONAL ERROR.
Fact of the Case:
The appellant, a former employee of the Bar Library Club, claimed gratuity under the Payment of Gratuity Act, 1972. The respondent, the Bar Library Club, contended that the Act was not applicable to it as it was not a 'shop' or 'establishment' within the meaning of the West Bengal Shops and Establishments Act, 1963.
Finding of the Court:
The court held that the Bar Library Club was not a 'shop' or 'establishment' within the meaning of the West Bengal Shops and Establishments Act, 1963, and therefore the Payment of Gratuity Act, 1972 was not applicable to it. The court also held that the writ application filed by the appellant was maintainable as the Controlling Authority under the Payment of Gratuity Act had no jurisdiction in the matter.
Issues: 1. Whether the Payment of Gratuity Act, 1972 is applicable to the Bar Library Club? 2. Whether the Bar Library Club is a 'shop' or 'establishment' within the meaning of the West Bengal Shops and Establishments Act, 1963? 3. Whether the writ application filed by the appellant was maintainable?
Ratio Decidendi: 1. The Payment of Gratuity Act, 1972 applies to factories, mines, oilfields, plantations, ports, railway companies, shops, establishments with 10 or more employees, and other establishments specified by the Central Government. 2. The definition of 'shop' under the West Bengal Shops and Establishments Act, 1963 requires a premises, sale of services or commodities to customers, and a declaration by the State Government. 3. The definition of 'establishment' under the West Bengal Shops and Establishments Act, 1963 includes commercial establishments and establishments for public entertainment or amusement. 4. The Bar Library Club is an association of legal practitioners without a profit motive or commercial venture, and therefore does not fall within the definition of 'shop' or 'establishment'. 5. The writ application was maintainable as the Controlling Authority under the Payment of Gratuity Act had no jurisdiction in the matter.
Final Decision: The appeal was dismissed, and the appellant was advised to file an appropriate representation before the General Secretary of the Bar Library Club for ex-gratia payment.
( 1 ) LEAVE in terms of prayer (a) is granted. The question which arises for consideration in this appeal is as to whether the Payment of Gratuity Act, 1972 is applicable in relation to Bar Library Club. The Payment of Gratuity Act, 1972 applies to (a) every factory, mine, oilfield, plantation, port and railway company (b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months and (c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf. Clauses (a) and (d) of the said provisions admittedly can have no application in the instant case.
( 2 ) THE question raised herein is whether the respondent is a 'shop1 or an 'establishment' within the meaning of the provisions of West Bengal Shops and Establishments Act, 1963. The word 'shop' has been defined in Section 2 Sub-section (13) of the said Act which reads thus-'13. "shop" The basic ingredients of a Shop under the Act are: (1) Must have a premises: (a) offices, store-rooms, godowns etc. whether on the same premises or not but if used in connection with sale or storage for sale; (2) Sale of services or commodities or articles to Customers or if trade and business carried on; (3) The State Government, may, by notification declare any premises as "shop" under the Act. '
( 3 ) THE word "establishment" has been defined in Section 2 Sub- section (5) of the West Bengal Shops and Establishments Act, 1963 which reads thus-' (5) "establishment" means a commercial establishment or an establishment for public entertainment or amusement;'
( 4 ) IT is not in dispute that the Bar Library Club is merely an association of a section of the legal practitioners practising in this Court. The said Association has neither been set up with a profit motive nor has been set up for commercial venture. A bare perusal of the definition of 'shops' and 'establishments' as quoted (supra) would clearly demonstrate that for the purpose of attracting the aforementioned provisions certain trade and business activities must be carried on. If the profession of a legal practitioner cannot come within the purview of the definition of the aforementioned provisions we fail to understand as to how an Association of the legal practitioners would be. In fact earlier an attempt had been made to include the chambers of the legal practitioners within the purview of the definition of the commercial establishment. The vires of the said provisions came up for consideration before this Court in Dipti Kumar Basu v. Chief Inspector, Shops and Establishments and Anr. , 90 CWN 353, and this Court had declared the said provisions as ultra vires. A similar matter was considered by the Bombay High Court in Narendra Keshrichand Faladi and Anr. v. State of Maharashtra, reported in 1985-II-LLJ-24, wherein also it was held that the establishment of a legal practitioner does not come within the purview of the word 'establishment' under the Bombay Shops and Establishments Act, Yet again the same principles have been reiterated in Dorab Pirojsha Signaporia v. The President and Appellate Authority of the Industrial Tribunal, Bombay, reported in 1986-II-LLJ 501. The matter also stands covered by a decision of the Apex Court in V. Sashidharan v. Peter Karunakar.
( 5 ) MR. Sarkar, learned Counsel appearing on behalf of the petitioner however submits that the learned Trial Judge while allowing the writ application filed by the respondent herein committed an error in entertaining the application in view of the fact that an appeal was maintainable against the order passed by the Controlling Authority under the provisions of the Payment of Gratuity Act. It ma