1991 Supreme(Ker) 305
Judges : PADMANABHAN
Augustine Mathai - Appellant
Versus
Appellate Authority - Respondent
Case No : O.P.No.3273 of 1987
Decided On : 09/25/1991
Advocates Appeared :
Mathai M. Paikeday For Petitioner M.I. Joseph For Respondents
The central legal point established in the judgment is the interpretation of the definitions and provisions of the Kerala Shops and Commercial Establishments Act, particularly regarding the applicability of S.18 and the qualification of an establishment as a commercial establishment under the Act.
Headnote:
S.18 - Kerala Shops and Commercial Establishments Act - S.18 - Summary of Acts and Sections: S.18 of the Kerala Shops and Commercial Establishments Act prohibits the dispensing of services of an employee without notice or wages in lieu of notice, except in cases of misconduct. The Act defines 'commercial establishment' and 'shop' and outlines provisions for registration, hours of work, holidays and leave, wages, employment of children and women, and health and safety measures.
Fact of the Case:
The petitioner, an employee of the Church, claimed that his services were dispensed with in violation of S.18 of the Kerala Shops and Commercial Establishments Act. The appeal was dismissed, and the petitioner sought to quash the order and have the appeal re-evaluated on its merits.
Finding of the Court:
The court found that the Church did not qualify as a commercial establishment under the Act, and the petitioner's employment did not satisfy the Act's definitions of commercial establishment, establishment, shop, or employment. The court upheld the dismissal of the appeal.
Issues: The issues revolved around the applicability of S.18 of the Act to the petitioner's employment with the Church and whether the Church qualified as a commercial establishment under the Act.
Ratio Decidendi: The court's decision was based on the interpretation of the Act's definitions of 'commercial establishment' and 'shop,' as well as the provisions for registration, hours of work, holidays and leave, wages, employment of children and women, and health and safety measures.
Final Decision: The original petition was dismissed by the court, and no costs were awarded.
Under S.18 of the Kerala Shops and Commercial Establishments Act, no employer shall dispense with the services of an employee employed continuously for a period of not less than six months, except for reasonable cause and without giving such employee at least one month's notice or wages in lieu of such notice. This is subject to the proviso that where services are dispensed with on a charge of misconduct supported by satisfactory evidence at an enquiry held for that purpose no such notice is necessary. An appeal lies before the Deputy Labour Commissioner (Authority) under sub section (2) in case of contravention. Petitioner claims that he was an employee under the 2nd respondent-Church for the past 27 years and his services were dispensed with in violation of S.18. He filed an appeal which was dismissed by the first respondent accepting the preliminary objection of the 2nd respondent that the Church does not come within the definition of 'establishment' under the Act. Prayer is to quash Exrt.P1 order and for a direction to the first respondent to dispose of the appeal afresh on the merits.
2. Petitioner claims that he was an accountant under the 2nd respondent and he was denied employment from 27-7-1986 without any charge, notice or enquiry. The fact that he was an accountant is denied. It is said that he was only elected by the meeting of the parishioners to write the accounts of the Church at the direction of the Vicar for five hours a week (two days in a week on the whole). No better claim is established. It is said that he refused to write the accounts and present the same before the yogam and hence he was removed as resolved by the yogam. Even according to the admission of the petitioner his monthly remuneration was only Rs.100/- besides some special allowances on festival days. Petitioner complained to the District Labour Officer who held conferences which did not succeed. That is how he approached the first respondent by way of appeal which was dismissed under Ext.P1.
3. Petitioner admitted that second respondent-Church is not a commercial establishment as defined in the Act. But his case is that the Church is having commercial and profit making activities and he was employed in that activity and therefore he will come within the purview of the Act. Management of certain plantations and institutions belonging to the Church are said to be the commercial activities. The Church admits having plantations and institutions. But there is nothing to show that they are shops or commercial establishments or that petitioner was in any way employed in connection with them. From the admitted facts what emerges is that he was engaged only in the Church and that too for writing account relating to the income derived by the Church and its expenses in connection with the Church activities.
4. The relevant provisions are sub-sections (4), (6), (8) and (15) of S.2. Section 2(4) defines 'commercial establishment' as (1) a commercial, industrial, trading, banking or insurance establishment, (2) an establishment or administrative service in which the persons employed are mainly engaged in office work, (3) Hotel, restaurant, boarding or eating house, a cafe or other refreshment house, (4)a theatre, or any other place of public amusement or entertainments, and (5) such other establishment as declared by notification to be a commercial establishment. This definition will have to be read along with S.2(8) which says that an 'establishment' means a shop or a commercial establishment. 'Shop' is defined in S.2(15) as any premises where any trade or business is carried on or where services are rendered to customers and includes offices, store rooms etc used in connection with such trade or business. 'Employee' as defined in S.2(6) is a person who is wholly or principally employed in and in connection with any establishment. A combined reading of all these provisions will make it clear that even though an administrative service in which pers