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1995 Supreme(Mad) 8

High Court of Judicature at Madras
THE HONOURABLE CHIEF JUSTICE MR. K.A. SWAMI & THE HONOURABLE MR. JUSTICE SOMASUNDARAM
Mahavoor Farmers Service Co-Operative Society Limited - Appellant
Versus
Inspector of Labour and Another - Respondents
W.A. No. 1583/1994
Decided On : 03 January 1995

Appearing Advocates:V. Raghavachari, Advocate.

The provisions of the Minimum Wages Act are applicable to the employees working in the shop of a co-operative society.

Headnote:

MINIMUM WAGES ACT - SCHEDULE EMPLOYMENT - CO-OPERATIVE SOCIETY RUNNING FAIR PRICE SHOP - EMPLOYEES WORKING IN THE SHOP - WHETHER COVERED BY THE ACT - YES

Fact of the Case:

The appellant, a service co-operative society, ran a fair price shop. The employees of the shop demanded regular monthly salary in a particular scale, which was refused by the appellant on the ground of heavy financial liability. The Deputy Commissioner of Labour directed the appellant to apply the minimum wages fixed for the employees working in the shop.

Finding of the Court:

The court held that the employees working in the shop of the appellant-society fall within the schedule employment, therefore, the provisions of the Minimum Wages Act are attracted.

Issues: Whether the employees working in the shop of a co-operative society are covered by the Minimum Wages Act.

Ratio Decidendi: The court held that the shop run by the appellant-society is a shop within the meaning of the Tamil Nadu Shops and Establishments Act, and the employment therein falls within the purview of the Part I of the Schedule to the Act as amended by the State Government. The court further held that the employees working in the shop of the appellant-society do not fall within the cadres of employment created in the co-operative society in as much as they do not have the regular scale of pay. They work only as wage earners.

Final Decision: The court dismissed the writ appeal filed by the appellant.

Judgment :-

K.A. SWAMI, C.J.

This Writ Appeal is preferred against the Order dated July 21, 1994, passed by the learned Single Judge in W.P. No. 12445/94.

2. The petitioner sought for quashing the order issued by the 2nd Respondent, namely, the Deputy Commissioner of Labour of M.W. No. 103/92 dated April 4, 1994, directing the appellant to apply the minimum wages fixed for the employees working in the shop of the appellant society. The learned single judge has held that the employees working in the shop of the appellant fall within the schedule employment, therefore, the provisions of the Minimum Wages Act, hereinafter referred to as the Act, are attracted, hence, the order passed by the 2nd Respondent, does not call for interference.

2-A. Before us it is contended by the learned counsel for the appellant that the appellant is a Service Co-operative Society, that for the benefit of its members it runs a fair price shop, and as such, it does not fall under the provisions of the Tamilnadu Shops and Establishments Act, therefore, the provisions of the Minimum Wages Act are not attracted. It is further contended by the learned counsel for the appellant that the appellant being a Co-operative Society, it is bound by the Notification issued by the State Government regarding the service conditions of its employees, therefore, it cannot be made to apply the notification issued under the Minimum Wages Act, as there cannot be two authorities controlling the appellant.

3. We will consider each one of the above contentions. It is no doubt true that the appellant is a Service Co-operative Society and it is running a fair price shop, which falls within the definition of 'Shop' under the Tamil Nadu Shops and Establishments Act and the employment in the shop falls within the schedule to the Act. The State Government, in exercise of its power under Section 27 of the Act, has amended Part I of the Schedule to the Act, by G.O.Ms. No. 201, Labour and Employment dated March 25, 1994, thereby it has added employment in printing press, shops, commercial establishments and cinemas. Thus the employment in shops is one of the schedule employment, whether the shop in question falls within the provisions of the Tamil Nadu Shops and Establishments Act or not, it being a shop, the employment in the shop falls within the schedule employment. Apart from that, the Tamilnadu Shops and Establishments Act specifically defines the shop as follows"2(16) :"shop "means any premises where any trade or business is carried on or where services are rendered to customers and includes offices, storerooms, godowns and ware-houses, whether in the same premises or otherwise used in connection with such business but does not include a restaurant, catering-house or commercial establishment"

The shop in question is a fair price shop, wherein the articles are sold by the appellant to its customers, who are the members of the Society. It also carries on its business in the shop, which is situated in Rajapalayam, which is a municipality. The Tamil Nadu Shops and Establishments Act, 1947 applies to the city of Madras and all the municipalities constituted under the Madras District Municipalities Act, 1920, in addition it applies to the whole State of Tamil Nadu also. No provision is pointed out to us that the shop run by a Co-operative Society is exempted from the provisions of the Tamil Nadu Shops and Establishments Act, 1947. When once it is held that the shop run by the appellant-society is a shop, within the meaning of the Tamil Nadu Shops and Establishments Act, and even otherwise, it being a shop, the employment therein falls within the purview of the Part I of the Schedule as amended by the State Government. It is seen in the notice issued under Sec. 11(2) of the Act that the employees working in the shop of the appellant-society were demanding regular monthly salary in a particular scale. That was refused on the ground that there would be heavy financial liability on the Societ














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