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High Court of Judicature at Madras
R. SUDHAKAR
Chennai Corporate Club P. Ltd., rep. By its Chairman, S. Murugesan, having its registered Club P. Ltd., Chennai
Versus
Health Officer, Corporation of Chennai, Rippon Buildings & Another
W.P. NO. 5251 OF 2010
Decided on : 18-07-2012
Club - Licensing Requirement - Chennai City Municipal Corporation Act, 1919 (Tamil Nadu Act IV of 1919) - Section 279
Fact of the Case:
The petitioner, a private limited company running a club, was issued a notice by the Health Officer, Corporation of Chennai, for running an eating house without a license under Section 279 of the Chennai City Municipal Corporation Act, 1919.
Finding of the Court:
The court held that the club, being run exclusively for the benefit of its members and not open to the public for repose or consumption of food and drinks, does not fall within the definition of a lodging house under Section 279 of the Act. The notice issued by the authorities was deemed illegal and without jurisdiction.
Issues: Whether the club requires a license under Section 279 of the Act for running an eating house.
Ratio Decidendi: The court interpreted Section 279 of the Act and emphasized that the provision applies to places where the public are admitted for repose or for consumption of food and drinks, which does not include a club exclusively for its members. The court also highlighted the conscious omission of clubs from the scope of Section 279 by the legislation.
Final Decision: The writ petition was allowed, and the impugned notice was set aside. The court held that Section 279 of the Act does not apply to the club, and the notice issued by the respondents corporation was deemed illegal and without jurisdiction.
1. This writ petition is filed to issue a Writ of Ceritorari calling for the records in connection with the order dated 8.3.2010 made in No.27011, originated from the file of the first respondent, signed by the second respondent and to quash the same.
2. The petitioner is a private limited company incorporated under the Companies Act 1956 and runs the club by name Chennai Corporate Club and admits members on certain terms and conditions. The club is promoted for the benefit of the members, their family and guests of the members as and when they are invited. The club provides the following among other facilities i.e., Inhouse, Indoor games, Outdoor games, Swimming, Physical Fitness Centre, Tennis Court, Recreation Centres, etc. It has many branches and runs a resort as well. The relevant Rules and Regulations/bye-laws of the club is as follows:
1. Club Timings:
1.1. The club will remain open from 7 am. to 10.30 p.m. on all days.
1.2. On special occasions, the club will remain open till 12.00 midnight. There will be no Kitchen service before 11.00 am and after the closing hours prescribed for the day.
4. Catering Timings:
4.1 The Kitchen will be open for service during the following hours. All days vegetarian/ non vegetarian; 11.00am to 10.30pm.
7. Late Hours:
7.1 No members or his guest shall remain within the Club premises after 11.30 except on notified special nights.
9. General:-
9.1 Members are requested to surrender their club membership card at the front office/reception when they are entering in the club.
9.2 The Front office Executive will give a Service card after collecting the membership card from the members.
9.3 If the member is occupied with more than guests, then they have to get a prior permission from the administrative office. Without the management's permission, they will not be allowed to enter the club.
9.4 Liquor will be served only in the Bar and in the area mentioned thereof. No liquor will be served at any place deemed right by the member. Members' co-operation is solicited in this regard.
9.5 Outside Food and beverage items are not allowed in The Club. Food or Beverages brought from outside are not permitted for consumption in the club and other premises.
9.6 Do not litter the club premises. Litter Bins are provided and member's are requested to put the litter inside the same.
9.7 The club is not to be used for any immoral or unlawful activities. If found guilty, the club membership will be withdrawn and the member will be asked to vacate the club premises immediately.
10. Guest Policy:-
10.1. Guests must be accompanied by the eligible member club.
10.6 Persons, who are not members of the club shall not be brought into the club as guests of members for more that 36 days in year. The term 'persons' shall mean to include any male person of member family above the above of 25 years and married daughters.
10.9. No member shall be entitled to bring more than 5 guests, at a time, twice a month. More that 5 guests will be charged party rates @ Rs.200) Besides guest charge.
15. Dependent (relative) Members:
15.1 Dependent relative shall mean a member's wife. Son below 25 years of age and unmarried daughters, who are dependent of such member. No other relative shall be considered to be a dependent person.
15.2.Dependent children shall not introduce guests/visitors to the Club.
20. Food from outside:-
20.1. Members shall not bring inside the Club any items of food whatsoever to be consumed in the club premises.
23. Party Guidelines:
23.1. Members intending to hold parties are required to submit in writing the order form that is available with the Catering Manager/ Supervisor along with 75% of the anticipated charges as advanced. "
(emphasis supplied.)
3. The club was incorporated on 10.7.2000. The petitioner-club is an assessee under the Service Tax and covered under the Employees State Insurance Act. They also hold a Certificate of Registration under the C.S.T. Act. The petitioner club is re
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