IMPORTANT POINT
Shops--Retail of petroleum products from establishments squarely falls under definition of ‘commercial establishment’.

Satish Kumar Mittal, J.:- The petitioners are the owners of the petrol pumps in the State of Haryana. They are engaged in supply and distribution of petroleum products through their retail petrol pumps on the fixed prices controlled and regulated by the Government of India. The petitioners are aggrieved by the notification dated 28.2.1997 issued by the Commissioner & Secretary to Government of Haryana, Department of Labour, in exercise of the powers conferred by Section 34 of the Punjab Shops and Commercial Establishments Act, 1958 (hereinafter referred to as ‘the Act’), amending Rule 13 of the Punjab Shops and Commercial Establishments Rules, 1958 (hereinafter referred to as ‘the Rules’). By the said amendment, sub-rule (1) of Rule 13 of the Rules was substituted by a new sub-rule, which reads as under:­

“1. These rules may be called the Punjab Shops and Commercial Establishments (First Amendment) Rules, 1997.

2. In the Punjab Shops and Commercial Establishments Rules, 1958 (hereinafter referred to as the said rules) in Rule 13, for sub-rule (1), the following sub-rule shall be substituted, namely:­

“(1) Statement required under Section 13 of the Act for registration of an establishment or its renewal shall be submitted by the employer to the Inspector of the area within whose jurisdiction the establishment is controlled in triplicate in Form F, along with requisite registration/renewal fee prescribed thereunder for different categories of establishments:­

Sr. Type of Establishment Registration fee for Renewal fee for each

No. first Three years block of three years.

1. Starred Hotels, Nursing Homes, Rs.10,000/- Rs.10,000/-

Cinema Houses, Privately managed

educational institutions, private

colleges including Medical Colleges,

Petrol Pumps, Banks, Insurance

Companies and Financial Institutions

2. Workshops Automobiles, Service Rs.5,000/- Rs.5,000/-

Stations, not covered under Factories

Act, Computer Training Centres,

Shorthand and Type Institutions,

Health and Fitness clubs, clinics and

Medical Laboratories and Restaurants,

Unstarred Hotels, all shops (Excluding

Dhabas and Halwais employing 10

employees or more)

3. Shops and commercial establishments Nil Nil

(Excluding Dhabas and Halwais) not

covered under the above two categories

and employing less than 10 employees.

4. Shops and commercial establishments Nil Nil

owned and managed by the shopkeeper

himself and not employing any employees

2. The petitioner has challenged the above-said notification on the ground that a huge registration/renewal fee has been imposed upon the petrol pumps without first notifying them ‘as Commercial Establishment’ under the Act.

3. It is the case of the petitioners that the petrol pumps run by them have been set up under the licences issued by the Government of India. They are engaged in distribution of petroleum products by way of sale on the prices fixed by the, Government of India from time to time. Their motive is not to earn profit, but they are selling and distributing the petroleum products on their retail petrol pumps on the fixed prices. Their activity does not partake the character of commercial activities. Therefore, their establishment cannot be termed as ‘commercial establishment’ within the meaning of Section 2(i)(iv) of the Act. He further submitted that the Act was enacted with an object to regulate the conditions of work and employment in shops and industrial establishments and Section 2(1)(iv) of the Act defines commercial establishment means, any premises wherein any business, trade or profession is carried on for profit and includes establishments like the banking, insurance, stocks and shares, hotels, restaurants, boarding and eating houses, caterers, cinemas or other places of public entertainments. He further, submitted that Section 2(1)(iv) of the Act further stipulates that the Government, by notification, may declare any other place to be a commercial establishment for the purposes of th