Case Note & Summary
The petitioner, Shri Vatavriksha Swami Maharaj Devasthan, Akkalkot, is a religious and charitable trust registered under the Bombay Public Trust Act on 19 December 1953. Its main objects are charitable and religious, and it does not carry on any business, trade, or profession. The Shop Inspector (respondent no.4) visited the trust and by letter dated 30 January 1996 called upon its Chairman to obtain registration as a commercial establishment under Section 7(1) of the Bombay Shops and Establishments Act, 1948. The trust opposed this view and approached the Deputy Commissioner of Labour. The Commissioner of Labour, exercising powers under Section 7(3) of the Act, passed an order on 22 July 1996 holding that the trust is a commercial establishment within the meaning of Section 2(4) and required to be registered under Section 7. The trust challenged this order by way of a writ petition. The High Court, after considering the trust deed and the objects of the trust, held that the trust is not a commercial establishment as it does not carry on any business, trade, or profession. The court noted that the trust's activities are purely charitable and religious, and therefore, it falls outside the purview of the Act. The impugned order was quashed and set aside, and the rule was made absolute.
Headnote
A) Bombay Shops and Establishments Act, 1948 - Definition of Commercial Establishment - Section 2(4) - Charitable Trust - A trust whose main objects are charitable and religious, and which does not carry on any business, trade, or profession, is not a 'commercial establishment' under Section 2(4) of the Act. The Commissioner of Labour erred in holding that the petitioner trust was a commercial establishment. (Paras 1-4)
Issue of Consideration
Whether a religious and charitable trust registered under the Bombay Public Trust Act can be considered a 'commercial establishment' under Section 2(4) of the Bombay Shops and Establishments Act, 1948, and consequently required to be registered under Section 7 thereof.
Final Decision
The High Court quashed and set aside the order dated 22 July 1996 passed by the Commissioner of Labour, holding that the petitioner trust is not a commercial establishment under the Bombay Shops and Establishments Act, 1948. The rule was made absolute.
Law Points
- Definition of commercial establishment
- Charitable trust exemption
- Bombay Shops and Establishments Act
- 1948
- Section 2(4)
- Section 7
Case Details
2010 LawText (BOM) (11) 82
WRIT PETITION NO.656 OF 1997
B.H. Marlapalle, U.D. Salvi
Mr. G.S. Godbole for petitioner; Mr. C.R. Sonawane, AGP for Mr. Mandar Soman i/by Mr. A.A. Kumbhakoni for respondent
Shri Vatavriksha Swami Maharaj Devasthan, Akkalkot, through its Chairman Shri. K.S. Ingle
1. State of Maharashtra through its Secretary to the Ministry of Industry, Labour & Welfare, Mantralaya, Mumbai; 2. The Commissioner of Labour, Maharashtra State; 3. The Assistant Commissioner of Labour, Solapur; 4. The Shop Inspector, Nagar Parishad, Akkalkot
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Nature of Litigation
Writ petition challenging order of Commissioner of Labour holding petitioner trust as commercial establishment under Bombay Shops and Establishments Act, 1948.
Remedy Sought
Quashing of order dated 22 July 1996 passed by Commissioner of Labour and declaration that petitioner is not a commercial establishment.
Filing Reason
The Shop Inspector called upon the trust to obtain registration as a commercial establishment; the trust contested this and the Commissioner of Labour upheld the Shop Inspector's view.
Previous Decisions
Commissioner of Labour passed order on 22 July 1996 holding trust as commercial establishment; High Court stayed the order on 6 February 1997.
Issues
Whether a religious and charitable trust can be considered a 'commercial establishment' under Section 2(4) of the Bombay Shops and Establishments Act, 1948.
Submissions/Arguments
Petitioner argued that the trust is a religious and charitable trust registered under Bombay Public Trust Act, with no business, trade, or profession, and thus not a commercial establishment.
Respondents argued that the trust is a commercial establishment under Section 2(4) and required to be registered under Section 7.
Ratio Decidendi
A trust whose main objects are charitable and religious, and which does not carry on any business, trade, or profession, is not a 'commercial establishment' under Section 2(4) of the Bombay Shops and Establishments Act, 1948, and is not required to be registered under Section 7 of the Act.
Judgment Excerpts
This petition questions the order dated 22nd July 1996 passed by the Commissioner of Labour, State of Maharashtra as the prescribed authority under Section 7(3) of The Bombay Shops and Establishments Act, 1948 thereby holding that the petitioner is a commercial establishment within the meaning of Section 2(4) of the said Act and consequently required to be registered under Section 7 therein.
The petitioner is a Devsthan/Math at Akkalkot in Solapur District and is a trust registered under the provisions of Bombay Public Trust Act on 19th December 1953. As per the trust deed, the main objects of the trust are charitable and religious in nature and secondly that it does not carry on any business, trade or profession or any work connected therewith or incidental or ancillary to any such activities.
Procedural History
The Shop Inspector (respondent no.4) by letter dated 30 January 1996 called upon the trust to obtain registration as a commercial establishment. The trust opposed this by letter dated 5 February 1996 to the Deputy Commissioner of Labour. The Commissioner of Labour passed the impugned order on 22 July 1996 under Section 7(3) of the Act. The trust filed Writ Petition No.656 of 1997 in the Bombay High Court, which granted rule and stayed the order on 6 February 1997. The petition was finally heard and disposed of on 16 November 2010.
Acts & Sections
- Bombay Shops and Establishments Act, 1948: 2(4), 7, 7(1), 7(3)
- Bombay Public Trust Act:
