Case Note & Summary
The appellant, Mahalaxmi Co-operative Housing Society Limited, challenged the judgment of a learned Single Judge in Writ Petition No. 6486 of 1995, which had upheld the Labour Court's order granting monetary claims to the first respondent, a sweeper employed since 1961. The first respondent had filed an application under Section 33C(2) of the Industrial Disputes Act, 1947, claiming minimum wages under the Bombay Shops and Establishment Act, 1948, along with other benefits like weekly off, leave wages, and overtime. The appellant contended that it was not a commercial establishment under Section 2(4) of the Bombay Shops and Establishment Act, 1948, and thus the provisions of that Act did not apply. The Labour Court had ruled in favor of the respondent, and the Single Judge dismissed the writ petition. In the Letters Patent Appeal, the Division Bench examined the definition of 'commercial establishment' and concluded that a co-operative housing society, not being engaged in trade or business for profit, does not fall within that definition. Consequently, the application under Section 33C(2) was not maintainable. The appeal was allowed, setting aside the orders of the Labour Court and the Single Judge.
Headnote
A) Industrial Law - Maintainability of Application under Section 33C(2) - Co-operative Housing Society - The issue was whether a co-operative housing society is a commercial establishment under Section 2(4) of the Bombay Shops and Establishment Act, 1948, and whether an application under Section 33C(2) of the Industrial Disputes Act, 1947 for minimum wages is maintainable. The court held that a co-operative housing society is not a commercial establishment and therefore the application was not maintainable. (Paras 2-3)
Issue of Consideration
Whether a co-operative housing society is a commercial establishment within the meaning of Section 2(4) of the Bombay Shops and Establishment Act, 1948, and consequently whether an application under Section 33C(2) of the Industrial Disputes Act, 1947 for minimum wages is maintainable against it.
Final Decision
Appeal allowed. The judgment and order of the learned Single Judge dated 16th August, 2002 in Writ Petition No. 6486 of 1995 and the order of the Labour Court are set aside. The application filed by the first respondent under Section 33C(2) of the Industrial Disputes Act, 1947 is dismissed.
Law Points
- Section 33C(2) of Industrial Disputes Act
- 1947
- maintainability of application
- definition of commercial establishment under Section 2(4) of Bombay Shops and Establishment Act
- 1948
- co-operative housing society not a commercial establishment
Case Details
2006 LawText (BOM) (11) 76
Letters Patent Appeal No. 357 of 2002
Smt. Ranjana Desai, Smt. V.K. Tahilramani
Mr. R.V. Paranjape for appellant, Mr. P.M. Patel for R-1 to 3
The Mahalaxmi Co-operative Housing Society Limited
Dilip Singh Parocha, Smt. Angoori Dilip Singh Parocha, Smt. Krishna Suresh Parocha, Shri A.B. Shaikh
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Nature of Litigation
Letters Patent Appeal against judgment of Single Judge in Writ Petition arising from Labour Court order under Section 33C(2) of Industrial Disputes Act, 1947.
Remedy Sought
Appellant sought to set aside the Labour Court order granting monetary claims to the respondent and the Single Judge's dismissal of its writ petition.
Filing Reason
Appellant challenged the maintainability of the application under Section 33C(2) on the ground that it is not a commercial establishment under the Bombay Shops and Establishment Act, 1948.
Previous Decisions
Labour Court allowed the application; Single Judge dismissed the writ petition.
Issues
Whether a co-operative housing society is a commercial establishment under Section 2(4) of the Bombay Shops and Establishment Act, 1948.
Whether an application under Section 33C(2) of the Industrial Disputes Act, 1947 for minimum wages is maintainable against a co-operative housing society.
Submissions/Arguments
Appellant argued that it is a co-operative housing society and not a commercial establishment, hence the Bombay Shops and Establishment Act does not apply.
Respondent argued that the society is engaged in real estate business and thus is a commercial establishment.
Ratio Decidendi
A co-operative housing society is not a commercial establishment within the meaning of Section 2(4) of the Bombay Shops and Establishment Act, 1948, as it is not engaged in trade or business for profit. Therefore, an application under Section 33C(2) of the Industrial Disputes Act, 1947 for minimum wages under that Act is not maintainable against such a society.
Judgment Excerpts
The appellant is a co-operative housing society engaged inter alia in the business of Real Estate.
The Labour Court recorded evidence of the parties and by ...
Procedural History
The first respondent filed IDA No. 754 of 1987 under Section 33C(2) of the Industrial Disputes Act, 1947 in the Labour Court at Bombay. The Labour Court allowed the application. The appellant challenged this by filing Writ Petition No. 6486 of 1995 before the High Court, which was dismissed by the learned Single Judge on 16th August, 2002. The appellant then filed the present Letters Patent Appeal No. 357 of 2002.
Acts & Sections
- Industrial Disputes Act, 1947: 33C(2)
- Bombay Shops and Establishment Act, 1948: 2(4)
