Case Note & Summary
The Petitioner, Apsara Co-operative Housing Society Ltd., is a cooperative housing society registered under the Maharashtra Co-operative Societies Act, 1960. The Respondent, Vijay Shankar Singh, was employed as a Building Manager from 5 August 2013. After his employment ended, the Respondent filed two applications: one under Section 33-C(2) of the Industrial Disputes Act, 1947 (IDA) for computation of dues, and another under the Payment of Gratuity Act, 1971 (PG Act) for gratuity. The Petitioner challenged the maintainability of these proceedings before the Labour Court and Controlling Authority, arguing that a cooperative housing society is neither an 'industry' under Section 2(j) of the ID Act nor an 'establishment' under Section 2(4) of the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (Maharashtra Shops Act). The Labour Court and Controlling Authority rejected the Petitioner's applications to dismiss the proceedings, leading to the filing of two writ petitions. The High Court examined the definitions under the relevant statutes and held that a cooperative housing society, formed for collective management of a building by flat owners, does not carry on any commercial or industrial activity. Its activities are for the mutual benefit of members and not akin to trade or business. Therefore, it is not an 'industry' under the ID Act. Similarly, it is not an 'establishment' under the Maharashtra Shops Act as it is not a shop, commercial establishment, or any other establishment as defined. Consequently, the Labour Court and Controlling Authority lack jurisdiction to entertain the Respondent's claims. The Court allowed both writ petitions, setting aside the impugned orders and dismissing the Respondent's applications as not maintainable.
Headnote
A) Industrial Law - Industry - Section 2(j) Industrial Disputes Act, 1947 - Cooperative Housing Society - A cooperative housing society formed by flat owners for collective management of the building is not an 'industry' under Section 2(j) of the ID Act. The society's activities are not commercial or industrial in nature but are for mutual benefit of members. Held that proceedings under Section 33-C(2) of ID Act before Labour Court are not maintainable against such society (Paras 2-3, 5). B) Shops and Establishments - Establishment - Section 2(4) Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 - Cooperative Housing Society - A cooperative housing society is not an 'establishment' under the Maharashtra Shops Act as it is not a shop, commercial establishment, or any other establishment as defined. The society's primary purpose is not trade or business but management of residential premises. Held that proceedings under Payment of Gratuity Act, 1971 before Controlling Authority are not maintainable (Paras 2-3, 5).
Issue of Consideration
Whether a cooperative housing society is an 'industry' under Section 2(j) of the Industrial Disputes Act, 1947 for maintainability of proceedings before Labour Court, and whether it is an 'establishment' under Section 2(4) of the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 for maintainability of proceedings before Controlling Authority under the Payment of Gratuity Act, 1971.
Final Decision
Both writ petitions are allowed. The impugned orders dated 17 January 2024 passed by the Presiding Officer, 10th Labour Court, Mumbai (also Controlling Authority under PG Act) are set aside. The applications filed by the Respondent under Section 33-C(2) of the ID Act and under the PG Act are dismissed as not maintainable.
Law Points
- Cooperative housing society is not an industry under Section 2(j) of Industrial Disputes Act
- 1947
- Cooperative housing society is not an establishment under Section 2(4) of Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act
- 2017
- Labour Court lacks jurisdiction under Section 33-C(2) of ID Act
- Controlling Authority lacks jurisdiction under Payment of Gratuity Act
- 1971
