NATIONAL INSTITUTE OF ENGINEERING v. LABOUR INSPECTOR, MYSORE CIRCLE
1974-11-07
VENKATACHALAIAH
body1974
DigiLaw.ai
( 1 ) THE petitioner in this case is the National Institute of Enginering (Society) which is running an Engineering College alt Mysona Qity. In order to cater tp the needs of the Students of tha Engineering College, the petitioner is running a hostel. The petitioner was asked by the Labour inspector, Mysore I Circle, Mysore, by issuing notices to get the hostel registered as an establishment under the provisions of the Karnataka shops and Commercial Establishments Act, 1961 (hereinafter referred to as the Act ). Aggrieved by the said notices, the petitioner has filed this writ petition. ( 2 ) THE petitioner has alleged in the course of the petition that its objects are principally charitable in character and that the hostel which is being run by it for the benefit of the students of the Engineering College is not being run as a commercial establishment. It is, therefore, prayed that the impugned notices issued by the respondent should be quashed. The allegation that the petitioner has been running the Engineering College and that the hostel is attached to it, is not disputed by the respondent. The question for consideration, therefore, is whether the hostel can be treated as an 'establishment' within the meaning of the Act. ( 3 ) THE expression ' establishment' is defined in Cl (i) of S. 2 of the Act as a shop or a commercial establishment. The expression 'shop' is defined in Cl (u) of S. 2 of the Act as any premises where any trade or business is carried on or where services are rendered to customers and includes offices, storerooms, godowns, or warehouses, whether in the same premises or otherwise, used in connection with such trade of business, bull does not include a commercial establishment or a shop attached to a factory where the persons employed in the shop fall within the scope of the Factories Act, 1948.
The expression 'commercial establishment' is defined in Cl (e) of s. 2 of the Act as a commercial or trading or banking or insurance establishment, an establishment or edminisitrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a cafe or any of her refreshment house, a theatre or any other place of public amusement or entertainment and includas such establishments as the State Govt may by notification declare to be a commercial establishment for the purposes of the act. There is no notification issued by the State Govt declaring a hostel attached to an educational institution as a commercial establishment. A reading of the definitions of the expressions 'shop' and 'commercial 'eatablishment' would show that unless the premises is used for trade or business purposes ox there is an element of commerce it cannot be considered either as a shop or as a commercial establishment. The members of the public cannot resort to the hostel to buy foodstuffs. It cannot be called a public place of amusement or entertainment. It is intended only for the benefit of the students of the Engineering College. There is no, allegation made by the respondent in this ease that the petitioner has been running the hostel with a view to make profit. In these circumstances, it is difficult to hold that the hostel is either a shop or a commercial establishment as defined by Cls (u) and (e) of S. 2 of the Act. It cannot, therefore, be an establishment as defined under Cl (i) of S. 2 of the Act. The above view receives support from the decision of the High Court of Madras in Rajam krishnan v. Director of Employment and Training, Madras, (1973) 2 LLJ 604. The impugned notices are, therefore, quashed. The petition is accordingly allowed. No costs. --- *** --- .