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2001 DIGILAW 54 (AP)

Visakhapatnam Typewriting Institutes Owners Welfare Association v. Vishakapatnam Muncipal Corporation

2001-01-24

body2001
( 1 ) THIS writ petition is filed seeking issuance of a writ of Mandamus declaring the action of the 1st respondent corporation in levying and seeking to collect the trade Licence fees from the petitioner/ institutions as illegal, arbitrary and without jurisdiction, and consequently forbearing the Officials of the respondent / Corporation from collecting any Licence Fees from the petitioners pursuant to the notices issued under Section 521 and 622 of the hyderabad Municipal Corporations Act (for short the M. C. H. Act ). ( 2 ) PETITIONER No. 1 is the Visakhapatnam typewriting Institutes Owners Welfare association, represented by its Secretary, mr. Sambasiva Rao. It is stated that the first petitioner / Association is a body registered under the Societies registration Act on 8-7-1988, consisting of 191 Typewriting and Commercial institute Owners, formed with the object of looking after the welfare of its members. It is stated that the first petitioner - Association as well as petitioners 2 to 7 are imparting technical education i. e. Typewriting and Shorthand to the needy students and each Institute was recognised by the Government of andhra Pradesh and they are under the control of the Board of Technical education and Training. It is specifically denied that the petitioner-Institutions are neither shops nor commercial establishments. Further they aver that they are not carrying on professional activities of commercial character. In fact, they are educational institutions, which will not even attract the provisions of Shops and Establishments Act. ( 3 ) IT is averred by the petitioners that the 1st respondent illegally issued notices to them under Section 521 of the hyderabad Municipal Corporation Act demanding lcence fee of Rs. 100/- per each institution on the ground that the activities being carried on by them were harmful to the health and property of the general public. They submit that the activities carried on by them are akin to educational institutions, and are subject to the control of the State Board of technical Education and Training and they do not come under the purview of the Hyderabad Municipal Corporation act. They further submit that neither hyderabad Municipal Corporation nor any other Municipal Corporation in the state other than Vishakapatnam municipal Corporation has been demanding licence fee from any of the typewriting Institutions in its jurisdiction. They further submit that neither hyderabad Municipal Corporation nor any other Municipal Corporation in the state other than Vishakapatnam municipal Corporation has been demanding licence fee from any of the typewriting Institutions in its jurisdiction. They submit that when previously the 1st respondent demanded for payment of similar fee , S. T. C. No. 1472 of 1988 was filed before the Special munsif Magistrate for cases under Labor and Factories Act, Vishakapatnam. It was held by the learned Magistrate that the petitioner-institutions were not commercial establishments or shops. It is the case of the petitioners that 1st respondent having failed earlier under the provisions of A. P. Shops and establishments Act to collect licence fee, now issued the impugned notices under section 521 of the M. C. H. Act. They submit that though the Standing committee of the 1st respondent corporation recommended for waiving of licence fee in respect of petitioner- institutions, the 1st respondent ignored the same. ( 4 ) IN reply to the above assertions made by the petitioners, the 1st respondent- corporation filed its counter stating that it is not correct to state that the petitioner- institutions are non-commercial institutions. The activity of running an institute to impart training either with skill and intelligence or otherwise is no less than a professional activity to earn profits with the aid of typewriters. The recognition and registration of these institutions which are under the control of the Board of Technical Education and training does not prevent the 1st respondent - Corporation from insisting upon obtaining licences on payment of requisite licence fee by the institutions. It is further stated that the Commissioner of the 1st respondent -Corporation has got power under Section 521 (1) (e) (ii) of the hyderabad Municipal Corporations Act to declare any trade of operation as dangerous to life, health or property. It is also stated that the judgment in the said stc has no relevancy to the facts of the case. It is finally stated that the impugned notice is legal and sustainable under law in view of the aforementioned reasons. ( 5 ) THE learned Counsel for the petitioners submit that the petitioners-institutions are not shops or commercial establishments as they carry on professional activity by their personal skill and intelligence and their institutions can not be termed as an activity of commercial charecter, but they are educational institutions. ( 5 ) THE learned Counsel for the petitioners submit that the petitioners-institutions are not shops or commercial establishments as they carry on professional activity by their personal skill and intelligence and their institutions can not be termed as an activity of commercial charecter, but they are educational institutions. In support of his contention he relies on the definition of tutorial institutions ( 6 ) IN support of his contention, the counsel for the petitioners - institutions relied on the Judgment of this Court reported in St. ANN s HIGH school Vs. GOVERNMENT of a. P. wherein it is held that the notification as regards item No. 157 was ultra vires powers of Commissioner. It is further held that running an educational institution itself does not amount to danger to life, health or property or create a nuisance and it is highly unbelievable to consider it to be trade or business requiring the institutions to obtain licence. ( 7 ) THE facts of the case in the said decision are that when the Hyderabad municipal Corporation notified item 157 in Annexure 11 of the Notification dated 7-4-1981 treating the educational institutions as the establishments of trade or business and directing them to obtain licence under Section 521 of the hyderabad Municipal Corporation Act, 13 educational institutions (petitioners in that writ petition ) questioned the above said notification. A learned Judge of this court held that running the educational institutions cannot be said to be either dangerous to life, health or nuisance. Imparting education is a constitutional mandate and it is the State as a part thereof as a welfare State. Private individuals are also permitted under the relevant law like A. P. Education Act, 1982, to undertake imparting education. It should be housed in a decent building. Running the institutions in private buildings cannot be considered to be dangerous to life , health or property. If the building itself is dangerous to life, health or property that would always be a different matter and action would be taken according to law. It is ultimately held that the notification as regards item no. 157 is ultra vires the powers of commissioner. ( 8 ) THE learned Counsel also relied on a judgment of this Court reported in the public Prosecutor Vs. Dr. G. Suresh. It is ultimately held that the notification as regards item no. 157 is ultra vires the powers of commissioner. ( 8 ) THE learned Counsel also relied on a judgment of this Court reported in the public Prosecutor Vs. Dr. G. Suresh. In that case, when criminal prosecution was launched against a Nursing Home, which was being run without obtaining licence from the Municipal Corporation of Hyderabad, it was held that licence was not required for running the Nursing home in accordance with the provision of section 521 of the Hyderabad Municipal corporation Act. Accordingly, the finding of the trial Court was upheld. ( 9 ) THE learned Counsel also relied on the judgment of the Supreme Court reported in State of Gujarat vs. Meghji Pethraj shah Charitable Trust and Others wherein the Supreme Court held thus:"while we do not wish to express any opinion on the question whether the right to establishment an educational institution can be carrying on any "occupation" whitin the meaning of Article 19 (1) (g) - perhaps, it is - we are certainly of the opinion that such activity can neither be a trade or business nor can be a profession within the meaning of Article 19 (1) (g ). Trade or business normally connotes an activity carried on with a profit motive. Education has never been commerce in this country. Making it one is opposed to the ethos, tradition and sensibilities of its nation. The argument to the contrary has an unholy ring to it. Importing of education has never been treated as a trade or business in this country since time immemorial. It has been treated as a religious duty. It has been treated as a charitable activity. But never as trade or business. We agree with Gajendragadkar, J. that education in its true aspect is more a mission and a vocation rather than a profession or trade or business, however wide may be the denotation of the two latter words. The Parliament too has manifested its intention repeatedly (by enacting the U. G. C Act, I. M. S. Act and a. I. C. T. E. Act) that commercialisation of education is not permissible and that no person shall be allowed to steal a march over a more meritorious candidate because of his economic power. The Parliament too has manifested its intention repeatedly (by enacting the U. G. C Act, I. M. S. Act and a. I. C. T. E. Act) that commercialisation of education is not permissible and that no person shall be allowed to steal a march over a more meritorious candidate because of his economic power. The very same intention is expressed by the Legislatures of Andhra Pradesh, karnataka, Maharashtra and Tamil nadu in the preamble to their respective enactments prohibiting charge of capitation fee. . . . . . . imparting education cannot be allowed to be converted into commerce nor can the petitioners seek to obtain the said result by relying upon the wider meaning of "occupation". The content of the expression "occupation", has to be ascertained keeping in mind the fact that clause (g) employs all the four expressions viz. , profession, occupation, trade and business. Their fields may overlap, but each of them does certainly have a content of its own, distinct from the others. Be that as it may, one thing is clear - imparting of education is not and cannot be allowed to become commerce". ( 10 ) BASING on the above decisions of the supreme Court and of this Court and the provisions contained in Section 2 (47) of the A. P. Educational Act, learned counsel for the petitioners contended that the typewriting Institutions are established by the petitioners to impart technical and prepare candidates for examination; therefore, the petitioners activities cannot be termed as trade. Any institution started by a person or body of persons for giving coaching or instructions to prepare and to appear for examination is not s commercial establishment and does not come within the meaning of trade and commerce. It is a tutorial institution as per the A. P. education Act. Therefore, the question of obtaining a licence on payment of licence fee from Municipal corporation does not arise as contemplated under Section 521 of the municipal Corporation Act. The commissioner wrongly opined that the establishment, starting and running a typewriting Institution comes within the meaning of trade and commerce , which is dangerous to life, health or property or likely to cause nuisance either from its nature, or by reason of the manner which or the conditions under which the same is or is proposed to be carried on. ( 11 ) IN view of the above contentions, it is relevant to extract the relevant portions of both Section 521 of the Hyderabad municipal Corporation Act and Section 2 (47) of the A. P. Education Act. " 521 (1) Except under and conformity with the terms and conditions of a licence granted by the Commissioner no person shall- (e) carry on, or allow to be carried on, in or upon any premises- (1 ). . . . . . . . . . . . . . (ii) any trade or operation which in the opinion of the Commissioner is dangerous to life, health or property, or likely to create a nuisance either from its nature, or by reason of the manner which, or the conditions under which, the same, is or is proposed to be carried on" section 2 (47) of the A. P. Education Act reads thus:"tutorial Institution" means any institution started by a person or of body persons for giving coaching or instructions to fifty or more candidates or employing five or more teachers, to prepare them to appear for an examination in any branch of education conducted by any body or authority or the universities in the State under this act or any other law; and includes an institution where instruction in typewriting subject is given" ( 12 ) FROM a reading of both the above provisions, it is clear that Section 521 of the M. C. H. Act contemplates that except under and in conformity with the terms and conditions of a licence granted by the commissioner, no person shall carry on, allow to be carried on, in or upon any premises any trade or operation which in the opinion of the Commissioner is dangerous to life, health or property, or likely to create a nuisance either from its nature, or by reason of the manner which, or the conditions under which, the same, is or is proposed to be carried on. Any person who wants to carry on any trade or operation, has to obtain a licence from the municipal Corporation and has to run his trade or operation within the terms and conditions prescribed under the licence. Any person who wants to carry on any trade or operation, has to obtain a licence from the municipal Corporation and has to run his trade or operation within the terms and conditions prescribed under the licence. It further contemplates that the commissioner to from an opinion on the basis of the material placed before him that to carry on any trade or operation is dangerous to life, health or property, or likely to create a nuisance either from its nature, or by reason of the manner in to be carried on. Therefore, the commissioner can insist upon the person who conducts trade or operation to obtain licence from the Corporation. ( 13 ) A Division Bench of this Court considered the above said provisions in a. P. Bankers and Pawn Brokers association Vs. M. C. H. In that case, when Bankers and Pawn Brokers were included in the notification of the municipal Corporation of Hyderabad making upward revision of the rates of licence fee, stating that the trade of money lending and pawn brokerage is likely to create nuisance to the residents of the locality, and therefore, requires licence under Section 521 (1) (e), the A. P. Bankers and Pawn Brokers Association questioned it and a Division Bench of this Court observed thus : ( 14 ) SECTION 521 (1) enjoins that no person shall carry on certain trades and operations except under and in conformity with the terms and conditions of licence granted by the Commissioner. Paragraph (ii) of clause (e) of Section 521 (1) refers to " any trade or operation which in the opinion of the commissioner is dangerous to life, health or property, or likely to create a nuisance either from its nature, or by reason of the manner in which, or the conditions under which, the same is or is proposed to be carried on". Sub- Section (4) vests the discretion in the Commissioner to grant a licence subject to such restrictions or conditions, if any, as he may think fit to impose or to withhold the licence. Sub- Section (4) vests the discretion in the Commissioner to grant a licence subject to such restrictions or conditions, if any, as he may think fit to impose or to withhold the licence. Sub- section (3) lays down that a person shall be deemed to carry on or to allow to be carried on a trade or operation within the meaning of paragraph (ii) of clause (e) of sub - section (1), if he does any act in furtherance of such trade or is in any way engaged or concerned therein whether as principal, agent, clerk, master, servant, workman, handicraftsman or otherwise. ( 15 ) THE object of Section 521 (1) (e) is to regulate by means of a licensing provision the trades or operations which in the opinion of the Commissioner are dangerous to life, health or property or likely to create nuisance either because of inherent nature of the trade or operation or by reason of the manner in which, or the conditions under which, such trades or operations are dangerous to life, or health or property or likely to create nuisance is to be formed by the commissioner. It is axiomatic that the court or some other authority can not substitute its own opinion to that of the commissioner, though the opinion expressed by the Commissioner is not final and conclusive. Judicial review is still there on the question whether the commissioner had formed, his opinion having due regard to the ralevant criteria set out in the Section itself and such opinion could at all be formed by any reasonable or rational standards. A whimsical, capricious or perverse view taken by the Commissioner can be invalidated on the ground that he acted ultra vires the provisions of the Statute or that the opinion is vitiated by legal malafides. The term nuisance was elaborately considered in the said decision and held that:"nuisances are broadly devided into two: public nuisance and private nuisance. Another division is nuisance per se or nuisance at law and nuisance in fact or nuisance for accidents. Where as nuisance per se is a nuisance at all times and under all circumstances regardless of location, surroundings etc. Another division is nuisance per se or nuisance at law and nuisance in fact or nuisance for accidents. Where as nuisance per se is a nuisance at all times and under all circumstances regardless of location, surroundings etc. , nuisance in fact is defined as follows in Black s Law Dictionary: "acts, occupations, or structures which are not nuisance per se but may become nuisance by reason of the circumstances of the location and surroundings or manner in which it is performed or operated". The same definition is referred to in ramanantha Aiyar s Law Lexicon and then elaborated as follows: "it has, however, been said of certain acts, occupations or structures that they are nuisance pr se in certain localities, whereas in other localities they would not be nuisances. "it is also held in that case that:"running of a money lender s shop setup at a crowded place, just adjacent to or encroaching on the footpath is likely to cause obstruction or inconvenience to the passers. Thus, the location of a money lending or pawnbroker s shop more often assumes good deal of importance. Viewed from this angle, the possibility of a professional money lender s shop causing nuisance can not be ruled out. It may not cause nuisance at all times and in all localities, but under certain situations or circumstances or at certain times, the running of such shop is likely to create nuisance to a section or members of public. That is enough to justify the formation of the opinion by the Commissioner. As already observed, the Court can not substitute its own view on the question whether a particular trading activity is likely to create nuisance. If the Commissioner had reached the satisfaction that the trade or operation is likely to create nuisance either by its nature or by reason of the manner in which or the conditions under which the trading activity is carried on, that is sufficient to uphold the commissioner s notification. The judicial review of the opinion reached by the commissioner ought to be confined within limited parameters as indicated above. ( 16 ) THAT was the legal position with regard to money lending and pawn brokerage. But, we are concerned with starting and running Typewriting institutions by the petitioners in vishakapatnam city. The judicial review of the opinion reached by the commissioner ought to be confined within limited parameters as indicated above. ( 16 ) THAT was the legal position with regard to money lending and pawn brokerage. But, we are concerned with starting and running Typewriting institutions by the petitioners in vishakapatnam city. ( 17 ) SECTION 2 (47) of the A. P. Education act defines Tutorial Institution any institution started by a person or of body of persons for giving coaching or instructions to fifty or more candidates or employing five or more teachers, to prepare them to appear for an examination in any branch of education conducted by any body or authority or the universities in the State under this Act or any other law and it includes an institution where instructions in typewriting or other commercial subjects is given. ( 18 ) TUTORIAL Institution is defined in concise Oxford Dictionary 10th Edition at page 1548 to mean " period of tuition given by a University or College tutor, an account or explanation of a subject intended for private study, of or relating to tutor or tuter tuition" ( 19 ) TYPEWRITING is defined as electronic or manual machine with keys for producing print like characters. Typewriting is a substitute for equivalent or writing. ( 20 ) THE difference between a school and typewriting institute being that teaching in the typewriting institute is done on a keyboard instead of black board as is done in an educational institution. From the above discussion it is clear that in typewriting institution, they give training or coaching to prepare to appear for the examinations in the typewriting examinations conducted by the A. P. State technical Education Board. When once the Tutorial Institution is defined in the act as an educational institute, it also includes typewriting institution as an educational institution on the ground that in typewriting institute they give training to the candidates to prepare for appearing in the Examinations conducted by the technical Board. Therefore, it can be held that establishing typewriting institute to give training to the candidates to appear in the examinations conducted by the Technical Board is an educational institute and it can not create any nuisance in the locality. Moreover, it does not come under the category of trade and business. Therefore, it can be held that establishing typewriting institute to give training to the candidates to appear in the examinations conducted by the Technical Board is an educational institute and it can not create any nuisance in the locality. Moreover, it does not come under the category of trade and business. ( 21 ) AS seen from the rulings and the provisions of the A. P. Eduation Act, imparting education is not a trade or business. As the Typewriting Institution is a tutorial institution, no licence is required to be obtained from the corporation for establishing and running the same. Therefore, the opinion of the commissioner that starting and running a typewriting Institution in a locality creates dangers to life, health or property or likely to create nuisance either from its nature, or by reason of the manner which or the conditions under which the same is or is proposed to be carried on, is not correct. The Courts held that imparting education is a religious and charitable function. The Supreme Court has rejected the contention that it is an occupation or avocation to start an educational institution for purpose of gain or profit. The learned Single Judge of this Court held that for running an educational institution, no licence is required under the Municipal Corporation act, for running Typewriting Institute to prepare the candidates to appear for an examination in any branch of education conducted by anybody or authority or universities in the State. ( 22 ) THE 1st petitioner in its affidavit stated that it is a welfare association, registered under the Societies registration Act on 8-7-1988 with the main object of looking after the welfare of its members who are imparting technical education in typewriting and shorthand to needy students. The above legal position is applicable to the petitioners also and they need not obtain any licence by paying licence fee as required under Section 521 of the municipal Corporation Act as they come under the definition "imparting education or training or prepare the candidates to appear for examination conducted by the concerned authority. " Whereas when the institutes are established for commercial activity viz. . " Whereas when the institutes are established for commercial activity viz. . undertaking job work certainly the said activity come within the meaning " trade and other operations" , which according to the opinion of the commissioner, is dangerous to life, health or property, or likely to create a nuisance either from its nature, or by reason of the manner which are the conditions under which the same is or is proposed to be carried on. Typewriting institutes, which are established for trade or commercial activity viz. . . undertaking job work, certainly create nuisance in the locality. Therefore, the opinion formed by the Commissioner of Municipal corporation of Vishakapatnam that the typewriting institutes which are established for carrying on trade and commercial activity, have to obtain licence by paying licence fee, is correct. For the above reasons I am of the considered view that if the Typewriting institutes are established and run with an object of imparting education viz. . giving training and preparing them to appear for the examinations conducted by concerned authority, they come within the definition of tutorial institutions under the a. P. Education Act and they do not come within the meaning of trade or operation which is dangerous to life, health or property, or likely to create a nuisance in the locality as typewriting and shorthand institute is a school , the only difference being that etching in the said typewriting institution is done on a keyboard instead of a black board as is done in an educational institution, and therefore, the said typewriting institutions do not require to obtain licence. Whereas the typewriting Institutions established and run for the purpose of undertaking job work would come within the meaning of trade or occupation as it would certainly dangerous to life, health or property or likely to create the nuisance in the locality and therefore, for running them licence has to be obtained by paying requisite licence fee. ( 23 ) WITH the above observations, the writ Petition is disposed of. No order as to costs.