JUDGMENT Satish Kumar Mittal, J.:- The petitioners are the owners of the petrol pumps in the State of Haryana. They are engaged in supply and distribution of petroleum products through their retail petrol pumps on the fixed prices controlled and regulated by the Government of India. The petitioners are aggrieved by the notification dated 28.2.1997 issued by the Commissioner & Secretary to Government of Haryana, Department of Labour, in exercise of the powers conferred by Section 34 of the Punjab Shops and Commercial Establishments Act, 1958 (hereinafter referred to as ‘the Act’), amending Rule 13 of the Punjab Shops and Commercial Establishments Rules, 1958 (hereinafter referred to as ‘the Rules’). By the said amendment, sub-rule (1) of Rule 13 of the Rules was substituted by a new sub-rule, which reads as under: “1. These rules may be called the Punjab Shops and Commercial Establishments (First Amendment) Rules, 1997. 2. In the Punjab Shops and Commercial Establishments Rules, 1958 (hereinafter referred to as the said rules) in Rule 13, for sub-rule (1), the following sub-rule shall be substituted, namely: “(1) Statement required under Section 13 of the Act for registration of an establishment or its renewal shall be submitted by the employer to the Inspector of the area within whose jurisdiction the establishment is controlled in triplicate in Form F, along with requisite registration/renewal fee prescribed thereunder for different categories of establishments: Sr. Type of Establishment Registration fee for Renewal fee for each No. first Three years block of three years. 1. Starred Hotels, Nursing Homes, Rs.10,000/- Rs.10,000/- Cinema Houses, Privately managed educational institutions, private colleges including Medical Colleges, Petrol Pumps, Banks, Insurance Companies and Financial Institutions 2. Workshops Automobiles, Service Rs.5,000/- Rs.5,000/- Stations, not covered under Factories Act, Computer Training Centres, Shorthand and Type Institutions, Health and Fitness clubs, clinics and Medical Laboratories and Restaurants, Unstarred Hotels, all shops (Excluding Dhabas and Halwais employing 10 employees or more) 3. Shops and commercial establishments Nil Nil (Excluding Dhabas and Halwais) not covered under the above two categories and employing less than 10 employees. 4. Shops and commercial establishments Nil Nil owned and managed by the shopkeeper himself and not employing any employees 2. The petitioner has challenged the above-said notification on the ground that a huge registration/renewal fee has been imposed upon the petrol pumps without first notifying them ‘as Commercial Establishment’ under the Act. 3.
4. Shops and commercial establishments Nil Nil owned and managed by the shopkeeper himself and not employing any employees 2. The petitioner has challenged the above-said notification on the ground that a huge registration/renewal fee has been imposed upon the petrol pumps without first notifying them ‘as Commercial Establishment’ under the Act. 3. It is the case of the petitioners that the petrol pumps run by them have been set up under the licences issued by the Government of India. They are engaged in distribution of petroleum products by way of sale on the prices fixed by the, Government of India from time to time. Their motive is not to earn profit, but they are selling and distributing the petroleum products on their retail petrol pumps on the fixed prices. Their activity does not partake the character of commercial activities. Therefore, their establishment cannot be termed as ‘commercial establishment’ within the meaning of Section 2(i)(iv) of the Act. He further submitted that the Act was enacted with an object to regulate the conditions of work and employment in shops and industrial establishments and Section 2(1)(iv) of the Act defines commercial establishment means, any premises wherein any business, trade or profession is carried on for profit and includes establishments like the banking, insurance, stocks and shares, hotels, restaurants, boarding and eating houses, caterers, cinemas or other places of public entertainments. He further, submitted that Section 2(1)(iv) of the Act further stipulates that the Government, by notification, may declare any other place to be a commercial establishment for the purposes of this Act. 4. It is the case of the petitioners that the petrol pumps were not declared as ‘commercial establishments’ by the Government by issuing any notification as required under’ Section 2(I)(iv) of the Act, and without issuing the said notification the Government vide impugned notification, has included the petrol pumps as establishments for which the registration fee has been prescribed. Therefore, it has been argued that the impugned notification is wholly illegal and without jurisdiction and the same is liable to be quashed. 5. After hearing the arguments of the learned counsel for the, petitioners and going through various provisions of the Act as well as the Rules and the impugned notification, I do not find any substance in the present writ petition. Undisputedly, the provisions of the Act are extended to the State of Haryana.
5. After hearing the arguments of the learned counsel for the, petitioners and going through various provisions of the Act as well as the Rules and the impugned notification, I do not find any substance in the present writ petition. Undisputedly, the provisions of the Act are extended to the State of Haryana. The preamble of the Act reads as under: “An Act to provide for the regulation of condition of work and employment in shops and commercial establishments.” Section 2(1)(iv) of the Act defines Commercial Establishment as under: “2(1 )(iv) - “Commercial Establishment” means any premises wherein any business, trade or profession is carried on for profit and includes journalistic or printing establishment and premises in which business of banking, insurance, stocks and shares, brokerage or produce exchange is carried on or which is used as hotel, restaurant, boarding or eating house, theatre, cinema or other place of public entertainment or any other place which the Government may declare by notification in the Official Gazette, to be a commercial establishment for the purposes of this Act.” 6. A perusal of the aforesaid definition would thus show that any premises wherein any business, trade or profession is carried on, is the commercial establishment. The second part of the definition further includes certain establishments, like journalistic or printing establishments and premises in which business of banking, insurance, stocks and shares, brokerage or produce exchange is carried on or which is used as hotel, restaurant, boarding or eating house, theatre, cinema as commercial establishments. Thirdly, the government may by notification declare any other place to be a commercial establishment for the purposes of this Act. As far as the petitioners’ premises of petrol pumps are concerned, they are covered by the first part of the definition, which provides ‘any premises’, wherein any business or trade is carried on for profit. Though the petitioners through their retail outlets are selling the petroleum products on controlled price, but by doing so they are also earning profit in the shape of commission. Even though the prices of the petroleum products are being controlled b the Government of India, but it cannot be said that the petitioners are not selling the petroleum products for profit. The business or trade which the petitioners are carrying on, is certainly for profit. Therefore, their premises/establishment squarely falls under the definition of ‘commercial establishment’.
Even though the prices of the petroleum products are being controlled b the Government of India, but it cannot be said that the petitioners are not selling the petroleum products for profit. The business or trade which the petitioners are carrying on, is certainly for profit. Therefore, their premises/establishment squarely falls under the definition of ‘commercial establishment’. The Government of India has been empowered to declare any other place to be a commercial establishment for the purposes of this Act which does not fall under the first two parts of the definition of ‘commercial establishment’. For the petitioners establishment, no separate notification in the Official Gazette is required. Thus, the case of the petitioners is squarely falling in the first part of definition of ‘commercial establishment’ and there was no need to issue the separate notification as claimed by the petitioners. This position of law has been made further clear by Section 4 of the Act which provides as under: “4. Provisions of Sections 9 and 10 not applicable to certain establishments. (1) xx xx xx xx xx xx xx (a) xx xx xx xx xx xx xx (b) xx xx xx xx xx xx xx (c) xx xx xx xx xx xx xx (d) xx xx xx xx xx xx xx (e) xx xx xx xx xx xx xx (f) xx xx xx xx xx xx xx (g) xx xx xx xx xx xx xx (h) xx xx xx xx xx xx xx (i) establishments for the retail of petrol and petroleum products used for transport.” 7. Section 4 of the Act clearly provides that the provisions of Section 9 and 10 of the Act are not applicable to the establishments for the retail sale of petrol and petroleum products used for transport. Section 9 provides for opening and closing hours and Section to provides for Close day. If the establishments for the retail sale of petrol and petroleum products are not intended to cover in the definition of ‘commercial establishment’ under Section 2(1 )(iv), then there was no use to keep Clause (i) in Section 4(1) of the Act.
Section 9 provides for opening and closing hours and Section to provides for Close day. If the establishments for the retail sale of petrol and petroleum products are not intended to cover in the definition of ‘commercial establishment’ under Section 2(1 )(iv), then there was no use to keep Clause (i) in Section 4(1) of the Act. Therefore, the contention of the counsel for the petitioners that without issuing any notification and declaring the petrol pumps as commercial establishments under Section 2(1)(iv) of the Act, the amendment made in sub-rule (1) of Rule 13 of the Rules by impugned notification dated 28.2.1997 to the effect that the petrol pumps would have to be registered under the Act by depositing registration/renewal fee, is wholly illegal and arbitrary, cannot be accepted. Section 13 of the Act provides for registration of establishments in accordance with the Rules framed under the Act. Rule 13 further prescribes, the procedure for registration of establishments, which provides registration fee for the first three years as Rs.10,000/- and renewal fee for each block of three years as Rs.10,000/- for the establishment mentioned in serial No.1, which includes petrol pumps also. A perusal of this Rule reveals that for petrol pumps, the registration fee for first three years is prescribed as Rs.10,000/- and renewal fee for each block of three years as Rs.10,000/-. The aforesaid fee prescribed for three years does not seem to be unreasonable or arbitrary. Counsel for the petitioners has also not pointed out that the fixation of the aforesaid fees is arbitrary or excessive. He was mainly emphasizing on the argument that without first issuing the notification specifying the petrol pumps as commercial establishments under the Act, no fees could have been charged from petrol pump owners merely on the basis of aforesaid amended Rule. This contention has already been dealt with in which I do not find any force. 8. In view of the above, there is no merit in this petition and the same is hereby dismissed. ----------------