CORPORATION OF CITY OF NAGPUR Vs. G S NARAYAN AYYAR

JUDGEMENT

(1.) This is an appeal by the Corporation of the City of Nagpur against the order of acquittal passed the Judicial Magistrate First Class, (Corporation), Nagpur on 17th May, 1974 acquitting the agent of the Bank of Baroda who was charged for an offence under S. 7(2A) of the Bombay Shops and Establishments Act, 1948. It appears that on January 8, 1974, at about 10.45 a.m. the Shop Inspector attached to the Corporation visited the premises of the Bank of Baroda, Dharampeth Branch, Nagpur and observed that the employer had failed to send an application in the prescribed Form B for renewal of registration certificate in respect of his establishment for the year 1974. After going through the formalities, a challan was lodged.

(2.) On behalf of the accused it was contended that the provisions of the Shops and Establishments Act, 1948 (Act No. 71 of 1948), do not apply and as such there was no necessity of taking any such licence. It may be observed that subsequently for the same year 1974 such a licence has been asked for and granted and for subsequent years also the Bank has taken care to get such licences. However it is desired by both the contesting parties that the matter should be decided authoritatively whether such a licence is necessary.

(3.) According to S. 7 of the Shops and Establishment Act registration of establishment is to be done by sending a statement in the prescribed form together with the prescribed fees. Section 4 of the Act provides for exemptions. It is Schedule II of the Act which is referred to by S. 4 and such of the provisions as are mentioned in column 3 of that Schedule would not apply to the establishments mentioned in column 2. An "establishment" has been defined by sub s. (8) of S. 2 of the Act. It means a shop and commercial establishment together with other concerns referred to with which we are not concerned in this appeal. "Commercial establishment" has been independently defined in sub s. (4) of S. 2 of the Act. It means an establishment which carries on any business, trade or profession or any work in connection with or incidental or ancillary to any business, trade or profession. There is no dispute that the function of the Bank make it a commercial establishment. If we have a look at item No. 118 of Schedule II to the Shops and Establishment Act, 1948, we find Banks included in the Schedule but column 3 will show that the provisions of S. 13 alone are exempted. Reading this entry, an impression would be created that the registration certificate contemplated under S. 7 of the Act would be necessary in respect of the respondent-Bank also.