LAWS(BOM)-1986-7-38

CUTCHI VISA OSWAL DERAWASI JAIN MAHAJAN Vs. B D BORUDE I T MAHARASHTRA

Decided On July 22, 1986
CUTCHI VISA OSWAL DERAWASI JAIN MAHAJAN Appellant
V/S
B.D.BORUDE, I.T.MAHARASHTRA Respondents

JUDGEMENT

(1.) By this petition filed under Article 226 of the Constitution of India, the petitioners-employer are challenging the legality of Award part-1 declared by the Industrial Tribunal on March 4, 1982 holding that the employer-trust is an undertaking and an industry within the meaning of Section 2(j) of the Industrial Disputes Act, 1947. The facts giving rise to filing of the petition are as follows.

(2.) The petitioner-trust was formed in the year 1958 and was registered as Society under the Societies Registration Act. The aims and objects of the Trust were to achieve unity amongst Cuthci Visa Oswal Derawasi Jain, to achieve development and progress to their religious, social and educational life and activities, to establish temples. Dharmashalas, educational institutions etc., to institute all acts and activities aimed for furthering fraternity and unity amongst Jain and to raise funds by acceptance of donations, subscriptions, contribution etc. The Trust possesses large number of properties in Bombay and had employed about 42 workmen in different sections for carrying out various duties. The workmen employed by the Trust formed a union and submitted the demands in respect of pay scales and other conditions of service. The demands were not accepted and thereupon the Union sought a reference and the Government of Maharashtra in exercise of powers conferred by Clause (d) of Sub-Section (1) of Section 10 of the Industrial Disputes Act made reference to the Industrial Tribunal. Bombay in respect of demands consisting of wages, dearness allowance and festival holidays.

(3.) The workmen's Union filed the Statement of Claim submitting that the activities of the employer are well organised to render service on the commercial basis after collecting required charges from the people, who receive the services which are rendered with the help and co-operation of the workmen employed by them. It was further claimed that the employer carries on activities of giving on hire and rent, the buildings, godowns, shops, meeting halls, marriage halls and other premises known as 'Atithee Griha' (guest house). The workmen claimed that out of the above activities, the employer is making huge profits collecting high charges, rents etc. and the profits are established at Rs. 3 lakhs in a year. The petitioner-Trust filed the written statement, inter alia, claiming that the petitioner Trust is not an undertaking which is an industry under the Act as the principal activity is to render services to the public at large and the services rendered are purely religious in nature. The petitioners denied that the Trust carries on commercial activities such as letting out the properties on hire or rent. The petitioners claim that the main income of the Trust is from donations and not from the rent recovered from various properties. On these pleadings, the Industrial Tribunal raised the preliminary issue as to whether the petitioner Trust is an industry as contemplated under the Act. After recording evidence, both oral and documentary, the Tribunal came to the conclusion that the Trust has extensive properties which requires employment of about 50 persons and the services rendered are not only charitable in nature, but the Trust is conducting business of rendering services to the people of the community and in response gets donations, offerings and other sources of income. The Tribunal came to the conclusion that the petitioner Trust is carrying out adventure which has significant aspect of economic adventure. On the strength of the findings the answer to the preliminary issue was recorded in favour of the workmen and Award Part I was declared and that award is under challenge.