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Bangalore Turf Club Ltd. Vs. Regional Director, Esi Corporation - Court Judgment

SooperKanoon Citation
SubjectInsurance
CourtSupreme Court of India
Decided On
Case NumberCivil Appeal Nos. 2416 of 2003, 49 and 1575/2006
Judge
Reported in2009(6)KLJ291(D.B); AIR2009SC2965; [2009(121)FLR1115]; JT2009(14)SC157; 2009(6)KarLJ291; (2009)IIILLJ570SC; 2009(6)SCALE404; 2009(5)LC2059(SC); 2009(5)AIRKarR391; 2009AIRSCW4738
ActsEmployees' State Insurance Act, 1948 - Sections 1(4) and 1(5); Industrial Disputes Act
AppellantBangalore Turf Club Ltd.
RespondentRegional Director, Esi Corporation
Advocates: K.K. Venugopal,; J.P. Cama (NP),; C.S. Rajan, Sr. Advs.,;
Cases ReferredBangalore Mater Supply & Sewerage Board v. A. Rajappa and Ors.
Prior historyFrom the Judgment and Order dated 04.09.2002 of the Hon'ble High Court of Karnataka at Bangalore in MFA No. 3699/1998
Excerpt:
.....parlance, a club is not a shop - decision in employees state insurance corporation v. hyderabad race club needs reconsideration as same held clubs to be an establishment - matter to be placed before the larger bench - industrial disputes act (14 of 1947) section 1(5): [markandey katju & h.l. dattu, jj] applicability of act - shop-finding that turf clubs are shops within meaning of section 1(5) or notification issued thereunder held, not proper as in common parlance a club is not a shop. decision in employees state insurance corporation v hyderabad race club, 2004 (6) scc 191; 2004 air scw 4326 requires reconsideration. section 1(5) :[markandey katju & h.l.dattu,jj] definition of industry - interpreted as very wide in air 1978 sc 548 - said decision cannot be applied to case..........on the judgment of this court in the case of employees state insurance corporation v. hyderabad race club : (2004)iiillj547sc .4. with great respect to the aforesaid decision in the case of hyderabad race club (supra), we think that the said decision requires reconsideration. in common parlance a club is not a shop.5. the word 'shop' has not been defined either in the esi act nor in the notification issued by the appropriate government under section 1(5). hence, in our opinion, the meaning of 'shop' will be that used in common parlance. in common parlance when we go for shopping to a market, we do not mean going to a racing club. hence, prima facie, we are of the opinion that the appellant-club is not a shop within the meaning of the act or the notification issued by the appropriate.....
Judgment:
ORDER

1. Heard learned Counsel for the parties.

2. The short question involved in these cases is whether the appellant Turf Clubs axe covered by the Employees' State Insurance Act, 1948 (for short the 'ESI Act').

3. Under Section 1 Sub-section (5) of the ESI Act all establishments are not automatically covered by the said Act but only such establishments as are mentioned in the notification issued by the appropriate Government under Section 1(5). This provision is not like Sub-section (4) of Section 1 by which all factories are automatically covered by the ESI Act. The notifications issued under Section 1(5) in these cases use the word 'shop' and it has been held by the impugned judgments in these cases that the turf clubs are shops. Reliance in this behalf has been placed on the judgment of this Court in the case of Employees State Insurance Corporation v. Hyderabad Race Club : (2004)IIILLJ547SC .

4. With great respect to the aforesaid decision in the case of Hyderabad Race Club (supra), we think that the said decision requires reconsideration. In common parlance a club is not a shop.

5. The word 'shop' has not been defined either in the ESI Act nor in the notification issued by the appropriate government under Section 1(5). Hence, in our opinion, the meaning of 'shop' will be that used in common parlance. In common parlance when we go for shopping to a market, we do not mean going to a racing club. Hence, prima facie, we are of the opinion that the appellant-club is not a shop within the meaning of the Act or the notification issued by the appropriate government.

6. In our opinion, the error in the judgment in the case of Hyderabad Race Club (supra) is that it has been presumed therein that all establishments are covered by the Act. That is not correct. Only such establishments are covered as are notified under Section 1(5) in the official gazette.

7. The High Court in the impugned judgment has placed reliance on the judgment of this Court in the case of Bangalore Mater Supply & Sewerage Board v. A. Rajappa and Ors. : (1978)ILLJ349SC . In our opinion, reliance on the aforesaid decision is wholly misplaced. The definition of 'industry' in the Industrial Disputes Act is very wide as interpreted in the aforesaid decision. We cannot apply the judgment given under a different Act to a case which is covered by the ESI Act. Under various labour laws different definitions have been given to the words 'industry' or 'factory' etc. and we cannot apply the definition in one Act to that in another Act (unless the statute specifically says so). It is only where the language used in the definition is in pari materia that this may be possible.

8. Hence, we are of the opinion that the decision of this Court in the case of Hyderabad Race Club (supra) should be reconsidered by a larger Bench. In the meantime, the respondents shall not raise any demand against the appellant-clubs.

9. Let the papers of these cases be placed before Hon'ble the Chief Justice of India for constituting an appropriate Bench.


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