COCHIN YACHT CLUB Vs. STATE OF KERALA

JUDGEMENT

(1.) The question to be decided is whether a Club is an establishment under the provisions of the Kerala Labour Welfare Fund Act, 1975. The Kerala Labour Welfare Fund Act was introduced mainly "...to provide for the constitution of a Fund for promoting the welfare of labour... in the State of Kerala". Under Section 2(d) an employee means any person who is employed for hire or reward to do any work, skilled or unskilled, manual, supervisory, clerical or technical, in an establishment. Establishment is defined at Section 2(f) of the Act. It is seen that it is an inclusive definition and among other establishments it includes any commercial establishment coming within the meaning of Section 2 of the Kerala Shops and Commercial Establishments Act 1960, an establishment including a society registered under the Societies Registration Act, 1860 or the Travancore Cochin Liberary, Scientific and Charitable Societies Registration Act, 1955, which carries on any business, or trade or any work in connection therewith or ancillary thereto and which employs, or on any working day during the preceding twelve months employed, more than twenty persons; but does not include an establishment (not being a factory) of the Central or any State Government.

(2.) It is the contention of the petitioners that it is a society registered under the provisions of the Travancore Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 and it is an association of persons accepted as members of the club as per the provisions of the Memorandum of Association and Bye-laws of the Club. It is submitted that the facilities are extended only to the members of the Club. There is no business, trade or profession whatsoever. However, it is admitted that "for the benefit of the members, apart from other recreational facilities the Club runs a kitchen for catering to the needs of the members during their presence at the Club for recreational purposes...." The objects of the Club are "the diffusion of knowledge in yachting, seamanship, navigation and the promotion of all water and other sports and social activities." The Bye-laws of the Club also show that there is provision for systematic and organised activity in the Club.

(3.) Commercial establishment and shop are defined under Section 2(4) and (15) respectively of the Kerala Shops and Commercial Establishments Act, 1960. These provisions read as follows:-