CHARUTAR VIDYA MANDAL Vs. MIRANMIYA REHMUMIYA MALAK

JUDGEMENT

(1.) The question that arises for consideration in this Special Civil Application is whether the petitioner institution. Charutar Vidya Mandal, Vallabh Vidyanagar, is a "commercial establishment" within the meaning of S. 2 (4) of the Bombay Shops and Establishments Act, 1948, (hereinafter referred to as "the Act"). The petitioner, Vidya Mandal, is a registered society under the Societies Registration Act, 1860. This Vidya Mandal runs various educational institutions at Vallabh Vidyanagar and its principal or dominant activities are educational. For the purpose of providing facilities to the students of the various educational institutions under the petitioner's control, it started a transport service. The students were taken from their respective lodgings at concessional rates to the educational institutions. The first respondent was the driver of the transport vehicle which was used for taking the students from their lodgings to the several' educational institutions. The first respondent was employed as a driver on January 1, 1947 and he resigned on Oct. 14, 1974. He had put in 27 years and 10 months' service. The last pay drawn by him was Rs. 335/- per mensem. As he was not paid gratuity, he filed an application before the Controlling Authority under Sec. 7 of the Payment of Gratuity Act. On that application the petitioner, Vidya Mandal, was directed to pay gratuity in the sum of Rs. 4,690/- to the first respondent. That led to the petitioner unsuccessfully filing an appeal before the appellate authority The petitioner then filed this application under Art. 226 of the Constitution seeking the issuance of a writ of certiorari quashing the orders of the lower authorities. The case of the petitioner is that it was carrying on only educatio.nal activities and those activities were "mostly supported by donations" and the bus service was introduced by the petitioner solely with a view to afford facilities to the students studying in various educational institutions at Vallabh Vidyanagar. It is on the ground that there was no commercial or trade activity in running the transport service that the impugned orders are assailed before us,

(2.) To determine the question involved in this petition it may be necessary to notice the definition of "commercial establishment"

(3.) The Supreme Court had occasion to consider whether the work of imparting education carried on by an institution like Delhi University came within the meaning of "industry" as defined in S. 2 (j) of the Industrial Disputes Act in University of Delhi V/s. Ram Nath, 1963 AIR(SC) 1873In S, 2 (j) also the words "any business, trade" occur as in the definition of "commercial establishment". Therefore, the decision rendered by the Supreme Court construing the expression "industry" would cover the question involved in this petition. University of Delhi case was one where a notice was served on the driver of a transport vehicle informing him that his services were no longer required and that he would be discharged from his employment on payment of one month's salary on lieu of notice. The question arose whether the driver employed by an educational institution would come within the meaning of "workman" so as to make the educational institution an "industry" within the meaning of S. 2 (j). Gajendragadkar J-, as he then was, dealing with the question o.bserved at the very outset(at p. 1874)