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TMI Blog1992 (8) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... obde, learned counsel for the appellant has advanced an argument, which on the face of it, appears to be attractive, I think that in view of the consistent interpretation of the notification which has been followed in the country, the question should not be reopened for fresh consideration. Accordingly, I agree that all these appeals should be dismissed but without costs. MOHAN, J. These appeals can be dealt with by a common judgement since the question of law to be decided is one and the same. It is enough if we note the facts in Civil Appeal No. 2599 of 1980. The appellant is a company incorporated under the Companies Act. It has its registered office at Jew Town in Mattancherry. It is engaged in the business of clearing and forwarding at the Port of Cochin situated in Willingdon Island. It is authorised to transact its business at the Cochin Custom House under the terms of Section 202 of the Sea Customs Act read with the Rules made thereunder and a licence was issued under the said provisions. The appellant received a notice dated 3.1.75 enclosing certain notification whereby the Employees State Insurance Act (hereinafter referred to as the Act) was extended to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Insurance Court by a judgement dated 29.1.77 in E.I.C. No. 1/76 held that the appellant would be covered with effect from six months after 21.12.74. In the result, the appellant was brought within the notification. Against this order, M.F.A. No. 75 of 1977 was preferred to the High Court of Kerala. A Division Bench by its judgement dated 25.6.79, following its earlier judgement held that the term "shop" as understood in the scheme of the Act is not merely a place where the business of purchase and sale takes place but it is a place where there is commercial activity arising from customer service. In that sense, the establishment of the appellant has to be understood to fall within the purview of the term "shop". Accordingly the appeal was dismissed. Hence, the civil appeals, leave having been granted by an order dated 3.11.80. Mr. Bobde, learned counsel for the appellants would raise the following submissions. The Act primarily applies to factories. Of course, the Act could be extended to other establishments by means of a notification. In the instant case, a notification dated 16.9.74 catalogues six establishments one of which is shop. Though "shop" would take within it ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the notification the activities of the appellant. Regard must be had in this connection that this is a social welfare legislation. This Court had always taken the view that as far as permissible the endeavour of the Court must to be cover those employees than to deny the benefit of these provisions. In support of these submissions the cases in Hindu Jea Band Jaipur v. Regional Director, Employees' State Insurance Corporation, Jaipur etc., [1987] 2 SCR 377 and M/s. International Ore & Fertilizers (India) Pvt. Ltd. v. Employees' State Insurance Corporation, [1987] 4 SCC 203 are cited. Thus it is submitted that no exception could be taken to the impugned judgement. Mr. A.T.M. Sampath, learned counsel appearing for the appellant adopts the arguments of Mr. Bobde while the respondent opposes in the same vein. The Employees State Insurance Act is an Act to provide certain benefits to employees in case of sickness, maternity and employment injury and make provision for certain other matters in relation thereto. The Act is an outcome of a policy to provide remedy for the widespread evils arising from the consequences of national poverty. Indeed, it is a piece of social security. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the Governor, Sd/ U. Mahabala Rao, Secretary to Government" As it could be seen, six kinds of establishments wherein 20 or more employees are or were employed for wages on any day of the preceding 12 would months fall within the scope of the notification. Item 3 says "shops". Therefore, the argument is while "shop" could cover the other establishments like hotels or restaurants in view of the specific enumeration the activities of clearing and forwarding carried on by the appellant unless specifically enumerated cannot be brought within the word "shop". This argument takes us to the meaning of "shop". Wharton's Law lexicon 14th Ed. Page 929: "Shop a place where things are kept for sale, usually in small quantities, to the actual consumers. By Shops Act, 1912, s.19, "shop" includes any premises where any retail trade or business is carried on: retail trade or business' includes the business of a barber or hairdresser, but not the sale of programmes, etc., at places of amusement." Words and Phrases Legally Defines 2nd Ed. 73: "Shop" includes dwelling-house and warehouse, or other place of business, or place where business is transacted. "Shop" includes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case shows that the petitioner is carrying on its business at its business premises in Secunderabad. At that place the petitioner carries on the commercial activity facilitating the emergence of contracts of sale of goods between its foreign principals and the State Trading Corporation/Minerals and Metals Trading Corporation of India. It arranges for the unloading of the goods under its supervision and for the survey of the goods despatched by its foreign principals at the ports on behalf of its foreign principals and on the goods being delivered to the Central Government it collects the price payable by the government and remits it to its foreign principals. All these activities are directed and controlled from its. premises at Secunderabad. It is thus clear that the activities carried on by the petitioner constitute trading activities although the goods imported from abroad are not actually brought to the said premises and delivered to the purchaser there. In our opinion it is not actually necessary that the delivery of the goods to the purchaser should take place at the premises in which the business of buying or selling is carried on to constitute the said premises into a "shop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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