TMI Blog1967 (10) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds and has made arrangement for billiards, pingpong and other indoor games. As part of the latter activities it arranges dance, dinner and other parties and runs a catering department, which provides and refreshments not only generally but also for dinners and parties on special occasions. The club employs six officers (a Secretary, a Superintendent and four Accountants and Cashiers), twenty clerks and a large number of peons, stewards, butlers, gate- attendants, etc. Its catering department has a separate managerial, clerical and other staff. Altogether there are 194 employees. The affairs of the club are managed by a Committee,elected annually. Two of the members of the Committee work as Hony. Secretary and Hony. Treasurer res- pectively. The membership of the club is varied. There are resident members, non-resident members, temporary members, garrison members, independent lady members, etc. The resident members pay an entrance fee of ₹ 300 and ₹ 20 per month as subscription. Garrison members and independent lady members do not pay any entrance fee and their subscription is ₹ 10 per month. Guests, both local and from outside, are admitted 'subject t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the department-, (ii) in relation to any industry carried on by or on behalf of a local authority, the chief executive officer 'of that authority; Workman is defined by cl. (s) of the section and means any person (including an apprentice) employed in any industry to do any skilled or unskilled manual supervisory, technical or clerical, work for hire Cr reward. whether the terms of employment be expressed or implied, and for the purpose of any proceeding under this Act in relation to an industrial dispute, includes any person who has been dismissed, discharged Or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person- (i) who is subject to the Army Act 1950, or the Air Force Act, 1950, or the Navy (Discipline) Act, 1934: or (ii) who is employed in the police service or as an officer or other employee of a prison; or (iii) who is employed mainly in a managerial or administrative capacity; or (iv) who, being employed in a supervisor-- capacity, draws wages exceeding five hundred rupees per mensem or exercises, either b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acs and Rich. JJ. in Federated Municipal Shire Council Employees of Australia v. Melbourne Corporation 26 C.L.R. 508.. Industrial disputes occur when, in relation to operations in which capital and labour ate contributed in co-operation for the satisfaction of human wants and desires, those engaged in cooperation dispute as to the basis to be observed, by the parties engaged, respecting either a share of the produce or any other terms and conditions of their cooperation. The question of profit making may be important from an income-tax point of view, as in many municipal cases in England; but. from an industrial dispute point of view, it cannot matter whether the expenditure is met by fares from passengers or from rates. In the second case (Baroda Borough Municipality v. Work- men [1957] 1 L.L.J. 8. a claim for bonus by municipal employees was rejected on the ground that the bonus formula was inapplicable. The Court, however, went on to observe: It is now finally settled by the decision of this Court in 1953 S.C.R. 302, that a municipal undertaking of the nature we have under consideration is an industry within the meaning of the word in S. 2(j) of the Indust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loyment, handicraft or indus- trial occupation or avocation of employees and (c) any branch of an industry or a group of industries. In this definition the qualifying words 'manufacturing or mining' limited the word 'undertaking' and it could not be given the wide meaning given earlier. This Court did not attempt to bring municipal activity within the word 'undertaking' but brought it within the expression 'trade and business'. The Court observed that there was nothing in the earlier cases to show that a municipal activity was held excluded, from those words. As a matter of fact it did (see p. 308). Of course, there was nothing to show that this Court on the earlier two occasions thought it even remotely possible. In the Nagpur Corporation's(1) case the Court proceeded to consider whether a corporation could be legitimately said to be carrying on business or trade or calling. It found the definition to be very clear and not susceptible of any ambiguity , and observed that all the words were very wide and that even if the meaning could be cut down by the aims and objects of the C.P. Berar Act as disclosed in the preamble, the main object ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nlargement of it by including other items of industry . As a matter of fact these are not other items of industry but aspects of occupation of employees which are intended to be an integral part of an industry for purposes of industrial disputes. It is, however, recognised in the case that a line must be drawn to exclude some callings, services and undertakings. It is hold that domestic, personal or casual services are not included and examples are given of such services. The meaning of industry a,,, ` an economic activity' involving investment of capital and systematically carried on for profit for the production or sale of goods by the employment of labour is again discarded because profit motive and investment of capital are considered unessential. Another test reaffirmed is to enquire 'can such activity be carried on by private individual or group of individuals? Answering that a hospital can be run by a private party for profit, it is held that a hospital is an industry even if it is run by Government without profit. Who conducts the activity or whether it is for profit, are considered irrelevant questions. It is, however, again emphasised that an under- taking to be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were excluded. In the next two cases the difficulty of laying down tests from case to case was felt. In Harinagar Cane Farm v. The Stale of Bihar [1964] 2 S.C.R. 458. a cane farm was purchased by a sugar factory and worked As a department for supply of sugar cane. The agricultural operations were held to be an industry on the facts but it was held that agriculture under all circumstances could not be called an industry. This Court reversed its method of looking for the tests from other cases and referred to them only after it had reached its conclusion observing that the Court must refrain from laying down unduly broad or categorical propositions. In the next case (University of Delhi and Anr. v. Ramnath [1964] 2 S.C.R. 703. the question was whether bus drivers employed by the University were workmen. The concept of service was narrowed and it was held that the educational institutions were not an industry. Their aim was education and the teachers' profession was not to be assimilated to industrial workers. This Court again stated that it must not be understood as laying down a general proposition. The changes made in the meaning of the expressions used in the definition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the denotation of the word in the first part. The second part will then show what will be included from the angle of employees. We shall now apply this approach to the definition in the light of the earlier decisions of this Court in so, far as they are consistent and then determine whether the club in this case can come within the meaning of 'industry' as determined by us. The definitions have been set out by us earlier in this judgment. The definitions are inter-related and are obviously knit together. Stated broadly the definition of 'industrial dispute' contains two limitations. Firstly, the adjective Industrial' relates the dispute to an industry as defined in the Act and, secondly, the definition expressly states that not disputes and differences of an sorts but only those which bear upon the relationship of employers and workmen and the terms of employment and conditions of labour are contemplated. As such dispute may arise between different parties, the Act equally contemplates disputes between employers and employers or between employers and workmen or between workmen and workmen. The definition of the expression 'industrial dispute' further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter from the angle of employees and is designed to include something more in what the term primarily denotes. By the second part of the definition any calling, service, employment, handicraft or industrial occupation or avocation of workmen is included in the concept of industry. This part gives the extended connotation. If the activity can be described as an industry with reference to the occupation of the employers, the ambit of the industry, under the force of the second part, takes in the different kinds of activity of the employees mentioned in the second part. But the second part standing alone cannot define 'industry'. An industry is not to be found in every case of employment or service. An individual who employs a cook gets service from his employee whose avocation is to serve as a cook but as the activity of the individual is neither business, nor trade, nor an undertaking, nor manufacture, nor calling of an employer, there is no industry. By the inclusive part of the definition tile labour force employed in an industry is made an integral part of the industry for purposes of industrial disputes although industry is ordinarily something which employers create or u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sly to avoid hardening any particular view too far. We have all the terms except 'employer' defined by the statute. Our task is to give meanings to the words which are intended to lay down the full connotation. Taking each operation by itself and determining on the basis of facts whether it is an industry without attempting to pin-point whether it is a business, or a trade, or an undertaking, or manufacture. or calling of employers, is to ignore somewhat the guidance afforded by the statute through its own dictionary. Therefore, while we accept the views expressed uniformly we think any view which seems contradicted by later decisions because it was unrelated to the words of the definitions should not be allowed to harden. We also take the opportunity of relying a little more on the guidance from the Act. The principles so far settled come to this. Every human activity in which enters the relationship of employers and employees, is not necessarily creative of an industry. Personal services rendered by domestic and other servants, administrative services of public officials, service in aid of occupations of professional men, such as doctors and lawyers, etc. employment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and ability of the donor of services are not included. Although business may result in service the service is not regarded as material. That is how the service of a Solicitor firm is distinguished from the service of a building corporation. Otherwise what is the difference between the services of a typist in a factory and those of another typist in a Solicitor's office or the service of a bus driver in a municipality and of a bus driver in a University? The only visible difference is that in the one case the operation is a part of a commercial establishment producing material goods or material services and in the other there is a non-commercial undertaking. The distinction of an essential or direct connection does not appear to be so strong as the distinction that in the one case the result is the production of material goods or services and in the other not. It is, therefore, clear that before the work engaged it can be described as an industry, it must bear the definite character of 'trade' or 'business' or 'manufacture' or 'calling' or must be capable of being described as an undertaking resulting in material goods or material services. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the employers, the industry is run with capital and with a view to profits. These two circumstances may not exist when Government or a local au- thority enter upon business, trade. manufacture or an undertaking analogous to trade. The labour force includes not only manual or technical work- men but also those whose services are necessary or considered ancillary to the productive labour of others but does not include any one who, in an industrial sense, will be regarded, by reason of his employment or duties. as ranged on the side of the employers. Such are persons working in a managerial capacity or highly paid supervisors. Further the words are 'industrial dispute' and not 'trade dispute'. Trade is only one aspect of industrial activity; business and manufacture are two others. The word also is not industry in the abstract which means diligence or assiduity in any task or effort but a branch of productive labour. 'This requires cooperation in some form between employers and workmen and the result is directly the product of this association but not necessarily commercial. The expressions 'terms of employment' and 'Conditions of labour' indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es etc. are provided, (c) that the club runs parties at which guests are freely entertained and (d) that the club has established reciprocal arrangements with other clubs for its members. In our opinion none of these considerations is sufficient to establish that the club is an industry within the Industrial Disputes Act We, cannot go by the size of the club or the largeness of its membership or the number or extent of there activities. We have to consider the essential character of the Club activity in relation to the definition of industry. As we said before, the definition is in two parts. The first part which we called the denotation or the meaning of the word shows what an industry really is and the second, part contains the extended connotation to indicate who will be considered an integral part of the industry on the side of employees. Beginning with the second part, it may at once be conceded that the activity of the club is conducted with the aid of employees who follow callings or avocations. Therefore if the activity of the employers is within the realm of industry, the answer must be in favour of the Union. But the first part of the definition it may also be said that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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