The Weekly Obiter

CO-OPERATIVE SOCIETY IS NOT AN ‘INDUSTRY’ WITHIN THE MEANING OF INDUSTRIAL DISPUTES ACT: BOMBAY HC. JUNE 22, 2018

July 17, 2018

The Hon’ble Bombay High Court held that the Labour Court appears to have been swayed by the fact that a few members of the society were carry-ing on business such as coaching classes and dispensary and the society was charging advertisement charges for the neon signs put up by the members. The Court was of the view that the society was thereby earning income and, in the premises, could not be termed as a mere housing society.
As held by the Supreme Court in Bangalore Water Supply case when there are multiple activities carried on by an establishment, what is to be considered is the dominant function. In the present case, merely because the society charged some extra charges from a few of its members for display of neon signs, the society cannot be treated as an industry carrying on business of hiring out of neon signs or allowing display of advertisements. In the premises, the impugned award of the Labour Court suffers from a serious error of jurisdiction. 

Tags: