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Case Number
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Acts
  • Section 394(1)(e) (i) read with Section 471 of the Bombay Municipal Corporation Act
  • S. 394(1)(e) (i) read with Section 471 of the Bombay Municipal Corporation Act
  • provisions of Section 394 of the Bombay Municipal Corporation Act
  • provisions of the Bombay Munici pal Corporation Act. S. 394(1)(e) (i)
  • provisions of Rules 79 to 85 of the Factories Rules, 1963.
  • Section 3(ff) of the Bombay Municipal Corporation Act
  • provisions of the Bombay Municipal Corporation Act
  • S. 394(1)(e) of the Bombay Municipal Corporation Act.
  • SECTION 46 FACTORIES ACT
  • Section 46 of the Facto ries Act, 1948
  • Section 46(1) of the Factories Act
  • Bombay Municipal Corporation Act,
  • Rule 85(2) of the Factories Rules,
  • Section 394(1)(e) of the B.M.C Act,
  • workers.11. Rule 85 sub-rule (2)
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • Section 394(1)(e) (i) read with Section 471 of the Bombay Municipal Corporation Act
  • S. 394(1)(e) (i) read with Section 471 of the Bombay Municipal Corporation Act
  • provisions of Section 394 of the Bombay Municipal Corporation Act
  • provisions of the Bombay Munici pal Corporation Act. S. 394(1)(e) (i)
  • provisions of Rules 79 to 85 of the Factories Rules, 1963.
  • Section 3(ff) of the Bombay Municipal Corporation Act
  • provisions of the Bombay Municipal Corporation Act
  • S. 394(1)(e) of the Bombay Municipal Corporation Act.
  • SECTION 46 FACTORIES ACT
  • Section 46 of the Facto ries Act, 1948
  • Section 46(1) of the Factories Act
  • Bombay Municipal Corporation Act,
  • Rule 85(2) of the Factories Rules,
  • Section 394(1)(e) of the B.M.C Act,
  • workers.11. Rule 85 sub-rule (2)
Smart Summary

Concise Analytical Summary of the Opinion

Factual and Procedural Background

The petitioner (original Accused No. 2 before the Trial Court) filed this Revision Petition challenging his conviction by the Metropolitan Magistrate, 29th Court, Dadar, Bombay, under S. 394(1)(e)(i) read with Section 471 of the Bombay Municipal Corporation Act and the sentence of a fine of Rs. 200/-, in default simple imprisonment for 30 days.

Brief facts (as found by the Trial Court and recorded in the opinion):

  • Accused No. 1 was the Personnel Officer of Messrs. Indian Tools Manufacturers Limited (the Company) at Sion; Accused No. 2 (the petitioner) was a caterer running a staff canteen under an agreement dated 16 March 1974 to operate the canteen on the Company's premises.
  • On 2 December 1976, an inspector of the Bombay Municipal Corporation (P.W. 1, Padinalthu Abraham) visited the factory, asked whether a licence under S. 394(1)(e) of the BMC Act had been obtained; he was informed no licence or permit had been obtained. He reported the matter, prepared an Offence Sheet and obtained sanction to prosecute.
  • At trial the Agreement of 16-3-1974 was tendered in evidence as Ex. "E".
  • The learned Magistrate held that Accused No. 2 was obliged to obtain a licence under S. 394(1)(e) and convicted him under S. 394(1)(e)(i) read with S. 471 of the Bombay Municipal Corporation Act, sentencing him to the minimum penalty (fine of Rs. 200/-; in default 30 days simple imprisonment). Accused No. 1 (the Personnel Officer) was acquitted.

Legal Issues Presented

  1. Whether a staff canteen restricted to factory employees (not open to the public) amounts to an "eating house" or a "catering establishment" within the entry in Part IV of Schedule M to Section 394(1)(e) of the Bombay Municipal Corporation Act, thereby requiring a licence.
  2. Whether the statutory obligation under Section 46 of the Factories Act and the requirement that factory canteens be run on a non-profit basis (Rules 79–85 of the Factories Rules, esp. Rule 85(2)) precludes treating a staff canteen operated by a private caterer for profit as a "catering establishment" under the Bombay Municipal Corporation Act.
  3. Whether the existence of regulatory provisions under the Factories Act (for welfare and hygiene of workers) makes it unnecessary or redundant to require a licence under the Bombay Municipal Corporation Act for the same premises (i.e., whether the two statutes overlap to the extent that compliance with one absolves compliance with the other).

Arguments of the Parties

Petitioner's Arguments (as presented by Mr. Shrikrishna)

  • Because the staff canteen was not open to the public and admission was restricted to the Company's employees, it did not carry on the business of an "eating house" or a "catering establishment." He relied on Hotel Mazdoor Sabha v. N.J. Alvares (AIR 1965 Bom 13) to support the proposition that staff canteens not intended to be a business are not "eating houses."
  • Under Section 46 of the Factories Act and Rules 79–85 of the Factories Rules, a statutory duty is cast upon the employer to provide canteens for employees; Rule 85(2) requires canteens to be run on a non-profit basis. Therefore, the staff canteen could not properly be characterized as a commercial catering establishment subject to the BMC licensing requirement.
  • The provisions of Section 394 of the Bombay Municipal Corporation Act are repetitive of, and overlap with, the Factories Act provisions; since the Factories Act and its Rules already regulate canteens for worker welfare and hygiene, it was unnecessary to compel Accused No. 2 to obtain an additional licence under the BMC Act.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hotel Mazdoor Sabha v. N.J. Alvares, AIR 1965 Bom 13 Held that staff canteens where an employer supplies meals without intending to carry on a business do not constitute an "eating house" under the relevant statute (concerned with the expression "eating house"). The Court found this authority inapplicable to the present charge because the petitioner was not charged with carrying on an "eating house" but with carrying on a "catering establishment"; consequently the Hotel Mazdoor Sabha ruling did not determine the present issue.
Unreported — Criminal Appeal No. 593 of 1972 (By State); Judgment of Tulzapurkar, J., 21 Nov 1973 Interpreted "catering establishment" by reference to ordinary dictionary meaning of "cater" (to purvey or provide food), and held that an establishment purveying food (even to a restricted class) falls within "catering establishment" in Part IV of Schedule M. The Court relied on this reasoning to conclude that the expression "catering establishment" is wider than "eating house" and includes staff canteens even if they are not open to the public; the canteen in question therefore fell within the entry in Part IV of Schedule M.

Court's Reasoning and Analysis

The court's analysis proceeds through the following steps, closely following the text of the opinion:

  1. Statutory framework: The court set out the material statutory provisions — Section 394(1)(e)(i) of the Bombay Municipal Corporation Act (prohibiting specified trades unless licensed) and the entry in Part IV of Schedule M which includes "Keeping of an eating house or a catering establishment." It also cited the statutory definition of "eating-house" (Section 3(ff)) which requires admission of the public and profit motive.
  2. Distinction between "eating house" and "catering establishment": The court observed that "eating house" is defined in the BMC Act (premises to which the public are admitted and where food is supplied for profit), while "catering establishment" is not specifically defined and is, in the court's view, a broader term.
  3. On the Petitioner's first argument (Hotel Mazdoor Sabha): The court acknowledged that the precedent establishes that purely employer-run staff canteens (not intended as a business and not open to the public) are not "eating houses." However, because the petitioner was charged with running a "catering establishment" rather than an "eating house," the Hotel Mazdoor Sabha decision was not directly relevant.
  4. On the meaning of "catering establishment": The court relied on the unreported Tulzapurkar J. decision (Criminal Appeal No. 593 of 1972), which used ordinary/dictionary meaning of "cater" (to purvey or provide food) to conclude that a catering establishment includes premises where food is purveyed even to a limited class (not necessarily the public). The court adopted this broader understanding, holding that a staff canteen can fall within "catering establishment."
  5. On the Factories Act / non-profit submission: The court accepted that Section 46 of the Factories Act may impose a duty on an occupier to provide canteens and that Rule 85(2) contemplates non-profit operation so far as the employer's obligation is concerned. But the court distinguished that the statutory non-profit requirement applies to the employer’s obligation; it does not control or transform the commercial relationship with an independent caterer. The Agreement (Ex. E) showed Accused No. 2 received fixed monthly payments and a percentage (10%) of coupon value, demonstrating a profit motive and rendering the canteen a commercial enterprise run for profit by Accused No. 2.
  6. On alleged overlap of statutes: The court rejected the notion that the Factories Act and the Bombay Municipal Corporation Act overlap to the extent that compliance with the former would excuse non-compliance with the latter. The statutes have different objects — worker welfare versus prevention of nuisance/dangerous trades — and even if their purposes overlapped, statutory obligations imposed by one are not a ground for ignoring obligations under the other.
  7. Conclusion of analysis: Given the above, the court found no merit in the Petitioner's submissions and held that the learned Magistrate was justified in convicting Accused No. 2 under S. 394(1)(e)(i) read with Section 471 of the Bombay Municipal Corporation Act.

Holding and Implications

Holding: The petition is dismissed and the rule is discharged. The court upheld the conviction of Accused No. 2 under S. 394(1)(e)(i) read with Section 471 of the Bombay Municipal Corporation Act and sustained the sentence imposed by the learned Magistrate (fine of Rs. 200/-, in default simple imprisonment for 30 days), described in the opinion as the minimum penalty under the statute.

Implications:

  • Direct effect: The petitioner's conviction and sentence as imposed by the trial court remain in force.
  • Interpretive consequence limited to the case: The court applied the ordinary/dictionary meaning of "catering" (as reflected in a cited unreported judgment) to conclude that a staff canteen run by a private caterer for profit can constitute a "catering establishment" within Part IV of Schedule M of the BMC Act, even though it is not open to the public.
  • No broad alteration of statutory regimes: The court expressly rejected the submission that compliance with the Factories Act and its rules obviated the duty to obtain a licence under the Bombay Municipal Corporation Act. The decision confirms that parallel statutory obligations may coexist and must be separately complied with.
  • On precedent: The opinion relied on an existing decision distinguishing "eating-house" from "catering establishment" and on an unreported decision interpreting "catering establishment"; the judgment does not indicate that it establishes a new, sweeping legal precedent beyond its application to the facts of the case.

This summary is based exclusively on the content of the provided opinion. No information has been added beyond what appears in the opinion.

    Balkrishna Karkera v. K.J Mishra And Another

    1. The petitioner has filed the present Revision Petition challenging his conviction by the learned Metropolitan Magistrate, 29th Court, Dadar, Bombay, under S. 394(1)(e) (i) read with Section 471 of the Bombay Municipal Corporation Act as also the sentence of fine of Rs. 200/-, in default to suffer simple imprisonment for 30 days imposed on him.

    2. The brief facts leading to the prosecution of the Petitioner, who was original Accused No. 2 before the Trial Court, are the following:—

    Accused No. 1 was the Personnel Officer of Messrs. Indian Tools Manu-facturers Limited which has its factory at Sion (hereinafter referreed to as the Company). Accused No. 2 was a caterer running a canteen. By an Agreement dated 16th March, 1974, Accused No. 2 agreed to operate a canteen in the factory premises of the said Company at seion on the terms and conditions contained therein.

    3. On 2-12-1976 at about 12.45 p.m Padinalthu Abraham (P.W 1), an in spector in the employ of the Bombay Municipal Corporation, visited the fac tory premises of the said Company. Abraham enquired with Accused Nos. 1 and 2 whether they ftad obtained a licence under Section 394(1)(e) of the B.M.C Act, whereupon he was in formed that no such licence or permit had been obtained either by Accused No. 1 or by Accused No. 2. Abraham then reported this matter to his supe rior. Abraham also put up an Offence Sheet and obtained sanction to prose cute the two Accused. At the Trial with the consent of parses, the Agreement as between the said Company and Accused No. 2, D/- 16-3-1974 had been tendered and marked Ex “E”.

    4. The learned Magistrate was pleased to come to one conclusion that it was obligatory upon Accused No. 2 to obtain a licence under S. 394(1)(e) of the Bombay Municipal Corporation Act. The learned Magistrate came to the conclusion that Accused No. 1, being the Personnel Officer, was only an employee of the said Company and, therefore, he was under no obligation to obtain any licence under the Bombay Municipal Corporation Act. The learned Magistrate was pleased to acquit Accused No. 1 of the offence charged. The learned Magistrate convicted Accused No. 2 under Section 394(1)(e) (i) read with Section 471 of the Bombay Municipal Corporation Act and sentenced him as stated hereinabove.

    5. There is no dispute as between the parties with regard to the facts mentioned above. Mr. Shrikrishna, the learned Advocate appearing on behalf of the Petitioner, Accused No. 2, submitted three points for my consideration. Mr. Shrikrishna, firstly, contended that Accused No. 2 did not carry on the business of an ‘eating house’ inasmuch as the staff canteen run by Accused No. 2 on behalf of the said Company was not open to the public. The entry to the staff canteen was restricted only to the employees of the said Company. That being the case, according to Mr. Shrikrishna, the staff canteen could not be termed either as an ‘eating house’ or as a ‘catering establishment’.

    6. Mr. Shrikrishna relied upon a ruling of our High Court in the case of Hotel Mazdoor Sabha v. N.J Alvares*. reported in AIR 1965 Bom 13 wherein K.K Desai. J. sitting singly was pleased to observe (at p. 15):—

    “The carrying on of the business of supply of meals or refreshments is the first essential of the premises being ‘restaurant or eating house under sub-sec. (25) of S. 2. Staff canteens where an employer makes arrangements for supply of meals or refreshments without intending to carry on business thereof cannot be held to be ‘restaurant or eating house’ within the meaning of the Act. Wherever an employer makes merely arrangements for supply of meals or refreshments to its employees and does not carry on wholly or principally the business of supply of meals or refreshments, the premises would not be ‘restaurant or eating house’ within the meaning of the Act. The provisions of the Act would not be applicable to such establishments.”

    7. In order to appreciate this sub mission as also the other submissions made by Mr. Shrikrishna, it will be relevant at this stage to set out certain provisions of the Bombay Munici pal Corporation Act. S. 394(1)(e) (i) provides as follows:—

    “Section 394(1): Except under and in accordance with the terms and conditions of the licence granted by the Commr., no person shall— (e) carry on, or allow or suffer to be carried on, in or upon by any premises, (i) any of the trades specified in Part IV of Schedule M, or any process or operation connected with any such trade; The material provision of Part IV of Schedule M referred to in Section 394 runs as follows:—

    “Trades or processes or operations connected with trades which shall not be carried on or allowed to be carried on in or upon any premises without a licence:—

    xxxx xxxx xxxx

    Keeping of an eating house or a catering establishment.” Section 3(ff) of the Bombay Municipal Corporation Act defines “eating house” as follows:—

    “‘eating-house’ means any premises to which the public are admitted and where any kind of food is prepared or supplied for consumption on the premises for the profit or gain of any person owning or having an interest in or managing such premises;”

    8. Now it is pertinent to note that although the expression “eating house” has been defined under the Bombay Municipal Corporation Act, the expression “catering establishment” has not been defined. It is true that the staff canteen run by Accused No. 2 was not open to the members of the public at large and the admission was restricted solely to the employees of the said Company. To that extent Mr. Shrikrishna would be justified in his submission that the staff canteen could not be termed as an “eating house.” However, what is significant is the fact that Accused No. 2 has not been charged with carrying on an “eating house” but he has been charged for carrying on a, catering establishment. “Catering establishment” is an expression which is wider in its connotation than the expression “eating house” and whether a staff canteen was open to the public or restricted only to a section of the public, it would still fall within the definition of a “catering establishment”. A similar argument was urged in an unreported case of the Bombay High Court in Criminal Appeal No. 593 of 1972 (By State) wherein Tulzapurkar, J. was pleased to observe in his Judgment dated 21st November, 1973:—

    “In this view of the matter, it is clear to me that the expression a catering establishment’ will have to be understood in its normal dictionary meaning. The word ‘cater’ as a verb means, according to the Oxford Dictionary, ‘To act as caterer, or puryeyor of provisions; to provide a supply of food”. It also means “To occupy oneself in procuring or providing (requisites, things desired, etc.) and ‘cater’ is understood to mean “Purvey food and other requisites.” A catering establishment would, therefore, be an establishment where purveying of food and other requisites takes place. It is therefore, not necessary, according to the dictionary meaning of the expression, that the members of the public should have an access to such an establishment before it could become a catering establishment’ within the meaning of the relevant entry in Part IV of Schedule M. It cannot be disputed that in the canteen in question articles of food and other requisites are being purveyed to the students and the members of the Institute and, therefore, the canteen in question clearly falls within the expression ‘a catering establishment’ occurring in the relevant entry in Part IV of Schedule.”

    9. The ruling in the case of Hotel Mazdoor Sabha v. N.J Alvares*, (AIR 1965 Bom. 13) cited by Mr. Shrikrishna dealt with the question which arose under the Bombay Shops and Establish ments Act and was concerned with the expression “eating house.” As I have pointed out, the Accused in this case were charged for carrying on a Catering establishment and, therefore, the ruling cited by Mr. Shrikrishna would not be relevant for the purpose of the issue before me.

    10. Mr. Shrikrishna next submitted that under the provisions of Section 46 of the Factories Act, it was obligatory upon the employer of a factory which employed more than 250 workers to provide a canteen or canteens for the use of the workers. Mr. Shrikrishna submitted that such a canteen had to be conducted in accordance with the provisions of Rules 79 to 85 of the Factories Rules, 1963. According to Mr. Shrikrishna a statutory duty had been cast upon the employer of a factory to run a canteen and further under Rule 85(2) of the Factories Rules, canteens had to be run on a no-profit basis. That being the case, Mr. Shri krishna urged, it could not be stated that Accused No. 2 was carrying on the trade of a catering establishment. Now It is true that Section 46 of the Facto ries Act, 1948 casts an obligation upon the employer of a factory wherein more than 250 workers are employed to provide a canteen, or canteens few the use of the workers. Section 46(1) of the Factories Act provides as follows:—

    “Section 46. — Canteens — (1) The State Government may make rules requiring that in any specified factory wherein more than two hundred and fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of the workers.”

    11. Rule 85 sub-rule (2) provides:—

    “Food, drink and other items served in the canteen shall be sold on nonprofit basis and in computing the charges to be made for such food, drink or other items, the following items shall not be taken into consideration, namely:—

    (The rest of the sub-rule is not relevant for the purpose of this discussion)

    12. The argument urged by Mr. Shrikrishna that since the staff canteen was conducted on a no-profit basis, it could not be termed as a catering establishment, cannot be accepted. Now it is true that so far as the employer is concerned, the staff canteen has to be run on a no-profit basis. However, the same could not be stated so far as Accused No. 2 was concerned. Accused No. 2 conducted the staff canteen of the said Company for the purpose of making a profit. It could not be said, and indeed it has not been urged by Mr. Shrikrishna, that Accused No. 2 was motivated by considerations of philanthropy or charity. Indeed the Agreement dated 16th March, 1974 as between Accused No. 2 and the said Company provides for the payment of Rs. 4650/- per month by the said Company to Accused No. 2 plus 10% of the value of the coupons sold during the month. It therefore, cannot be stated that Accused No. 2 conducted the staff canteen on a no-profit basis and he was not carrying a trade and therefore, Mr. Shrikrishna's argument must be rejected.

    13. Finally, Mr. Shrikrishna submitted that the provisions of Section 394 of the Bombay Municipal Corporation Act were repetitive of the provisions of the factories act. Mr. Shrikrishna urged that the provisions of the factories act as also the Rules sufficiently protected the canteens being run in a hygienic and on an economical basis safeguarding the welfare of the workers. Mr. Shrikrishna stated that the provisions of the Bombay Municipal Corporation Act so far as they relate to eating houses and catering establishments also provided for eating houses and catering establishments being run hygienically and efficiently. He, therefore, submitted that if the same purpose was served by both the Statutes, then it was unnecessary to compel Accused No. 2 to obtain a licence under the Bombay Municipal Corporation Act.

    14. It may be pointed out that so far as the Factories Act was concerned, the provisions therein as also the Rules made thereunder were meant for the protection of the workers and with a view to benefit them. So far as the provisions of the Bombay Municipal Corporation Act were concerned, they are enacted according to the Statement of Objects and Reasons of that Act for the purpose of seeing that certain trades are not carried out in a dangerous manner or are likely to create a nuisance or to endanger life, It, therefore, cannot be stated that the provisions of the two Acts overlap each other. Assuming, however, that the purpose of the two Acts was similar, even then there could be no reason why an obligation cast upon a party to obtain a licence under the provisions of jone of such Acts should not be complied with. I, therefore, see no substance. In this argument of Mr. Shrikrishna.

    15. I am of the view that the learned Magistrate was justified in convicting Accused No. 2 under S. 394(1)(e) (i) read with Section 471 of the Bombay Municipal Corporation Act and in sentencing Accused No. 2 to the minimum penalty thereunder. The Petition is, therefore, dismissed and the Rule discharged.

    16. Petition dismissed.

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    Comments

    Balkrishna Karkera v. K.J Mishra And Another
    (Nov 15, 1978)