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AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • The Kerala Shops and Commercial Establishments Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 2(j) of the Industrial Disputes Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • The Kerala Shops and Commercial Establishments Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 2(j) of the Industrial Disputes Act
Smart Summary

Factual and Procedural Background

An Industrial Tribunal at Tis Hazari was asked to decide whether employees of a Housing Society were entitled to various allowances and uniforms. The Society objected, contending that it was not an “industry” and its staff were not “workmen” under the Industrial Disputes Act, 1947 (ID Act). Relying principally on Bangalore Water Supply & Sewerage Board v. A. Rajappa, the Tribunal rejected the objection, held that the Society was an industry, and granted only the claim for uniforms. The Society appealed to the Supreme Court of India.

Legal Issues Presented

  1. Whether the appellant Housing Society falls within the definition of an “industry” under Section 2(j) of the Industrial Disputes Act, 1947.
  2. If the Society is not an industry, whether its employees can be treated as “workmen” so as to bring the dispute within the Tribunal’s jurisdiction.
  3. Whether the Tribunal’s limited relief directing provision of uniforms should be sustained.

Arguments of the Parties

Appellant’s Arguments

  • The Society merely maintains cleanliness and provides services personally to apartment owners; such activities do not constitute an “industry.”
  • The staff render personal domestic-type services and therefore cannot be classified as “workmen” under the ID Act.
  • Precedent such as T.K. Ramesan v. A.O. Thomas supports the view that maintenance services for a housing complex are outside industrial jurisprudence.

Respondents’ Arguments

  • The Society is a distinct legal entity that employs workers, pays salaries, and exercises control and supervision over them; its activities therefore satisfy the wide test of “industry” laid down in Bangalore Water Supply & Sewerage Board v. A. Rajappa.
  • Reliance was placed on Karnani Properties Ltd. v. State of W.B., where workers maintaining leased premises were treated as workmen in an industry.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bangalore Water Supply & Sewerage Board v. A. Rajappa (1978) 2 SCC 213; (1978) 3 SCR 207 Expansive interpretation of “industry” while noting that purely domestic or personal services fall outside the definition. The Tribunal relied on it to treat the Society as an industry; the Supreme Court used the same case to emphasise that domestic-type services, even when organised collectively, are excluded, and ultimately held the Society is not an industry.
T.K. Ramesan v. A.O. Thomas, Secy., Maintenance Committee, 1995 Lab IC 813 (Ker) Activities of flat-owner associations providing personal services do not constitute an industry (decided under the Kerala Shops & Commercial Establishments Act). Cited by the appellant and acknowledged by the Court as illustrative of the correct approach, though not decisive for the ID Act issue.
Karnani Properties Ltd. v. State of W.B. (1990) 4 SCC 472 Company leasing mansions and employing maintenance staff held to be an industry. Relied on by the respondents; the Court distinguished it as factually different because the company engaged in commercial leasing, unlike the present Society formed solely for apartment owners’ personal benefit.

Court's Reasoning and Analysis

The Supreme Court revisited the definition of “industry” under Section 2(j) of the ID Act, emphasising that Rajappa expressly excluded purely personal or domestic services from its sweep. The Court reasoned that:

  • The Society was constituted exclusively by apartment owners to secure personal household services such as cleaning and maintenance.
  • Workers engaged by a collective of homeowners, even when organised as a registered society, perform services of a domestic nature akin to those of individual domestic servants.
  • Industrial jurisprudence is intended to regulate disputes arising from productive, commercial or service-oriented enterprises, not private domestic arrangements.

Accordingly, the Society could not be classified as an “industry,” and its employees could not be treated as “workmen” for the purposes of the ID Act. The Tribunal therefore lacked jurisdiction, rendering its award unsustainable.

Nevertheless, on the appellant’s own concession, the limited direction to provide uniforms was allowed to stand.

Holding and Implications

AWARD SET ASIDE EXCEPT FOR THE DIRECTION TO PROVIDE UNIFORMS; APPEAL ALLOWED.

Immediate Effect: The Industrial Tribunal’s award is nullified save for the requirement that the Society supply uniforms to its employees. Broader Implications: The judgment reaffirms that entities providing merely personal or domestic services to their own members, even when organised as societies, are not “industries” under the ID Act, thereby limiting tribunal jurisdiction in similar housing-society disputes. No new precedent was set; the Court applied and clarified existing principles from Rajappa.

    Som Vihar Apartment Owners' Housing Maintenance Society Ltd. v. Workmen C/O Indian Engg. & Genl. Mazdoor .

    Order

    1. An award was made by the Industrial Tribunal, Tis Hazari on a reference made to it on the following question:

    “Whether the workmen are entitled to dearness allowance, house rent allowance, conveyance allowance and uniforms and if so, to what extent and from which date directions are necessary in this respect?”

    2. The appellant raised an objection that the reference is beyond the jurisdiction of the Tribunal inasmuch as the appellant is not an industry and the workmen on whose behalf the respondents are espousing their cause are not workmen under the Industrial Disputes Act and therefore, the reference is bad. Dealing with this aspect of the matter the Tribunal came to the conclusion placing reliance on the decision of this Court in Bangalore Water Supply & Sewerage Board v. A. Rajappa (1978) 2 SCC 213, (1978) 3 SCR 207 and distinguishing the decision in T.K Ramesan v. A.O Thomas, Secy., Maintenance Committee 1995 Lab IC 813 (Ker) held that the Housing Society in this case is an industry and its employees are workmen under the Industrial Disputes Act and proceeding further, the Tribunal rejected the various claims raised on behalf of the respondents except in relation to the one relating to uniform and that relief was granted.

    3. The appellant before us reiterated the objections raised before the Tribunal and submitted that the Society is only formed to maintain cleanliness in the apartments and to render certain other services personally to the apartment-owners themselves and therefore by no stretch of imagination it could be held that they carry on any activity which could be characterised as an industry much less those carrying on the work be termed as workmen.

    4. Learned counsel for the respondents submitted that the appellant is an entity apart from the apartment-owners, that they do not take services for themselves; that services are rendered to the apartment-owners through the Society formed by them; that they receive salary and emoluments from the Society; that they work under the control and supervision of the Society; and therefore submitted that the Society's activities must be characterised as fulfilling the human desire, want and needs and would constitute certainly an industry as understood by this Court in A. Rajappa case (1978) 2 SCC 213, (1978) 3 SCR 207.

    5. The learned counsel relied upon a decision of this Court in Karnani Properties Ltd. v. State of W.B (1990) 4 SCC 472 where a real estate company owning mansions and leasing them out employing workers for their maintenance like sweepers, durwan, plumbers, bill collectors, mistris, liftman etc., this Court held the activity carried on by such Company falls within the definition of industry and those employees are workmen. That decision is not of any assistance to the respondent for it stands entirely on different facts.

    6. It is no doubt true that the decision in T.K Ramesan case 1995 Lab IC 813 (Ker) was rendered by the Kerala High Court in the context of interpretation of the provisions of the Kerala Shops and Commercial Establishments Act. However, the nature of the activities carried on by a group of persons such as owners of flats in a building complex was considered setting out true tests in a case of this nature. We need not examine these facts either.

    7. Indeed this Court in Rajappa case (1978) 2 SCC 213, (1978) 3 SCR 207 noticed the distinction between such classes of workmen as domestic servants who render personal service to their masters from those covered by the definition in Section 2(j) of the Industrial Disputes Act. It is made clear that if literally interpreted these words are of very wide amplitude and it cannot be suggested that in their sweep it is intended to include service however rendered in whatsoever capacity and for whatsoever reason. In that context it was said that it should not be understood that all services and callings would come within the purview of the definition; services rendered by a domestic servant purely in a personal or domestic matter or even in a casual way would fall outside the definition. That is how this Court dealt with this aspect of the matter. The whole purpose of the Industrial Disputes Act is to focus on resolution of industrial disputes and the regulation will not meddle with every little carpenter or a blacksmith, a cobbler or a cycle repairer who comes outside the idea of industry and industrial dispute. This rationale, which applies all along the line to small professions like that of domestic servants would apply to those who are engaged by a group of flat-owners for rendering personal services even if that group is not amorphous but crystallised into an association or a society. The decision in Rajappa case (1978) 2 SCC 213, (1978) 3 SCR 207 if correctly understood is not an authority for the proposition that domestic servants are also to be treated to be workmen even when they carry on work in respect of one or many masters. It is clear when personal services are rendered to the members of a society and that society is constituted only for the purposes of those members to engage the services of such employees, we do not think its activity should be treated as an industry nor are they workmen. In this view of the matter so far as the appellant is concerned it must be held not to be an “industry”. Therefore, the award made by the Tribunal cannot be sustained. The same shall stand set aside.

    8. However, Mr Kailash Vasdev, learned Senior Advocate for the appellant submitted that as far as the benefit arising out of the award made by the Tribunal to the extent of providing the uniform to the employees is concerned this Court need not interfere. Except to that extent of granting uniform the award made by the Tribunal is set aside. The appeal is allowed accordingly.

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    Som Vihar Apartment ... v. Workmen C/O Indian E...
    (Feb 22, 2001)