Non-Residential Club Won’t Come Under MP Shops & Establishments Act Merely Because Food Supply Is There

Case: P.B. Nayak And Ors. v. Managing Director, Bhilai Steel Plant And Ors.

Coram: Justices KM Joseph and PS Narasimha

Case No: Civil Appeal No(s) 4613 of 2013

Court Observation: “Section 2 (22) – “residential hotel” means any premises in which a bona fide business is carried on of supplying for payment lodging or board and lodging to travellers and other members or class of members of the public and includes a residential club.”

“The word “club” means essentially an association of individuals in a way that involves to some degree the factors of free choice (which connotes a power of exclusion), permanence, corporate identity and the pursuit as a common aim of some joint interest other than the acquisition of gain (or some mutual advantage directly connected with the acquisition of gain, such as those provided by membership of a professional society or trade union. It is the last- named qualification that distinguishes clubs from business or professional partnerships, and from trade unions and the like.”

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Keywords

Non-Residential Club, MP Shops & Establishments Act