SHETH MOTISHAW LALBAUG JAIN CHARITIES v. BOMBAY GENERAL EMPLOYEES'ASSOCIATION and ANR.
Determining 'Industry' Status of Charitable Trusts: Application of Bangalore Water Supply Tests and Emphasis on Systematic Economic Activity and Employer-Employee Relations.
Court: Bombay High Court
Citation: 2025:BHC-OS:24558
Decision Date: 12-12-2025
List of Laws
The Industrial Disputes Act, 1947; Section 2(j) of the Industrial Disputes Act, 1947; The Bombay Public Trusts Act, 1950; The Trade Unions Act, 1926; Maharashtra Public Trusts Act, 1950; Bangalore Water Supply & Sewerage Board vs. A Rajappa & Ors.; Shri Gajanan Maharaj Sansthan vs Shri Gajanan Karmachari Sangh and Anr.
- Facts: Seth Motishaw Lalbaug Jain Charities, a public charitable trust registered under the Bombay Public Trusts Act, 1950, challenged an award passed by the Industrial Tribunal. The trust argued it did not fall under the definition of 'industry' under Section 2(j) of the Industrial Disputes Act, 1947, as its primary objective was to propagate Jain religion and help needy people. The Respondent-Union, representing the trust's employees (watchmen, cleaners, sweepers, etc.), had demanded permanency, scales of pay, and other benefits. The Industrial Tribunal ruled against the trust, granting the union's demands.
- Procedural Posture: The Petitioner-Trust filed a Writ Petition in the Bombay High Court challenging the Award of the Industrial Tribunal. The matter was initially heard by a Single Judge, then referred to a Division Bench, and ultimately heard by the Single Judge again after the Supreme Court's decision in Shri Gajanan Maharaj Sansthan vs. Shri Gajanan Karmachari Sangh and Anr. remitted the matter for fresh consideration.
- Issue: Is the Petitioner-Trust, a public charitable trust, an 'industry' as defined under Section 2(j) of the Industrial Disputes Act, 1947, making it amenable to the jurisdiction of the Industrial Tribunal?
- Holding: Yes, the High Court held that the Petitioner-Trust is an 'industry' within the meaning of Section 2(j) of the Industrial Disputes Act, 1947. The Writ Petition was dismissed.
- Reasoning: The Court reasoned that the Trust's activities extended beyond purely religious or charitable purposes. The Trust earned substantial income by renting out properties, including shops, halls, and rooms in its dharamshala. The Court applied the tests laid down in Bangalore Water Supply & Sewerage Board vs. A Rajappa & Ors., emphasizing the systematic nature of the Trust's property management activities, the employer-employee relationship, and the fact that the employees were not volunteers but were hired for wages. The Court categorized the Trust under the first category outlined in Bangalore Water Supply, where the enterprise yields profits used for altruistic purposes, which still qualifies it as an industry. The Court found that the employees were not primarily engaged in the religious activities of the Trust, but rather in the management of its properties, thus establishing an industrial character.
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