NDLI: P.b. Nayak & Ors. Vs. Managing Director, Bhilai Steel Plant & Ors.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Madhya Pradesh Shops and Establishment
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Dismissed
Headnote	Madhya Pradesh Shops and Establishment Act, 1958: s.3(1)(j) – Applicability of the Act to respondent-club in view of exemption under s.3(1)(j) – Among the establishments, to which the Act does not apply, s.3(1)(j), provides for a club not being a residential club – The words ‘residential club’ is found in the definition of the word ‘residential hotel’ – A residential hotel is defined as any premises, where lodging or board and lodging is provided – The service of lodging or board and lodging must be for payment – The said services may be provided to travellers and other members or class of members of the public – Thus, the recipients of the services are to be the travellers or members of the public or a class of members of the public – As per the Bye-laws of the respondent-club, only the Officers of Bhilai Steel Plant, MECON, HSCL, BRP and SAIL are eligible to be members of respondent-club on payment of prescribed fee – The club premises are described as private premises – There is a governing body which manages the affairs of the club – Entry is restricted to the members, families of members and such other persons as are authorised by the governing body – No outsider could come to the club for taking tea, liquor or eating samosa but he can come as a guest of the member – Bye-laws contemplate providing of facilities of indoor/outdoor games, library and reading room – The members and their families are to be provided facilities for their cultural and intellectual advancement – The members of the club and their guests and family members cannot be described as the ‘public’ – Thus, respondent club cannot be characterized as premises which was ‘wholly or principally’ used for the business of supply of meals and refreshment to the public – Respondent-club is, therefore, not a residential club and is exempted from the Act. Madhya Pradesh shops and Establishment Act, 1958: s.(22), 2(23) – Residential hotel – Restaurant and eating house – A perusal of s.2(22) of the Act reveal, the distinguishing feature, which is an indispensable requirement, to make any premises, a residential hotel, is that lodging must be provided – It may be lodging and board or it may be lodging alone – This meaning does justice to the word ‘residential’ which qualifies hotel – In other words, there may be hotels which do not provide lodging – Such hotels may fall under s.2(23) – What is meant to be conveyed by the word ‘residential hotel’ is the element of service of lodging, being present which is provided in the hotel – It is in the company of such words, defining residential hotels that the word ‘residential club’ is ‘included’.
Judge	Hon'ble Mr. Justice K.M. Joseph
Neutral Citation	2021 INSC 670
Petitioner	P.b. Nayak & Ors.
Respondent	Managing Director, Bhilai Steel Plant & Ors.
SCR	[2021] 10 S.C.R. 432
Judgement Date	2021-10-26
Case Number	4613

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P.b. Nayak & Ors. Vs. Managing Director, Bhilai Steel Plant & Ors.

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