Maternity Benefit Applicable To Private Medical Institutions With Effect From March 6, 2020 Only: Kerala High Court

The matter came before Justice Dinesh Kumar Singh in a Writ Petition. The plea was filed by a Dental College and Research Centre. The college was served with a notice from the inspector under the Maternity Benefit Act alleging non-payment of maternity benefits to Reshma Vinod. The petitioner submitted a reply to this. However, an order was passed by the Inspector directing the petitioner to pay an amount of Rs. 64,393.56 to Reshma as a maternity benefit and medical bonus. This order was appealed by the institution under S.17(3) of the Act which was dismissed.

The main contention in the petition is whether the Maternity Benefits Act would be applicable to private medical institutions. The petitioner argued that a medical educational institution is not a shop or establishment and does not come under the purview of the Maternity Act. The respondents argued that the Maternity Benefit Act is a beneficial legislation. It was stated that medical educational institution is not exempted from the provisions of the Kerala Shops and Establishments Act and therefore the Act is applicable to them.

Referring to Ruth Soren v Managing Committee, East ISSDA & Others, the Court held that an educational institution can be held as an industry but not an establishment.

“In educational institution, there is an organized activity between employers and employees to impart education. Such an activity, though maybe industry, however would not be a profession, trade or business for the purpose of Article 19(1)(g) of the Constitution would not be one falling within the definition of establishment under the Act.”

The Court held that the institution can be considered as an industry as defined under the Industrial Disputes Act but not as an establishment under the Kerala Shops and Establishments Act. 'Establishment' is not as wide as “industry”. Establishment under the Act means an establishment which carries on any business or trade or profession or any work in connection with, or incidental or ancillary thereto. Industries would include any business, trade, undertaking, manufacture or calling of employees and include any calling service, employment, handicraft or industrial occupation or avocation of workmen.” The Court observed that the institution will come under the definition of industry only.

Counsel for Appellants: Advocates K. K. Premlal, Vishnu Jyothis Lal.

Counsel for Respondents: Advocates C. P. Pretty, Sunny Xavier

Citation: 2024 LiveLaw (Ker) 337

Case Title: Chairman, PSM College of Dental Sciences & Research v Reshma Vinod and Others

Case No.: R.S.A. WP(C) 13201 of 2018

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