Industrial Disputes Act Applicable To Institution Registered With Wakf Board, Engaged In Commercial Activity: Gujarat High Court

The Petitioner institution submitted that they were not engaged in any commercial activity and was running the institution for religious teachings to the children on a non-profit basis. Therefore, 'by no stretch of imagination', could the Petitioner be compared with an industry as under Sec 2(j) of the Industrial Disputes Act. It was contended that the Respondent was a teacher (Maulvi) discharging religious instruction and he also could not be covered with the definition of a 'workman.'

It was also argued that the Respondent had committed offences of serious nature due to which he was terminated. Reliance was placed on Haryana Unrecognised Schools Association Vs. State of Haryana where it was held that the teacher of an educational institution could not be brought within the purview of the Minimum Wages Act. Further, the activity of the institution did not result into 'large scale production' of goods or services which could bring it within the fold of the term 'industry.'

The Respondent, per contra, contended that he not only was involved in religious teaching but also served as a clerk and engaged with various printing activities at the institution. Therefore, he was a 'workman' at the institution. He placed reliance on the celebrated judgement of Bangalore Water Supply and Sewerage Board Vs. A.Rajappa & Ors., to show that the institution's work clearly fell within the definition of 'industrial activity.'

Justice Kogje observed that the Respondent had joined the institution in April 1993 and later went on to becoming 'Maulvi', i.e., a religious instructor. However, the Bench remarked that when allegations were made against the Respondent in 2008, after 11 years of service as a teacher, he was not put to notice with regard to the allegations. It was opined:

"In the opinion of the Court, had the petitioner institution inclined to act on the basis of such allegations, it was incumbent for the petitioner institution to act in accordance with law and providing opportunity by following principles of natural justice, ought to have called for the explanation towards such serious allegations."

Per the Bench, the Labour Court had rightly held that the termination was a violation of Sec 25F of ID Act. The Petitioner-Institution had also failed to convince the Court that it was not an 'industry' but an educational institution. The institution was involved in various activities including imparting education, publishing magazines and educational books with subscriptions. As per Bangalore Water Supply, the ingredients of industry were satisfied in the following manner:

1. Systematic activity
2. Organised cooperation between employer and the employee
3. Production or distribution of goods and services for satisfying human wants.

Keeping in view these ingredients, the High Court concluded that the Petitioner-institution, though registered with the Wakf Board, is an 'industry.' The order stated,

"The nature of activities of the petitioner institution not only included imparting of religious education, but was also involved in activity of printing of magazines and educational books. The evidence also goes on to show the fact that the institution was receiving subscriptions for such magazines. The submission of learned Advocate for the petitioner that such activity was done at minuscule level and printing of only 1000 magazines was undertaken, will not take the activity out of the definition of an "industry"."

Case Title: DARUL ULLUNARABIYYAH ISLAMIYYAH v/s MAULAVI MAHMRUDUL HASAN & 1 other(s)

Citation: 2022 LiveLaw (Guj) 236

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