Trust Categorized as 'Industry'; Employee-Employer Relationship Affirmed Under Industrial Disputes Act
In a significant ruling, the Jammu and Kashmir High Court has upheld an award by the Industrial Tribunal, Jammu, which categorizes the Dharmarth Trust, J&K as an 'industry' under the Industrial Disputes Act, 1947. The judgment, delivered by Justice M A Chowdhary, dismissed the writ petition filed by the Dharmarth Trust challenging the tribunal's order dated 09.09.2003. The tribunal had ruled in favor of Chand Ram, a Safaikaramchari employed by the Trust, whose termination was deemed illegal, entitling him to 50% back wages.
The case hinged on whether the Trust's activities qualified it as an 'industry' under Section 2(j) of the Industrial Disputes Act. The tribunal applied the Triple Test and Dominant Nature Test from the landmark Bangalore Water Supply case, determining that the Trust's organized, systematic activities, which included commercial operations, satisfied human wants beyond mere religious or spiritual needs.
The Trust had argued that it was a religious and charitable institution, exempt from the Act's provisions. However, the court found that the Trust engaged in various commercial activities, such as operating business markets and hotels, which supported the tribunal's classification as an industry.
Furthermore, the court affirmed the employer-workman relationship between the Trust and Chand Ram, meeting the criteria under Sections 2(j) and 25F of the Act. Despite the Trust's assertion that the tribunal lacked jurisdiction, the court noted the Trust's failure to contest the reference made by the Government of Jammu & Kashmir or present a defense before the tribunal. This omission, coupled with a delay in challenging the award, led to the petition's dismissal.
This judgment reinforces the application of the Industrial Disputes Act to entities engaged in commercial activities, irrespective of their religious or charitable nature, ensuring statutory rights for employees in organized sectors.
Bottom Line:
Industrial Disputes Act, 1947 - Applicability of the Act to Dharmarth Trust, J&K - Trust's activities including commercial operations and organized services satisfy the Triple Test and Dominant Nature Test, categorizing it as an 'Industry' under the Act.
Statutory provision(s): Industrial Disputes Act, 1947 Section 2(j), Section 2(k), Section 25F
Dharmarth Trust J&K v. Industrial Tribunal, (Jammu And Kashmir) : Law Finder Doc Id # 2825436
