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of <h1>Cricket Club not an 'industry' under Industrial Disputes Act</h1> The Supreme Court held that the Cricket Club of India Ltd. does not qualify as an 'industry' under the Industrial Disputes Act. The Court determined that ... - Issues Involved:1. Whether the Cricket Club of India Ltd. qualifies as an 'industry' under Section 2(j) of the Industrial Disputes Act.2. The relevance of the Club's activities and their classification in determining if it constitutes an industry.3. The impact of the Club's incorporation as a Limited Company on its status as an industry.Detailed Analysis:1. Whether the Cricket Club of India Ltd. qualifies as an 'industry' under Section 2(j) of the Industrial Disputes Act:The primary issue in this case was whether the Cricket Club of India Ltd. (the 'Club') qualifies as an 'industry' under Section 2(j) of the Industrial Disputes Act. The Tribunal had previously ruled that the Club is an industry, making the reference under the Act competent. The Club appealed this decision, arguing that it is not an industry and thus not subject to the Act.2. The relevance of the Club's activities and their classification in determining if it constitutes an industry:The Club argued that it is a Members' Club, not a proprietary Club, and its primary objectives are to encourage and promote various sports, particularly cricket, and to provide recreational facilities for its members. The Club's activities include maintaining sports facilities, providing residential accommodations for members, and running a Catering Department. The Club contended that these activities do not amount to an 'industry' as defined by the Act.The Supreme Court referenced its previous decision in the Madras Gymkhana Club case, which laid down principles for determining when a Club can be considered an industry. The Court reiterated that not every human activity involving employers and employees qualifies as an industry. Activities that are primarily self-serving for members and do not involve systematic production or distribution of material goods or services do not qualify as an industry.The Court examined the specific activities of the Club:- Sports and Recreational Activities: The primary purpose of the Club is to promote sports and provide recreational facilities for its members. The Court noted that these activities are self-serving and do not involve the systematic production or distribution of material goods or services.- Residential Accommodations: The Club provides residential accommodations exclusively for its members. The Court held that this is a self-serving activity and not comparable to running a hotel, as it is not open to the general public.- Catering Services: The Club's Catering Department serves only its members and their guests, with transactions confined to members. The Court found this to be a self-serving activity, not an industrial activity.- Stadium and Cricket Matches: The Club earns income from selling tickets to spectators for cricket matches and from agreements with organizations for reserved seats in the stadium. The Court held that these activities are incidental to the Club's primary objective of promoting cricket and do not transform the Club into an industry.3. The impact of the Club's incorporation as a Limited Company on its status as an industry:The Club is incorporated as a Limited Company under the Indian Companies Act. The Union argued that this incorporation makes the Club a separate legal entity, distinct from its members, and thus qualifies it as an industry. The Court, however, held that the incorporation is a legal technicality and does not change the nature of the Club's activities. The Club remains a Members' Club, with no shareholders, no distribution of profits, and membership being fluid and non-transferable. Therefore, the incorporation does not make the Club an industry.Conclusion:The Supreme Court concluded that the Club's activities are primarily self-serving for its members and do not involve the systematic production or distribution of material goods or services. Therefore, the Club does not qualify as an 'industry' under Section 2(j) of the Industrial Disputes Act. The Tribunal's order was set aside, and the appeal was allowed, with each party bearing its own costs.
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