Purposive reading of municipal licensing law covers club catering to members and guests as an eating house.

A club that supplies food through its catering department to members and their guests was held to fall within the licensing scheme under Section 394(1)(e) read with Part IV of Schedule M of the Bombay Municipal Corporation Act, 1888. The Court applied a purposive construction aimed at public hygiene, health and safety, and treated members as part of the relevant "public" for an eating house. It also held that "gain" is not limited to pecuniary profit and includes benefit or advantage, so the club derived gain from the catering activity. The result was that the club had to obtain the required licence.

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Issues: Whether a club providing catering services exclusively to its members and their guests is required to obtain a licence under Section 394(1)(e) read with Part IV of Schedule M of the Bombay Municipal Corporation Act, 1888.

Analysis: The licensing scheme under Section 394 and Schedule M is intended to secure public hygiene, health and safety, and the expression "eating house" in Section 3(ff) is to be read in light of that object. A purposive construction shows that the members of a club fall within the ambit of "public" for this purpose, and the supply of food by the club's catering department is an integral part of the facilities it provides. The word "gain" is not confined to pecuniary profit; it includes benefit or advantage, and the club derives such gain from catering to its members and guests. The wider expression "catering establishment" also supports the conclusion that such activity falls within the licensing requirement.

Conclusion: The club is required to obtain a licence under Section 394(1)(e) read with Part IV of Schedule M of the Bombay Municipal Corporation Act, 1888.

Final Conclusion: The appeal succeeds and the High Court's view is reversed, with the respondents held liable to comply with the statutory licensing requirement.

Ratio Decidendi: A club's catering activity for its members and guests falls within the licensing provisions for an eating house or catering establishment where the statute is construed purposively to advance public health, and "gain" includes benefit or advantage apart from profit.

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