The Supreme Court (SC) of India on 2 November 2014 held that the kitchen of Delhi Gymkhana Club is a factory under Employees State Insurance (ESI) Act, 1948. A Bench of SC Justices T.S. Thakur and R. Banumathi gave the judgment.
As per the Employees State Insurance Act, 1948, factory means any premises whereon ten or more persons are employed or were employed on any day of the preceding twelve months and in any part of which a manufacturing process is being carried on or is ordinarily carried on but does not include a mine subject to the operation of the Mines Act, 1952 or a railway running shed.
The club kitchen admittedly employed over 20 persons. Moreover, the kitchen used power as it maintained a refrigerator, geyser and other equipment to prepare foodstuffs which made the preparation of food a manufacturing process.
As the club caters to the elite people of Delhi, it operates on a big budget promoting activities like polo, hunting, racing, tennis and other games, athletic sports and other recreations amongst its members. Therefore, the kitchen has a direct connection with these activities.
The judges ordered the Delhi Gymkhana Club Ltd. to pay its kitchen and catering staffers the amounts due to them under the statute from 1986.
Delhi Gymkhana Club
The Club was established on 3 July 1913 as the Imperial Delhi Gymkhana Club at Coronation Grounds, Delhi for use of the elite comprising of officers of the Indian Civil Service, Armed Forces and Civil Residents of the Delhi.
When India gained Independence in 1947, the word Imperial was dropped and it was simply known as Delhi Gymkhana Club. Spencer Harcourt Butler was its first President of the Delhi Gymkhana Club.
The club is primarily a sporting club and has the distinction of having 26 grass courts and 7 clay courts. The Club has the proud privilege of holding several National & International championships including the Grand Prix Tennis Tournament and the Davis Cup matches.
The Club has various Food & Beverage Outlets like Cafe Coffee Day, Family Dining Room, Kashmiri Lounge Restaurant, Terrace Bar and Cocktail Bar.
Who: Supreme Court
When: 2 November 2014
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