# 14 S.C.R. 848 BRIHANMUMBAI MAHANAGARPALIKA AND ANOTHER v. WILLINGDON SPORTS CLUB AND OTHERS

- **Citation:** [2013] 14 S.C.R. 848
- **Court:** Supreme Court of India
- **Decided:** 2013-11-18
- **Case number:** Civil Appeal No. 5840 of 2013
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/14-s-c-r-848-brihanmumbai-mahanagarpalika-and-another-v-willingdon-sports-club-29188
- **Pages:** 29

## Headnote

A
B
[2013) 14 S.C.R. 848
BRIHANMUMBAI MAHANAGARPALIKA AND ANOTHER
v.
WILLINGDON SPORTS CLUB AND OTHERS
(Civil Appeal No. 5840 of 2013)
NOVEMBER 18, 2013
[G.S. SINGHVI AND V. GOPALA GOWDA, JJ.i
Mumbai Municipal Corporation Act, 1888 - s.394(1)(e)
rlw. Part IV Schedule M and s. 3(ff) - Licence under - Need
c for - Whether obligatory for the catering department of a
sports club who provided the catering services only to the
members of the club - High Court held that the club was not
obliged to take licence as it is not covered under definition of
'eating house' u/s.3(ff) - On appeal, held: Though the primary
D activity of the club is to provide sports facilities, but supply of
food was an integral part of such activity - Even though profit
may not be motto of catering facilities, the club certainly gains
by these facilities - Therefore, the catering department of the
club would be covered under definition of 'eating house' -
E Hence obliged to take licence.
Words and Phrases - Word 'Gain' - Meaning of
The question for consideration before this Court was
whether respondent No.1, a sports club was obliged to
F take licence u/s.394(1)(e) r/w. Part IV of Schedule M of
Mumbai Municipal Corporation Act, 1888, for the catering
services provided by it to its members and their guests.
Allowing the appeal, ,the Court
G
HELD: 1. The object of incorporating the requirement
of a licence for an 'eating house' or 'catering
establishment' is to ensure that public hygiene is
maintained at the place/premises where the food is
H
848
BRIHANMUMBAI MAHANAGARPALIKA. v.
849
WILLINGDON SPORTS CLUB
prepared and/or supplied for consumption. It is also
A
intended to ensure safety of the people engaged in the
· preparation of food articles and supply thereof as well as
all those who consume the articles at the particular place/
premises. [Para 12] [864-D-F]
B
2. The High Court was not right in relieving the
respondents of the obligation to take licence under
Section 394(1 )(e) of the Act. The High Court took the view
that the expression 'eating house' is not applicable to a
club. The main reason which prompted the High Court C
. to take that view is that predominant activity of the club
is to provide sporting facilities to the members and the
catering facilities are ancillary. The other reason given by
the High Court is that the food articles are supplied to the
members and not to outsiders except when they come
to the club as guests of the members and that the
D
catering services are not made available to the members
with the object of making profit or gain. Both the aforesaid
reasons are incorrect. [Paras 17, 18 and 27) [869-D-F; 876D-E]
E
3. If purposive interpretation is applied to the
definition of the expression 'eating house', it becomes
clear that the catering department of the club which
prepares and serves/supplies food to members of the
club is covered by the definition of the expression 'eating
F
house'. It cannot be denied that members of club also fall
within the ambit of the term 'public'. No doubt, the primary
activity of the club is to provide sporting facilities to the
members, but the supply of food is an integral part of
such activity and the catering department of the club
G
satisfies an essential component of the facilities provided
by the club. One can take judicial notice of the fact that
many members who avail sporting facilities remain on
the premises for a very long period. Therefore, the articles
of food become integrai part of their activities. Not only
H
this, many join the club in the name of availing sporting
850
SUPREME COURT REPORTS
(2013] 14 S.C.R.
A facilities only for the purpose of spending their time in
leisure and for enjoying the facilities provided by the
Catering Department of the club. Thus, even though profit
may not be the motto of catering facilities provided by
respondent No.1, it certainly gains by these facilities.
B [Para 18] [869-G-H; 870-A-D]
Narayan Gopal Karadkar vs. Hanumant Ramrao Palkar
(1969) MLJ 728

## Text

_Characters 0–39,990 of 54,294. This is a partial read: ask again with offset=39990 for what follows._

A
B
[2013) 14 S.C.R. 848
BRIHANMUMBAI MAHANAGARPALIKA AND ANOTHER
v.
WILLINGDON SPORTS CLUB AND OTHERS
(Civil Appeal No. 5840 of 2013)
NOVEMBER 18, 2013
[G.S. SINGHVI AND V. GOPALA GOWDA, JJ.i
Mumbai Municipal Corporation Act, 1888 - s.394(1)(e)
rlw. Part IV Schedule M and s. 3(ff) - Licence under - Need
c for - Whether obligatory for the catering department of a
sports club who provided the catering services only to the
members of the club - High Court held that the club was not
obliged to take licence as it is not covered under definition of
'eating house' u/s.3(ff) - On appeal, held: Though the primary
D activity of the club is to provide sports facilities, but supply of
food was an integral part of such activity - Even though profit
may not be motto of catering facilities, the club certainly gains
by these facilities - Therefore, the catering department of the
club would be covered under definition of 'eating house' -
E Hence obliged to take licence.
Words and Phrases - Word 'Gain' - Meaning of
The question for consideration before this Court was
whether respondent No.1, a sports club was obliged to
F take licence u/s.394(1)(e) r/w. Part IV of Schedule M of
Mumbai Municipal Corporation Act, 1888, for the catering
services provided by it to its members and their guests.
Allowing the appeal, ,the Court
G
HELD: 1. The object of incorporating the requirement
of a licence for an 'eating house' or 'catering
establishment' is to ensure that public hygiene is
maintained at the place/premises where the food is
H
848
BRIHANMUMBAI MAHANAGARPALIKA. v.
849
WILLINGDON SPORTS CLUB
prepared and/or supplied for consumption. It is also
A
intended to ensure safety of the people engaged in the
· preparation of food articles and supply thereof as well as
all those who consume the articles at the particular place/
premises. [Para 12] [864-D-F]
B
2. The High Court was not right in relieving the
respondents of the obligation to take licence under
Section 394(1 )(e) of the Act. The High Court took the view
that the expression 'eating house' is not applicable to a
club. The main reason which prompted the High Court C
. to take that view is that predominant activity of the club
is to provide sporting facilities to the members and the
catering facilities are ancillary. The other reason given by
the High Court is that the food articles are supplied to the
members and not to outsiders except when they come
to the club as guests of the members and that the
D
catering services are not made available to the members
with the object of making profit or gain. Both the aforesaid
reasons are incorrect. [Paras 17, 18 and 27) [869-D-F; 876D-E]
E
3. If purposive interpretation is applied to the
definition of the expression 'eating house', it becomes
clear that the catering department of the club which
prepares and serves/supplies food to members of the
club is covered by the definition of the expression 'eating
F
house'. It cannot be denied that members of club also fall
within the ambit of the term 'public'. No doubt, the primary
activity of the club is to provide sporting facilities to the
members, but the supply of food is an integral part of
such activity and the catering department of the club
G
satisfies an essential component of the facilities provided
by the club. One can take judicial notice of the fact that
many members who avail sporting facilities remain on
the premises for a very long period. Therefore, the articles
of food become integrai part of their activities. Not only
H
this, many join the club in the name of availing sporting
850
SUPREME COURT REPORTS
(2013] 14 S.C.R.
A facilities only for the purpose of spending their time in
leisure and for enjoying the facilities provided by the
Catering Department of the club. Thus, even though profit
may not be the motto of catering facilities provided by
respondent No.1, it certainly gains by these facilities.
B [Para 18] [869-G-H; 870-A-D]
Narayan Gopal Karadkar vs. Hanumant Ramrao Palkar
(1969) MLJ 728; Ba/krishna Karkera vs. K.J. Mishra and Anr.
AIR 1979 (Bomlfay) 198 - approved.
C
4. The word 'gain' is not synonymous with the word
'profit'. It is not restricted to pecuniary or commercial
profits and includes other considerations of value gained.
Any advantage or benefit acquired or value addition made
by some activities would amount to 'gain'. Therefore,
D even though profit is not the motto of the club but the
advantage derived by it, by supplying food to its
members and their guests are certainly covered by the
word 'gain' appearing in the definition of 'eating house'.
[Para 21] [871-G-H; 872-A-B]
E
Re: Arthur Average Association for British Foreign and
Colonia Ships, exp Hargrove and Company (1875) LR 10
Ch App 545 n at 546, 547 - referred to.
Merriam Webster Dictionary, Permanent Edition
F Volume 18 - referred to.
G
H
Case Law Reference:
(1875) LR 10 Ch App 545
referred to
(1969) MLJ 728
approved
AIR 1979 (Bombay) 198
approved
Para 20
Para 24
Para 25
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
5840 of 2013.
BRIHANMUMBAI MAHANAGARPALIKA v.
851
WILLINGDON SPORTS CLUB
From the Judgment & Order dated 29.09.2009 of the High
A
Court of Judicature of Bombay in Writ Petition No. 2199 of
1999.
Atul Y. Chitale, Sanyukta Mukherjee for the Appellants.
T.R. Andhyarujina, Shiv Kumar Suri, Saswat Patnaik,
B
Ghoshal Bhowmik for the Respondents.
The Judgment of the Court was delivered by
G.S. SINGHVI, J. 1. The question which arises for
consideration in this appeal filed against order dated 29.9.2009
C
passed by the Division Bench of the Bombay High Court in Writ
Petition No.2199/1999 is whether respondent No.1 is obliged
to take licence under Section 394(1)(e) read with Part IV of
Schedule 'M' of the Bombay Municipal Corporation Act, 1888
(now titled as 'the Mumbai Municipal Corporation Act, 1888' -
0
for short, 'the Act') for the catering services provided by it to
the members and their guests.
2. Respondent No.1 provides various sporting facilities,
viz., golf, tennis, squash, billiards, badminton, etc., to its
members. The Catering Department of respondent No.1
E
provides catering services to the members and occasionally
to their guests. By order dated 21.11.1990, appellant No.2
called upon respondent No.1 to make an application for grant
of licence under Section 394 of the Act for the eating house.
The latter submitted the application on 24.11.1990. Thereafter,
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Senior Sanitary Inspector of appellant No.1 sent communication
dated 3.12.1990 to respondent No.2 requiring him to submit
various documents including NOCs from Assistant Engineer
(Buildings and Facilities) and Executive Engineer (Buildings
Proposals). In compliance of that letter, respondent No.2
furnished some of the documents. However, nothing appears
G
to have been done for the next two years.
3. In May 1993, respondent No.1 approached appellant
No.2 for grant of No Objection Certificate for the eating house
and permission to keep L.P. Gas Cylinders. Appellant No.2
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852
SUPREME COURT REPORTS
[2013] 14 S.C.R.
A gave 'No Objection' for carrying out the trade of eating house
and for LP. Gas as fuel subject to the following conditions:
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c
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"(1)
The internal roads, passages in the premises &
complex of the Club shall be maintained free from
obstructions.
(2)
Entrances, exists, passages in both the
Restaurants shall be maintained free from
obstructions.
(3)
The existing four cabins housing gas cylinders of i)
12 Nos. each of 50 kgs. ii) 18 Nos. each 19.2 kgs.
iii) 15 Nos. each. & iv) 8 Nos. each of 19.2 kgs.
shall be of brick masonary R.C.C. and as per the
plan signed in token of approval.
(4)
The gas installation shall be maintained as per
"Industrial & Commercial use of L.P. Gas Rules"
and got tested once in year by the gas dealer or
any competent authority of inventory to that effect
shall be maintained.
(5)
The Gas cabins shall be kept under lock and key.
(6)
Smoking, cooking, heating, use of naked light shall
be r:_>rohibited near the gas cabins.
(7)
The gas pipes shal_I be supported, protected from
physical damages, painted in red and taken at least
10 ems below the electric wirings/ cables.
(8)
Main shut of valves shall be provided to the gas
pipes where pipes enter into the building for
promptly closing the valves in case of emergency.
(9)
Tandoors in kitchen on ground floor permitted.
However, any other fuel, any gas cylinders shall not
be used.
(10) Premises· shall be kept well ventilated by providing
BRIHANMUMBAI MAHANAGARPALIKA v.
853
WILLINGDON SPORTS CLUB [G.S. SINGHVI, J.]
E~haust fans in the kitchens.
(11) Metal hood covering the burners shall be provided.
The ducting shall be taken to roof level or water
wash system.
(12) Fire extinguishers shall be kept as follows:
a) One dry chemical powder extinguisher each of
10 kgs. having l.S.I mark & two buckets of sand
shall be kept at each of the 4 gas cabins. b) Two
A
B
dry chemical powder extinguishers each of 10 kgs. c
& two sand buckets shall be kept in the kitchen of
Indian Food. c) One dry chemical extinguisher of 10
kgs. shall be kept in Chinese kitchen."
(reproduced from the appeal paper book)
4. After four months, appellant No.2 sent communication
dated 4.11.1993 to respondent No.2 for compliance of the
requirements communicated by Chief Fire Brigade Officer and
also by his department. The relevant portions of that
communication are extracted below:
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E
"With reference to your above application, I have to inform
you that your request will be considered subject to
satisfactory compliance of the following requirements
communicated by Chief Fire Brigade Officer alongwith the
requirements of this department within 14 (fourteen) days
F
from the date of receipt of this letter. If you fail to carry out
the same within specified time, necessary action under
Sec. 394 of Bombay Municipal Corporation Act will be
initiated against you which please note.
(1)
The internal roads, passages, in the premises and
G
complex of club shall be maintained free from
obstructions.
(2)
·Entrances, Exists, passages in both the
Restaurants shall be maintained free from
H
854
SUPREME COURT REPORTS
(2013] 14 S.C.R.
A
. obstructions.
(3)
The existing four cabins housing gas cylinders of
(i) 12 Nos. each of 50 kgs., (ii) 18 Nos. each of 19.2
kgs., (iii) 15 Nos. each of 50 kgs., (iv) 8 Nos. each
B
of 19.2 kgs., shall be of brick masonry I R.C.C. and
as per the plan signed in taken of approval.
(4)
The Gas installation shall be maintained as per
"Industrial & Commercial use of LP. Gas Rules"
and got tested once in year by gas dealer or any
c
competent authority of Inventory to that effect shall
be maintained.
(5)
The gas cabins shall be. kept under lock and key.
(6)
Smoking, cooking, heating, use of naked light shall
D
be prohibited near the gas cabins.
(7)
The gas pipe shall be supported, protected from
physical damage, painted in red and taken at least
10 ems, below the electric wiring I cables.
E
(8)
Main shut of valves shall be provided to the gas
pipes where pipes enter into the building for
promptly closing the valves in case of emergency.
(9)
Tandoors in kitchen on ground floor permitted,
however, any other fuel, any loose cylinders shall not
F
be used.
(10) Premises shall be kept well ventilated by providing
exhaust fan in the Kitchens.
(11) Metal hood covering the burners shall provided. The
G
ducting shall be taken to roof level or water wash
system.
(12) Fire extinguishers shall be kept as follows:-
(a) One dry chemical powder extinguishers each
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of 10 kgs. having LS.I. Mark and two buckets
BRIHANMUMBAI MAHANAGARPALIKA v.
855
WILLINGDON SPORTS CLUB [G.S. SINGHVI, J.]
of sand shall be kept at each of 4 Gas
A
cabins.
(b)
Two dry chemical powder extinguisher each
of 10 kgs. and two sand buckets shall be
kept in the kitchen of Indian food.
B
(c)
One dry chemical extinguisher of 10 kgs.
shall be kept in Chinese kitctien.~·
(emphasis supplied)
(reproduced from the appeal paper book) c
5. On the same day, i.e., 4.11.1993, appellant No.2 sent
another letter to respondent No.2 informing him that the .
application for grant of trade licence will be considered subject
to fulfillment of the following conditions:
D
"(1)
In the eating house
{a)
Where snacks are prepared and served,
there shall be at least 3 rooms, one of which
shall be used as a dining room, another as
kitchen and the third as a store room. The
E
rooms to be used as dining room and as
kitchen shall not be less than 9.2903 sq.mt.
( 100 qt. ft.) each in floor area and not less
than 2.440 mt.(8 ft) on any side. The third
room to be used as a store room shall not F
be less than I/3rd of the total area of the
dining room and the kitchen upto the
maximum of 9.2903 sq. mt.( 100 sq. ft.). The
height of all these rooms shall be as required
under the Building Bye- Laws of the Bombay
G
Municipal Corporation, i.e. 3.050 mt. (10
feet).
{b)
Where articles of food other than snacks are
to be prepared and served, there shall be at
least 3 rooms one of which shall be used as
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A
B
c
D
E
F
G
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856
SUPREME COURT REPORTS
[2013) 14 S.C.R.
a dining room, another as a kitchen and the
third as a store room. The room to be used
for dining and kitchen shall not be less than
11.1484 sq. mt. (120 sq. ft.) each in floor
area and not less than 2.440 mt (8 feet) on
any side. The third room to be used as store
room shall not be less than I/3rd of the total
area of the dining room and kitchen upto the
maximum of 9.2903 sq. mt. (100 sq. ft.), the
height of all these room shall be as required
under the Building Bye-laws of the Bombay
Municipal Corporation, i.e. 3.050 mt. (10
feet)
(c)
where only ready-made articles of food are
served. There shall be at least two rooms,
one of which shall be used for storing readymade articles of food and the other as a
service room. None of the rooms shall be
less than 9.2903 sq. mt. (100 sq. ft.) each in
floor area and no less than 2.440 mt. (8 ft.)
on any side. The third room to be used as
store room shall not be less than I/3rd of the
total area of the dining room and kitchen upto
the 9.2903sq. mt. (100 sq. ft.). The height of
all these rooms shall be as required under
the Building Bye-laws of the Bombay
Municipal Corporation i.e. 3.050 mt. (1 O feet)
(2) All the rooms shall be well-lighted and well-ventilated
naturally or with the aid of artificial means and the cook
room and the dining room especially shall have "thorough
ventilation."
(3) The walls of all the rooms of the Eating House shall
either be oil-painted or otherwise rendered impervious to
moisture and dirt upto a height of at least 1.83 mt. (6 feet)
from the floor and the remaining upper portion above 1.83
BRIHANMUMBAI MAHANAGARPALIKA v.
857
WILLINGDON SPORTS CLUB [G.S. SINGHVI, J.]
mt. (6 feet), if not oil-painted or macie impervious to
A
moisture and dirt, shall be limewashed. All the wood-work
in all the rooms shall be oil-painted.
(4) Water shall be stored for use during non-supply hours
in a brass receptacle with a tight fitting cover and a tap.
The receptacle shall be placed on a suitable stand at least
B
381 mt. (15 inches) height above the floor. It shall be tinned
from inside whenever necessary and shall be cleaned
twice daily and steps shall be taken to see that water is
not contaminated in the process of storing or handling.
(5) Freely ventilated fly-proof safes and ot~1er means shall
be provided and meat, milk and other eatables shall be
kept in them so as to protect all artificial food from
contamination by dust, flies and insects.
c
(6) Metal sanitary dust bin or bins of approved pattern with
D
a close fitting lid for each shall be provided and maintained
in good repairs and used for the deposit of waste food and
sweepings of the floor etc. and shail be emptied at least
once a day at the Mahalaxmi Refuse Siding which is the
place appoif\ted by the Municipal Commissioner for the
E
removal and deposit of trade refuse. In the alternate
transport facilities provided by Corporation shall be availed
of on payment of fixed charges.
(7) A sufficient number of tabie shall be provided in the
room used for eating and cooking. The top of each table
shall be covered with marble, zinc or some other equally
suitable material presenting a non-absorbent even surface.
Only clean cloth or other dusters shall be used to clean
tables etc.
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(8) A proper washing place with tap from Municipal Main
Measurement shall be provided in the kitchen. Such
washing place shall be properly drained and shall
discharge over a half channel gully at least 457 mt. (18
inches) away from the drain inlet and in the case of the
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858
SUPREME COURT REPORTS
[2013] 14 S.C.R.
trade located in Greater Bombay where drainage system
does not exit, the arrangement for disposal waste water
shall be such as to meet with the approval of Municipal
Health Authorities. In the absence of Municipal Water
mains in any area, arrangements shall be made to store
such quantity of water and in such manner as will be
directed by the Municipal Health Authorities.
(9) All copper and brass cooking utensils shall be tinned
as often as necessary or at least once in two months.
(10) No person suffering from any contagious or infectious
disease shall be employed on the premises in any
capacity.
(11) The room used for cooking shall be adequately
separated from the room used for eating. All cooking
operations including the preparation of bhajias or similar
artificial shall be carried out in cooking room only by using
kerosene oil stoves, gas or electrical as fuel and fuel of
any other kind shall never be used therein.
(12) No "Panshop" or other structure shall be put up or
allowed to be put at the entrance in such manner so as to
encroach on the space or to obstruct light and ventilation
of the Eating House.
(13) The entire premises of Eating House and all appliance
used therein shall at all times be kept in a scrupulously
clean and sanitary condition and any practice which may
lead to tha food being contaminated shall not be employed
or permitted to be employed in the storage, handling,
preparation or serving of food.
(14) No broken, cracked or chipped articles of crockery
or other utensils shall be used in the eating house either
for preparation of food-stuffs or to serve them.
(15) Boards in English and in vernacular prohibiting
spitting on the walls or the floor of the trade premises shall
BRIHANMUMBAI MAHANAGARPALIKA v.
859
WILLINGDON SPORTS CLUB [G.S. SINGHVI, J.]
be exhibited.
A
(16) A certificate in the prescribed form that adequate
water supply by meter measurement has been provided
shall be obtained from the Hydraulic Engineer, Bombay
Municipal Corporation.
(17) A wash-basin with a metered tap and a looking glass
shall be provided in a suitable part of the service room of
the Eating House and maintained at all times in a clean
and sanitary state for use of the visitors.
B
(18) Waiters or other servants employed in the eating C
house shall always wear clean apparel while engaged in
work in the eating house.
(19) No part of the eating house shall be used for stocking,
storing or keeping unserviceable articles.
o
(20) The management shall take measures to have the
premises occupied by Eating House treated with insecticides
to rid it of any insect pest at least once in four months either
through the Municipal agency or any firm recognised in this
behalf.
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(21) The floor. of every room used for eating, cooking or
the storage or preparation of food shall be paved with hard
impervious material with a smooth and even surface.
(22) The eating house or any part of it shall not be used
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for dwelling purposes, except in the Eating Houses which have
separate special arrangements for lodging the customers.
(23) No encroachment shall be made on any footpath
adjoining the eating house by placing thereon chairs, benches.
tables, soda water boxes or any other articles either for the use G
of applicant or his customers.
(24) The entire trade of conducting the eating house and
all the operations connected therewith shall be strictly restricted
to the area occupied by the concern.
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860
SUPREME COURT REPORTS
[2013) 14 S.C.R.
A
(Para 25 is not given in the appeal paper book)
(26) No article of food which is adulterated, unwholesome
or unfit for human consumption shall be kept, sold or
exposed for sale on the trade premises.
B
(27) Requirements of Chief fire brigade officer's are out.
(28) The applicant produces an authority letter issued by
said Club authorising him to hold the licence in his name."
(reproduced from the appeal paper book)
C
6. While the issue relating to compliance of the conditions
enumerated in the two letters dated 4.11.1993 was pending,
appellant No.2 sent demand notice dated 14.1.1994 to
respondent No.2 for payment of Rs.2,70,915 as licence fees.
The respondents paid the amount, but after expiry of the period
D specified in notice dated 14.1.1994. This prompted appellant
No.2 to send notice dated 23.6.1994 to respondent No.1 for
payment of additional amount of Rs.1,04, 756.25. Respondent
No.2 sent reply dated 27.6.1994 citing the opinion of a law firm
that the club is not required to obtain eating house licence under
E the Act because food and beverages are not served for any
profit or gain. The appellant did not accept this assertion and
demanded Rs.1,21, 715.65 towards compounding fee.
7. Respondent No.1 and two of its office bearers
challenged the demand notice before the Bombay High Court
F
in Writ Petition No.2199/1999 primarily on the ground that
catering facilities being provided to its members were
incidental to their main activities and the same are exclusively
meant for the members and not for the public.
G
8. In the written statement filed by the appellants, it was
averred that food items were being prepared by the Catering
Department on large scale and a licence was required to be
obtained from the point of view of health and safety of the
members coming to the club.
H
g; The Division Bench of the High Court relied upon order
BRIHANMUMBAI MAHANAGARPALIKA v.
861
WILLINGDON SPORTS CLUB [G.S. SINGHVI, J.]
dated 18.9.1992 passed by a co-ordinate Bench in Writ A
Petition No.4765 of 1984 titled Sohrab Vakil (Lt.Col.) and
another v. B.G. Pimple and another and held that respondent
No.1 is not required to ta!<e licence under Section 394 of the
Act because the catering facilities provided to its members are
ancillary to the main activity, i.e., the sporting facilities. The
B
relevant portion of the High Court's order is reproduced below:
"The question whether a Club which as ancillary activities
provides catering services exclusively to its members can
be said to be running an eating house within the meaning
of the Act, fell for consideration before a Division Bench
C
of this Court in the case Sohrab Vakil (Lt.Col.) and another
Vs. B.G.Pimple and another referred to above. Perusal of
that judgment shows that the Division Bench has in
categorical terms held that a club which maintains a facility
of catering for its members exclusively as ancillary activity D
cannot be said to be running an eating house. In our
opinion, therefore, the question that arises for
consideration in this petition is no more res integra in view
of the judgment of the Division Bench in the case Schrab
Vakil (Lt.Col.) and another Vs. B.G.Pimple and another
E
referred to above. So far as the judgment of the learned
Single Judge of this Court in the case 1.W.l.A.A.Club Ltd
& Anr. Vs. 1.Municipal Corporation of Gr.Bombay & others
referred to above, which was relied on by the learned
Counsel appearing for respondents is concerned, perusal
F
of that judgment shows that that judgment does not decide
any controversy. It appears that initially the WIAA Club had
filed a petition claiming that it is not required to take out
eating house licence for providing catering services to its
members. But when the petition came up for final hearing,
G
it was stated on behalf of the petitioner-Club that now they
have decided to engage a contractor for running Canteen
and therefore, they are not pressing their contention that
they are not required to take out a licence for maintaining
the catering services for its members. The learned Single
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SUPREME COURT REPORTS
[2013] 14 S.C.R.
Judge, therefore, did not decide that question in that
petition. In our opinion, therefQre, the submission made on
behalf 0f the Corporation that the question that arises for
consideration in this petition is already decided by the
judgment of the learned Single Judge in Writ petition
no.1413 of 1982 which was disposed of by order dated
20.1.1986, cannot be accepted. In our opinion, in view of
the law laid down by the Division Bench in the case
Sohrab Vakil (Lt.Col.) and another Vs. B.G.Pimple and
another referred to above, this petition has to succeed."
10. We have heard Shri Atul Y. Chitale, learned senior
counsel for the appellants and Shri T.R. Andhyarujina, learned
senior counsel for respondent Nos. 1 to 3. The Act is divided
into 25 Chapters. Chapters IX to XV except Chapter XII contain
provisions which are regulatory in nature and are meant for the
D benefit of public at large. Chapter IX contains provisions for
construction of drains and cleaning thereof, connection of the
drains of private streets with municipal drains, disposal of
sewage, construction of water-closets, privies, urinals, etc. and
inspection thereof. Chapter X contains provisions for regulating
E water supply, inspection of water works, prohibition of buildir1g
and other acts which may injure sources of water. Chapter XI
contains provisions for regulation of streets, public as well as
private and lighting thereof. Chapter XII contains provisions for
regulating construction of buildings, removal of dangerous
F structures, etc. Chapter XIII speaks of grant of licences of
surveyors and plumbers and making of regulations for guidance
of licensed surveyors and plumbers and fees, etc., to be
charged by them. Chapter XIV contains the provisions relating
to municipal fire brigade. Chapter XV contains provisions of
G scavenging and cleaning of streets and removal of refuse,
inspection and sanitation of buildings, etc. This chapter also
contains provisions for regulation of public bathing, washing,
etc., regulation of factories, trades, etc., maintenance and
regulation of markets and slaughter houses, prohibition against
H sale and supply of articles of food outside the markets, licensing
BRIHANMUMBAI MAHANAGARPALIKA v.
863
WILLINGDON SPORTS CLUB [G.S. SINGHVI, J.]
of butchers, etc., inspection of places of sales, etc., prevention
A
of dangerous diseases, etc. Section 394, which finds place in
Chapter XV is couched in negative form and lays down that the
activities specified therein shall not be carried out by any person
except under and in accordance with the terms and conditions
of licence granted by the Commissioner.
B
11. Section 394(1 )(e) and relevant extracts of Schedule
'M', which have bearing on this case read as under:
"394. Certain articles or animals not to be kept, and certain
trades, processes and operations not to be carried on
C
without a license; and things liable to be seized destroyed,
etc., to prevent danger or nuisance.
(1) Except under and in accordance with the terms and
conditions of the licence granted by the Commis~ioner, no
person shallD
(e) carry on or allow or suffer to be carried on, in or upon
any premises.-
(i) any of the trades specified in Part IV of Schedule M, or
any process or operation connected with any such trade;
E
(ii) any trade, process or operation, which in the opinion
of, the Commissioner, is dangerous to life, health or
property; or likely to create a nuisance either from its
nature or by reason of the manner in which, or the
conditions under which, the, same is, or is proposed to be
F
carried on;"-
"Schedule M
Articles which shall not be kept without a licence in or upon
any premises
Part IV
Trades or processes or operations connected with trades·
which shall not be carried on or allowed to be carried on
G
upon any premises without a licence.
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[2013) 14 S.C.R.
A
Keeping an eating house or catering establishment"
The expression 'eating-house' has been defined in Section
3(ff} in the following words:
"3(ff) - eating-house means any "premises to which the
8
public are admitted and where any kind of food is prepared
or supplied for consumption on the premises for the profit
or gain of any person owning or having an interest in or
managing such premises."
12. The provisions contained in various chapters of the Act
C referred to hereinabove are meant for maintaining public
hygiene, health and safety and also for preventing dangers to
life, health and property. Schedule 'M', which 1s part of Section
394, specifies the articles which cannot be kept in or upon any
premises without a licence. Part IV of the schedule specifies
D trades or processes or operations connected with trades, which
cannot be carried on or allowed to be carried on any premises
without a licence. These include keeping of an eating house
or catering establishment. The object of incorporating the
requirement of a licence for an 'eating house' or 'catering
E establishment' is to ensure that public hygiene is maintained
at the place/premises where the food is prepared and/or
supplied for consumption. It is also intended to ensure safety
of the people engaged in the preparation of food articles and
supply thereof as well as all those who consume the articles at
F
the particular place/premises. The No Objection Certificate
dated 25.6.1993 issued by appellant No.2 shows that the
municipal authorities are very much concerned about the safety
and health of the people coming to the premises and complex
of the club. The first requirement incorporated in that letter is
free access in and exit from the premises of the club and the
G restaurants. The gas installations are required to be maintained
as per industrial and commercial use of Liquid Petroleum Gas
Rules. The person having overall control of the premises is duty
bound to ensure that the gas cylinders and other equipments
are tested once in a year by the gas dealer or any competent
H
BRIHANMUMBAI MAHANAGARPALIKA v.
865
WILLINGDON SPORTS CLUB [G.S. SINGHVI, J.]
authority. The gas cabins are required to be kept under lock
and key. Smoking, cooking, heating and use of naked light is
prohibited near the gas cabins. The gas pipes are required to
be protected from physical damage and main shut valves are
required to be provided to the gas pipes where the pipes enter
into the building. While permitting tandoors in the kitchen on the
ground floor, the use of gas cylinders is prohibited. The
premises where the food is cooked are required to be kept wellventilated by providing exhaust fans in the kitchen. The burners
A
B
are required to be covered with metal hood. The fire
extinguishers are also required to be provided. The length,
C
width and height of the dining rooms has to be as per the
building bye-laws framed by appellant No.1. It is the duty of the
management to keep all the rooms well-lighted and wellventilated. The cooking room and dining room should have
thorough ventilation. It is also the duty of the management to
keep water in brass receptacle with a tight fitting cover and a
D
tap and they are to be placed 15 inches above the ground.
Freely ventilated and fly-proof safes are required for keeping
the items, like, meat, milk and other eatables so as to protect
them from contamination by dust, flies and insects. Sanitary
bins or dustbins are also required to be provided and sweeping
of floors has to be done. There is a prohibition against
employment of any person suffering from contagious or
infectious disease. The premises of eating house have to be
regularly cleaned to avoid contamination and any practice which
may lead to contamination shall not be employed or permitted
to be employed in the storage, handling, preparation or serving
·of food. Broken, cracked or chipped articles of crockery and
utensils cannot be used in the eating house either for
preparation of foodstuffs or for serving them. The management
E
F
is duty bound to take all measures to have the premises of
G
eating house treated for insecticides. No article of food which
is adulterated, unwholesome or unfit for human consumption
can be kept or sold or exposed for sale in the eating house.
These conditions are meant for ensuring that the premises
where the food is prepared and supplied are kept clean,
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SUPREME COURT REPORTS
{2013) 14 S.C.R.
A adequately ventilated and appropriate measures are taken by
those in control of the premises and quality of food is
maintained to ensure that there is no compromise with the
health and safety of the people.
13. In its publication titled 'Safe Food for Better Health'
B (2002 Edn.), the World Health Organisation (WHO) has
recognized that the availability of safe food is a basic human
right because it contributes to health and productivity. Many
countries including USA, Australia, Germany, France, Canada,
United Kingdom and India have adopted a food safety
C regulation mechanism, either through sui generis legislation or
through the adoption of global codes prescribed by the WHO
and other UN agencies. However, the implementation of these
regulations cannot be guaranteed if there is no monitoring
system. It is essential for the success of these regulations and
o policies that adequate steps are taken to ensure the compliance
. to standards by those in the industry. In order to ensure
compliance, a strong licensing system has been developed by
these countries. The purpose of such a system is to ensure that
the food supplied to customers in a food establishment is
E certified to be of high quality and standard by a recognised
authority. Although licensing alone cannot be a foolproof
mechanism for ensuring food safety but it is certainly one of the
most effective methods of ensuring that quality food is prepared
in most hygienic conditions and is made available to the
F consumers. The licensing system prevents the opening of
establishments that pose a threat to the health of the people.
The licensing mechanism also provides for penalties in case
of non-compliance with licensing conditions, which could lead
to cancelling or suspension of the licence. Such a fear created
in the minds of the licensees also ensures that they comply with
G licensing conditions in order to continue enjoying the benefits
of the licence. Thus, it can be said that a licensing system goes
a long way in ensuring food safety thereby guaranteeing the
supply of fresh and safe food and preventing the spread of
foodborne diseases.
H
BRIHANMUMBAI MAHANAGARPALIKA v.
867
WILLINGDON SPORTS CLUB [GS. SINGHVI, J.]
1.4. At this s~age, we may also take notice of the Food ·A
Safety and Standards Act, 2006 (for short, 'the 2006 Act'). This
Act provides for establishment of the Food Safety and
Standards Authority of India which is mandated to' lay down
science b'ased 'standards for articles of food and to regulate
their manufacture, storage, distribution,· sale and import, to s
ensure availability of safe and wholesome food for human
consumption and for matters connected therewith or incidental
thereto. In exercise of the powers vested in it under the 2006
Act, the Food Safety and Standards Authority. of India made
multiple regulations including the Food Safety and· Standards c
(Licensing and Registration of Food Businesses) 'Regulations,
2011 (for short, 'the Regulations'). Regulation 2;1· an'd 2.2
makes the obtaining of licence mandatory for commencement
of any foo~ business. Part II of Schedule IV of the Regulations
prescribes general requirements of .hygienic and sanitary
D
pr'~cti~esto·l:le followed._by all food business operators applying
for licence. Part V of Schedule IV of th~ Regulations prescribes
t~e specifi9 hygh;mic i'!nd sanitary practices to be followed by
food business operators engaged in catering I food service
establishmen,ts. Relevant portions of these two parts are
E
extracted below:
·
· ·
·
·
·
, ~ -· .
PART-II
GENERAL REQUIREMENTS ON HYGIENIC AND
F
SANITARY PRACTICES TO BE FOLLOWED BY ALL
FOOD BUSINESS OPERATORS APPLYING FOR
LIC~~SE.
The establishment in ·Which food is being handled,
processed, manufactured, packed, stored, and distributed
G
by the fO'od business operator and the persons handling
them should conform .to the.sanitary and hygienic
requirement, food safety measures and other standards as
specified below. It shall also be deemed to be the
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868
SUPREME COURT REPORTS
[2013] 14 S.C.R.
responsibility of the food business operator to ensure
adherence to necessary requirements.
'
In addition to the requirements specified below, the food
business operator shall identify steps in. the activities of
food business, which are critical to ensure fo·od safety, and
ensure that safety procedures are identified, implemented,
maintained and reviewed .p~riodically.
PART- V
SPECIFIC HYGIENIC AND SANITARY PRACTICES TO
.• BE .FOLLOWED BY FOOD BUSINESS OPERATORS
ENGAGED IN CATERING/FOOD SERVICE ESTAB-
,LISHMENTS.
·In addition to Part-II the Catering/ food Service
establishment in which food is being handled, processed,
manufactured, stored, distributed and ultimately sold to the
customers and the persons handling them should conform
to the. sanitary and hygienic requirement,· food safety
measures and other standard as specified below.
It includes premises where public is admitted for. repose
or for consumption of any food or drink or any place where
cooked food is sold or prepared for sale. It includes:
(a) Eating Houses
F
(b) Restaurants & Hotels
G
(c) Snack Bars,
(d) Canteens (Schools, Colleges, Office, Institutions)
(e) Food Service at religious places
(f) Neighbourhbod Tiffin Services I dabba walas
(g) Rail and airline catering
(h) Hospital catering"
H
15. The definition of the term 'food business' contained in
BRIHANMUMBAI MAHANAGARPALIKA v.
869
WILLINGDON SPORTS CLUB [G.S. SINGHVI, J.]
Section 3(1)(n) of the 2006 Act reads thus:
A
"Section 3(1 )(n) Food business means any undertaking,
whether for profit or not and whether public or private,
carrying out any of the activities related to any stage of
manufacture,
processing,
packaging,
storage,
transportation, distribution of food, import and includes
B
food services, catering services, sale of food or food
ingredients."
16. These provisions reinforce the determination of the
legislature and the executive to ensure safety of food articles C
manufactured and supplied by the food business operators and
others engaged in catering I food service establishments. Part
V of Schedule IV of the Regulations is inclusive and covers
. eating houses, restaurants and hotels, snack bars, canteens,
food service at religious places, hospital catering, etc.
D
17. In the light of the above, we shall now consider whether
the'High Court was right in taking the view that the expression
'eating house,. is not applicable to a club. The main reason
which prompted the High Court to take that view is that
predominant activity of the club .is to provide sporting·facilities
E
to the members and the catering facilities are ancillary. The
other reason given by the High Court is that the food articles
are supplied to the members and not to outsiders except when
they come to the club as guests of the members and that the
catering services are not made available to the members with
F
the object of making profit or gain.
18. In our view, both the aforesaid reasons are incorrect.
A. c,msory reading of the d_efinitiori of the expression 'eating
h?use'. may,;support .the;conc,:\l_u.sion_ ci! the High ~ourt because
g~neral public is ript allowed entry in. the premises of the club G
ana, hr the first blush, if appears that food is not supplied for
consumptionon the premises for p'rofit or gain. However, if we
apply, purposive interpretatioq,Jher:i, it becomes clear that the
c;at~rir:ig dep?rtment _c;>f the .