Co-operative housing societies are neither “industries” nor “establishments” under labour and gratuity laws

Bombay High Court
Apsara Co-operative Housing Society Ltd. v. Vijay Shankar Singh
Writ Petition Nos. 3908 of 2025 and 4146 of 2025
Date of Judgment: 05.01.2026
Neutral Citation: 2026:BHC-OS:41

Ratio:
A co-operative housing society formed for residential management is neither an “industry” nor an “establishment”; labour and gratuity laws are inapplicable.

INDUSTRIAL DISPUTE / PAYMENT OF GRATUITY – Co-operative housing society – Status as ‘industry’ and ‘establishment’ – Sections 2(j) and 33-C(2) of the Industrial Disputes Act, 1947 – Section 1(3) of the Payment of Gratuity Act, 1972 – Section 2(4) of the Maharashtra Shops and Establishments Act, 2017 –
Writ petitions filed by the petitioner-Society challenging orders of the Labour Court and the Controlling Authority entertaining proceedings under the Industrial Disputes Act, 1947 and the Payment of Gratuity Act, 1972. Held, a co-operative housing society formed by flat owners for collective ownership and maintenance of residential premises does not carry on any trade, business, or commercial activity and is neither an “industry” nor an “establishment.” Incidental income from telecommunication towers or use of common facilities does not alter the dominant non-commercial character of the society. Authorities under the Industrial Disputes Act and the Payment of Gratuity Act lacked jurisdiction to entertain the proceedings. Impugned orders set aside. Writ petitions allowed.

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