Delhi District Court
Wings Corporate Services (P) Ltd. vs / Mcd on 8 July, 2011
CR No. 01/11
Wings Corporate Services (P) Ltd. Vs/ MCD
IN THE COURT OF MS MAMTA TAYAL
ADDITIONAL SESSIONS JUDGE
DWARKA COURT:NEW DELHI
Wing Corporate Service Pvt. Ltd.
A75, PhaseII
Okhla Industrial Area
New Delhi.
........Petitioner
Versus
MCD Delhi ......Respondent
CR No. 01/11
Date of Institution 12.01.2011
Reserved for orders on 04.07.2011
Judgment announced on 08.07.2011
JUDGMENT:
1. This is a revision petition filed by the petitioner Wings Corporate Service Pvt. Ltd praying for quashing of order dated 19.11.2010 passed by Ld. MM whereby notice under Sections 416/417/430 DMC Act was ordered to be framed against the petitioner.
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2. Notice of the revision petition was served on the respondent/ MCD which has put in appearance. Arguments have been advanced at length. I have perused the entire records, including TCR which was requisitioned and carefully considered the matter.
3. The petitioner was challaned by MCD before Trial Court under Sections 416/417/430 DMC Act on the allegation that during inspection conducted on 02.07.09 at A75 Phase II, Okhla Industrial Area, the petitioner was found running without MCD Licence the trade/work of ITES ( Tele calling) with approximate 70 computers installed there, using power load of 30 K.W.
4. It is contended by Ld. Counsel for the petitioner that the petitioner has installed computers at the premises only for maintaining records in respect of its business of collection and bad debt recoveries of the banks and to verify the customer addresses of telecom Companies etc. The activities of the petitioner are neither covered in the definition of "Industry" nor of "factory". The petitioner also does not come within purview of information technology enabled services as it is not doing any data processing work but is only using the data provided by financial institutions.
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Wings Corporate Services (P) Ltd. Vs/ MCD
Ld. Counsel urged that the notice served by Ld. MM on the
petitioner is bad in eyes of law and is without any material to support the same.
5. Per Contra Ld. Counsel for respondent contended that the petitioner is carrying a trade/business in the said premises for which permission of Commissioner is necessary under Section 416 of DMC Act. He pointed out that the memorandum of articles of the petitioner as filed on record by the petitioner itself would show that besides the main objectives of the company, there is a long list of other objectives which may be persued by the petitioner company and the same are duly covered within the definition of factory, workshop, trade etc.
6. Under Section 416 DMC Act, permission of Commissioner is mandatory for establishment of any factory, workshop or trade premises in which it is intended to employ steam, electricity, water or other mechanical power. The petitioner has itself admitted in its reply before Ld. MM as well as in the revision petition that it has installed large number of computers at the premises in question. It is a contention of the petitioner that the said premises are being used only for business of collection and CR No. 01/11 3 of 5 08.07.2011 CR No. 01/11 Wings Corporate Services (P) Ltd. Vs/ MCD bad debt recoveries of the banks and to verify the customers addressses of Telecommunication companies etc. The memorandum of articles however enumerates number of other objectives which the petitioner may or may not undertake. No doubt the unit of the petitioner is not covered in the definition of "factory" as given under Indian Factories Act but it prima facie falls within ambit of trade premises and workshop wherein electrical power is used.
7. As per Section 2 (66) of Delhi Municipal Corporation Act, "Workshop" means any premises other than a factory wherein any industrial process is carried out. Under Industrial Dispute Act, an industry is defined as any systematic activity carried on by cooperation between an employer and his workmen for production, supply or the distribution of goods or services with a view to satisfy human wants or wishes. Similarly Section 2 (59) of DMC Act defines a "trade premises" as any premises used or intended to be used for carrying on any trade or industry. A trade is a business involving sale and purchase of goods or services. The activities of petitioner as stated in its Memorandum of Articles prima facie fall within the scope of both Industrial process as well CR No. 01/11 4 of 5 08.07.2011 CR No. 01/11 Wings Corporate Services (P) Ltd. Vs/ MCD as trade. Besides this, what was the actual nature and extent of activities of petitioner in said premises is a question of fact that can be decided after evidence. At stage of charge only a prima facie view has to be taken. For the foregoing reasons, it cannot be held that notice served by Ld. Trial Court on petitioner is bad in eyes of law or is liable to be set aside. The revision petition is accordingly dismissed. Trial court record be sent back along with copy of order for information and necessary compliance. Revision file be consigned to record room.
(Announced in the open (MAMTA TAYAL)
court on 08.07.2011) ADDL. SESSIONS JUDGE
DWARKA COURTS:NEW DELHI.
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