Charitable Institution
Legal Eagle
(Querist) 09 June 2009
This query is : Resolved
Hi, every one. Is a charitable institution whose objects is to give grants to individuals and NGO's governed by the Industrial Disputes Act, 1947. If so and if not is there any relevant judgment to cite.
On perusing the Bangalore Water Supply judgment, it indicates to some extent that charitable institutions are governed by the industrial disputes act, however, the work of the charitable institution is not defined.If we read the definition of Industry as per S.2(j)(4) of the ID Act, 147, as per the Act 46 of 1982, an institution engaged in any charitable work is excluded.
In my case, my query is that the Trust gives money to aid the poor and NGO's there is no profit making at all.Does the employees of such Trust be governed by the ID Act,1947?
Please reply, very urgent.
Manish Singh
(Expert) 11 June 2009
at present the said definition has not been notified yet so the charitable institutions are covered under teh ID Act.
but in a matter before the Apex Court it was held that the ID Act shall not be applicable to those "NGOs that are oriented on a humane mission fulfilled by men who work, not because they are paid wages, but because they share the passion for the cause and derive job satisfaction"
Legal Eagle
(Querist) 11 June 2009
Mr. Manish Singh, thank u.I have gone through the Bangalore Water Supply judgment, it is also giving 3 options for charity, I am not able to find out whether v fall or not
I have been informed by my friend that a Madras Court comprising of Justice P. Jyothimani and Justice Aruna Jagadeesan have in two Writ Appeals passed some orders whereby the NGO's and Trust fall within the ambit of ID Act. The two appeals are (a) of S. Thilagavathi and (b) Madurai Children's Aid Society. i don't have the details of the judgments to find out the full judgment, can u please help.
Manish Singh
(Expert) 11 June 2009
prima facie ypu are covered under the ID ACt since the definition has not been notified. it has been held in several judgments.
the above said rule laid down by the Apex court is applicable for limited nos of trusts/societies where the persons are not working for their livelihood but to serve the other people.
