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Issues Involved:
1. Whether the Madras Gymkhana Club qualifies as an "industry" under the Industrial Disputes Act, 1947. 2. Whether the employees of the Madras Gymkhana Club are entitled to claim a bonus. Detailed Analysis: Issue 1: Whether the Madras Gymkhana Club qualifies as an "industry" under the Industrial Disputes Act, 1947. The primary issue in this case is whether the Madras Gymkhana Club can be classified as an "industry" under the Industrial Disputes Act, 1947. The Industrial Tribunal, Madras, had previously ruled that the club is not an industry, and therefore, the management is not liable to pay a bonus to its workmen for the year 1962. The Madras Gymkhana Club Employees Union appealed this decision, arguing that the club should be considered an industry. The definition of "industry" under Section 2(j) of the Industrial Disputes Act includes "any business, trade, undertaking, manufacture or calling of employers" and "any calling, service, employment, handicraft, or industrial occupation or avocation of workmen." The court noted that earlier decisions have established that not all employer-employee relationships result in an industry. The court reviewed several past judgments to clarify the definition and scope of "industry." The court referred to cases involving municipalities, hospitals, and other institutions to illustrate that the term "industry" can include non-profit undertakings if they involve cooperation between employers and employees for producing or distributing material goods or services. However, it emphasized that the activity must be organized in a manner similar to business or trade and must involve systematic cooperation between employers and employees. In the case of the Madras Gymkhana Club, the court observed that it is a members' club with the primary objective of providing sports, games, and recreational facilities to its members. The club employs various staff for its operations, but its activities are primarily for the pleasure and amusement of its members. The court noted that the services provided by the club are for its members and their guests, and not for the general public. The court concluded that the essential character of the club's activities does not align with the definition of "industry" as it is not engaged in trade, business, or an undertaking analogous to trade or business. The club's activities are self-serving for its members and do not cater to the material needs or wants of a broader community in a commercial sense. Issue 2: Whether the employees of the Madras Gymkhana Club are entitled to claim a bonus. Since the court determined that the Madras Gymkhana Club does not qualify as an industry under the Industrial Disputes Act, the employees are not entitled to claim a bonus under the provisions of the Act. The claim for a bonus is unsustainable as it is contingent upon the club being classified as an industry, which it is not. Conclusion: The court upheld the decision of the Industrial Tribunal, Madras, ruling that the Madras Gymkhana Club is not an industry under the Industrial Disputes Act, 1947. Consequently, the employees of the club are not entitled to claim a bonus for the year 1962. The appeal by the Madras Gymkhana Club Employees Union was dismissed, and no order was made regarding costs.
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