SC orders elite Willingdon club to take BMC's eating house licence
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MUMBAI: Putting to rest a two-decade-old dispute, the Supreme Court earlier this week ruled that the elite Willingdon Sports Club has to obtain a BMC 'eating house' licence for the food its serves its members.
A division bench of Justices G S Singhvi and V Gopala Gowda struck down a Bombay high court verdict and gave the club four weeks to apply. It added that the BMC was free to impose penalty on the institution for failing to take a licence and asked the club to shell out Rs 50,000 as litigation cost.
The order is likely to have a cascading effect on other exclusive clubs in the city, mainly requiring them to apply to the BMC for an eating house license.
"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 prepared and/or supplied for consumption. It is also intended to ensure safety of the people engaged in the preparation of food and supply thereof as well as all those who consume the articles at the particular place/premises," said the judges.
Willingdon club had argued that it did not need the license because its main activity is providing sporting facilities to its members, and the catering facilities were incidental. It added that its services were exclusively for its members and not for the general public.
The Bombay high court in 2009 upheld this contention and ruled that the club was not required to take an eating house license.
The apex court, hearing a BMC appeal, did not agree. It said the club's catering facilities fell within the definition of eating house in the BMC Act and members of the club came within 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 satisfies an essential component of the facilities provided by the club," said the judges.
"Not only this, many join the club in the name of availing sporting 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 Willingdon Club, it certainly gains by these facilities," the court added.
The dispute goes back to 1990 when the BMC asked the club to get the licence.
A division bench of Justices G S Singhvi and V Gopala Gowda struck down a Bombay high court verdict and gave the club four weeks to apply. It added that the BMC was free to impose penalty on the institution for failing to take a licence and asked the club to shell out Rs 50,000 as litigation cost.
The order is likely to have a cascading effect on other exclusive clubs in the city, mainly requiring them to apply to the BMC for an eating house license.
"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 prepared and/or supplied for consumption. It is also intended to ensure safety of the people engaged in the preparation of food and supply thereof as well as all those who consume the articles at the particular place/premises," said the judges.
Willingdon club had argued that it did not need the license because its main activity is providing sporting facilities to its members, and the catering facilities were incidental. It added that its services were exclusively for its members and not for the general public.
The Bombay high court in 2009 upheld this contention and ruled that the club was not required to take an eating house license.
The apex court, hearing a BMC appeal, did not agree. It said the club's catering facilities fell within the definition of eating house in the BMC Act and members of the club came within 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 satisfies an essential component of the facilities provided by the club," said the judges.
"Not only this, many join the club in the name of availing sporting 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 Willingdon Club, it certainly gains by these facilities," the court added.
The dispute goes back to 1990 when the BMC asked the club to get the licence.
Letters passed
between the corporation and the club, and the later also deposited Rs
2.7 lakh. In 1999, the BMC insisted on the licence and asked it to pay a
further Rs 1.2 lakh. The club challenged the notice in the high court
and won the first round before the SC accepted the BMC view.
