Educational Institution Not An ‘Establishment’ Under ‘Telangana Shops And Establishments Act’

The Telangana High Court recently held that an educational institution is not covered within the meaning and definition of ‘establishment’ as defined under Section 2(10) of the Telangana Shops and Establishments Act, 1988.

The Bench of Chief Justice Satish Chandra Sharma and Justice B. Vijaysen Reddy took into account the Apex Court and Kerala High Court rulings to arrive at this conclusion.

The appellant institution is an educational institution and respondent No.3/employee was appointed in the year 1985 as an Attender in the Nutrition Lab Department. She tendered her resignation in December 2009, and service dues were also settled.

She preferred an Appeal before the Assistant Labour Commissioner under the Telangana Shops and Establishments Act, 1988 stating that she was illegally terminated by the appellant institution.

The appellant institution filed a counter-affidavit stating that the employee herself tendered her resignation, her dues have been settled and Appeal deserves to be dismissed.

It was further contended that the Appeal preferred by employee under Section 48(1) of the Shops and Establishments Act, 1988 was not maintainable, in spite of the aforesaid ground, the Appeal was allowed by an Order in July 2019, directing the appellant institution to reinstate the employee with full back wages.

The appellant institution preferred a writ petition stating that the appellant institution is not an establishment and is not covered under the provisions of the Shops and Establishments Act, however, the Single Judge dismissed the writ petition, the same was challenged before the division bench.

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