The Supreme Court has held that merely because a non-residential club is supplying meals and refreshments, the provisions of the Madhya Pradesh Shops and Establishments Act, 1958, will not become applicable to it.

A case related to Bhillai Steel Club was being decided by Justices KM Joseph and PS Narasimha. Few employees, whose services in the club were terminated, approached the authority under the Madhya Pradesh Shops and Establishments Act, challenging their dismissals. The authority under the Act held the termination of services to be illegal and directed the reinstatement of the employees.

The HC reversed the decision of the authority on the ground that the Shops and Establishments Act was not applicable to the Bhillai Steel Club. The SC also agreed with the decision passed by the HC and decided not to interfere in it.