Supreme Court Says Mumbai Club Needs Catering License: How Does This Affect Non-Profit Clubs?

Supreme Court Ruling on Club Catering Licenses

The catering department of a club in Mumbai must obtain a license to operate, even if it does not generate a profit and only allows entry for its members. The Supreme Court recently ruled on this matter in the case of Brihanmumbai Mahanagarpalika vs Willingdon Sports Club. The Bombay High Court had previously invalidated the demand notices sent to the club, asserting that it was not considered an 'eating house' open to the public.

However, the Supreme Court overturned this decision, stating that the definition of an eating house should be interpreted more broadly. While sports constitute the club's primary activity, providing food is an essential component of this activity. The judgment clarified: "Many individuals join the club to access sporting facilities, primarily to spend their leisure time and enjoy the amenities offered by the catering department." Even though profit is not the club's primary goal, it undeniably benefits from the catering services, the court emphasized.

In this scenario, it is crucial for the club's catering department to adhere to the Supreme Court ruling and obtain the necessary license to operate under the Mumbai Municipal Corporation Act. Despite the club's non-profit nature and exclusive membership policy, the provision of food services is deemed integral to its activities. To ensure compliance and avoid legal issues, the club should promptly apply for the required license as mandated by the law. Seeking legal counsel to navigate the licensing process efficiently and effectively would be advisable.