LPG Distributorship Falls Under Motor Transport Workers Act? Kerala High Court Stays Inspection Note Issued To Gas Agency

The Kerala High Court has given an interim stay against the inspection note issued to the owner of an LPG distributorship on the finding that his gas agency would not qualify as a 'motor transport undertaking' and thus the provisions of the Motor Transport Workers Act, 1961 will not be attracted.

The inspection note was issued by the Assistant Labour Officer alleging that the gas agency was not registered under the Motor Transport Workers Act, 1961.

Justice Raja Vijayaraghavan V stayed the inspection note issued to the petitioner after observing that a case has been made out for interim relief.

The petitioner relied upon the decision in Aravindaksha Kurup v. Reghunathan Pillai and Others (2005).

“Reliance is also placed on the law laid down by this Court in Aravindaksha Kurup v. Reghunathan Pillai and Others [2005(3) KLJ 33] wherein in pari materia provisions of the Motor Transport Workers Payment of Fair Wages Act, 1971 was considered and it was held that unless the predominant activity comes within the ambit of Section 2(g), the employee cannot be regarded as a 'motor transport worker' attracting the provisions of the Act of 1961.”

The petitioner was running an LPG distributorship and contended that he would not fall under the ambit of the Motor Transport Workers Act, 1961. His specific contention was that he was not running a 'motor transport undertaking' engaged in carrying passengers or goods or both by road for hire or reward. The petitioner's gas agency was predominantly involved in the supply, refill, distribution, transportation and loading-unloading of LPG cylinders.

The plea has been moved by Advocates Adarsh Kumar, K.M.Aneesh, Shashank Devan

Case title: Sindhu Radhakrishnan Nair v State of Kerala

Case number: WP(C) NO. 3383 OF 2024 (W)

Click here to read/download the Interim Order