The issue of applicability of the Negotiable Instruments Act, 1881 to the private sector came up for consideration before the Hon’ble Supreme Court in Pfizer (P) Ltd. Bombay V/s The Workmen, as decided on 30.11.1962 where it was held that, the holidays declared under the Negotiable Instruments Act, 1881 are applicable to a certain class of institutions and therefore the Hon’ble Supreme Court held that it would not be reasonable to insist that the holiday should be made applicable to the private sector.
In the above case it was held that –
“…in dealing with the question of paid holidays, it may be relevant to remember that the holidays declared under the Negotiable Instruments Act are usually applicable to Government institutions only and they have certain financial and statutory implications envisaged by the Act itself. The commercial establishments and factories do not usually adopt these holidays and so, it would not be reasonable to insist that the appellant is bound to grant holidays as sanctioned by the Negotiable Instruments Act, 1881…”