Analysis of Delhi Shops and Establishments Act,1954

ELIGIBILITY FOR REGISTRATION UNDER ACT:

Any Shop or Commercial establishment shall apply for registration within 90 days of commencement of establishment.

Some important interpretations:

I. Establishment means any shop or a commercial establishment. (Section 2(9) of the act defines Establishment)

II. Commercial establishment”: means any premises wherein any trade, business or profession or any work in connection with, or incidental or ancillary thereto is carried on.

The definition of commercial establishment also includes:

1. A society registered under the Societies Registration Act, 1860,

2. Charitable or other trust, whether registered or not,

3. Journalistic and printing establishments,

4. Contractors and auditors establishments,

5. Quarries and mines not governed by the Mines Act, 1952,

6. Educational or other institutions run for private gain, and

7. Any commercial sector, such as banking, trading or insurance establishments,

8. Theatres, cinemas, restaurants, eating houses, residential hotels, clubs or other places of public amusements or entertainment.

The commercial establishment does not include:

1. A shop or a factory registered under the Factories Act, 1948.

2. Establishments of legal practitioners, doctors and medical practitioners.

3. A religious body.

(It is decided in the case law, Sanatan Dharam Sabha v. Johri Mal, A religious body is not an establishment within the meaning of the Act and, therefore, the Act does not apply to such a body)

(Section 2(5) of the act defines Commercial establishment)

III. Shop means:

1. Any premises where goods are sold either by retail or wholesale or where services are rendered to customers, and

2. Office, a store-room, godown, warehouse or workhouse or work place used in or in connection with such trade or business, whether in the same premises or otherwise.

The definition of Shop does not include a factory or a commercial establishment. (Section 2(27) of the act defines Shop)

The Ministry of Home Affairs (MHA) in its order dated 15th April 2020 prescribed the consolidated revised guidelines (Clause 1 to 22 along with Three Annexures) for containment of COVID-19, for North Block, New Delhi.

After that Ministry of Home Affairs (MHA) issued an order on 24th April 2020 in continuation of order dated 15th April, 2020 and do the following two modifications in its consolidated revised guidelines:

1. In sub-clause 1(x), the term shopping complex is replaced with ‘market complexes within the limits of municipal corporations and municipalities.

2. An inclusion of sub-clause (xiii) and (xiv) under Clause 14 (on commercial and private establishments allowed to operate) to include all shops* registered under the Shops and Establishment Act of the respective states and union territories.

• *Shop here means as defined under Delhi Shops and Establishments Act, 1954.
• This is inclusive of shops in residential complexes and market complexes.
• However, the order excludes shops in multi-brand and single-brand malls.
• All such establishments permitted to operate will work “with 50 per cent strength of workers with wearing of masks and social distancing being mandatory.”

From above order shops which are registered under Shop & establishment get benefitted to open their entity and do business.

Other benefits of registering under Shop & establishment Act:

1. Government policies benefits: You can easily avail various government benefits by registering under act.

2. Legal Entity Proof: Registration gives your entity a legal proof of existence.

3. Prevention from Penal provisions: Every shop and establishment need to register itself compulsorily under this Act within 30 days of commencement of work. If not registered, a penal provision is attracted.

4. Easy Registration: With the ease of doing initiative, registration process gets far easy and simple.

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