Delhi Shops and Establishments Act,1954 — Physical PDF page 3 of 27

     (4) It shall apply in the first instance only to the Municipal Areas, Notified Areas and
Cantonment limits of Delhi, New Delhi, Shahadra, Civil Lines, Mehrauli, Red Fort and Delhi
Cantonment but Government may, by notification in the Official Gazette, direct that it shall come
into force in any other local area or areas or shall apply to such shops or establishments or class
of shops and establishments in such other areas as may be specified in the notification.
                                             COMMENTS
     The Act, which received the assent of the President on 19th June, 1954, came into force with
effect from the 1st of February, 1955, vide Notification No. F.5/51-1 & L, dated 17th January,
1955. The Act will apply only in Delhi and not outside Delhi. The provisions of the Act will apply to
the shops and establishments located in Delhi and not to any establishment working outside
Delhi. Thus, the office which the petitioner had in Iraq by itself cannot be termed as an
establishment to be covered under the Act. Also it has been held by the Delhi High Court that the
mere fact that the business of the petitioner is being carried on from that office so the petitioner’s
officer in Delhi could not be treated as an establishment to be covered under the Act; Bhandari
Builders Pvt. Ltd. v. M.K. Seth, 1988 (15) DRJ 77 (SN).
     The Supreme Court has observed that the preamble is a key to the enactment and it may
legitimately be construed to solve any ambiguity or to fix the meaning of words which may have
more than one, or to keep the effect of the statute within its real scope, whenever the enacting
part is in any of these respects open to doubt. The scope of the Act is a progressive piece of
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legislation and design to settle the disputes on a new pattern hitherto intention to judicial
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machinery set in the country. The object of all labour legislation is to ensure fair wages and to
prevent disputes so that production might not be adversely affected.
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     2. Definitions.—In this Act, unless the context otherwise requires,—
        (1) “adult” means a person who has completed his eighteenth year of age;
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      (1A) “apprentice” means a person, who is employed, whether on payment of wages or not,
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             for the purpose of being trained in any trade, craft or employment in any
             establishment;
        (2) “child” means a person who has not completed his twelfth year of age;
        (3) “close day” means the day of the week on which a shop or establishment remains
             closed;
        (4) “closing hour” means the hour at which the shop or commercial establishment closes;
        (5) “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 and includes a society registered under the Societies Registration Act, 1860 (21 of
             1860), and charitable or other trust, whether registered or not, which carries on any
             business, trade or profession or work in connection with, or incidental or ancillary
             thereto, journalistic and printing establishments, contractors and auditors
             establishments, quarries and mines not governed by the Mines Act, 1952 (35 of
             1952), educational or other institutions run for private gain, and premises in which
             business of banking, insurance, stocks and shares, brokerage or produce exchange is
             carried on, but does not include a shop or a factory registered under the Factories
             Act, 1948 (43 of 1948), or theatres, cinemas, restaurants, eating houses, residential
             hotels, clubs or other places of public amusements or entertainment;
        (6) “day” means a period of twenty-four hours beginning at mid-night:
             Provided that in the case of an employee whose hours of work extended beyond mid-
             night, day means the period of twenty-four hours beginning when such employment
             commences irrespective of mid-night;
        (7) “employee” means a person wholly or principally employed, whether directly or
             otherwise, and whether for wages (payable on permanent, periodical, contract, piece-
             rate or commission basis) or other consideration, about the business of an
             establishment and includes an apprentice and any person employed in a factory but
             not governed by the Factories Act, 1948 (43 of 1948), and for the purpose of any