Skip to content


Law Dictionary Home Dictionary Definition commercial-establishment

Commercial establishment, in the definition of a Commercial Establishment in s. 2 cl. 3 of the U.P. Shops and Commercial Eastblishment Act, 1947, the clerical and other establishments of a factory to whom the provisions of the Factories Act, 1934, do not apply, are included in the connotation of that expression. It is true that the reference in the definition by which clerical and other establish-ments of factories are included is to the Factories Act of 1934, but by virtue of s. 8 of the General Clauses (1987 10 of 1897), it must be construed as a reference to the provisions of the Factories Act LXIII of 1948 which repealed the Factories Act of 1934 and re-enacted it. It is difficult to say that field workers who are employed in guiding, supervising and controlling the growth and supply of sugarcane to be used in the factory are employed either in the precincts of the factory or in the premises of the factory; and if these workers are not employed in a factory, the provisions of the Factories Act, 1948 do not apply to them and they evidently fall within the definition of 'Commercial Establishment', State of U.P. v. M.P. Singh, AIR 1960 SC 569: (1960) 2 SCR 605. The definition of 'establishment' includes a 'shop' and 'commercial establishment', the definitions of 'shop' and 'commercial establishment' are mutually exclusive. Further, the definition of 'commercial establishment' is wider than that of 'shop'. A place in order to fall within the definition of 'commercial establishment' must in the first instance be 'premises'. Secondly, it should be premises wherein (a) any trade, business or profession is carried on, or (b) any work in connection with or incidental or ancillary thereto is carried on. Sub-clause (b) is only ancillary to (a). [Delhi Shops and Establishments Act, 1954, s. 2(5)], Chief Commissioner v. Federation of India Chambers of Commerce and Industry, (1975) 3 SCC 64: AIR 1974 SC 1527: (1975) 1 SCR 348. Means 'an establishment or administrative service in which the persons employed are mainly engaged in office work'. The office of a lawyer or of a firm of lawyers is not a 'commercial establishment' within the meaning of the Act, V. Sasidharan v. Peter and Karunakar, AIR 1984 SC 1700 (1703). [Kerala Shops and Commercial Establishments Act, (34 of 1960), s. 2(4)]

View Judgments Citing this Phrase

View Acts Citing this Phrase

Save Judgments// Add Notes // Store Search Result sets // Organize Client Files //