The Bihar Shops & Establishments Act, 1953

The
Bihar Shops & Establishments Act, 1953]1
[ BIHAR ACT VIII OF 1954 ]
An Act to provide for the Regulation of conditions of work and employment in
shops and other establishments and for certain other purposes.
Whereas it is expedient to provide for the regulation of conditions of work and
employment in shops and other establishment and for certain other purposes hereinafter
specified.
CHAPTER I
Preliminary.
Comments & Case-law
[Where order of termination has not been passed on ground of misconduct, the Act
does not insist on rule of “Audi Alteram Partem” being followed. It will not be fair for
courts to import an additional condition not envisaged under the Bihar Shops and
Establishments Act and insist that the rule of “Audi Alteram Partem” be extended to cases
of order of termination being passed by employer who are not “State” for a reasonable
cause and not on ground of misconduct. Biscomaun Ltd. v. State of  Bihar, 1993 (1) PLJR 333.
Where Enquiry Report has not been served on the delinquent employee, the whole
proceeding gets vitiated and order imposing punishment following the domestic enquiry
cannot be sustained. Union of  India v. Md. Ramzan Khan, AIR 1991 SC 471.
Where appointment of a person had been made purely on an adhoc basis and is
contractual in nature, if it comes to an end by efflux of time, the employee concerned can
have no right to continue on the post even in a case where he has continued in employment
from time to time on adhoc basis for more than one year. Director v. Smt. Pushpa Srivastava,
AIR 1992 SC 2070.]
1. Short title, extent and commencement . – (1) This Act may be called the
Bihar Shops and Establishments Act, 1953.
(2) It extends to the whole of the State of Bihar.
(3) It shall come into force on such date as the State Government may, by
notification appoint and different dates may be appointed for different
provisions of this Act or for different areas or for different classes of shops or
establishments.
(4) It shall apply, in the first instance, to the local areas comprised within a
municipality, notified area or a municipal corporation constituted and
established under any law for the time being in force, relating to municipalities
and to any mining settlement for which a Mines Board of Health has been
established under section 5 of the Bihar and Orissa Mining Settlements Act,
1920 (B. & O. Act IV of 1920).
1. It received the assent of the President on 17.3.1954 and is in force from 15.2.1955 vide
notification no. 1/S6-108.55L-1794 L dated 15.2.1955.
Comments & Case-law
[The provisions of the Bihar Shops and Establishments Act will have no application,
if the relationship between the disputing parties is that of a contractor. Nand Kumar Tewari
v. Ali Hassan, AIR 1966 Pat. 127: 1965 BLJR 702 : (1966) 2 LLJ 124.
The provisions of the Bihar Shops and Establishments Act can be applicable even to
establishments registered as a factory under the Bihar Factories Act, 1948. State of  Bihar v.
Madhav Prasad, 1968 BLJR XVI (Summ).
Once it is found that the legal-course was not adopted for dispensing with the services
of an employee, it will be quite unjust to deny the employee the relief by way of order for
reinstatement. Indian Tube Company Ltd. v. Pratap Mishra , 1969 BLJR 589: 1970 (1) LLJ
322.
This Act is a beneficient legislation which must be liberally construed. Badri Pd.
Gupta v. State of  Bihar, 1968 PLJR 246 (FB) : 1986 BRLJ 63 : AIR 1986 Pat. 186.
This Act is not ultravires. Jugal Kishore Bhadani v. Labour Commissioner, 1958 BLJR
223 : 1958 PLP 93 : 1958 (2) LLJ 234.
The Shops Act is complimentary to Industrial Disputes Act. It does not exclude the
applicability of any other Act. Delhi Consumer Co-op. Wholesale Store Ltd. v. Secretary (Labour),
1983 Lab. IC 1652.
Where there is repugnancy between State Shops and Establishments Act and the
(Central) Industrial Disputes Act, the State Act will be excluded to the extent it is repugnant
to the Central Act. However, where no repugnancy between the two Acts is found, provisions
of both Acts will apply and whatever was more beneficial to the employees would be
applicable. National Engineering Industries Ltd. v. Kishan Bhageria, 1988 (2) SLJ 23.
Courts should make efforts to reconcile the two laws, in case of repugnancy between
State and Central Laws, rather than declare one ultravires merely on the ground of
repugnancy. Raptakos, Brett & Company Ltd. v. Bihar State Agricultural Marketing Board, 1988
PLJR 830.
Laws imposing taxes can amount to restrictions on trade, commerce and inter-State
intercouse, if their imposition hampers the free flow of trade and these are not what can be
termed to be compensatory taxes or regulatory measures. West Bengal Hosiery Association v.
State of  Bihar, 1988 PLJR (SC) 96 : 1988 BRLJ 119.
An administrative order which is against rules or provisions of Statute creates no
vested right. S.K. Chakraborthy v. Union of  India, 1989 (1) SLJ 106.
The provsions of the Bihar Shops and Establishments Act do not apply to the Bihar
State Marketing Board and Market Committees established under the Bihar Agricultural
Produce Market Act, 1960, as these are not engaged in any commercial activity as such and
their dominant purpose is only to render services of an entirely different kind. Earning of
profit or profit earning motive is not even the remote intention for their creation. Bihar State
Marketing Board v. Chief  Inspecting Officer, 1986 BLJR 100.
The Bihar Shops and Establishments Act has been enacted for the benefit of
employees working in shops and establishments coming within the ambit of the provisions
of the Act. The Court is entitled to “Tear the veil” to see whether there has been any abuse
of the provisions of this Act or if any exploitation of labour employed in a shop or an
establishment had occured. Tata Robins Fraser Co. Ltd. v. Presiding Officer, 1989 PLJR 1153 :
1989 BLJR 555.
2 | Bihar Shops & Establishments Act, 1953 | Sec. 1
Sec. 1 | Bihar Shops & Establishments Act, 1953 | 3
The Bihar Shops and Establishments Act has been enacted not only in terms of
Entry Nos. 22, 23 and 24 of List III of the Seventh Schedule of the Constitution but also
under Entry No. 26 of List II of the Seventh Schedule. Therefore, the expression “business”
for the purposes of this Act has to be read as synonymous to “trade”. An activity which is
extra commercial cannot be said to be a “business” in the context of such a Statute. Beldih
Club v. Presiding Officer, 1991 (1) PLJR 81 : 1990 (2) BLJR 808.
Legislature is competent to give retrospective operation to a statute. Courts, however,
will not ascribe retrospectivity to new legislation affecting existing rights of citizens unless
by express words or necessary implication it is manifest that the Legislature intended that
the new laws be given retrospective effect. State Bank of  India v. State of  Bihar, 1990 (2) PLJR
336.
Subordinate legislation must confine itself to the terms of its delegated or derived
authority. ibid.
The right of appeal is a creature of statute and there is no reason why the Legislature
while granting the right cannot impose conditions for exercise of such right so long as the
conditions are not so onerous as to amount to unreasonable restrictions rendering the right
almost illusory. Seth Nand Lal v. State of  Haryana , 1980 (Supp) SCC 574 : (1980) 3 SCR
1181.
Where two views are possible, that construction of penal provision which is less
stringent should be preferred. Sachidanand Singh v. Tarewati Mishrain, AIR 1992 Pat. 164.
The mechanical approach to construction of statutes is altogether out of step with
the modern positive approach. The modern approach is to have a positive construction in
order to effectuate the object and purpose of the statute. Administrator Municipal Corporation
v. D. Dahankar, AIR 1992 SC 1846.
Alternative remedy — Where adequate remedy can be read in the statute, resort to
writ remedy under Articles 226 and 227 of the Constitution must be discouraged. Shyam
Kishore v. Municipal Corporation, (1993) 1 SCC 22 : AIR 1992 SC 2279.
Under the General Clauses Act, singular includes plural, that is the term “act”
includes “acts”. State of  Punjab v. Ram Singh, AIR 1992 SC 2188.]
Enforcement of the provisions of this Act in the State of Bihar :
Municipal limits of :
1[(a) Patna, Gaya, Ranchi, Jamshedpur, Bhagalpur, Muzaffarpur.
2[(b) Jugsalai N.A.C., Doranda N.A.C., Dinapur Nizamat Municipality, Khagaul.
3[(c) Rajgir N.A.C., Tekari, Jagdishpur, Dumraon, Revelganj, Raxaul N.A.C.,
Lalganj, Dumra N.A.C., Rosera, Jainagar N.A.C., Shiekhpura N.A.C.,
Barhaiya N.A.C., Banka N.A.C., Sultanganj N.A.C., Madhupur, Jasidih
N.A.C., Mihijam N.A.C., Chatra, Garhwa N.A.C., Seraikella, Kharasawan
N.A.C., Murliganj N.A.C., Supaul N.A.C.
1. Vide notifn. no. I/S6-108/55L - 1794 dated 15.2.1955 (w .e.f. 15.2.1955).
2. Vide notifn. no. I/S6-108/55L - 7882 dated 26.5.1955 (w .e.f. 1.6.1955).
3. Vide notifn. no. II/S6-104/60L - 2032 dated 23.2.1960.
4 | Bihar Shops & Establishments Act, 1953 | Sec. 1
1[(d) Arrah, Chapra, Darbhanga, Motihari, Monghyr, Hazaribagh, Purnea,
Chaibasa.
2[(e) Barh, Biharshariff, Dinapur Cantonment Board, Mokameh N.A.C.,
Daudnagar, Nawada N.A.C., Sasaram, Buxar, Bhabua, Dehri, Dalmia
N.A.C., Siwan, Gopalganj N.A.C., Bettiah, Nautanha N.A.C., Hajipur,
Sitamarhi, Samastipur, Madhubani, Colgong, Naugachia N.A.C., Jamalpur,
Lakhisarai N.A.C., Begusarai N.A.C., Khagaria N.A.C., Dumka, Deoghar,
Sahebganj, Katihar, Kishanganj, Forbesganj, Saharsa N.A.C., Lohardaga,
Giridih, Jhumritelaiya N.A.C., Daltonganj, Chiakradharpur, Dhanbad, Sindri
N.A.C., Jharia Mines Board of Health, Rajgir N.A.C., Tekari, Jagdishpur,
Dumraon, Revelganj, Raxaul N.A.C., Sultanganj N.A.C., Lalganj, Dumra
N.A.C., Rosera, Jainagar N.A.C., Sheikhpura N.A.C., Barhaiya N.A.C.,
Madhupur, Jasidih N.A.C., Mihijam N.A.C., Chatra, Garhwa N.A.C.,
Saraikella N.A.C., Kharsawan N.A.C., Murliganj N.A.C., Supaul N.A.C.,
3[(f) Gumla N.A.C., Pakur N.A.C., Madhepura N.A.C., Mirganj N.A.C.,
Aurangabad N.A.C.,
4[(g) Bairagania Market, Mahanar Market, Jahanabad Market, Ramgarh Cantt.
Market.
5[(h) Dalsinghsarai N.A.C.
6[( i) Jamshedpur N.A.C.
7[(j) War saliganj, Nokha, Sahpur Patori, Mahuddinagar, Rajnagar, Sonepur,
Marhowrah, Motipur, Chanpatia, Narkatiaganj, Bermo, Jamtara, Barauni,
Jharia, Gogri, Kharagpur, Asarganj, Jogbani, Banmankhi, Behariganj.
8[(k) Husainabad N.A.C., Rajmahal N.A.C., Adityapur N.A.C., Jammui N.A.C.,
Araria N.A.C., Nirmali N.A.C.,
9[(1) Maharajganj, Mairwa, Pupri, Fatuah, Bihta, Masaurhi, Hilsa, Hasua,
Nassriganj, Bikramganj, Piro, Behea, Jhanjharpur, Chas.
10[(m) Jahanabad N.A.C.
11[(n) Barauli, Dighwara, Sahebganj, Barachakia,
12[(o) Fa tuah N.A.C., Bikramganj N.A.C., Mairwa N.A.C., Jamui, Araria, Mahanar
N.A.C., Aurangabad, Chanpatia N.A.C., Jogbani N.A.C., Bihariganj N.A.C.,
Jahanabad, Mokameh, Dehri, Dalmianagar, Lakhisarai, Begusarai, Khagaria,
Saharsa, Supaul, Banka, Rafiganj N.A.C., Godda N.A.C., Simdega N.A.C.,
13[(p) Paliganj Bazar, Vikram Bazar, Khusrupur Bazar, Parwalpur Bazar, Fatehpur
Bazar, Barbigha Bazar, Barharwa Bazar, Bahadurganj Bazar, Khunti Bazar,
1. Vide notifn. no. I/S6-106/57 L-3644 dated 28.5.1957 (w .e.f. 1.4.1957).
2. Vide notifn. no. II/S6-1036-58 L-10883 dated 25.6.1958 (w .e.f. 15.7.1958).
3. Vide notifn. no. II/S6-206/64 L&E-1202 dated 3.2.1964 (w .e.f. 1.3.1964)
4. Vide notifn. no. II/S6-206/64 L&E-1201 dated 3.2.1964 (w .e.f. 1.3.1964)
5. Vide notifn. no. II/S6-206/64 L&E-8411 dated 8.9.1964 (w .e.f. 15.9.1964)
6. Vide notifn. no. II/S6-1070/64 L&E-1149 dated 18.12.1964 (w .e.f. 15.1.1964)
7. Vide notifn. no. II/S6-204/64 L&E-5556 dated 7.6.1966 (w .e.f. 1.8.1966)
8. Vide notifn. no. II/S6-204/66 L&E-5557 dated 7.6.1966 (w .e.f. 1.8.1964)
9. Vide notifn. no. II/S6-2014/67 L&E-9957 dated 11.8.1967 (w .e.f. 1.11.1967)
10. Vide notifin. no. II/S6-2014/67 L&E-9990 dt. 11-8-1967 ( w .e.f. 1-11-167)
11. Vide notifin. no. II/S6-207/68 L&E-1182(1) dated 2-8- 1968 (w .e.f. 1-9-1968)
12. Vide notifin. no. II/S6-1027/73 L&E-903(2) dated 4-4-1973 ( w .e.f. 1.5-1973)
13. Vide notifin. no. II/S6-1030/73 L&E-4753(2) dated 27-8-1973 (w .e.f. 15-8-1973)
Sec. 1 | Bihar Shops & Establishments Act, 1953 | 5
Sherghati Bazar, Dhanwar Bazar, Garkha Bazar, Ekma Bazar, Masrakh Bazar,
Ghorasahan Bazar, Madhepur Bazar, Chhoti Balia, Domchanchi, Sakri Bazar,
Pandaul Bazar, Bokaro Steel City, Hatia, Barauni].
1[(q) Saria Bazar (Giridih).
NOTIFICATIONS
S.O. 69, dated the 9th January , 1978.—In exercise of the powers conferred by sub-section
(3) of section 1 of the Bihar Shops and Establishments Act, 1953 ( Bihar Act VIII of 1954)
and in partial modification of the notifications mentioned in column 2 of the Schedule
hereto annexed, the Governor of Bihar is pleased to direct that all the provisions of the said
Act will be deemed to have come into force in the areas mentioned in column 5 of the
annexed Schedule from the same dates from which they were brought into force in the areas
mentioned in column 4 of the Schedule by virtue of the notifications specified in column 2
against them.
Sl. Notification D ate of Old Area New Area
No. No. Enforcement
12 3 4 5
1. I/S6-108/55L-7882, 1-6-1995
dated 26th May, 1995.
2. II/S6-1036/58L-10883, 15-7-1958
dated 25th June, 1958.
3. II/S6-104/60L-2032, 1-6-1960
dated 23rd Feb, 1960.
4. II/S6-206/64L&E-1202, 1-3-1964
dated 3rd Feb, 1964.
Jugsalai Notified
Area, Doranda
Notified Area.
Nawada Notified
Area, Gopalganj
Notified Area.
Jhumritelaiya
Notified Area.
Raxaul Notified
Area, Sheikhpura
Notified Area,
Barhaiya Notified
Area.
Gumla Notified
Area, Pakur
Notified Area,
Madhepura
Notified Area.
Jugsalai Municipality
(Dist. Singhbhum),
Doranda Municipality
(Dist. Ranchi).
Nawada Municipality
(Dist. Nawada),
Goplaganj
Municipality (Dist.
Gopalganj),
Jhumritelaiya
Municipality (Dist.
Hazaribagh).
Raxaul Municipality
(East Champaran
District), Sheikhpura
Municipality (Dist
Monghyr), Barhaiya
Municipality (Dist.
Monghyr).
Gumla Municipality
(Dist. Ranchi), Pakur
Municipality (Dist.
Santhal Parganas),
Madhepura
Municipality (Dist.
Saharsa).
1. Vide S.O . 691 dated 7.4.1979 ( w .e.f. 1.1.1979).
6 | Bihar Shops & Establishments Act, 1953 | Sec. 1
12 3 4 5
5. II/S6-204/66 L&E-5555, 1-8-1966
dated 7th June, 1966.
6. II/S6-2014/67 L&E-9987, 1-11-1967
dated 11th August, 1967.
7. II/S6-207/68 L&E-1182 1.9.1968
dated 2nd August, 1968.
8. II/S6-1030/73 L&E-1758 15-8-1973
dated 27th June, 1973.
Warasaliganj.
Narkatiaganj
Market.
Jhajha.
Banmankhi.
Hilsa Market.
Piro Market.
Behea Market.
Barauli Market.
Khusrupur
Market.
Barbigha Market.
Bahadurganj
Market.
Khunti Market.
Sherghati Market.
Warsaliganj Notified
Area Committee
(Dist. Nawada).
Narkatiaganj Notified
Area Committee
(Dist. West
Champaran).
Jhajha Notified Area
Committee (Dist.
Monghyr).
Banmankhi Notified
Area Committee
(Dist. Purnea).
Hilsa Notified Area
Committee ( Dist.
Nalanda).
Piro Notified Area
Committee (Dist.
Bhojpur).
Behea Notified Area
Committee (Dist.
Bhojpur).
Barauli Notified  Area
Committee (Dist.
Gopalganj).
Khusrupur Notified
Area Committee
(Dist. Patna).
Barbigha Notified
Area Committee
(Dist. Monghyr).
Bahadurganj Notified
Area Committee
(Dist. Purnea).
Khunti Notified Area
Committee (Dist.
Ranchi).
Sherghati Notified
Area Committee
(Dist. Gaya).
Sec. 1 | Bihar Shops & Establishments Act, 1953 | 7
S.O. 691, dated 7th April, 1979.— In exercise of the powers conferred by sub-section (3)
of Section 1 of the Bihar Shops and Establishments Act, 1953 (Bihar Act VIII of 1954), the
Governor of Bihar is pleased to appoint the 1st of January, 1979 as the date on which all the
provisions of the said Act shall come into force in the place as mentioned in column 2 of
the Schedule hereto annexed.
SCHEDULE
Sl. No. Place Reven ue Thana Pa rgana District
12 3 4 5
1. Saria Bazar 44 Rampur Giridih
S.O. 1725, dated 22nd December, 1979 .— In exercise of the powers conferred by sub-
section (3) of Section 1 of the Bihar Shops and Establishments Act, 1953 ( Bihar Act VIII
of 1954), the Governor of Bihar is pleased to appoint the 1st January, 1980 as the date on
which the provisions of the said Act shall come into force in the places as mentioned in
column 2 of the Schedule hereto annexed.
SCHEDULE
Sl. Place Reven ue Village/ Boundary District
No. Panchayat Thana No.
12 3 4 5
1. Thakurganj Gothra-16 North - L.R.P . Road Purnea
Bazar Kanakpur-17 Purnea. Chouhadi
Gothra.
South - Boundary of
Village Kanakpur.
East - Burhi Dangi
River, village Kanakpur.
West - L.R.P . Road,
Village Gothra.
2. Tribeniganj Latona-273 North - Kathakholwa Saharsa
Bazar Thalha South - Mora
Garia-269 East - Duparakha
West - Babhangama.
3. Dhaka Dhaka Chainpur North - Pipra Wazid. East
Bazar Panchayat. South - Dhaka Champaran
Dhaka Ramchandra Lahan 106.
Panchayat. East - Barharwa, Siwan.
West - Sitalpatti.
●
The 18th September 1985
S.O. 939, dated the 30th September, 1985.— In exercise of the powers conferred by sub-
section (3) of section 1 of the Bihar Shops and Establishments Act, 1953 ( Bihar Act VIII of
1954) and in partial modification of notification no. II/S6-1036/58-10883, dated the 25th
8 | Bihar Shops & Establishments Act, 1953 | Sec. 2
June 1958, the Governor of Bihar is pleased to appoint the date on which the name of the
Jharia Mines Board of Health was changed to Coal Mining Area Development Authority,
Dhanbad to be the date on which all the provisions of the said Act shall come into force.
●
The 13th April 1985
S.O. 1154, dated the 7th November, 1985.—In exercise of the powers conferred by sub-
section (3) of section 1 of the Bihar Shops and Establishments Act, 1953 ( Bihar Act VIII of
1954) and in continuation of Labour Department, Bihar notification no. I/S6-108/55L–
1794, dated the 5th February, 1955, so far it relates to Ranchi, the Governor of Bihar is
pleased to appoint the date of issue of this notification as the date on/ from which all the
provisions of the said Act shall come into force in all such areas of Ranchi Municipal
Corporation which fall beyond the areas of the Ranchi Municipality.
●
The 12th April 1985
S.O. 1156, dated the 7th November, 1985.— In exercise of the powers conferred by sub-
section (3) of section 1 of the Bihar Shops and Establishments Act, 1953 ( Bihar Act VIII of
1954) and in partial modification of the notifications mentioned in column 1 of the Schedule
hereto annexed relating to the respective area noted in column 2 of the said Schedule, the
Governor of Bihar is pleased to appoint the date, on which the municipal corporations
mentioned in column 2 of the Schedule came into existence to be the date on/ from which
all the provisions of the said Act shall be deemed to have come into force in all those areas.
SCHEDULE
Column 1. Column 2.
No. L/S6-108/55–1974, 1. Bhagalpur Municipal Corporation.
dated the 5th February, 1956. 2. Gaya Municipal Corporation.
And 3. Darbhanga Municipal Corporation.
I/S6-106/57L–3644,
dated the 28th February, 1957.
2. Definitions . In this Act, unless there is anything repugnant in the subject or context –
(1) “Apprentice” means a person, aged not less than twelve years, who is employed,
whether on payment of wages or not, for the purpose of being trained in any
trade, craft or employment in any establishment;
(1A) “child” means a person who has not completed the age of fourteen years;
(2) “closed” means not open for the service of any customer to any business connected
with the establishment;
(3) “day” means a period of twenty-four hours beginning at midnight:
Provided that, in the case of an employee whose hours of work begins before and
extend beyond midnight, day means a period of twenty-four hours beginning at
the hour his work commences;
1[(4) “employee” means a person wholly or partially employed for hire, wages including
salary, reward, or commission in and in connection with any establishment and
includes ‘apprentice’ but does not include member of the employer’s family. It
also includes person employed in a factory who are not worker within the meaning
1. Subs. by Act 2 of 1975.
Sec. 2 | Bihar Shops & Establishments Act, 1953 | 9
of the Factories Act, 1948 ( 63 of 1948), and for the purpose of proceeding under
this Act, include an employee, who has been dismissed, discharged or retrenched
for any reason whatsoever;
(5) “employer” means a person who owns or exercise ultimate control over the affairs
of an establishment and includes a manager, agent or any other person in the
immediate charge of the general management or control of such establishment;
1[(6) “establishment” means an establishment which carries on any business, trade or
profession or any work in connection with, or incidental or ancillary to any
business, trade or profession and includes —
(i) administrative or clerical service appertaining to such establishment;
(ii) a shop, restaurant, residential hotel, eating house, theatre or any place of
public amusement or entertainment; and
(iii) such other establishment as the State Government may, by notification,
declare to be an establishment to which the Act applies; but does not include
a ‘motor transport undertaking’ as defined in clause (g) of section 2 of the
Motor Transport Workers Act, 1961 (27 of 1961)].
(7) “family” in relation to an employer means the husband or wife, child or children,
father or mother, brother or sister, brother’s son, sister’s son, daughter’s son and
son’s son of such employer living with him and dependent on him;
(8) “holiday” means a day on which an establishment shall remain closed or on which
an employee shall be given a holiday under the provisions of this Act;
(9) “Inspecting officer” means an Inspecting Officer appointed under sub-section (1)
of section 29 and includes the Chief Inspecting Officer, Additional Inspecting
Officer and ex-officio Inspecting Officer appointed under or referred to in that
section;
(10) “Leave” means leave provided for in Chapter IV of this Act;
(10A) “Opened” means opened for the service of any customer or for any business
connected with the establishment;
(10B) “Period of work” means the time during which an employee is at the disposal of
the employer;
(11) “Prescribed” means prescribed by rules made under this Act;
(12) “Residential hotel” means any premises used f or the reception of guests travellers
desirous of dwelling or sleeping therein and includes a club;
(13) “Restaurant” or “eating house” means any premises in which is carried on wholly
or principally the business of the supply of meal or refreshments to the public or
a class of the public for consumption on the premises;
(14) “Retail trade, or business” includes the business of a hawker, hairdresser, the sale
of cooked food, refreshments or intoxicating liquors and retail sale by auction;
(15) “Schedule” means the Schedule appended to this Act;
(16) “Shop” means any premises where goods are sold, either by retail or wholesale or
where services are rendered to customers and includes an office, store-room,
godown, warehouse and work place, whether in the same premises or elsewhere,
used in connection with such sales or services, but does not include a restaurant,
a residential hotel, eating house, theatre or other place of public amusement or
entertainment;
10 | Bihar Shops & Establishments Act, 1953 | Sec. 2
(17) “Spread over” means the period between the commencement and the termination
of an employee on any day;
(18) “Theatre” includes any premises intended principally or wholly for the exhibition
of pictures or other optical effects by means of a cinematograph or other suitable
apparatus or for dramatic performance , or any other public amusement or
entertainment;
(19) “Wage period” in relation to the payment of wages of any employee, means a
wage period fixed by an employer under section 20 in respect of such employee;
(20) “Wages” means wages as defined in the Payment of Wages Act, 1936 (IV of
1936) and includes the dearness allowance as the workman is for the time being
entitled to;
(21) “Week” means a period of seven days beginning at midnight of Saturday;
1(21A) “Year” means a year commencing on the first day of January, and
(22) “Young person” means a person who is not a child and has not completed the age
of eighteen years.
Comments & Case-Law
Sec. 2 (4)
[Mode of payment cannot decide the issue of relationship of master and servant.
The mere fact that a person was paid on piece rate will not take him out of the definition of
a “person employed” if there are other circumstances which indicate of his regular
employment. Whitway Dresses v. Addl. Labour Court, 1988 (2) LLJ 345.
The person claiming to be an employee must be one wholly or principally employed
in and in connection with any establishment. Canara Bank v. Appellate Authority, 1981 Lab.
IC 1043.
The following were held employees —
Sales Officers of an industrial undertaking. Avery India Ltd. v. Commissioner for Workmen
Compensation, 6 FJR 432.
Field Workers employed for guiding, supervising and controlling the growth (or
production) and supply. State of  U.P. v. M.P. Singh, 1960 (1) LLJ 270.
Accountant dealing with cash. Motipur Sugar Factory v. Rikhdeo Pd., CWJC No. 629
of 1971 decided on 14-4-1975.
A goldsmith appointed by a Bank as an appraiser, though may not be called an
employee in the literal meaning of the term but is entitled to the benefits of the Act. Canara
Bank vs. Appellate Authority. 1978 (1) LLJ 324.
Factory workers attached to such parts of establishment which comes under this
Act, and not guided by Factories Act. Motipur Sugar Factory P Ltd. vs. Sri Rikhdeo Prasad ,
1969 PLJR 270; Rohtas Industries Ltd. vs. Ram Lakhan Singh, 1978 BBCJ 498C.
But the following are not employees —
Person employed as canvasser. Avery India Ltd. vs. Addl. Commissioner for Workmen
Compensation, 1978 (1) LLJ 92; M/s. United Wireropes Ltd. vs. Addl. Commissioner for Workmen
Compensation. 1976 (1) LLJ 226.
Person employed as a domestic servant at officer’s residence. Ganesh Flour Mills Co.
Ltd vs. Labour Court, 1971 (1) LLJ 287 : 1971 Lab. IC 225.
Working journalists. Samachar Bharti vs. Kedar Nath, 43 FJR 30.
1. Ins. by Act 12 of 1961.
Sec. 2 | Bihar Shops & Establishments Act, 1953 | 11
The term ‘employee’ does not include a person holds a civil post under the State or
Central Government. Such a person is a person serving or employed under the State and he
comes under the administrative control of the State. Rohtas Industries vs. Ram Lakhan Singh,
AIR 1978 SC 849 : (1978) 2 SCC 140. See also Dr. S. L Agarwal vs. General Manager, Hindustan
Steel Ltd., AIR 1970 SC 1150.
Mere assignment of duty to check and report the faults of other workmen, will not
make the employee concerned a supervisor or manager. National Engineering Industries Ltd.
vs. Kishan Bhageria, 1988 (2) SLJ 23.
Members of a co-operative society formed with the principle object of providing
employment to its members, are not employees even if remuneration is paid to them. E.S.I.
Corpn. vs. Laxmi Power Loom Weavers Co-opt. & Sales Society, 1986 Lab. IC 370.
On a plain reading of the provisions of section 2 (4) it is clear that even persons
employed in factories are intended to be included within the meaning of the definition of
the term “employee” in the Bihar Act, by virtue of the inclusive clause contained therein.
However, there are two exceptions, namely, (a) those persons who are not “Workers” within
the meaning of Factories Act; and (b) those persons who are not working in managerial
capacity. M/s. I.T.C. Ltd. vs. State of  Bihar, 1996 (1) PLJR 297.
‘Causal worker’ not employed but engaged for specific item of work are not
employees. Regional Director, E.S.I. Corpn. vs. P.R. Narhari Rao, 1986 Lab. IC 1981.
—Section 2(4)—on a plain reading it would reveal that even persons employed in a
factory by the inclusive clause in the second sentence of the definition are employees within
the meaning of the Act—but it has to be noticed that two exceptions have been carried out
from the category of such persons, namely,
(i) who are not workers within the meaning of Factories Act; such workers do
not come within the exclusive definition of the term “employees”; and –
(ii) who are not working in managerial capacity. M/s. I.T.C. Ltd. vs. State of  Bihar,
1996 (I) PLJR 297.
—Section 2(4) read with Factories Act, 1948, Section 2 (1)—reading both the
provisions together, there would be no doubt that the “worker” as defined in the Factories
Act, should be a person employed in the premises or precincts of the factory and it is not
necessary that such worker must be directly connected with the manufacturing process, but
those who are off on any other work connected with or his work is incidental to the
manufacturing process in a factory are included. M/s. I.T.C. Ltd. vs. State of  Bihar, 1996 (I)
PLJR 297.
—Sections 2(4) and 6 read with Section 2(1) and (m) of Factories Act, 1948—since
the workers of the cigarette factory engaged in its Printing Press are not employed as covered
under Section 2(4) and 6 of the Bihar Shops and Establishments Act, it is not required to be
registered under the provisions of Rule 3 of the Bihar Shops and Establishments Rules.
M/s. I.T.C. Ltd. vs. State of  Bihar, 1996 (I) PLJR 297.
Sec. 2 (5)
[The phrase “in the immediate charge of the general management or control of such
establishment” qualify and control and the three expressions preceding therein, i.e. Manager,
agent or any person. V . Poddar vs. State of  Bihar, 1978 BBCJ 498.
12 | Bihar Shops & Establishments Act, 1953 | Sec. 2
Manager of a Bank is also an employer. G. S. Joshi vs. State of  Mysore, 40 FJR 29.
Owner of a restaurant at railway station is an employer. State of  Bihar vs. J. P Singh,
1964 BRLJ 1 : 1963 BLJR 782.
The manager of a factory which is under the ultimate control of a corporation though
may be in charge of general management and disbursement, is not an employer. Bihar State
Leather Ind. Dev. Corpn. vs. Chiraguddin Ahmad, 1981 BBCJ 111.
A person who does not own or exercise control over the affairs of an establishment,
cannot be said to be the ‘Manager’ and therefore is not liable to be prosecuted, in absence of
specific averment that he was the person in immediate charge of management. Ravindra
Nath Dutta vs. D. K. Barmun, AIR 1969 Pat. 371 : 1969 BLJR 510.
Where a worker or group of workers are engaged to produce goods or services and
these goods or services are for the business of another person, that person is the ‘employer’.
The employer is required only to have control over the employees’ skill and continued
employment. Hussain Bhai vs. Alath Factory Tez Hilali Union , AIR 1978 SC 1410: (1978)4
SCC 257.
—Sections 2(5) and 26(2)—complainant employed as Asstt. Administrative Officer
on probation period which was extended twice and he was allowed to continue even after
last extension and thereafter his service terminated with one month’s pay for the notice—
the Tribunal should have applied proper test before holding that his complaint before it was
maintainable—his appointment letter shows that he was appointed in the organisation which
term includes, both factory and head office—he was mostly employed in the factory and the
nature of his job was Supervisory—mere extensions of his service and continuing him
beyond last extension did not amount to his automatic confirmation and therefore, terms of
contract of appointment still applied—however, a person on probation cannot be removed
before the expiry of the period of probation except in cases of unsatisfactory service or
misconduct—moreover, the High Court cannot interfere with the findings of Tribunal unless
it is clear that the findings under review ar e perverse—Tribunal having awarded only
compensation and not his reinstatement, the High Court would not interfere. Bihar Air
Products Limited vs. Presiding Officer, 1999(1) PLJR 883.]
Sec. 2 (6)
[To bring an establishment within the ambit of this Act it has to be seen whether the
concern undertakes habitually the production and distribution of goods or renders any
services with the help of employees. As such the ‘commercial nature’ of the establishment
is the essential requirement for bringing the establishment within the meaning of Sec. 2 (6)
of this Act.
The State Government’s power to issue notification including some other
establishments is confined to something which is similar to or analogous to what precedes
the word “such”. The word used is “such” and not “any”. Therefore, had the power been to
declare something else or something dissimilar to what is mentioned earlier, the word “any”
would have been there and not the word “such”. State of  Maharastra vs. Smt. Dhanlaxmi V .
Meisheri, 1981 Lab. IC 907.
For purpose of classifying a premises as an establishment under the Act, the dominant
factor is the presence or absence of the element of business or trade. Bihar State Marketing
Board vs. Chief  Inspecting Officer; 1985 PLJR (NOC) 50 : 1985 BRLJ 154: 1985 Lab. IC 1820.
Municipal Board is an establishment as it engages labour and effort of persons.
Municipal Board vs. Addl. Labour Commissioner; 1986 Lab. IC 1528.
The following are establishments—
A club, whether it makes a profit or not. United Club vs. Jt. Commissioner; 1986 PLJR
(NOC) 59.
A financial institution rendering service to its customers by advancing moneys to
purchase vehicles on hire-purchase basis. M/s. Sundaram Finance Ltd vs. State of  Tamil Nadu,
1981 Lab, IC (NOC) 108.
Restaurant situated in railway premises. State of  Bihar vs. J. P Singh, 1964 BRLJ I :
1963 BLJR 782.
Registered office of India Chamber of Commerce. Chief  Commissioner vs. Federation
of  India Chamber of  Commerce and Industry, AIR 1974 SC 1527: 1974 (2) LLJ 271 : 1974 Lab.
IC 1007.
A photographer’s Studio. State of  U.P. v. Manmohan Nautyal, 42 FJR 252.
Banks, Canara Bank v. Appellate Authority, 1978 (1) LLJ 324; South India Bank Ltd. v. T
D. Pichuthayappan, 1954 (1) LLJ 289; Commercial Bank Ltd. v. Authority under Payment of
Wages Act, 1958 (2) LLJ 31; Canara Bank v. Appellate Authority, 1981 Lab. IC 1034.
Bihar State Electricity Board. Electrical Executive Engineer v. S.P. Pankaj, 1966 BLJR
120 : 1967 (1) LLJ 602. See also Madras State Electricity Board v. Commissioner, 1961 (1) LLJ
297.
Canteens run by employer for employees but also thrown open to public. Nagpur
Corpn. (Civil) Canteen v. P.P. Kulkarni, 1975 Lab. IC 1382.
Where the doctor runs several services in the premises with the help of others and
such services can be had by any one though he is not the patient, on payment of charges, it
would not be rendering professional service but would be in the nature of running a business
or trade. Consequently, such an establishment would come within the purview of a business
or trade for profit. Therefore, where a physician apart from rendering medical advice or
treatment to his patients admittedly provided three other services viz. (1) a Pathological
Laboratory, (ii) X-ray facilities and (iii) arrangements for indoor patients; and all these services
were available also to persons who were not his patients and were the patients of other
doctors, it is apparent that the place was run and operated upon by the physician not merely
as a doctor’s clinic. In absence of any averment that these services were being rendered as a
charitable institution or on “no profit-no loss basis”, the establishment would be deemed to
be of commercial nature covered under the Act. Vinai Kumar Gupta v. Asstt. Labour
Commissioner, 1981 Lab. IC 1433.
But the following arc not establishments :—
Transport Undertakings covered by Motor Transport Workers Act. Bihar State Road
Transport Corpn. v. Orang Bahadur , AIR 1968 Pat. 200; Amarnath Singh v. Presiding Officer ,
1969 BLJR 1078 : 1969 PLJR 466 : S.K. Agarawal v. Asstt. Inspector of  Labour, 42 FJR 332;
Narayan Sharaf  v. S.S.P. Sinha, 1970 Lab. IC 1651; Cheram Transport Ltd. v. Addl. Commr.,
1979 (1) LLJ 233.
Office of a chartered Architect. L.M. Chitale & Sons. v. Commissioner of  Labour, 1963
(2) LLJ 747.
Hostel attached to educational institution working on no profit no loss basis. National
Institute of  Engineering Society v. Labour Inspector, 1975 Lab. IC 1134.
Sec. 2 | Bihar Shops & Establishments Act, 1953 | 13
14 | Bihar Shops & Establishments Act, 1953 | Sec. 2
Establishment of a Contractor. K.P. Poulose v. Asstt. Labour Officer, 47 FIR 153.
Office of an Advocate. Sakharam Narayan Kherdekar v. City of  Nagpur Corpn. , AIR
1964 Bom. 200: 1964 (1) LLJ 156, see also V . Sasidharan v. M/s Peter & Karunakar, AIR 1948
SC 1700 : 1948 Lab. IC 1587.
If the nature of work is such that it cannot be operated from a permanent location.
Radha Kant Singh v. State of  Bihar, 1977 BBCJ 351.
Private dispensary of a Doctor. Dr. Debendra M. Suri v. State of  Gujrat, AIR 1969 SC
63 : 1969 BRLJ 67. See also Vinai Kumar Gupta v. Asstt. Labour Commissioner, 1981 Lab. IC
1433.
A maternity home established and run by a doctor. State of  Maharashtra v. Smt.
Dhanlaxmi v. Meisheri, 1981 Lab. IC 907.
Tee Depot. Ramchandra v. State of  Punjab, AIR 1963 Pun. 148 : 1963 (1) LLJ 620.
Establishment of a Chartered Accountant. Merchant N. E. v. Bombay Municipal Corpn.,
AIR 1968 Bom. 283: 1968 (1) LLJ 187.
Stall and space of hawkers. Abdul Ghani Abdul Shakoor v. State, 1961 (1) LLJ 696.
Canteens run by employers. Hotel Mazdoor Sabha v. Alvares , AIR 1965 Bom. 13 :
1964 (2) LLJ 1.
Godown (unless specially notified by the State Govt.) Lipton India Ltd. v. Secy. to
Govt. A.P., 1978 (1) LLJ 247; State of  Mysore v. Brooke Bond India (P) Ltd., 1968 (2) LLJ 309.
Bihar State Village and Khadi Industries Board. Member Security. B.S. K. & V . I. B. v.
D. Prasad, 1966 BLJR 381.
Establishment of the treatment or care of infirm, sick, destitute or the mentally unfit.
Jagdish Vastralay v. State of  Bihar, AIR 1964 Pat. 180: 1964 BLJR 672.
The existence of any ‘employee’ on an establishment is not a condition precedent to
the application of the Act to the said establishment. Corporation of  the City of  Nagpur v.
Dattatraya Balkrishna Naniwadekar, 1979 Lab. IC 337.
The words “to which the Act applies” do not mean “to which the provisions of this
Act could apply”. These words are included in the sub-section because even in respect of
certain shops, or commercial establishments and other type of establishments properly
coming within the ambit of the Act, the provisions of the Act may not apply because of the
exemptions granted by the State Government. ibid.
The definition of the term “employer” is without any reference to “employee”. A
person who owns an establishment is an “employer” though there may not be any employee
at all in the establishment. The same would be the position where the workers working in
the establishment are the members of the employer’s family. ibid.
A business being run for gain or profit on a regular and systematic way is a
“commercial establishment”. Therefore a social organisation giving on hire for marriage
and other ceremonies, premises, utensils, pandals and other articles, on a regular and
systematic manner is a “commercial establishment”. ibid.
The commercial activity of a “Club” must mean dealing by the “Club” with non-
member or outsiders. However dealing with its own members or the guests of the members
on the part of any “club” will not amount to commercial activity unless such dealings are
held to be a camouflage. Beldih Club v. Presiding Officer, 1991 (1) PLJR 81 : 1990 (2) BLJR
808.
Secs. 3-4 | Bihar Shops & Establishments Act, 1953 | 15
The word “Industry” as defined in section 2 (j) of the Industrial Disputes Act, 1947
is of wider amplitude than the word “establishment” defined under section 2 (6) of the
Bihar Shops and Establishments Act. A “club” which does not carry out any commercial
activity is not an “establishment”. ibid.
The use of the words “means” and “includes” in respect of any definition clause
makes the definition exhaustive. ibid.]
Sec 2 (8)
[Sundays and other paid holidays should also be taken into account for the purpose
of reckoning the total number of days on which the employee could be said to have actually
worked. Workmen of  A.E.I.B. Corpn. v. Mgt. of  A.E.I.B. Corpn., 1986 Lab. IC 98 (SC)]
Sec. 2 (16)
[To constitute a concern a ‘shop’ within the meaning of this Act, it has to be
ascertained whether the concern sells any goods or renders any services, AIR 1955 SC 62.
Element of premises must be satisfied. Babubhai Prabhudas Modi v. Adelajikaluji, 1970
LLJ 225.
Premises used for earning profits or gains – a shop. Khan Mohd. v. State of  A.P., 1973
Lab. IC 239.]
3. Reference to time of day .— References to the time of day in this Act are reference
to the Indian Standard Time, which is five and a half hours ahead of Greenwich Mean
Time.
4. Exceptions. — (1) The provisions of this Act shall not apply to any precinct or
premises of a mine as defined in clause (j) of section 2 of the Mines Act, 1952 (XXV of
1952).
(2) Notwithstanding anything contained in this Act, the provisions thereof specified
in the third column of the Schedule shall not apply to the establishment, employees and
other persons referred to in the corresponding entry in the second column :
Provided that the State Government may, by notification, add to, omit or alter any
of the entries in the Schedule in respect of one or more areas of the State and on the
publication of such notification, the entries in either column of the Schedule shall be deemed
to be amended accordingly.
Comments & Case-law
[The proviso to section (2) does not confer power on the State Government to issue
a notification amending the “Schedule” appended to the Act, with retrospective effect. The
word “deemed” in the aforesaid cannot be construed so as to confer such power on the
State Government, which is only a “subordinate authority”. State Bank of  India v. State of
Bihar, 1990 (2) PLJR 336.
The provisions of sub-section (2) of section 4 (as amended) contain a non-obstante
clause and by virtue of the deeming provision contained therein have come into effect
immediately on enactment and are to affect all proceedings pending on 13.8.1985. In view
of this as a result of Notification No. 10/86, issued by the State Government, from the date
of publication of the Notifications the provisions of this Act will not be applicable to all
establishments and branches of Public Sector Banks situated in the State of Bihar. State
Bank of  India v. State of  Bihar, 1995 (1) PLJR 81.
16 | Bihar Shops & Establishments Act, 1953 | Secs. 5-7
Section 4 of the Act deals with the establishments which are exempted from any one
or more of the provisions of the Act. Popular Nursing House v. State of  Bihar, 1995 (1) PLJR
750]
5. Rights and privileges under other laws, etc. not affected. — Nothing in this
Act shall affect any right or privilege to which an employee in any establishment is entitled,
at the date on which this Act applies to such establishment, under any other law for the time
being in force, or under award, agreement contract, custom or usage applicable to such
establishment, if such right or privilege is more favourable to him than any right or privilege
conferred upon him by this Act.
Comments & Case-law
[The onus of proving lies on the employee where he claims to be entitled to better
benefits than those given in this Act and where he succeeds in proving it, the determination
of benefits will not be done in accordance with the provisions of the Act but in accordance
with such contract, custom or usage as may be proved by the employee. Ram Narayan Mishra
v. D. Das & Bros., 1980 Lab. IC 75.
The power to suspend an employee is not an implied term in an ordinary contract of
employment between the “master and servant”. Such a power can only be the creature of a
statute governing the contract or of an express term in the contract of employment itself.
No implied term can be inferred authorising the employer to suspend the workman who is
governed by the provisions of the Act during the pendency of a criminal case against him.
Inter-State Transport Agency v. Frabhat Kumar Sinha, AIR 1966 Pat. 230.]
CHAPTER II
Establishments
1[6. Registration of establishments and renewal thereof.—The State Government
may make rules requiring the registration of establishment or any class of establishments or
renewal thereof and prescribing manner and the fees payable for such registration or renewal.]
Comments & Case-law
[In view of the fact that workers of the cigarette factory engaged in its Printing Press
are not shown to be “employees” within the meaning of section 2 (4) and 6 of the Bihar
Shops and Establishments Act, it has to be held that the Firm is not required to be registered
under the provisions of Rule 3 of Bihar Shops and Establishments Rules, 1955. M/s. I.T.C.
Ltd. v. State of  Bihar, 1996 (1) PLJR 297.]
7. Opening and closing hours of establishments. — 
1(1) No establishment shall
on any day be opened earlier than 2[8 A.M. and closed later than 2[10 P .M. :
Provided that any custome

Excerpt shown. Open the full act in Lexace.

‹ Prev All Bihar acts Next ›