Chapter I 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

Where Enquiry Report has not been served on the delinquent employee, the whole proceeding gets vitiated and order imposing punishment following the domestic enquiry

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.

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

v. Ali Hassan, AIR 1966 Pat. 127: 1965 BLJR 702 : (1966) 2 LLJ 124.

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 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

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

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.

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”

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.

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.

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.

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)Warsaliganj, 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) Fatuah 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

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)

Bazar, Barbigha Bazar, Barharwa Bazar, Bahadurganj Bazar, Khunti Bazar,

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

1. (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.NotificationDate ofOld AreaNew Area No.No.Enforcement 12345 1. I/S6-108/55L-7882,1-6-1995 dated 26th May, 1995.

dated 25th June, 1958.

dated 23rd Feb, 1960.

¹ Vide S.O. 691 dated 7.4.1979 ( w.e.f. 1.1.1979).

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).

6 |Bihar Shops & Establishments Act, 1953| Sec. 1 12345

dated 7th June, 1966.

dated 11th August, 1967.

dated 2nd August, 1968.

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

the Schedule hereto annexed.