CAN ADVOCATE, DOCTORS, C.A. & ARCHITECTS/ENGINEERS USE RESIDENTIAL APARTMENT FOR OFFICE
The question of whether running an advocate’s office from residential premises constitutes a commercial activity in India is nuanced, supported by various judicial pronouncements that clarify the legal status of such practices. Here’s an elaboration based on the case law you’ve mentioned and relevant legal principles:
Legal Context
- Judicial Precedents:
- V Sasidharan vs. Peter and Karunakar (AIR 1984 SC 1700): The Supreme Court concluded that an advocate’s office does not qualify as a “commercial establishment,” which means no registration under the Shops and Establishments Act is required.
- Shiv Narayan vs. M.P. Electricity Board (AIR 1999 MP 246): The Madhya Pradesh High Court found that classifying advocates under a commercial category for electricity billing was arbitrary and violated Article 14 of the Constitution. This view was upheld by the Supreme Court in a subsequent appeal, affirming that advocates operating from home should be charged domestic rates for electricity.
- Subsequent Rulings:
- Calcutta High Court (Arup Sarkar v. CESC Ltd. & Ors., 2020): This ruling reaffirmed that an advocate’s profession is not a commercial activity, and operating from a home office does not change the nature of the property’s use.
- Delhi High Court (B N Magon v. South Delhi Municipal Corporation): The court held that an advocate operating from a residential space does not convert it into a business premises, referring to the Master Plan of Delhi which permits certain professional activities in residential areas.
- Bombay High Court (Rajendra G Shah vs. Maharashtra State Electricity Distribution Company Ltd.): Here, the court ruled that residential premises used by professionals like lawyers for their offices should be charged domestic rates unless the setup was distinctly commercial.
- Specific Conditions:
- Rajasthan High Court (JVVN Ltd and Others vs. Smt Parinitoo Jain): This judgment emphasized that additional commercial tariffs for lawyers operating from home are illegal unless they are in a separate commercial space.
- Punjab and Haryana High Court (District Bar Association Panchkula v. State of Haryana): The court recognized the professional nature of law practice, highlighting that activities such as writing or maintaining a library, integral to legal practice, do not equate to commercial use. The Court observed that if an author writes a book and that becomes his source of earning, then can it be termed as commercial use? The Court held that the Profession of a Lawyer is also based on the study of papers, and books, for which he maintains a library. Being a noble profession it cannot be a commercial activity.
- Local Laws and Restrictions:
- Delhi Pradesh Citizen Council v. Union of India (2006): This ruling acknowledged that while advocates can operate from home, local laws may impose restrictions on the extent of professional use, such as limiting it to a certain percentage of the residential area or requiring the practitioner to reside at the premises.
Summary and Conclusion of all above:
From these cases, we can conclude that the operation of an advocate’s office from a residential premises is generally not classified as a commercial activity under Indian law. The profession is considered noble and non-commercial, and various courts have upheld this distinction, especially regarding tariffs and regulations.
However, this conclusion is not absolute. Local laws and regulations can impose restrictions on the use of residential properties for professional activities, often to ensure that the character of residential areas is maintained. Therefore, while running an advocate’s office from home is legally permissible and typically treated as a non-commercial activity, it must comply with local regulations that may specify conditions like:
- The percentage of residential space that can be used for professional purposes.
- The requirement for the professional to reside at the premises.
- Limitations on the types of professions permitted to operate from residential premises.
From the above-mentioned Judgments and relevant provisions of the Bar Council of India Rules, it can be safely concluded that if an Advocate runs his chamber/office from his home, it cannot be termed as commercial activity. But this proposition is not absolute and subject to restriction by local law. The municipal authority can impose conditions on the ratio of use of residential premises for home and office, also that the office can be run only by the person who is living in the home.
Further, only Advocates, Doctors, C.A. & Architects/Engineers can use Residential Apartment for office and no other profession is permitted.