Chartered Accountant
1996 Points
Joined April 2013
Accoriding to section 1 (3) (b)-
every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;
IN MR.X CASE
there is only 3 employees there fore the act is not applicable to MR.X's commercial establishment
EXPL: an establishment should have 10 or more employee. not the employer (owner) of the establishment..
each establishment is different in consideration even though the owner is same