• Practicing from residence

I am an architect practicing my profession from my own residential flat. I have converted around 100sqft of my residence (total 720sqft) into office space and have 3 employees who work for me 5 days a week. The association is objecting stating that this is a breach in law as no commercial activities can be run in a residential premises and are stopping the employees to enter the premises. As far as my knowledge, architectural practice is not a commercial activity. Kindly suggest if this is illegal.
Asked 8 years ago in Business Law

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15 Answers

Hello,

3 employees working in a residential place is not against law until and unless their is some nuisance on part of those employees.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

1) SC has held that 30 per cent of residence can be used by doctor , lawyer , architect for his office

2)in Civil Appeal No.6962 of 2005

R.K. Mittal and Ors. Appellant(s)

VERSUS

State of Uttar Pradesh and Ors. Respondent(s)

An ancillary question that comes up for consideration

is as to how much area can be permitted to be used by a doctor

to run his clinic or by a lawyer or architect to run their offices

in the residential sector. If other conditions are satisfied, then

as the law stands today, according to the Development

Authority, they can be permitted to use 30 per cent of the Floor

Area Ratio (FAR) of the ground floor for their clinics/offices.

Reference can also be made to the judgment of this Court in

the case of Delhi Pradesh Citizen Council Vs. Union of India &

Anr. [(2006) 6 SCC 305] wherein similar directions were issued.

We are not only relying upon the precedents of this Court, but

such an approach would also be permissible in face of the

Regulations, terms and conditions of the lease deed executed

by the parties and the Master Plan. It would, therefore, be

suffice if 30 per cent of the ground floor area is permitted to be

used for office of an architect/lawyer and for clinic simplicitor

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

architectural practice ion part of residence does not amount to commercial activity as flat is being primarily used for residential purposes

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1) there is no law restricting you to hiring employees when practicing from residence

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

You will have to comply with the Labor Laws, but that will be applied if number of employees are more than 5, in your case since it is mentioned that it is to be used for residential purposes that strictly means residential purpose and no other purpose.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

you have not committed and breach of law by using part of your residence for your practice and employing 3 persons

lawyers , doctors , architects can use up to 30 per cent of premises for their practice

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Hello,

Doctor, Lawyers and Architects are professionals who can operate from residential areas. There is a Supreme Court judgement which says so. The rules of the society only bars commercial activities and your's are not one. Since what you are doing is not a commercial activity, the Association/Society can neither restrain you from practising your profession, nor it can restrain your staff from entering the society premises. Serve them with a legal notice not to create any hindrance or let in the practice of your profession. In case the problem still persists, pull the Authority/Society to the Court. File a writ petition against them in the High Court. You have a very strong case. Do let me know if I could be of any further assistance.

Thanks,

Vibhanshu Srivastava
Advocate, Lucknow
9763 Answers
323 Consultations

The society people might create hindrance Sir because the Judgement of the Hon'ble Apex Court does not lay something very concrete. You can refer to this article to get some knowledge on this point: http://www.thehindu.com/todays-paper/tp-national/tp-newdelhi/supreme-court-declines-relief-to-advocates/article3147260.ece

I dont think that your case is one in which the society will interfere, but still if they do so you can approach the authorities and also you can show the judgment of the SC to the society officers.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Entire flat can be used for professionals and part of the flat can be used for business offices :

In general a misconception is prevailing in the housing societies in Mumbai that a residential flat can be used only partly for professional office or is also misconceived that a residential flat cannot be used for business office at all. CRUZ of the judgements on user of residential flats is that even if the entire flat is used by a professional person for the practice of his profession, there is no change of user to a commercial one and there cannot be a prohibition for the same. If the flat is partly used for business office, then also if the dominant user is residential, there is no violation of the provisions relating to the change of user.

All the learned professions have certain common characteristic like statutory recognition of the profession and adoption by the members a self contained code of conduct with statutory checks and boundaries to ensure professional integrity and character alongwith competence of the members of the profession so as to inspire confidence of the people in the profession.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

The association states that in sale deed its clearly mentioned that the flat is to be used for residential purpose only and hence they are objecting. Their other points for objection is as i am using my residence for my office, BWSSB(for water supply) and KSEB(for electrcity) would increase charges or fine as i am running a commercial establishments in a residence. Would like to you know if architectural practice falls under a commercial activity/establishment as per Karnataka shop and commercial establishment act?

The association is wrong in telling that the professional practice canot be done in the residential place.

As per bye laws of the society, the entire flat can be used for professional service and it cannot be considered as commercial activity.

The KEB or BWSSB canot claim commercial rate for the residential flat.

Practicing a profession in the flat canot be termed as commercial activity.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Thanks! What about employees? Is there any law restriction about hiring employees(any minimum number) when practicing in residential premises?

Since this is an office, there is nothing wrong in hiring staff for the purpose of practicing this profession, it cannot be considered as a commercial activity even running an office for the purpose of business.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Do you mean to say me practicing my profession from my residential flat with 3 employees is a breach of law?

In my opinion ther is no legal infirmity in it.

The Supreme Court has also, in several judgements reiterated this fundamental distinction. In National union of Commercial Employees V/s Industrial Tribunal (1962) 22 FJR 25, the Court held that a firm of solicitors was not an “industry” within the meaning of section 2(j) of the Industrial Disputes Act and that the services rendered by the firm were only in the individual capacity of the partners and very much dependent on their professional equipment knowledge and efficiency.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

You are free to use 30% of your residential premises for your professional work. Usage of 30% of the residential area for professional work is not tantamount to commercial activity. The association people have no understanding of the law. Dare them to do all that they can to stop it.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

There is no restriction on the number of employees either. You have not breached any law.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

As long as you are using 30% of the residential premises, it is immaterial as to what is the number of employees working therein.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

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