An aspect for your opinion


Whether a corporate office can maintain a display room inside its office premises, when he is not authorised to sell the product directly from that State? If not, pls specify the contravening law.


Your query is not clear.  In which State you have the Corporate Office?  What is the product that you are not permitted to sell in that State - and under which law?  Or are you saying that you are not supposed to sell the product in a particular state due to any licence agreement with any party?



Dear Ramachandran

The company manufactures electrical appliances in UP and Haryana and sell it through its depot located in whole of the India to its distributors.

Basically a head office is a commercial establishment which is located in Delhi on the first floor of a building and from the head office no trading can take place, is not i am right?

Now in these circumstance display of manufactured goods is permissible under MCD ACT?



If the Head Office is only a commercial establishment and the sales takes from the depots, where-from the invoicing takes place. Although the manufacturing takes place in the factory and the goods are delivered ex-depot, I presume the invoicing should be happening from the HO (usual practice). If so, actually the sale is construed to take place from the HO and it ought to be registered both as a Shop & a Commercial Establishment.

However, if the sale takes place from the Depot (invoicing), and the HO is registered as a Commercial Establishment, HO can always display its products, either the actual or prototype as display/promotion.



I agree wiith Mr. Vasudewan.




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