Capacity Limit Rule
The Delhi High Court has delivered a pivotal judgment that allows restaurants, pubs, and eateries situated in the renowned Khan Market and other New Delhi Municipal
Council (NDMC) areas to continue their operations without a mandatory Fire No Objection Certificate (NOC). This crucial exemption is contingent upon these establishments strictly adhering to their commitment to the court, ensuring that they do not accommodate more than 50 guests at any given moment. Justice Purushaindra Kaurav, in his order passed on Friday, accepted the petitioners' assurances, finding no reason to doubt their submissions. This ruling resolves a considerable number of petitions filed since 2021 by various dining establishments primarily located in Khan Market, with some also in Connaught Place, who were facing operational hurdles due to the absence of a Fire NOC.
Safety and Infrastructure
The court's reasoning emphasized that as long as establishments are willing and prepared to implement all mandated safety measures as prescribed by government departments, their operations should not be hindered solely due to infrastructural limitations. Justice Kaurav further directed that any contemplated action against petitioners for lacking a Fire NOC must be preceded by at least 30 days' advance notice. The court acknowledged Khan Market's unique status as one of Delhi's most esteemed and historically significant commercial hubs, characterized by its iconic architecture, distinctiveness, and cultural heritage. Acknowledging the inherent infrastructural challenge, the court noted that the market possesses only a single feasible entry and exit point where the restaurants are located, a situation that has persisted since its inception. This observation highlights the complex logistical scenario faced by businesses in this heritage area.
Defining Assembly Buildings
The restaurants that petitioned the court argued that they do not fit the definition of an 'assembly building' as outlined in the Unified Building Bye Laws 2016 and the National Building Code 2016. According to these regulations, only establishments designed to seat 50 or more individuals are classified as 'assembly buildings.' Obtaining a Fire NOC typically requires compliance with stringent requirements, including provisions for multiple entry and exit points, which many older establishments, particularly in heritage districts, may find difficult to meet. The legal challenge arose in 2021 when approximately 60 petitions were lodged by restaurants in both NDMC and Municipal Corporation of Delhi (MCD) areas, contesting the denial of health licenses by civic bodies due to the absence of Fire NOCs. While Friday's judgment specifically addresses establishments under the NDMC's purview, cases concerning MCD jurisdiction are scheduled for a later hearing.
Ease of Doing Business
In a move to streamline business operations and foster an environment conducive to ease of doing business, the NDMC had previously issued an office order on February 23 of the current year. This order followed consultations involving restaurant stakeholders, government representatives, and the NDMC itself. The new directive states that existing establishments are no longer obligated to secure a health trade license from the civic body if they possess a valid FSSAI or GST registration, whichever is applicable. This initiative aims to reduce bureaucratic hurdles for established businesses, allowing them to focus on their core operations and customer service, while still ensuring a baseline level of compliance and registration.
