The library was establshed by late Shri Mohan Lal Shah in the year 1933-34 when there was no public library in Nainital. This library was made by the money donated by late Shri Mohan Lal Shah and the name was kept after his father late Shri Durga Lal Shah as the Durga Lal Shah public library. After sometime this library was counted among the best libraries in Northen India with a collection of various priceless and different variety of books.

Later the president of municipal board changed the name to municipal public library by saying that the municipal board gives more money for the purchase of books every year than what Shri. Mohan Lal Shah had donated. Shri. Mohan Lal Shah did'nt cash the cheque and returned it to the municiple board. later on 30th August 1946 the name of the library was renamed back as the Durga Lal Shah Municiple Public Library by the order of the U.P. government.

Thus the work of Shri Mohan Lal Shah brought true colours for the people 0f Nainital and they still avail the facilities of this Library and take it as the blessings of Shri Mohan Lal Shah.