SC’s 5:4 Verdict Refines 48-Yr-Old ‘Industry’ Test but Protects Pending Disputes
The bench will decide whether hospitals, schools and other public services count as industry under a 1978 ruling that covered millions of workers.
- On Thursday, a nine-judge Supreme Court Bench led by Chief Justice Surya Kant is scheduled to pronounce its verdict on the definition of 'industry' under Section 2 of the Industrial Disputes Act, 1947.
- The reference stems from a 1978 judgment by a seven-judge Constitution Bench in the Bangalore Water Supply and Sewerage Board case, which expanded 'industry' to include hospitals, educational institutions, and government welfare departments.
- Senior advocate Indira Jaising argued for maintaining the 1978 reasoning, while states including Uttar Pradesh and Maharashtra urged the Bench to revisit whether sovereign functions qualify as industrial activities.
- The Bench clarified its ruling will govern pending disputes under the old regime, though the Industrial Relations Code, 2020, has since replaced the 1947 Act, raising questions about legal impacts on future interpretations.
- Central to the adjudication is whether government-run social welfare activities can be construed as 'industrial activities.' Attorney-General R. Venkataramani argued that sovereign functions cannot be bound to an exhaustive or closed definition.
13 Articles
13 Articles
Supreme Court Largely Upholds Bangalore Water Supply Definition of Industry, but Says It Won't Anchor Future Disputes
Get latest articles and stories on India at LatestLY. The Supreme Court has largely upheld the 1978 Bangalore Water Supply judgment's interpretation of "industry" under Section 2(j) of the Industrial Disputes Act, 1947, but clarified that it will not anchor future disputes. The judgment will continue to govern pending disputes under the 1947 Act, while future disputes will be decided under the Industrial Relations Code, 2020, the Court clarified…
SC keeps labour protection intact in pending cases, leaves ‘industry’ definition under new code open
The Supreme Court has preserved existing labour protections in pending disputes. The 5:4 Constitution Bench ruling keeps the 1978 Triple Test applicable to cases still governed by the repealed Industrial Disputes Act.
SC’s 5:4 verdict refines 48-yr-old ‘industry’ test but protects pending disputes
The bench also upheld, by a majority, the maintainability of reference that had brought 1978 landmark Bangalore Water Supply & Sewerage Board Vs A Rajappa judgment back for reconsideration
CJI Surya Kant-led 9-judge Constitution Bench to deliver verdict on definition of ‘industry’ today - The Tribune
Forty-eight years after a seven-judge Bench of the Supreme Court laid down an expansive interpretation of the term ‘industry’ under the Industrial Disputes Act, 1947, a nine-judge Constitution Bench led by Chief Justice of India Surya Kant will on Thursday pronounce its verdict on the correctness of the 1978 judgment.
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