E-Paper
What is ‘industry’? Nine-judge Supreme Court bench to decide next month
Describing it as the first matter referred to a nine-judge bench in the court’s history, CJI Surya Kant said that the hearing would conclude within two days.
Chief Justice of India (CJI) Surya Kant announced on Monday that the long-pending nine-judge bench reference concerning the definition of “industry” under labour law will be taken up on March 17 and 18.
The lead case, State of Uttar Pradesh Vs Jai Bir Singh, seeks reconsideration of the expansive interpretation of “industry” laid down by a seven-judge bench in 1978 in the Bangalore Water Supply ruling. This verdict led to a situation where even universities, charitable organisations and autonomous institutions could be included within the ambit of “industry”. The ruling subsequently drew sustained criticism from governments and employers, who argued that it blurred the distinction between the State's sovereign functions and commercial or industrial activities. A seven-judge bench had, in 2017, referred the issue to a larger bench.
The questions framed on Monday included whether the test evolved in that judgment lays down the correct law; whether the un-notified 1982 amendment to the Industrial Disputes Act or the Industrial Relations Code, 2020, has any bearing on the definition; and whether social welfare activities undertaken by government departments can be construed as industrial activities under the Act.
Describing it as the first matter referred to a nine-judge bench in the court’s history, CJI Surya Kant said that the hearing in the “industry” case would conclude within two days.
The outcome in this case could have wide implications for labour rights and public administration. A narrower definition of “industry” would reduce the range of organisations subject to industrial dispute mechanisms, potentially limiting protections available to employees in educational, charitable or quasi-governmental bodies. Conversely, reaffirming the expansive interpretation would maintain the broad reach of labour adjudication into non-commercial sectors.
