'Industry' Definition Reference : Live Updates From Supreme Court 9-Judge Bench Hearing
A 9-judge bench of the Supreme Court will hear today the reference on the correctness of the definition of “industry” given by then Justice VR Krishna Iyer in the 1978 decision in Bangalore Water Supply and Sewerage Board v. A. Rajappa.A bench comprising Chief Justice of India Surya Kant, Justices BV Nagarathna, PS Narasimha, Dipankar Datta, Ujjal Bhuyan, Satish Chandra Sharma,...
A 9-judge bench of the Supreme Court will hear today the reference on the correctness of the definition of “industry” given by then Justice VR Krishna Iyer in the 1978 decision in Bangalore Water Supply and Sewerage Board v. A. Rajappa.
A bench comprising Chief Justice of India Surya Kant, Justices BV Nagarathna, PS Narasimha, Dipankar Datta, Ujjal Bhuyan, Satish Chandra Sharma, Joymalya Bagchi, Alok Aradhe and Vipul M. Pancholi is hearing the matter.
In the Bangalore Water Supply case, a seven-judge bench had laid down a sweeping interpretation of the term “industry” under the Industrial Disputes Act, 1947. The Court held that any systematic activity organised by cooperation between employer and employee for the production or distribution of goods and services could fall within the definition of industry, even if the organisation was not engaged in profit making.
The correctness of this decision was doubted in a 2002 appeal. The matter was ultimately referred to a 9-judge bench in 2017, since the Bangalore Water Supply case was rendered by a 9-judge bench.
Follow this page for live updates.
to be continued tomorrow.
Hegde: I have some 30 years of assisting constitution benches, sometimes these retirements end up giving judgments which later cause problems. In kesvananda bharti, there was a signed order and we were wandering around to find out the ratio. I have assisted in TM Pai and there was a deadline in as such as J Kirpal was to retire.
I have only one request
CJ: that is why I ruled out this stress
J Nagarathna: nobody is retiring this year
Hegde: J Beg said I have to give this judgment because tomorrow I retire
Sr Adv Hegde(for State of Karnataka): today mylords are sitting in 9 judges because unanimous judgment of 6 was overruled by 3-1-1 and two dissenting. the unanimous judgment and a clear line was laid down in safdarjung. if mylords sees the composition of bangalore, I think one factor which actually led to the confusion was that there was a retirement pending J Beg
Naphade: court proceeds on the footing that for university, there is no statutory regime. so the first university act in the country is the 1904 act, all university teachers, their conditions are under a statute and there is a tribunal also
Naphade: as far as university is concerned, teachers are not workmen. even bangalore water supply proceedings on that assumption. the other staff members, their help is of marginal nature. the judgment also refers to univeristy having transport department, these are incidental activities. in nagpur, the court formulates the test of essential and primary functions
Naphade; now what is the essense of teaching? it is intellectual enlightment and can't be compared to material services
Naphade: second function of the university? it is a regulatory, it prescribes qualification for apppointment and third, teaching. University Grants Commision, All India Technical, all these bodies are essentially regulatory boards discharging respective statutory functions but they are not industry
Napadhe: university performs 3 functions- holds examination, confers degree and diplomas which the private indivuals can't do. it is an essential gov function performed under a state. instead of going into the conceept of sovereign functions, we must go into the concept of essential statutory function of the state.
Naphade: the number of welfare activities that the state pergorms are not rooted in commerce, they are in discharge of the state's obligation.