'Industry' Definition Reference : Live Updates From Supreme Court 9-Judge Bench [Day 2]

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18 March 2026 10:44 AM IST

  • Industry Definition Reference : Live Updates From Supreme Court 9-Judge Bench [Day 2]
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    The Supreme Court constitution bench will continue its hearing 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.

    This is the second day of the hearing.

    A bench comprising Chief Justice of India Surya Kant, Justice BV Nagarathna, Justice PS Narasimha, Justice Dipankar Datta, Justice Ujjal Bhuyan, Justice Satish Chandra Sharma, Justice Joymalya Bagchi, Justice Alok Aradhe and Justice Vipul Pancholi is hearing the matter.

    Follow this page for the live updates. Report of first day's hearing can be read here.

    Live Updates

    • 18 March 2026 11:32 AM IST

      Farasat: tendency of overbreath of the definition. two additional tests I propose from what I have taken from the law. I structured it slightly. This is triple test with 1. enterprise must be an entity with a commercial object or at least an entity with objective analogus to trade and business

    • 18 March 2026 11:31 AM IST

      Farasat: i commend that your lordship should consider restricting the definition itself. Second and third question then may not be required.

      submission 2- definition of triple test is concerned, that is my submission not wrong but incomplete. I am proposing that mylords take the test as it is and add limiting principle to it.

    • 18 March 2026 11:28 AM IST

      Sr Adv Shadan Farasat(for State of Punjab): two questions that arise conceptually- do mylords consider limiting bssb at the core of the definition itself in which case the necessity of carving out exception my not be necessary

    • 18 March 2026 11:22 AM IST

      J Bagchi: But J Singh gives it a much wider sweep

    • 18 March 2026 11:21 AM IST

      CJI: very well dissent language. He gives respect and then straight away come to the point.

      J Bagchi: the distinction between safdarjang and bangalore is not on substance but degree. J Iyer puts charitable institution within industry. He categorised into A, B, and C

    • 18 March 2026 11:19 AM IST

      Hegde: many charitable activities are organised somewhat analogous to commerce, that would be the test

      CJI: That is the minority opinion, ultimately we will examine while sitting in nine because J Jaswant has disagreed on hospital and charitable exclusively.

    • 18 March 2026 11:18 AM IST

      Hegde: profit may need not be the purpose of the activity, the activity is still must bear an analogy to trade and business in character

      CJI: suppose this state establishes an industrial unit with a clear declaration to generate employment and not to earn profit, it may not be an industrial unit earning profit but it is still industry

    • 18 March 2026 11:17 AM IST

      Hegde: I am going to read on profit motive

      CJI: I think that supply appears to be correct view that the element of profit motive is irrelevant

    • 18 March 2026 11:16 AM IST

      J Datta: unfortunately, yesterday, none of these senior counsels referred to us any provision of the Act. We are interpreting the Act. You have to first understand what is the industrial dispute.

    • 18 March 2026 11:14 AM IST

      Hegde: we are concerned with definition of industry

      J Datta: you have to first see what the industrial dispute it. What is the title of the act? You can't read industry without understanding what an industrial dispute it

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