'Industry' Definition Reference : Live Updates From Supreme Court 9-Judge Bench Hearing
LIVELAW NEWS NETWORK
17 March 2026 10:20 AM IST
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.
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Live Updates
- 17 March 2026 12:06 PM IST
AG: Though the tailoring of a definition is the sole forensic job in this batch of appeals, dependent on which, perhaps, a few thousand other cases await decision, the cycloramic semantics of the simple word 'industry' and the judicial gloss on it in a catena of cases, have led to an avoidable glut of labour litigation where speedy finality and working criteria are most desirable.
- 17 March 2026 12:05 PM IST
AG: 1982 can took from the judgment's definition but did not include 1. agricultural operation except those carried out in integrated and predominant manner, activity carried out in plantation, hospitals, educational, scientific institutions or institutions engaged in charitable or any activity of the government relatable to the sovereign functions of the gov including all carried by department of central gov,...
- 17 March 2026 11:57 AM IST
AG: continues read the 1978 judgment- As the provision now stands, is it scientific to define 'industry' based on the nature-the dominant nature of the activity, i.e. on the terms of the work, remuneration and conditions of service which bond the-two wings together into an employer-employee complex ?
- 17 March 2026 11:49 AM IST
CJ: under the rules, the chief justice takes a call
AG: he takes a call and then a 5 judge bench is constituted which makes a reference to the 7 judges. when 7 judges make a stamp of approval, [the matter came to be referred to 9 judges]
I don't know if that part of the referral process needs to halt mylords. the only issue is what is the scope
CJ: proceed on premises that there is a reference to 9 judges and we have to examine bangalore water supply
