'Industry' Definition Reference : Live Updates From Supreme Court 9-Judge Bench Hearing

AG: I think its important to go back in time to the early referral order reported judgment of 2005. Look at the couple of paragraphs which persuaded the court to referral

AG: reads the issues before the court:

(i) Whether the test laid down in paragraphs 140 to 144 in the opinion rendered by Hon'ble Mr. Justice V.R. Krishna Iyer in Bangalore Water Supply and Sewerage Board's case (supra) to determine if an undertaking or enterprise falls within the definition of “industry” lays down correct law? And whether the Industrial Disputes (Amendment) Act, 1982 (which seemingly did not come into force) and the Industrial Relations Code, 2020 (with effect from 21.11.2025) have any legal impact on the interpretation of the expression “industry” as contained in the principal Act?

(ii) Whether social welfare activities and schemes or other enterprises undertaken by the Government Departments or their instrumentalities can be construed to be “industrial activities” for the purpose of Section 2(j) of the ID Act?

(iii) What State activities will be covered by the expression “sovereign function”, and whether such activities will fall outside the purview of Section 2(j) of the ID Act?

AG: why is that the court has called upon to answer this question? new law has come and taken over the field. we are not arguing in abstract, the new 2020 code picked up something from the judgment. but the trouble remains the illustrations the bangalore water supply looked into particularly about charity, governmental functions etc. It borrowed a lot from australian cases and why large wide import has been used.

Jaisingh: that new law does is, the crux is that the request on other side to remove charity and because new law removes it, if we challenge it and very wide defintiion of social work. All submission is liable to be challenged.

AG: if the bench is look at the challenge of the new law, another court will find after repeal of earlier law and the judgment that prevailed, will it cast shadow on the new law at all? this is entirely different angle

Sr Adv Gopal: there is a challenge to the new law, we need to bear in mind...

Singh: there is also an amendment act to amend the code to encapsulate the repeal. the three notification 31 nov, 8 dec and 2 feb its there.

Sr Adv Indira Jaisingh: it would alert this court of possibility of rendering judgment on the old law that would have impact on the new law. that would not be fair. there are two sides. my question for consideration is that whatever view taken would have impact on new law and we are not called to take a view on new law. how do we avert the danger?

CJ: that much clarification can be given, wrt the original definition, the word of caution can be put that the interpretation relates to the old law

Singh: today the situation is, now S. 6 of the general clauses act and we are really on the pipeline matters. but the definition we are considering here no long exists. its not running in tandem or parallel.

CJ: the day we kept for direction, we understand that the issue has shorten.

Sr Adv CU Singh: one aspect may not have engaged attention. though the code was had brought on 21 Nov, 2025, the two laws were running in tandem. On 2 Feb, 2026, notification came to be issued formally repealing of the industrial act

CJ: We will commence from petitioner side

AG: Union appears in five petitions. I did rather appear as attorney general for the Union.