'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.
Follow this page for live updates.
Live Updates
- 17 March 2026 12:30 PM IST
AG: new code essentially takes into account what is available in para 140. therefore, post the new code what is undertaking need not to concern the court unless by forensic ingenuity we try to bring it back and say that undertaking can loom large behind the definition of industry
- 17 March 2026 12:30 PM IST
AG: distribution of goods and services is a grey area, where we can have a room of disagreement. suppose I have ICMR, areas of research where there is a supply of certain services or community services are meant for advancing DPSP. that is what I said that the work undertaking has led to large discussion.
- 17 March 2026 12:27 PM IST
AG: the new code directly or indirectly echoes anti-working class. it captures paragraph 140 [of the judgment] and then says what may not fall. the new code may gone into but legislature can't enumerate what sovereign functions and that's why it is relatable to sovereign functions- it has been very carefully phrased this definition.
- 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,...
