Supreme Court 9-Judge Bench To Hear Reference Over 'Industry' Definition On March 17

The Supreme Court will hear the 9-judge bench reference on the definition of 'industry' as defined under Section 2(j) of the Industrial Disputes Act, 1947, on March 17.

The reference is against the 7-judge bench judgment rendered in 1978 in the Bangalore Water Supply v. A Rajappa case, which laid down an expansive definition of 'industry' so as to include government undertakings, public utilities, hospitals, educational and research institutions, professions and clubs.

Today, a bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice Vipul Pancholi observed that the following broad issues emerge

(i) Whether the tests laid down in the Justice Krishna Iyer in Bangalore Water Supply case would determine if any undertaking or enterprise falls within the definition of 'industry' lay down the correct law and whether the ID (Amendment) 1982, which seemingly did not come into force, and the Industrial Relations Code 2020 have any legal impact on the interpretation given.

(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 are the State activities which will be covered and whether such activities will fall outside the purview of Section 2(j) of the ID Act.

(iii) Any other question which may arise during the course of the hearing

The bench noted that the substantial part of pre-case management was complete and the matter was ready for final hearing. CJI Surya Kant said that the 9-judge composition will be notified through an administrative order.

In 2005, a five-judge bench, headed by Justice N.Santosh Hegde, referred the Bangalore Water supply case to a larger bench, in State of Uttar Pradaesh v. Jai Bir Singh. In 2017, a 7-judge bench referred the matter to a 9-judge bench, since Bangalore Water supply case was rendered by a 7-judge bench.

Case : STATE OF U.P. Vs JAI BIR SINGH | C.A. No. 897/2002