Supreme Court 6:3 Verdict Narrows Use Of 1978 ‘Industry’ Definition Under Industrial Relations Code 2020
The Supreme Court on Thursday ruled by a 6:3 majority that its landmark 1978 judgment expanding the meaning of “industry” will not serve as the basis for interpreting the Industrial Relations Code, 2020. A nine-judge Constitution Bench headed by Chief Justice Surya Kant also held that the reference seeking reconsideration of the 1978 ruling by a seven-judge bench was legally valid. 1978 ‘Triple…
The Supreme Court delivered a 6-3 verdict on Thursday, narrowing the scope of the 1978 "industry" definition under the Industrial Relations Code 2020. Chief Justice Surya Kant led the nine-judge Constitution Bench, which upheld the validity of a reference seeking reconsideration of the 1978 ruling. The 1978 "Triple Test" had significantly broadened the definition of "industry" under the Industrial Disputes Act, 1947, and expanded labor protections to a wide range of establishments.
The ruling clarifies that the 1978 test will continue to apply to pending cases under the now-repealed 1947 law, while the 2020 Code will be interpreted independently. Dissenting Justices P S Narasimha and Joymalya Bagchi argued that the 1978 ruling was correctly decided and did not require reconsideration.
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