SC 5:4 order refines 1978 ‘industry’ test
New Delhi: The Supreme Court on Thursday, by a 5:4 majority, refined the expansive test laid down nearly five decades ago to determine what constitutes an “industry” under the now-repealed Industrial Disputes Act, while unanimously protecting all pending disputes from the impact of the new formulation
On Thursday, the Supreme Court, with a 5:4 majority, provided a more precise interpretation of the "industry" test established in the 1978 Bangalore Water Supply & Sewerage Board vs A Rajappa judgment. The nine-judge bench, led by Chief Justice Surya Kant, maintained that all pending disputes under the 1947 Industrial Disputes Act would continue to be adjudicated using the "triple test" from the original judgment.
However, the majority unanimously decided not to redefine the term "industry" under the newer Industrial Relations Code, 2020. The court's ruling aimed to safeguard existing litigation while refining the definition, recognizing that the 1978 interpretation could not serve as a definitive guide for future laws. The decision generated mixed reactions, with some justices supporting the refinement and others arguing that the 1978 judgment was correct and that the issue had become moot with the passage of the 2020 code.
Written by urgent.news from Hindustan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
