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Indian Supreme Court industry definition ruling

Overview

A nine-judge Constitution Bench of the Supreme Court of India has reviewed the 1978 Bangalore Water Supply and Sewerage Board (BWSSB) verdict regarding the definition of ‘industry’ in labor law.

The Court ruled that the expansive 1978 definition will not serve as a ‘sweeping anchor’ for interpreting the Industrial Relations Code, 2020. Instead, cases under the new code must be decided independently based on specific facts. While the 1978 ‘triple test’ framework remains valid for pending cases under the repealed Industrial Disputes Act, 1947, the Court noted that certain elements of that test require refinement.

In a split decision, the majority proposed a reformulated test to be applied prospectively. Chief Justice Surya Kant suggested incorporating a ‘discernible commercial character’ similar to trade or business and expanding exemptions for sovereign functions. Some justices opposed these changes, arguing that altering the 1978 test could impact worker protections in the current economic climate.

Entities

Surya Kant · Supreme Court of India · Bangalore Water Supply and Sewerage Board · Bangalore Water Supply & Sewerage Board

Timeline

  1. 19 days ago

    [POLITICS] 2 sources
    Supreme Court of India reformulates industry definition in labor law

    The Supreme Court of India has reformulated the ‘Triple Test’ for defining an ‘industry’ under labor law. The new interpretation applies prospectively and includes a commercial character requirement.

  2. 22 days ago

    [POLITICS] 5 sources
    Supreme Court modifies 1978 ‘industry’ definition for new labour code

    The Supreme Court of India ruled that the 1978 ‘industry’ definition does not automatically apply to the Industrial Relations Code, 2020, though the old ‘triple test’ remains valid for pending cases.

Sources

chennaionline.com · epaper.assamtribune.com · hornbach.se · indiaobservers.com · nationalheraldindia.com · newindianexpress.com · ntumbuka.me