🏠 News Empire
india

What Counts as 'Industry'? Supreme Court's Nine-Judge Bench to Deliver Landmark Verdict

Published on: 19 Aug 2026, 04:28 PM
What Counts as 'Industry'? Supreme Court's Nine-Judge Bench to Deliver Landmark Verdict

The Supreme Court is set to pronounce on Thursday a crucial verdict on the exact scope of the term "industry" under Section 2(j) of the now-repealed Industrial Disputes Act, 1947. A nine-judge Bench headed by Chief Justice of India Surya Kant will deliver the judgment on a reference that could shape the legal framework governing labour disputes in India.

The reference centres on a 1978 judgment by a seven-judge Constitution Bench in the Bangalore Water Supply and Sewerage Board v. A. Rajappa case. That verdict, authored by Justice V.R. Krishna Iyer, gave an expansive definition to "industry" and provided workers across a wide range of sectors with legal recourse, including collective bargaining, against unfair labour practices. The 48-year-old judgment exempted only core sovereign activities—such as the judiciary, law and order, and defence—from the purview of Section 2(j) to protect the state's functional autonomy. It also introduced a triple test and brought hospitals, educational institutions, and municipalities within the definition of industry.

Several states, including Uttar Pradesh, Maharashtra, and Punjab, have urged the top court to revisit the 1978 judgment. They were represented by Additional Solicitor General K.M. Nataraj and senior advocates Shekhar Naphade and Shadan Farasat. Accordingly, the nine-judge Bench framed specific questions to consider. One question was whether "social welfare activities and schemes or other enterprises" undertaken by government departments or their instrumentalities could be construed as industrial activity under Section 2(j) of the Industrial Disputes Act. Another question examined whether "state/sovereign activities" would also fall within the definition of industry under the same provision.

Senior advocates such as Indira Jaising, C.U. Singh, and Gopal Sankaranarayanan argued in favour of keeping the reasoning of the 1978 judgment intact. Ms. Jaising submitted that bringing enterprises under the definition of industry provided workmen with a remedy to ventilate their grievances in relation to fair wages, health and safety, occupational safety, and security of employment, and to challenge unfair dismissals before a judicial authority.

"A democratic society governed by the rule of law is duty-bound to provide a grievance redressal forum of a judicial nature to all its citizens, where their substantive rights can be ventilated," she said in her submission before the Bench. The lawyers argued that although the Industrial Relations Code has already replaced the Trade Unions Act, 1926; the Industrial Employment (Standing Orders) Act, 1946; and the 1947 law, the top court should still authoritatively clarify when an activity can be classified as a sovereign function, or as an industry.

Attorney-General R. Venkataramani submitted that sovereign function cannot be bound to an exhaustive or closed definition. The nature of sovereign functions would change with the evolving role of the state, he said. The Bench's verdict is expected to provide clarity on this issue, which has significant implications for workers' rights and the extent of state immunity from labour laws.

The pronouncement comes at a time when India's labour landscape has undergone sweeping changes with the introduction of the Industrial Relations Code and other labour codes. Observers note that the verdict will likely be a landmark in defining the balance between workers' protections and the functional autonomy of the state in a modern democracy.

Latest in India 10
Centre Forms Panel Led by Ramesh Chand to Examine Sugarcane Farmers' Pricing Concerns
india

Centre Forms Panel Led by Ramesh Chand to Examine Sugarcane Farmers' Pricing Concerns

The Union Government has set up a four-member committee headed by former NITI Aayog member Ramesh Chand to study the demands of sugarcane farmers, including higher returns and a revision of the ex-mill Minimum Selling Price of sugar. The panel will also examine sugar recovery testing, weighment practices and deductions on mechanically harvested cane. It will consult farmers, mill associations and State Governments before submitting its report.

The Hindu 15 Oct 2026, 04:57 AM
Read More →
Kerala High Court refuses to let Pinarayi Vijayan, kin appeal FIR order in CMRL-Exalogic case
india

Kerala High Court refuses to let Pinarayi Vijayan, kin appeal FIR order in CMRL-Exalogic case

The Kerala High Court has dismissed applications by former Chief Minister Pinarayi Vijayan, his daughter T. Veena and her husband P.A. Mohamed Riyas seeking leave to appeal against a single judge's October 9 direction to register an FIR against them in the CMRL-Exalogic payoff case. The Division Bench said the order does not take away their right to pursue other legal remedies. No court has recorded any finding of guilt in the matter.

The Hindu 15 Oct 2026, 05:33 AM
Read More →
Supreme Court Upholds Madras HC Order Striking Down Tamil Nadu Reservation Notification for Converts
india

Supreme Court Upholds Madras HC Order Striking Down Tamil Nadu Reservation Notification for Converts

The Supreme Court has dismissed the Tamil Nadu government's appeal and upheld a Madras High Court order quashing a State notification that extended reservation benefits to converts to Islam from communities already listed as backward. A Bench headed by Justice Prashant Kumar Mishra held that conversion alone does not make a person a member of a notified backward Muslim community, and that the notification created an 'artificial group' without the statutory social checks the law requires.

The Hindu 15 Oct 2026, 05:41 AM
Read More →
Starlink curbs hit Ukrainian drones: Is Washington signalling a retreat from Kyiv?
india

Starlink curbs hit Ukrainian drones: Is Washington signalling a retreat from Kyiv?

Ukrainian officials say a slowdown in Starlink and Starshield services has disrupted drone operations, frontline logistics and air defence, and some allege deliberate interference. The reports came days after President Donald Trump announced an “energy ceasefire” and a plan to buy diesel from Russia, raising fresh questions in Kyiv about Washington’s reliability as an ally. The claims have not been independently verified.

The Hindu 15 Oct 2026, 05:53 AM
Read More →
India Questions UN Rights Body's Silence on PoK Unrest, Alleges 'Extreme Selectivity'
india

India Questions UN Rights Body's Silence on PoK Unrest, Alleges 'Extreme Selectivity'

India has asked the UN human rights office to state when it will issue a report on steps taken by Pakistan to address concerns in Pakistan-occupied Kashmir, citing earlier OHCHR statements on killings, internet curbs and detained leaders. New Delhi accused the office of 'extreme selectivity' and double standards, while restating that its law enforcement acts in accordance with the law and that Jammu and Kashmir and Ladakh are integral parts of India.

Times of India 15 Oct 2026, 03:24 AM
Read More →
Indonesia's Kalimantan Blanketed in Orange Smog as Air Pollution Soars Past Hazardous Levels
india

Indonesia's Kalimantan Blanketed in Orange Smog as Air Pollution Soars Past Hazardous Levels

A thick orange smog has descended on Palangka Raya in Indonesia's Central Kalimantan, with the air pollution index exceeding 1,200—four times the hazardous level. The haze is linked to wildfires and slash-and-burn land clearing, and is affecting millions across Indonesia, Singapore and Malaysia. Authorities are facing calls for stronger action as health concerns grow.

BBC News 15 Oct 2026, 03:26 AM
Read More →
Anthropic tells investors revenue jumped 45% to $16.8bn ahead of listing plans
india

Anthropic tells investors revenue jumped 45% to $16.8bn ahead of listing plans

Anthropic has told prospective investors its revenue rose 45% to $16.8bn in the three months to September, as it prepares for a possible stock market listing. The privately shared figures have not been independently verified. The news comes as chip makers and other AI-linked stocks fell sharply in the US and Asia over concerns about the scale of AI infrastructure spending.

BBC News 15 Oct 2026, 03:33 AM
Read More →
→ View All India News