The Supreme Court on Monday announced that a nine-judge Constitution Bench will commence hearing on March 17 the long-pending issue concerning the scope of the term “industry” under Section 2(j) of the Industrial Disputes Act, 1947.
A Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi framed the questions for determination and directed all parties to update or file fresh written submissions by February 28, 2026. The matter will be heard on March 17 and 18.
The Court said it would examine whether the test laid down by Justice V. Krishna Iyer in paragraphs 140 to 144 of the seven-judge Bench decision in Bangalore Water Supply and Sewerage Board v. A. Rajappa lays down the correct law for determining whether an enterprise falls within the definition of “industry”.
It will also consider:
- Whether the Industrial Disputes (Amendment) Act, 1982, which has not been brought into force, has any legal impact on the meaning of the expression “industry”.
- Whether social welfare activities or schemes undertaken by government departments or instrumentalities can be construed as industrial activities under the Act.
The question has remained unresolved for decades due to conflicting judicial views.
In 1996, a three-judge Bench, relying on the 1978 seven-judge Bench ruling in Bangalore Water Supply, held that the social forestry department fell within the definition of “industry”.
However, in 2001, a two-judge Bench took a different view, leading to a reference to a five-judge Bench.
In May 2005, the five-judge Bench observed that the larger Bench would have to examine the definition “in all dimensions and depth” in light of the amended definition of “industry” that has remained dormant for years. It noted the “pressing demands of the competing sectors of employers and employees” and the inability of the legislature and executive to operationalise the amendment.
Subsequently, in 2017, a seven-judge Constitution Bench headed by then Chief Justice T.S. Thakur directed that the matter be placed before a nine-judge Bench, noting its “serious and wide-ranging implications”.
The interpretation of “industry” determines the applicability of labour protections under the Industrial Disputes Act to a wide range of organisations, including government departments, welfare bodies and service-oriented institutions.
The forthcoming hearing is expected to settle the long-standing controversy on the scope of the provision and clarify the continued relevance of the Bangalore Water Supply test.
