SC Reserves Verdict on Definition of 'Industry' Under Industrial Disputes Act

The judgment in question was given by a seven-judge bench in Bangalore Water Supply & Sewerage Board v A. Rajappa (1978).| India News

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A nine-judge bench of the Supreme Court has reserved judgment on a batch of petitions that will determine the scope of the term 'industry' under the Industrial Disputes Act, 1947. The Centre and several states have opposed a 48-year-old judgment that expanded the social welfare net to workers in government departments, universities, and hospitals.

Attorney General R Venkataramani representing the Centre said the government is not anti-labour and will go to any extent to take care of labour welfare. However, he argued that defining forest department, irrigation department, research bodies as industry gives rise to a serious concern.

The bench, headed by Chief Justice of India Surya Kant, closed arguments after hearing all sides, including labour unions and workers who opposed the Centre's argument. They claimed that the judgment has benefited workers for over four decades and should be chosen as it gives access to justice for the labour class.

The court has to decide whether a charitable organization or a government department can be considered as an industry under the Act. The judgment is expected to have a significant impact on the labour welfare and dispute resolution mechanism in the country.