A nine-judge Constitution Bench of the Supreme Court has clarified that it will not consider the definition of 'industry' as laid down under the Industrial Relations Code, 2020, while reviewing a landmark 1978 judgment.
The bench led by Chief Justice of India (CJI) Surya Kant is examining the correctness of the seven-judge ruling in the Bangalore Water Supply vs. A. Rajappa case.
The 1978 verdict adopted a 'worker-oriented' approach, giving the term 'industry' a broad meaning by including hospitals, universities, and charitable institutions within its ambit.
The bench said the contours of industry under the 2020 Code, which came into force from November 21, 2025, could be the subject matter of a fresh challenge.
The court will only examine if the interpretation given by the 1978 ruling was correct or wrong, and if they find that the provision was completely misconstrued, they will correct themselves.
Justice Nagarathna noted that the judgment came in the 1970s, and since then, we have had liberalisation, privatisation, and globalisation in the 1990s, which may affect the interpretation of the provision.
The court has posted the matter for hearing on Wednesday and has directed senior advocates JP Cama and PS Sengupta to assist as amicus curiae.
