Mint Explainer | Why the Supreme Court is re-examining a 46-year-old definition of ‘industry’ that could affect millions

The Supreme Court on 14 March notified a nine-judge Constitution Bench to revisit a longstanding question in Indian labour law: What legally counts as an “industry?”The interpretation of this single word matters because it determines which organizations fall under labour laws and which workers can access labour dispute mechanisms in India.A nine-judge bench led by Chief Justice Surya Kant will begin hearing the matter on 17 March and conclude arguments on 18 March. The bench includes Justices B.V.

Nagarathna, P.S. Narasimha, Dipankar Datta, Ujjal Bhuyan, Satish Chandra Sharma, Joymalya Bagchi, Alok Aradhe and Vipul M.

Pancholi.Mint explains why the court is revisiting the definition of industry and what the ruling could mean for labour rights in India.In 1978, a Supreme Court ruling gave a very broad meaning to the term “industry” under the Industrial Disputes Act 1947. Over the years, employers and institutions argued that this interpretation created uncertainty about whether organizations such as government departments, hospitals, universities and welfare bodies should fall under labour laws.The 1978 judgment was delivered by a seven-judge bench and can only be reconsidered by a larger bench.The issue resurfaced in 2005 in the case of State of Uttar Pradesh v. Jai Bir Singh, where a five-judge Constitution Bench observed that the earlier interpretation had created confusion about the scope of the term “industry.” Because a five-judge bench could not revisit a ruling delivered by a seven-judge bench, the matter has now been referred to a nine-judge Constitution Bench for a final answer.The key ruling under review is the landmark judgment in the Bangalore Water Supply and Sewerage Board v. A. Rajappa case.