Supreme Court Retains Broad Interpretation of “Industry” Under the Industrial Disputes Act

A Nine-Judge Bench of the Supreme Court declined to reconsider the interpretation of “industry” under Section 2(j) of the Industrial Disputes Act, 1947, as laid down in Bangalore Water Supply & Sewerage Board v. A. Rajappa. The Court held that there was no sufficient basis to disturb the settled position and rejected the reference seeking reconsideration. The Court thereby retained the Triple Test, under which an activity may constitute an “industry” where it involves systematic and organised activity, cooperation between employer and employee, and production or distribution of goods or services aimed at satisfying human wants and wishes. The Court also clarified that the ruling concerns the repealed Section 2(j) of the Industrial Disputes Act and does not determine the interpretation of “industry” under the Industrial Relations Code, 2020, which contains a separate statutory definition.