'Industry' Definition Given In Bangalore Water Supply Case Must Govern Pending Cases : Supreme Court

The Indian Supreme Court has reformulated the 'triple tests' used to define an 'industry' under the Industrial Disputes Act, 1947. The court clarified that this new interpretation applies only prospectively and does not affect pending cases or the newer Industrial Relations Code, 2020.
Why it matters
This ruling provides long-awaited legal clarity on labor law definitions in India, impacting how organizations are classified for industrial dispute resolution.
The Supreme Court, by a 5:4 majority, reformulated the "triple tests" laid down by the 1978 judgment in Bangalore Water Supply and Sewerage Board v. A. Rajappa to determine whether an activity will fall within the definition of "industry" in Section 2(j) of the Industrial Disputes Act, 1947. However, the Court clarified that the new formula will only apply prospectively and will not disturb concluded decisions or affect pending proceedings under the Industrial Disputes Act 1947.The Court also clarified that the interpretation is confined only to the Industrial Disputes Act, 1947, and will not impact the new Industrial Relations Code, 2020.A bench headed by Chief Justice of India Surya Kant and comprising Justices BV Nagarathna, PS Narasimha, Dipankar Datta, Ujjal Bhuyan, Satish Chandra Sharma, Joymalya Bagchi, Alok Aradhe and Vipul M Pancholi heard the reference on the limited issue whether the Bangalore Water Supply judgment was rightly decided.
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