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The Hindu·4 min read·hard

Labour rights beyond the shadow of BWSSB

V
V. Gopala Gowda & Maitreyi Krishnan
Labour rights beyond the shadow of BWSSB
AI Summary

The Supreme Court of India recently reviewed the definition of 'industry' under labor laws, but ultimately found the exercise academic due to the repeal of the Industrial Disputes Act, 1947. The court's nine-judge bench concluded that the new Industrial Relations Code, 2020, renders the previous legal test obsolete.

Why it matters

This decision clarifies the legal landscape for labor rights following the transition from the 1947 Act to the 2020 Code.

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On August 20, 2026, the Supreme Court of India delivered its judgment on the Reference made on the correctness of the judgment in Bangalore Water Supply and Sewerage Board vs A. Rajappa (BWSSB), 1978, particularly the test for determining whether an activity falls within the definition of “industry” under Section 2(j) of the Industrial Disputes (ID) Act, 1947. A brief history of the Reference. In State of U.P. vs Jai Bir Singh (2005), 5 SCC 1, a five-judge Bench referred the seven-judge Bench decision in BWSSB for reconsideration. A seven-judge Bench was constituted and, by order dated January 2, 2017, referred the matter to a nine-judge Bench.

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