What is ‘industry’? Nine-judge Supreme Court Bench to pronounce verdict on term’s ambit
A nine-judge Supreme Court bench is set to rule on the legal definition of 'industry' under the Industrial Disputes Act. The verdict will determine whether government departments and social welfare activities fall under the scope of industrial labor protections.
Why it matters
This ruling will significantly impact labor rights and the legal obligations of employers across various public and private sectors in India.
A nine-judge Bench of the Supreme Court headed by Chief Justice of India Surya Kant is scheduled on Thursday (August 20, 2026) to pronounce its judgment on a reference about the exact ambit of the term ‘industry’ under Section 2(j) of the now-repealed Industrial Disputes Act, 1947.
The reference is centred around an expansive definition given to ‘industry’ in a 1978 judgment by a seven-judge Constitution Bench, authored by Justice V.R. Krishna Iyer, in the Bangalore Water Supply and Sewerage Board v. A. Rajappa case. The verdict had provided workers employed in a wide range of sectors with a legal recourse, including collective bargaining, against unfair labour practices by employers.
The 48-year-old verdict had exempted only core sovereign activities — such as the judiciary, law and order, and defence — from the purview of Section 2(j) in order to protect the state’s functional autonomy.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in