The Supreme Court to Clarify the Definition of “Industry”

The Nine-Judge Constitution Bench of the Supreme Court of India has concluded three days of hearing in
Bangalore Water Supply and Sewerage Board v. A. Rajappa and State of U.P. v. Jai Bir Singh.

Your organisation, the Indian Federation of Working Journalists (IFWJ), presented its submissions through the Secretary-General, who is also an Advocate-on-Record before the Supreme Court of India.

The IFWJ strongly emphasised the Triple Test theory of “industry”, as laid down by Justice V. R. Krishna Iyer in the landmark seven-judge bench decision of 1978. The test lays down three essential conditions:

1.      Systematic Activity – The activity must be organised and structured (e.g., factory, hospital, educational institution).

2.      Employer–Employee Relationship – There must exist cooperation between employer and employees, irrespective of profit motive.

3.      Production/Distribution of Goods or Services – The activity must aim at satisfying human wants or needs, including sectors such as healthcare, education, and transport.

Justice Krishna Iyer had also clarified those sovereign functions of the State—such as police, judiciary, and core governmental functions—as well as domestic services, fall outside the scope of “industry.”

The IFWJ highlighted that, from the perspective of workers, the nature of the institution—whether charitable, religious, or educational—is immaterial. For instance, if hundreds of workers are engaged in preparing laddoos for the Tirupati Temple, they should be afforded protection under labour laws, just like workers in any commercial establishment. Similarly, a driver’s entitlement to protection should not depend on whether he is employed by a school, a factory, or any other institution.

Following the decision in Bangalore Water Supply, several cases raised concerns about the breadth of the definition. In State of U.P. v. Jai Bir Singh (2005), a Constitution Bench referred the issue to a larger bench. Subsequently, in 2016, then Chief Justice T. S. Thakur recommended that the matter be placed before a Nine-Judge Bench.

After nearly four decades, the present Chief Justice has constituted the Nine-Judge Bench to finally settle the law. A definitive and authoritative interpretation of “industry” is now expected.

The IFWJ also opposed the subsuming of the Working Journalists Act under the Occupational Safety, Health and Working Conditions Code, 2020, and advocated for an expanded scope to include journalists working in electronic, digital, and social media.

The Bench is headed by the Chief Justice of India and comprises Justices B. V. Nagarathna, P. S. Narasimha, Dipankar Datta, Ujjal Bhuyan, Satish Chandra Sharma, Joymalya Bagchi, Alok Aradhe, and Vipul M. Pancholi.

Thanking you,
With greetings on the occasion of Navratri and Eid al-Fitr.

Sincerely yours,
Paramanand Pandey