Supreme Court Re-evaluates "Industry" Scope under Industrial Relations Code (IRC), 2020
A 9-judge Constitution Bench of the Supreme Court held that the expansive definition of "industry" established in the historic Bangalore Water Supply and Sewerage Board v. R. Rajappa (1978) ruling will not govern the interpretation under the Industrial Relations Code, 2020.
Key Facts & Dimensions
Core Legal Principles:
- The 1978 judgment had laid down a sweeping "triple test" (systematic activity, cooperation between employer and employee, and production/distribution of goods and services), bringing municipal corporations, educational institutions, research bodies, and hospitals under industrial disputes jurisdiction.
- The Supreme Court clarified that Parliament, while enacting the IRC 2020, codified specific statutory inclusions and exclusions, thereby superseding the judicial formulation of 1978.
Highly relevant for UPSC GS-II (Judiciary, Labor Law Reforms) and Law/State PSC exams.