The Supreme Court has held that the broad meaning of the term “Industry” laid down in its landmark 1978 Bangalore Water Supply judgement is the correct interpretation under the Industrial Disputes Act, 1947. A nine-judge Constitution Bench, headed by Chief Justice Surya Kant, delivered the verdict by a majority. The Bench said the broad definition would apply to establishments where an employer-employee relationship exists.

 

The Supreme Court clarified that future disputes will be governed by the Industrial Relations Code, 2020. It said the new Code will have to be interpreted on the basis of its own text and context and the Bangalore Water Supply judgement will not govern its interpretation.

 

On February 21, 1978, a seven-judge Bench of the Supreme Court, while deciding the Bangalore Water Supply and Sewerage Board case, had expanded the definition of “industry”. The ruling brought millions of employees working in hospitals, educational institutions, clubs and government welfare departments under the protection of the then-applicable Industrial Disputes Act, 1947.