A nine-judge Constitution bench of the Supreme Court is scheduled to deliver its verdict on the legal definition of the term "industry" under the Industrial Disputes Act, 1947. The bench, which reserved its judgment on March 19, will address the contentious scope of labour relations and pending disputes.
The bench comprises Chief Justice Surya Kant and Justices B V Nagarathna, P S Narasimha, Dipankar Datta, Ujjal Bhuyan, Satish Chandra Sharma, Joymalya Bagchi, Alok Aradhe, and Vipul M Pancholi. The court will specifically examine the legal correctness of a 1978 judgment delivered by a seven-judge bench.
On February 21, 1978, the seven-judge bench issued a verdict on a plea by the Bangalore Water Supply and Sewerage Board, providing an expansive interpretation of "industry." That ruling brought millions of employees working in hospitals, educational institutions, clubs, and government welfare departments under the protection of the Industrial Disputes Act, 1947, which is now repealed.
The top court previously formulated broad issues for adjudication by the nine-judge bench on February 16. The bench evaluated whether the tests laid down in paragraphs 140 to 144 of the 1978 opinion rendered by Justice V R Krishna Iyer correctly state the law.
Additionally, the court examined whether the Industrial Disputes (Amendment) Act, 1982—which seemingly did not come into force—and the Industrial Relations Code, 2020, which takes effect from November 21, 2025, have any legal impact on the interpretation of "industry" in the principal Act.
Another central issue under review is whether social welfare activities, schemes, or other enterprises undertaken by government departments and their instrumentalities can be construed as "industrial activities" under Section 2(j) of the Industrial Disputes Act, 1947.
The nine-judge bench has clarified that its upcoming ruling will govern existing and pending disputes under the old legislative regime.
"This upcoming Supreme Court verdict carries significant implications for operational compliance and labour relations across multiple sectors in India. Businesses, institutions, and government bodies will need to closely assess how the refined definition of 'industry' impacts ongoing disputes and workforce management strategies under the evolving legal framework." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
