Nine-judge Constitution Bench of Supreme Court to determine definition of "industry"
A nine-judge Constitution Bench of the Supreme Court is set to examine whether labour laws apply to activities carried out by the State, and what qualifies as an “industry” under Indian law. The case revolves around the interpretation of the term “industry” under the Industrial Disputes Act and whether sovereign or governmental functions fall within its scope. Earlier rulings have led to differing views on whether departments performing core state duties can be treated as industries, making them subject to labour regulations. The upcoming hearing aims to resolve long-standing legal uncertainty affecting government bodies and employees across the country. The Court’s decision is expected to clarify the boundary between sovereign functions and commercial or service-oriented activities undertaken by the State. This ruling could significantly influence labour rights, dispute resolution mechanisms, and the applicability of employment protections in public sector institutions.
The Key points
- Supreme Court forms nine-judge Constitution Bench.
- Core issue is definition of “industry” under labour law.
- Focus on applicability of Industrial Disputes Act.
- Debate over sovereign vs commercial state functions.
- Past judgments created legal uncertainty.
- Government departments may be impacted.
- Labour protections for public employees at stake.
- Interpretation affects dispute resolution rights.
- Clarification may reshape public sector employment law.
- Final verdict expected to set long-term precedent.
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