1 week ago
Supreme Court Keeps 1978 Industry Definition Unchanged for Pending Cases
The Supreme Court decided not to change an old legal test for deciding what counts as an industry.
The test was created in a 1978 case called Bangalore Water Supply.
It looks at whether employers and employees work together in an organised activity to provide goods or services.
Courts, employers and workers have used this test for about four decades.
A later court case in 2005 created uncertainty about whether the test should be changed.
The new ruling keeps the old test in place for pending cases under the repealed Industrial Disputes Act.
This means thousands of cases do not have to be reconsidered using a new definition.
The decision also avoids changing the rules backward and adding more work for already busy courts.
A nine-judge Supreme Court bench left the 1978 “triple test” definition of industry unchanged.
The ruling resolves confusion dating to a 2005 reference by a five-judge bench.
Pending cases under the repealed Industrial Disputes Act, 1947, will continue under the triple test.
The definition covers systematic activities involving employer-employee cooperation to produce or distribute goods or services.
Keeping the definition unchanged avoids retrospective disruption, investor uncertainty and additional pressure on courts.
- Who
- A nine-judge bench of the Supreme Court reviewed the definition of industry.
- What
- The court left the 1978 triple-test definition unchanged for pending cases under the repealed Industrial Disputes Act, 1947.
- Where
- India.
- When
- The ruling followed a reference made by a five-judge Supreme Court bench in 2005; the article does not specify the judgment date.
- Why
- To preserve legal and policy stability, avoid retrospective disruption to existing cases, and prevent additional pressure on courts.
Key facts
- Deciding court
- Supreme Court of India
- Bench size
- Nine judges
- Earlier precedent
- The seven-judge 1978 Bangalore Water Supply judgment
- Applicable test
- The “triple test” for determining whether an establishment is an industry
- Pending cases
- Cases under the repealed Industrial Disputes Act, 1947, will continue under the existing definition
- Later legislation
- The Industrial Relations Code, 2020, replaced the Industrial Disputes Act
- Main practical effect
- The definition will not be changed retrospectively










