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Supreme Court Keeps 1978 Industry Definition Unchanged for Pending Cases

Supreme Court Keeps 1978 Industry Definition Unchanged for Pending Cases
DC Edit | SC Solves A Definition Problem · deccanchronicle.com

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The new ruling keeps the old test in place for pending cases under the repealed Industrial Disputes Act.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.

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Cases under the repealed Industrial Disputes Act, 1947, will continue under the existing definition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

Sources

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