NEW DELHI: The Supreme Court of India on Monday announced that it will constitute a nine-judge Constitution Bench to finally determine the legal meaning of the term “industry” under the Industrial Relations Code, 2020 and its predecessor, the Industrial Disputes Act, 1947—a question with wide implications for the reach of labour laws in the country.
A smaller bench led by Chief Justice of India Surya Kant, along with Justices Joymalya Bagchi and Vipul M. Pancholi, framed key issues and said the nine-judge Bench will begin hearing the matter on March 17, with arguments expected to conclude the following day.
At the heart of the reference is whether the test laid down in the landmark Bangalore Water Supply & Sewerage Board v. A. Rajappa case—where a seven-judge bench interpreted “industry” broadly—remains the correct law. In that 1978 decision, the court held that an organisation “industry” must engage in systematic activity, involve organised cooperation between employer and employee, and produce or distribute goods or services to satisfy human wants or wishes.
The Constitution Bench will re-examine this “triple test” in light of subsequent developments, including the Industrial Disputes (Amendment) Act, 1982—which was enacted but never brought into force—and the Industrial Relations Code of 2020.
Another central issue for the Court is whether state activities and social welfare schemes carried out by government departments and instrumentalities can be categorised as “industrial activities” for the purposes of labour law—a question that could determine whether workers in public sector and welfare roles are entitled to protections such as collective bargaining, dispute resolution mechanisms, and other rights under labour statutes.
The matter has been lingering for decades due to conflicting judicial views. After differing interpretations by smaller benches in the 1990s and early 2000s, a five-judge bench in 2005 first referred the issue to a larger bench for authoritative resolution. Subsequent ly, in 2017, a seven-judge Constitution Bench held that the matter deserved adjudication by an even larger nine-judge Bench due to its “serious and wide-ranging implications.”
The Supreme Court has directed parties to update or file fresh written submissions by February 20, 2026, and has outlined structured time slots for oral arguments during the hearing.
Legal experts say clarification on what constitutes an “industry” under labour law will have significant consequences for employers and employees alike, especially in sectors such as public utilities, educational institutions, healthcare, and government welfare programmes that have historically operated under ambiguous classifications.
