On Thursday a nine judge Constitution bench of the Supreme Court of India reserved judgment on one important legal issue, which is whether the term industry is in the context of the now-repealed Industrial Disputes Act, 1947. The case will have far reaching consequences to employees in government departments, institutions and other bodies in the government.
The case reconsidered a historic 1978 decision in Bangalore Water Supply and Sewerage Board v A. Rajappa, that had resulted in a broad definition of industry based on a so-called triple test. This test involves the presence of a relationship between an employer and an employee, regular activity and production or distribution of goods and services to satisfy human needs. The previous case increased the labour protection to employees in other areas like hospitals, universities and government players.
In the Supreme Court hearing, the Centre and various states objected to such expansive interpretation and said that making the definition apply to all institutions that were public would cause administrative and financial difficulty. Attorney general R Venkataramani presented that the government is still dedicated to protecting labour welfare although the changing economic realities in the light of liberalisation, privatisation and globalisation demanded a balanced approach.
Conversely, labour unions and representatives of workers vehemently opposed the ruling given in 1978 claiming it has afforded protection of utmost importance to workers over the years. Their senior advocates petitioned the court to take the interpretation that is conducive towards labour rights and access to justice by the industrial tribunals.
Chief Justice Surya Kant conducted hearings with his bench and concluded after an extensive period of arguments on all parties. The next decision will probably change the legal framework regulating labour rights and dispute resolution in India.