National News

Industry Definition - State of Uttar Pradesh vs Jai Bir Singh case

August 24 , 2026 12 hrs 0 min 10 0

The Supreme Court’s nine-judge Constitution Bench, headed by Chief Justice Surya Kant, delivered a 5:4 verdict on the meaning of “industry” under labour law.
The Court held that the broad interpretation in the Bangalore Water Supply and Sewerage Board v. R. Rajappa (1978) case will not govern future disputes under the Industrial Relations Code (IRC), 2020.
The 1978 judgment had used a triple test—systematic activity, employer-employee cooperation, and production or distribution of goods or services—to identify an industry.
The 1978 interpretation will continue for pending disputes under the Industrial Disputes Act, 1947, while future disputes under the IRC, 2020 will follow the new framework.
The Court held that the definition of “industry” under the IRC, 2020 must be interpreted on a clean slate, without being based on the 1978 ruling.
The Industrial Relations Code, 2020 is one of the four Labour Codes that consolidated 29 central labour laws.