Nine-judge Supreme Court Bench to rule on definition of industry

A nine-judge Bench of the Supreme Court, led by Chief Justice of India Surya Kant, will pronounce its judgment on Thursday, August 20, 2026, on the exact ambit of the term 'industry' under Section 2(j) of the now-repealed Industrial Disputes Act, 1947. The case revisits a 1978 judgment by a seven-judge Bench authored by Justice V.R. Krishna Iyer in the Bangalore Water Supply and Sewerage Board v. A. Rajappa case, which gave an expansive definition of industry covering hospitals, educational institutions, and municipalities, exempting only core sovereign activities like judiciary, law and order, and defence.

The Hindu reports that states like Uttar Pradesh, Maharashtra, and Punjab have urged the court to revisit the 1978 judgment. LiveLaw reports that the Bench heard arguments on whether the broad interpretation was rightly decided and reserved judgment on March 19, 2025. Senior advocates including Indira Jaising argued in favour of keeping the 1978 reasoning intact, submitting that bringing enterprises under the definition provided workers a remedy for grievances. Attorney-General R. Venkataramani submitted that sovereign function cannot have an exhaustive definition and changes with the state's evolving role.

The court will clarify questions including whether social welfare activities by government departments can be considered industrial activity, and whether sovereign functions fall within the definition. The reference arises from a 2002 appeal, and the case has been pending since 2005 when a five-judge Bench referred the matter to a larger Bench.