SC's nine-judge Bench to decide if sovereign functions, state activities come under 'industry'

A nine-judge Constitution Bench of the Supreme Court would statesman proceeding from March 17 a 2002 lawsuit regarding the question whether acquisition institutions, hospitals and sovereign functions of the authorities and its instrumentalities would autumn wrong the explanation of ‘industrial activity’ nether the Industrial Disputes Act.

Chief Justice of India Surya Kant, heading a three-judge Bench connected Monday (February 16, 2026), chose the lawsuit for constituting the archetypal nine-judge Constitution during his tenure.

The question of instrumentality successful the notation earlier the projected nine-judge Bench concerns a 1978 judgement delivered successful Bangalore Water Supply and Sewerage Board v. A. Rajappa by Justice V.R. Krishna Iyer arsenic a subordinate of a seven-judge Bench.

The 1978 judgement had expanded the explanation of ‘industry’ nether Section 2(j) of the Industrial Disputes Act, 1947. The judgement had introduced a triple trial and included hospitals, acquisition institutions and municipalities arsenic industries.

Significantly, the Chief Justice framed a question whether “social payment activities and schemes oregon different enterprises” undertaken by authorities departments oregon its instrumentalities could beryllium construed arsenic concern enactment nether Section 2(j) of the Industrial Disputes Act.

Another question framed by the Supreme Court for information by the projected nine-judge Bench is simply a clarification connected what ‘state/sovereign activities’ would autumn wrong the explanation of manufacture nether Section 2(j).

Section 2(j) defines ‘industry’ to see “any business, trade, undertaking, manufacture oregon calling of employers and includes immoderate calling service, employment, handicraft oregon concern concern oregon avocation of workmen”.

The 1978 judgement had expanded the ambit of ‘industry’ to clasp that immoderate systematic activity, whether oregon not done for a nett motive, including charitable and government-run services, were an manufacture if they met the ‘triple test’ parameters. The judgement was designed to payment employees to assertion the presumption and ineligible extortion arsenic concern ‘workers’. The 1978 judgement had lone exempted sovereign functions from the ambit of the explanation of ‘industry’.

The nine-judge Bench would beryllium constituted connected an administrative bid of Chief Justice Kant. The tribunal has fixed the proceeding connected 2 days, March 17 and March 18, 2026.