Supreme Court overruled the 1978 Bangalore Water Supply vs. A. Rajappa judgment that gave expansive definition to 'industry' under Industrial Disputes Act, 1947
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Supreme Court scraps worker-friendly 1978 ‘industry’ precedent for new labour code
The Supreme Court has overruled its 1978 Bangalore Water Supply precedent that broadly defined 'industry' under the Industrial Disputes Act, ruling that the new Industrial Relations Code, 2020 must be interpreted in its own text and context. This narrows the scope of establishments covered, potentially excluding many service sector and non-profit entities from labour protections like collective bargaining and unfair labour practice remedies. The judgment significantly impacts workers' rights and industrial relations jurisprudence, making it crucial for labour law, polity, and governance sections in competitive exams.
Source: The Hindu. This summary and analysis are AI-written from that report and are not individually fact-checked — confirm names, dates and figures with the source before you rely on them.
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Exam-ready takeaways
The new Industrial Relations Code, 2020 (part of four labour codes) will now be interpreted based on its 'own text and context'
The 1978 verdict had brought hospitals, educational institutions, clubs, and charitable organisations under 'industry', enabling workers' legal recourse
The ruling limits coverage of labour protections like collective bargaining, unfair labour practice remedies, and dispute resolution mechanisms
Industrial Relations Code, 2020 is one of four labour codes (others: Code on Wages, 2019; Occupational Safety, Health and Working Conditions Code, 2020; Social Security Code, 2020) yet to be fully implemented
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