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National 1 min read

SC nine-judge bench rules 5:4 that 1978 Bangalore Water Supply 'industry' test won't govern IR Code disputes

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In State of Uttar Pradesh vs Jai Bir Singh, a nine-judge Constitution Bench of the Supreme Court led by Chief Justice Surya Kant ruled 5:4 on the meaning of “industry” in labour law. It held that the wide reading in Bangalore Water Supply and Sewerage Board v. R. Rajappa (1978), which used a triple test of systematic activity, employer-employee cooperation and production or distribution of goods or services, will not govern future disputes under the Industrial Relations Code (IRC), 2020. Pending disputes under the Industrial Disputes Act, 1947 will still follow the 1978 view. The IRC definition must be read on a clean slate. The IRC is one of four Labour Codes merging 29 central laws.