Definition of industry under Industries Act

1. Labour and Industrial Law
Topic: Industry
Submitted by:
Mandeep
B.A.LL.B 2 nd yr,
MITS

2. Industry
Sec.2(j)
According to Industrial Dispute Act,” INDUSTRY
means any
business, trade, undertaking, manufacturer or
calling of employees and includes any
calling, service, employment, handicraft or
This definition has 2 parts, one part
industrial occupation or avocation of workman.”
Note:
defines it from the stand point of
the employers and other from the
The former onestand point of the employees. in any
engaged in the later one engaged
business, trade, undertakin calling, service, employemnt,
g, manufacturer or calling handicraft or industrial
of employees. occupation or avocation

3. principle it may be
undertaken
any business stated that an
Undertaking:
work or activity
project systematically or
which one
habitually
engages in or
attempts or undertaken for the
any protection or
enterprise.” distribution of goods
The first
or for rendering of
principle
was stated material services to
by JUSTICE the public at large or
GAJENDRA

4. Bangalore water supply v.
A RAJAPPA, AIR 1998
A 7 Judges Bench of the SC considering the
scope of industry laid down the triple test,
Where there is-
1. Systematic 2. Organised by 3. For the productn
and/or
activity corporatn distribution of
b/w goods and
services
employer calculated to
& satisfy human
employee, bonds and
wishes

5. The following points are also emphasised in this
case:-
a) Industry does not include
spiritual or religious services or
services geared to celestial bliss.
b) Absence of profit motive or
gainful objective is irrelevant.
c) The true focus is functional and
the deceisive test is the nature of
the activity with special emphasis
on the employer-employee
relations.

6. Whether hospital is a industry or
not???
Case: State of Bombay V. Hospital
Mazdoor Sabha
•The SC held that J.J.Group of
hospitals is an industry for the
purpose of retrenchment and
reinstatement of its employees.
•On the basis of Ayurvedic College
of Pharmacy manufacturing
medicines for the sale and for the
benefit of students of the college
was held to be an industry.

7. Whether an educational
institution is an industry or
not?
In the case of University of Delhi v.
Ramnath: The SC held that the work of imparting
education is more a mission and a vocation than
profession or trade and thus, university is not an
industry.
 The SC on the basis of triple test laid down in
the case Bangalore water supply case, held that
even a university would be an industry.

8. Case: Madras Gymkhana
Club Employees Union v.
Management
It was held that club was a member’s self serving
institution and not an industry but it was overruled by
Bangalore water supply case. It was held that both
the cricket club of India and Madras Gymkhana club
would now be an industry because they fulfill the
triple test.
Both are systematically organised with the
cooperation of employer & employee for distribution
of service to satisfy human wishes.

9. Case: Mahamadhka Temple
Gajika v.
Manager(1994)
Where the Jain temple
was held to be not an
industry, the SC in the
facts and
circumstances of the
case awarded
compensation to the
workman.