The industrial dispute act 1946 1

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Chapter -1
Object of the Act
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Object of the Act
• Dimakuchi Tea Estate Karmchari Sangh
v. Dimakuchi Tea Estate AIR 1958 SC
358:- The S.C. summed up the principal
objects of the Act as follows: -
• promotion of measures for securing and
preserving amity and good relations
between the employers and workmen
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Object of the Act
• Investigation and settlement of industrial
disputes, between employers and
employers, employers and workmen or
workmen and workmen, with a right of
representation by registered trade union
or a federation of trade unions or an
association of employers or a federation
of association of employers;
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Object of the Act
• prevention of illegal strikes and
lockouts;
• relief to workmen in the matter of
layoff and retrenchment; and
• collective bargaining.
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Object of the Act
• Rajasthan State Road Transport Corporation‘ 2005
LLR 1044
• the object of the Industrial Disputes Act, as its preamble
indicates, is to make provision for the investigation and
settlement of industrial disputes which means
adjudication of such disputes also.
• The Act envisages collective bargaining, contracts
between union representing the workmen and the
management, a matter which is outside the realm of the
common law or the Indian law of contact.
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Object of the Act
• The Act also provided for the constitution of
various committees and conferred extensive
powers on different kinds of authorities in the
matter of settlement of adjudication of industrial
disputes.
• It also provide remedies under Sections 10, 12,
18, 19 and 31(2), 33(1)(a), 33C(1) and 33C(2).
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Object of the Act
• Rajasthan State Road Transport Corporation'
SC 2005
• The Act also provided for the constitution of
various committees and conferred extensive
powers on different kinds of authorities in the
matter of settlement of adjudication of industrial
disputes.
• It also provide remedies under Sections 10, 12,
18, 19 and 31(2), 33(1)(a), 33C(1) and 33C(2).
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Chapter- 2
Concept & Scope of
Industrial Dispute
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Industrial Disputes
• Section 2 (k) of the Industrial Disputes Act,
1947.
• Any dispute or difference between employers
and employers or between employers and
workmen, or between workmen and
workmen, which, is connected with the
employment or non-employment or the terms
of employment or with the conditions of
labour, of any person.
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Industrial Disputes
• Broadly speaking, the definition of
'industrial dispute' may be analyzed under
four heads:
(i) Factum of industrial dispute;
(ii) Parties to the dispute;
(iii) Subject matter of the disputes' and
(iv) Origin of the dispute.
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(i) Factum of industrial dispute
• The existence of a dispute or difference is the
key to the expression 'industrial dispute'.
• When the parties are at variance, and the
dispute or difference is connected with the
employment, or non-employment or the terms of
employment or with the conditions of labour,
there comes into existence an industrial dispute.'
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• Whether a mere demand to the appropriate
government or to the conciliation officer without
a dispute being raised by the workmen with the
employer regarding such demand can become
an industrial dispute?
• Sindhu Resettlement Corp Ltd. V Industrial
Tribunal (1968)
• Shambhu Nath Goel v Bank of Baroda (1978)
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• M/s Village Papers Pvt. Ltd v. State of
Himachal Pradesh (1993) Lab. IC 99 at
102-03.
• A mere demand made to the government
cannot become an industrial dispute
without it being raised by the workmen
with their employer.
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• If such a demand is made to the government, it
can be forwarded to the management and if
rejected, becomes an industrial dispute.
• Though it is apparent that for a dispute to exist,
there must be a demand by the workmen or the
employer. This demand need not be in writing,
unless the matter pertains to a public utility
service, in view of the provisions of Section 22 of
the Industrial Disputes Act, 1947.
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(ii) Parties to the dispute
• In order to fall within the definition of an
'industrial dispute', the dispute must be
between:
• (i) employers, or
• (ii) employers and workmen, or
• (iii) workmen and workmen.
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• Parties to the industrial dispute do not
include disputes :-
• (i) between -government and an industrial
establishment or
• (ii) between workmen and non-workmen.
• [Madras Gymkhana Club Employees
Union v. Madras Gymkhana Club, (1967)
2 LLJ 720.]
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• The words 'employers and employers
• The disputes between employers and
employers may arise in respect of
wage matters in an area where labour
is scarce or disputes of similar
character.
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• The words 'workmen and workmen' occur in
Section 2 (k) to include the disputes between
them either directly or through their trade unions.
Such a dispute may be demarcation dispute,
inter-union dispute, etc. Inter-union dispute has,
however, not been held to be an 'industrial
dispute.
• There is no decided case in India on this subject.
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(iii) Subject matter of the Industrial disputes
connected with the:-
• employment or
• non-employment or
• terms of employment or
• conditions of labour, of any
person.
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• The concept of employment involves three
ingredients: (i) employer, (ii) employee and (iii)
the contract of employment.
• The employer is one who employs, i.e., one who
engages the services of other persons. The
employee is one who works on hire basis. The
employment is the contract of service between
the employer whereunder the employee agrees
to serve the employer, subject to his control or
supervisions.
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• In Workmen of Dimakuchi Tea Estate v. The
Management of Dimakuchi Tea Estate (1958) sc, this
Court held the two tests of an industrial dispute: - (as
defined by Section 2(k))
• (1) the dispute must be a real dispute capable of being
settled by relief given by one party to the other, and,
• (2) the person in respect of whom the dispute is raised
must be one in whose employment, non-employment,
terms of employment, or conditions of labour (as the
case may be), the parties to the dispute have a direct or
substantial interest and this must depend on facts and
circumstances of each particular case.
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• 'Employment' brings in the
contract of service between the
employer and the employed.
[Shankar Balaji Waje v. State of
Maharashtra, (1961) 1 LLJ 119
(SC). ]
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• 'Unemployment' is the opposite of 'employment'
and would mean that disputes of workmen which
arise out of service with their employers are
within the ambit of the definition. It is the positive
or negative act of the employer that leads to
employment or unemployment.
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• 'Unemployment’ Example:- (1) termination of service
either voluntary or by act of parties (as employer or
workmen).
• The instances of this kind are dismissal, discharge,
retrenchment, compulsory retirement etc. It also includes
temporary unemployment, e.g., suspension, layoff,
compulsory leave, lockout, strike, etc. Further, it would
include within its scope the words arising out of
unemployment, e.g., reinstatement., re-employment,
compensation and back wages for wrongful termination
of service.
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• The expression 'terms of employment'
generally covers basic wages, dearness
allowance and other allowances, wages on
promotion, wages on demotion, wages on
transfer out of town, wages for over-time work,
wages for work on holiday, payment of wages,
recovery of wages, bonus, retiral benefits, e.g.,
pension, provident fund, gratuity, pension, etc.
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• The expression 'conditions of labour' is
much wider in scope and refers to the
conditions of service under which they
work and the amenities provided or to be
provided to them. This expression may
include hours of work, holidays, leave,
health, safety and welfare of labour.
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• An analysis of decided cases reveals that
following matters have also been included
in the definitions:
• (i) alteration of conditions of service of
employees. [Cooperative Central Bank Ltd v.
Addl LT, AIR 1970 SC 245]
• (ii) demand for modification of standing
orders. [Shahadara (Delhi) Saharanpur Light Rly. Co.
v. S S Railway Workers, AIR 1960 SC 945]
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• (iii) disputes regarding contract labour.
[Standard Vacuum Refining Co. of India
Ltd v. Workmen, AIR 1960 SC 945] .
• (v) transfer of workman from one place to
another
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(iv) Origin of Industrial Dispute
The scope of the expression 'any
person' occurring in the last part
of the definition of 'industrial
dispute' has been a subject
matter of controversy.
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• In Workmen of Dimakuchi Tea Estate v. The
Management of Dimakuchi Tea Estate (1958) sc, this
Court held the two tests of an industrial dispute: - (as
defined by Section 2(k))
• (1) the dispute must be a real dispute capable of being
settled by relief given by one party to the other, and,
• (2) the person in respect of whom the dispute is raised
must be one in whose employment, non-employment,
terms of employment, or conditions of labour (as the
case may be), the parties to the dispute have a direct or
substantial interest and this must depend on facts and
circumstances of each particular case.
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• In Bongaigaon Refinery &,Petrochemicals
Ltd v. Samijuddin Ahmed (2001) 9 sec 557
• a question arose whether a person who
had been issued an offer of appointment
which was withdrawn before he could join
on knowing that he had suppressed
material facts and who raised a dispute
about his non-employment could fall within
the meaning of 'any person' under Section
2(k) of the Industrial Disputes Act.
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• In Bongaigaon Refinery &,Petrochemicals
Ltd ……………..
• The Court answered the question in negative
and held that the reference of the dispute under
Section 10 of the Act was wholly unjustifiable.
• Where employer-employee relationship never
existed and can never possibly exist cannot be
the subject matter of dispute between employer
and workmen. [Limitation of Dimachichi case]
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Chapter 3
Concept & Scope of
Individual Dispute
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Judicial Legislation
• Is a dispute between an individual workman and his employer an
'industrial dispute' under Section 2 (k) of IDA?
• Three different views as to the meaning of the expression 'industrial
dispute'. They are :-
• (i) a dispute between an employer and single workman cannot be an
'industrial dispute, [United Commercial Bank Ltd v. Commissioner of
Labour, . (1951) SC ]
• (ii) it can be an industrial dispute [Swadeshi Cotton Mills Co. v.
Ramzani, (1953) Allhabad]and
• (iii) it cannot per se be an industrial dispute but may become one if
taken up by a trade union or a number of workmen[New India
Assurance Co. Ltd v. Central Government Industrial Tribunal, (1954)
Patna].
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Central Provinces Transport Services Ltd v.
Raghunath Gopal Patwardhan 1957
• the question which directly arose, was whether a
dismissed worker was an employee within the
meaning of Section 2 (10) of the Central
Provinces and Brar Industrial Disputes
Settlement Act, 1947, the Supreme Court
considered the scope of 'industrial dispute' as
defined in Section 2(k) of the Industrial Disputes
Act.
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Central Provinces Transport Services Ltd v.
Raghunath Gopal Patwardhan 1957
• The preponderance of judicial opinions is clearly in
favour of the last of the three views stated above, and
there is considerable reason behind it.
• The scheme of the Industrial Disputes Act does appear
to contemplate that the machinery provided therein
should be set in motion, to settle only disputes which
involve the rights of workmen as a class and that a
dispute touching the individual rights of a workman was
not intended to be the subject of an adjudication under
the Act, when the same has not been taken up by the
union or a number of workmen.
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D N Banerjee v. P R Mukherjee 1953 SC
• discussed the scope of 'industrial dispute' (in the context
of individual dispute) and observed that the words: -
• ……Convey the meaning to the ordinary mind that the
dispute must be such as would affect large groups of
workmen and employers ranged on opposite sides ….
• A single employee's case might develop into an
industrial dispute, when as often happens, it is taken up
by the trade union of which he is a member and there is
concerted demand by the employees for redress.
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Newspapers Ltd v. State Industrial Tribunul 1957 SC
• In this case, Tajammal Hussain, a linotypist was
dismissed by the Newspapers Ltd on the ground of
incompetence. His case was neither taken up by the
union of workers of the establishment nor by any union
of allied or similar trade. His case was, however, taken
up by the U P Working Journalists Union, with which the
employee had no concern.
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Newspapers Ltd v. State Industrial Tribunul 1957 SC
• The govermnent referred the dispute to the industrial
tribunal for adjudication. The tribunal ordered
reinstatement. The appellate tribunal and the High Court,
successively affirmed. Thereupon, the management
preferred an appeal to the Supreme Court.
• The Court accordingly held that Tajammal Hussain could
not be termed as workmen (in the plural) nor could U P
Working Journalists Union be called 'his union' nor is
there any indication that the individual dispute had been
transformed into 'industrial dispute'.
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M/ s Western India Match Co. Ltd v. Western India Match
Company Workers' Union 1970 SC
• A principle was laid down by the Supreme Court that parties
to the reference being the employer and his employees, the
test must necessarily be whether the dispute referred to
adjudication is one in which the workman and substantial
section of those who have a direct and substantial interest
even though such a dispute relates to a single workman.
The Supreme Court held that an 'individual dispute' may be
converted into an industrial dispute by the workmen
espousing it on the ground that they have community of
interest and are directly or substantially interested in the
employment, non-employment or conditions of work of the
concerned workmen.
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Necessary to examine in details.
The aforesaid decisions indicate that
individual dispute per se is not
'industrial dispute' unless it is
espoused by; (i) trade union or (ii)
appreciable number of workmen. It is,
therefore, necessary to examine the
aforesaid requirement in details.
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• 1. Requirement of Appreciable Number: It has been
seen that courts insist that in order to convert an
individual dispute into 'industrial dispute', the dispute
must be espoused by 'appreciable number' either of the
entire labour force in the establishment or at least in a
particular section thereof to which the dispute relates.
But courts at the same time have admitted that the
expression 'appreciable number' does not necessarily
mean majority of workmen in the establishment or,
indeed, even in the section in which the aggrieved
workman was employed.
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• 2. Requirement of Dispute Being Sponsored by
Trade Unions: In order to convert an individual dispute
into 'industrial dispute', it must be taken up by a union of
workers of the establishment and where there is no such
union, it may be sponsored by any of the unions of
workmen employed in similar or allied trades. The union
of the plant may even be a minority union. Further, the
sponsoring union need not be a registered or a
recognized trade union.
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• 3. Effect of Subsequent Withdrawal of Support by
Workmen: It has now been settled through the Supreme
Court decision [Bombay Union of Journalists v. The
Hindu, AIR 1963 SC 318] that subsequent withdrawal of
support by the workmen of a cause previously espoused
by them would not take away the jurisdiction of an
industrial tribunal. Likewise, if the dispute was in its
inception an individual dispute and continued to be such
till the date of reference by the government, it would not
be converted into an industrial dispute by support
subsequent to the reference even if workmen are
interested in the dispute.
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4. Form of Espousal (An act of adopting or supporting a cause ):
The Supreme Court in J.H. Yadav v. M/S Forbes Gokak (2005)
held that as far as espousal is concerned, there
is no particular form prescribed to effect such
espousal. But there is no doubt that the union
must normally express itself in the form of a
resolution which should be proved if it is in issue.
However, proof of support by the union may also
be available aliunde (from elsewhere). It would
depend upon the facts of each case.
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• 5. Institution of Legal Proceedings by Legal
Heir of Deceased Workman: In Smt.Anjilamma
v. Labour Court 1995 (AP), the Andhra Pradesh
High Court held that the legal heirs of deceased
workmen have locus standi to pursue a dispute
against dismissal of deceased workmen either
by continuing the pending proceedings or by
instituting fresh proceedings.
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An Appraisal (analysis)
• A survey of the aforesaid decisions indicates that the
following tests have been applied by the Court in
determining as to when an individual dispute would be
converted into an 'industrial dispute'. –
• (a) If the cause of aggrieved workmen is taken up by
appreciable number of workmen or the union of
workmen (either registered or not or whether recognized
or unrecognized or whether majority or minority union) or
in the absence of any union of workmen by union of
similar or allied trade and there is a concerted demand
by the workmen for redress.
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• (b) If the workmen espousing it have a
community of interest and are directly or
substantially interested in the employment, non-
employment, terms of employment or conditions
of labour of the concerned workman/workmen.
• (c) If such an interest on the part of workman or
substantial number of workmen exists on the
date of reference and need not necessarily exist
on the date on which-the cause occurs.
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• (d) A dispute would not cease to be an 'industrial
dispute' on subsequent support or withdrawal of
a cause of individual dispute previously
espoused by a workmen or union.
• The net effect of the aforesaid decisions is that
an individual worker, unsupported by
'appreciable number' of workmen or the union,
has no remedy under the Industrial Disputes Act,
1947, particularly when no dispute is pending
before authorities under the Industrial Disputes
Act, 1947. 49

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Deemed Industrial Dispute Sec 2A
Where an employer discharges, dismisses,
retrenches or otherwise terminates the services
of an individual workman, any dispute or
difference between an individual workman and
his employer connected with, or arising out of
such discharge, dismissal, retrenchment or
termination shall be deemed to be an "industrial
dispute' notwithstanding that no other workman
nor any union of workmen is a party to the
dispute.
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Deemed Industrial Dispute Sec 2A
• No Retrospective Effect: The Supreme Court in
Rustom and Hornsby (P) Ltd v. T B Kadam 1975
held that Section 2A provides in effect that what
would not be an industrial dispute as defined in
Section 2(k) as interpreted by this Court could
be deemed to be an industrial dispute in certain
circumstances. There is, therefore, no question
of giving retrospective effect to that section in
making the reference which resulted in the
award under consideration.
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Amendment 2010 in Sec 2A
• An analysis of the Sec 2A reveals that a
workman aggrieved by the order of dismissal,
discharge, retrenchment or otherwise
termination of service may directly make an
application to the labour court or tribunal for
adjudication of the dispute and the labour court/
tribunal is empowered to adjudicate such dispute
as it were referred to it by the appropriate
government.
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Amendment 2010 in Sec 2A
• But, the two conditions must be satisfied before
such application can be entertained: (i) Such
application must be made after the expiry of 45
days from the date the aggrieved workman
made the application to the conciliation officer of
the appropriate government for conciliation of
the dispute (ii) Such application must be made
before the expiry of 3 years from the date of
discharge, dismissal, retrenchment or otherwise
termination of service.
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Chapter 4
Industry
[Sec. 2(j)]
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Industry
"Industry" means any business, trade,
undertaking, manufacture or calling of
employers and includes any calling,
service, employment, handicraft, or
industrial occupation or avocation of
workmen.
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Two parts of Definition
This definition is in two parts. The first
says that industry means any
business, trade, undertaking,
manufacture or calling of employers
and the second part provides that it
includes any calling, service,
employment, handicraft, or industrial
occupation Or avocation of workmen.
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Madras Gymkhana Club Employees Union v.
Management of Madras Gymkhana Club, AIR 1968 SC
The inclusive part of the definition the
labour force employed in any industry
is made an integral part of the
industry for the purpose of industrial
disputes.
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Management of Safdarjang Hospital, Delhi v. Kuidip Singh,
AIR 1970 SC 1407
It is not necessary to view definition of
industry under Section 2(j) in two parts.
The definition read as a whole denotes a
collective enterprise in which employers
and employees are associated. It does not
consist either by employers alone or by
employees alone.
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"Undertaking"
• "Undertaking" means anything
undertaken, any business,
work or project which one
engages in or attempts, or an
enterprise.
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"Undertaking"
• State of Bombay v. Bombay Hospital Mazdoor Sabba. AIR
1960 SC 610.
• "As a working principle it may be stated that an activity
systematically or habitually undertaken for the production
or distribution of goods or for the rendering of material
services to the community at large or a part of such
community with the help of employees is an undertaking.
Such an activity generally involves the co-operation of the
employer and the employees; and its object is the satisfaction
of material human needs. It must be organised or arranged in
a manner in which trade or business is generally organised or
arranged. It must not be casual, nor must it be for one's self
nor for pleasure.
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Bangalore Water Supply v. A. Rajappa AIR 1978 SC 548
• Triple Test.-Where there is
• (i) systematic activity,
• (ii) organised by co-operation between employer
and employee,
• (iii) for the production and /or distribution of
goods and services calculated to satisfy human
wants and wishes, prima facie, there is an
"industry" in that enterprise.
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Bangalore Water Supply v. A. Rajappa AIR 1978 SC 548
• The following points were also emphasized in this case :
• (1) Industry does not include spiritual or religious services or
services geared to celestial (relating to heaven) bliss, e.g., making,
on a large scale, prasad or food. It includes material services and
things.
• (2) Absence of profit motive or gainful objective is irrelevant, be the
venture in the public, joint, private or other sector.
• (3) The true focus is functional and the decisive test is the nature of
the activity with special emphasis on the employer-employee
relations.
• (4) If the organization is a trade or business it does not cease to be
one because of philanthropy animating the undertaking.
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Dominant nature test
• Where a complex of activities, some of which quality for
exemption, others not, involve employees on the total
undertaking - some of whom are not workmen or some
departments are not productive of goods and services if
isolated, even then the predominant nature of the
services and the integrated nature of the departments
will be true test, the whole undertaking will be "industry"
although those who are not workmen by definition may
not benefit by status. [Bangalore Water Supply v. A.
Rajappa AIR 1978 SC 548]
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Exceptions
• Sovereign functions, strictly understood, (alone)
qualify for exemption, not welfare activities or
economic adventures undertaken by
Government or - statutory bodies.
• If in pious or altruistic mission, many employ
themselves, free or for small honorarium like as
lawyers volunteering to run a free legal services,
clinic or doctors serving in their spare hours in a
free medical centre etc.
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Exceptions
• In Govt. departments discharging sovereign
functions, if there are units which are industries
and they are substantially severable, then they
can - considered to come within Section 2(j).
• A restricted category of professions, clubs, co-
operatives and even gurukulas.
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Municipal Corporation
• D.N. Banerjee v. P.R. Mukherjee AIR 1953 SC
• In this case the Budge Municipality dismissed two of its
employees, Mr. P.C. Mitra, a Head clerk and Mr. P.N. Ghose
a Sanitary Inspector on charges for negligence,
insubordination and indiscipline. The Municipal Workers
Union of which the dismissed employees were members
questioned the propriety of the dismissal and the matter was
referred to the Industrial Tribunal. The Tribunal directed
reinstatement and the award was challenged by the
Municipality on the ground that its duties being connected
with the local self-government it was not an industry and the
dispute was not an industrial dispute and therefore reference
of the dispute to the tribunal was bad in law.
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• The Supreme Court observed that in the ordinary or non-
technical sense industry or business means an
undertaking where capital and labour co-operate with
each other for the purpose of producing wealth in the
shape of goods, tools etc. and for making profits. In the
opinion of the Court every aspect of activity in which the
relationship of master and servant or employer and
employees exists or arises does not become an industry.
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• It was further observed that 'undertaking' in the first part and
industrial occupation or avocation in the second part of Section 2(j)
obviously mean much more than what is ordinarily understood by
trade or business. The definition was apprently intended to include
within its scope what might not strictly be called a trade or business.
Neither investment of capital nor profit making motive is essential to
constitute an industry as they are generally necessary in a business.
A public utility service such as railways, telephones,. and the supply
of power, light or water to the public may be carried on by private
companies or business corporations and if these public utility
services are carried on by local bodies like a Municipality they do
not cease to be an industry.
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• Nagpur Corporation v. Its Employed AIR 1960 SC
• A Corporation is an "industry". But "industry" cannot
include what are called the regal or sovereign functions
of the State.
• Neither the investment of capital, nor the existence of
profit making motive is a necessary element in the
modem conception of industry.
• If a department of a municipality discharges many
functions, some pertaining to industry as defined in the
Act, and others non-industrial activities, the predominant
functions of the department shall be the criterion for the
purposes of this Act.
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• In Permanand v. Nagar Palika, Dehradun
and others (2004)
• the Supreme Court held that the activity of
a Nagar Palika in any of its department
except those dealing with levy of house
tax etc. falls within the definition of
industry in U.P. Industrial Disputes Act,
1947.
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• Is hospital an industry?
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State of Bombay v. Hospital Mazdoor Sabha, AIR
1960 SC 610
• In this case, the Hospital Mazdoor Sabha was a
registered Trade Union of the employees of hospitals in
the State of Bombay. The services of two of its members
were terminated by way of retrenchment by the
Government and the Union claimed their reinstatement
through a writ" petition. It was urged by the State that the
writ application was misconceived because hospitals did
not constitute an industry. The group of hospitals were
run by the State for giving medical relief to citizens and
imparting medical education.
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Hospital Mazdoor Sabha Case……
• The Supreme Court held the group of hospitals to be
industry and observed as follows :
• (1) The State is carrying on an 'undertaking' within
Section 2(j) when it runs a group of hospitals for purpose
of giving medical relief to the citizens and for helping to
impart medical education.
• (2) An activity systematically or habitually undertaken for
the production or distribution of goods or for the
rendering of material services to the community at large
or a part of such community with the help of employees
is an undertaking.
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Hospital Mazdoor Sabha Case……
• (3) It is the character of the activity in question which
attracts the provisions of Section 2(j). Who conducts the
activity and whether it is conducted for profit or not make
a material difference.
• (4) The conventional meaning attributed to the words,
'trade and business' has lost some of its validity for the
purposes of industrial adjudication .. .it would be
erroneous to attach undue importance to attributes
associated with business or trade in the popular mind in
days gone by.
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Other cases
• Hospital Mazdoor Sabha case was overruled by
Safdarjung Hospital case [Management of
Safdarjung Hospital, Delhi v. Kuldip Singh AIR
1970 SC]. But Safdarjung Hospital and Dhanraj
Giri Hospital cases [Dhanraj Giri Hospital v
Workmen AIR 1978 SC] have now been
overruled in Bangalore Water Supply v. A.
Rajappa and Hospital Mazdoor Sabha case has
been rehabilitated.
75

Name of Institution
Hospital……..
Those hospitals which are run by the
Government as part of its sovereign
functions with the sale object of rendering
free service to the patients are not
industry. But all other hospitals, both
public and private; whether charitable or
commercial would be industry if they fulfil
the triple test laid down in Bangalore
Water Supply Case.
76

Name of Institution
Educational Institutions
77

Name of Institution
Corporation of City of Nagpur v. Its
Employees (1960) 1 LLJ 523
It is the starting point. In this case, the
Supreme Court held that the educational
institutions run by municipality/corporation
was a service rendered by the department
and so the subordinate menial employees
of the department came under the
definition of 'workman' and were entitled to
the benefits of the Act.
78

Name of Institution
Educational Institution………
• In Bangalore Water Supply v. A. Rajappa
overruled this decision and reaffirmed the
decision in Corporation of Nagpur case
that educational institution was industry.
• The test is not the predominant number of
employees entitled to enjoy the benefits of
the Act. The true test is the predominant
nature of the activity.
79

Name of Institution
University of Delhi v. Ram Nath, AIR 1963
SC 1873
• The seven-judges bench of the Supreme
Court in Bangalore Water Supply v.
Rajappa overruled this decision and
reaffirmed the decision in Corporation of
Nagpur case that educational institution
was industry. Justice Krishna Iyer laid
down the following test to determine
whether an activity is an 'industry'.
80

Name of Institution
• Current Confusion
81

Name of Institution
Irrigation Department - If Industry
• While in Des Raj v. State of Punjab(1981),
the Supreme Court held that irrigation
department as an 'industry' under Section
2 G),
• A two-judge bench of the Supreme Court
in Executive Engineer, State of Karnataka
v. K Soonasetty (1997) held it to be not an
'industry'.
82

Name of Institution
Argument ----Irrigation Dept is not Industry
• The function of public welfare of the State
is a sovereign function. It is the
constitutional mandate under the Directive
Principles, that the government should
bring about welfare State by all executive
and legislative actions. Under these
circumstances, the State is not an
'industry' under the Industrial Disputes Act.
83

Name of Institution
Argument ----Irrigation Dept is not Industry
• But Patna High Court in State of
Bihar v. Gajadhar Singh (2012)
held that the department of
irrigation is an 'industry' under
Section 2(j) of the Industrial
Disputes Act, 1947.
84

Name of Institution
Postal and Telecom
Departments - If Industry
85

Name of Institution
Postal and Telecom Departments…….
• In Sub Divisional Inspector of Post Vaikam v.
Theyyam Joseph(1996) , a question arose
whether the establishment of the Sub-divisional
Inspector of Post was an 'industry' under the
Industrial Disputes Act, 1947. A two-judge bench
of the Supreme Court answered the question in
negative and held that the functions of the
postal department are part of the sovereign
functions of the State and it is, therefore, not an
industry within the definition of Section 2(j) of
the Industrial Disputes Act, 1947.
86

Name of Institution
• In General Manager, Telecom v. S
Srinivasa Rao(AIR 1998 SC657), the
question whether postal and telecom
department was an 'industry' was placed
specifically before the bench of three
judges was whether the telecom
department of the Union of India was an
'industry.
87

Name of Institution
• In Senior Superintendent of Post
Office, Postal Department, Ludhiana
v. Baljit Singh (2012), the Punjab and
Haryana High Court held that postal
department is an 'industry' under
Section 2(j) of IDA.
88

Name of Institution
Thank you
89

The industrial dispute act 1946 1

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