Labour and Industrial Law

Submitted by:MandeepB.A.LL.B 2nd yr,MITS

Topic: Industry

IndustrySec.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 industrial occupation or avocation of workman.”

The former one engaged in business, trade, undertaking, manufacturer or calling of employees.

the later one engaged in any calling, service, employemnt, handicraft or industrial occupation or avocation

Note:This definition has 2 parts, one part defines it from the stand point of the employers and other from the stand point of the employees.

Undertaking:

“any task or project or anything undertaken any business work or project which one engages in or attempts or any enterprise.”The first principle was stated by JUSTICE GAJENDRA GHARDKAR in:-State of Bombay v. Majdur Sabha”1960,

As a working principle it may be stated that an activity systematically or habitually undertaken for the protection or distribution of goods or for rendering of material services to the public at large or a part of such continuity with the help of employees is an Undertaking.

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 activity

2. Organised by corporatn b/w employer & employee,

3. For the productn and/or distribution of goods and services calculated to satisfy human bonds and wishes

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.

d) If the organization is trade or business, it does not cease to be one because of Philanthropy animating the undertaking.

e) The sovereign functions of the state are not in the ambit of industry.

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.

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.

Case: Madras Gymkhana Club Employees Union v. ManagementIt 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.

TempleCase: Mahamadhka 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.