TODAY THE NINE-JUDGE BENCH, while deciding the reference concerning the interpretation of industry, under Section 2(j) of the Industrial Disputes Act, 1947, by 5:4 majority recognised that while the essential framework of the triple test laid down in Bangalore Water Supply and Sewerage Board v. R. Rajappa (1978) stood the test of time, certain aspects of the triple test and the accompanying guidelines were capable of further refinement.
However, Chief Justice of India (‘CJI’) Surya Kant, while pronouncing the judgment, clarified that the ruling would operate prospectively and would not affect pending disputes or proceedings.
“Judgments, settlements and determinations that are no longer subject to challenge shall remain undisturbed, notwithstanding the reformulation of the test set out in this judgment,” he said. It was further clarified that ruling shall not be treated as a source or aid for interpreting the Industrial Relations Code, 2020, if such a question arises in the future.
The dissenting opinions on merits were delivered by Justices B.V. Nagarathna, Dipankar Datta, Ujjal Bhuyan and Joymalya Bagchi, who held that the law laid down in Bangalore Water Supply remains correct and does not warrant reconsideration or reformulation. On the question of maintainability, Justices B.V. Nagarathna and Ujjal Bhuyan along with Justice Dipankar Datta were of the opinion that the reference was not maintainable. However, six judges including CJI ruled otherwise.
