SC Draws Line Between Old and New Labour Laws in Landmark ‘Industry’ Verdict
What Happened
In a 6:3 majority ruling, a nine-judge Constitution Bench of the Supreme Court held that the broad definition of "industry" evolved in the 1978 Bangalore Water Supply judgment will not automatically apply to the Industrial Relations Code, 2020. The Court said pending disputes under the old Industrial Disputes Act, 1947 will continue to be decided using the 1978 judgment's"triple test", but future cases under the 2020 Code must be interpreted based on the new law's own language and context.
Key Takeaways
The verdict provides clarity for employers and workers as India transitions from the Industrial Disputes Act to the Industrial Relations Code, 2020. While worker protections developed under the 1978 ruling remain relevant for older cases, the Supreme Court has signalled that the 2020 labour code is a distinct legal framework and must be interpreted independently.