Finshots Daily What is an industry, anyway?
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Mar 19, 2026 A legal saga about what counts as an industry and why the Supreme Court has to rethink a landmark test from 1978. Tales of public-sector dominance, BWSSB workers' fight for workmen status, and how hospitals and schools got swept in. Conflicting rulings, a docket explosion, and a nine-judge hearing raise stakes for workers and investment alike.
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BWSSB Case Created The Triple Test
- Bangalore Water Supply and Sewerage Board employees sued to be treated as workmen under the Industrial Disputes Act of 1947.
- The 1978 Supreme Court case led to the triple test: systematic organization, employer-employee cooperation, and production of goods/services for human needs.
Industry Definition Ignored Profit And Ownership
- The triple test made profit motive and ownership irrelevant when defining industry.
- That ruling allowed hospitals, universities, government departments and even temples to be treated as industries for labour protections.
Contradictory Rulings Split Courts
- Subsequent courts applied the triple test inconsistently, e.g., Maharashtra's Social Forestry department was called an industry in 1996 while Gujarat's forest department was not in 2001.
- These conflicting rulings produced widespread confusion in labour courts nationwide.