The Supreme Court is set to examine a petition filed by the All India Trade Union Congress (AITUC), Tamil Nadu, challenging the definition of 'industry' under the Industrial Relations Code, 2020, which came into effect in November last year, LiveLaw reported. A bench of Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V Mohana on Wednesday tentatively listed the matter for next month.

Source: LiveLaw

Senior advocate Gopal Sankaranarayanan, appearing for the union, argued that the definition is vague and referred to the exemptions the Code grants, The Hindu reported. "Is there a problem with the definition of 'industry'?" Chief Justice Kant asked during the hearing, and the court said it would read the petition and schedule the case for an early hearing.

Source: The Hindu

What the petition challenges

The petition challenges the constitutional validity of the exclusionary clauses in Section 2(p) of the 2020 Code, which keep institutions engaged in charitable, social or philanthropic service, activities relatable to the sovereign functions of government, and any other activity notified by the Union government outside the definition of 'industry'. Only workers in establishments that count as an 'industry' get access to the statutory machinery for settling industrial disputes.

The union contends the exclusions depart from the 'triple test' laid down by a seven-judge bench in Bangalore Water Supply and Sewerage Board v. A. Rajappa (1978): an activity is an 'industry' if it is systematic and organised, is carried on through cooperation between employer and employee, and produces or distributes goods or services to satisfy human wants. That judgment brought hospitals, educational institutions and municipalities within 'industry'.

Invoking Articles 14, 16, 19(1)(c) and 21 of the Constitution, the petitioner argues the exclusions could deny workers in charitable hospitals, welfare institutions and other public or service organisations access to labour courts and industrial tribunals to challenge illegal termination, retrenchment or unfair labour practices, and create irrational distinctions between similarly situated workers.

The challenge follows the Supreme Court's nine-judge bench decision in August 2026 in State of Uttar Pradesh v. Jai Bir Singh, which dealt with the old Industrial Disputes Act, 1947 definition but expressly left open the interpretation and constitutional validity of Section 2(p) of the 2020 Code, the petition submits.