SC modifies 1978 ‘triple test’ for industry

Meanwhile, the Economic Times daily newspaper is available online now.

Key points

• Supreme CourtTriple TestIndustrial Disputes ActIndustry DefinitionIndustrial Relations Code 2020CJI Surya KantNew DelhiLabour AuthoritiesLegal ReformJudicial Ruling.
• Nevertheless, they left the interpretation of "industry" under the Industrial Relations Code, 2020 to be determined independently under the new law.
• Power shift, a déjà vu: Air India could be new CEO's toughest flight yet.
• The Economic Times daily newspaper is available online now.
• While pending cases can continue under the earlier definition, the reformulated test will apply prospectively.

Meanwhile, the Economic Times daily newspaper is available online now. SC modifies 1978 'triple test' for deciding what qualifies as an 'industry'. SC modifies 1978 'triple test' for deciding what qualifies as an 'industry'. ET BureauLast Updated: Aug 21, 2026, 12: 03: 00 AM IST.

Notably, a nine-judge Supreme Court bench on Thursday, in a 5-4 majority verdict, modified parts of the "triple test" laid down almost five decades ago to determine what constitutes an "industry" under the Industrial Disputes Act, 1947. While pending cases can continue under the earlier definition, the reformulated test will apply prospectively.

New Delhi: A nine-member Supreme Court bench in a majority verdict on Thursday modified parts of the "triple test" standard set by a seven-judge bench almost 50 years ago to define what qualified as an "industry" under the Industrial Disputes Act, 1947. In a 5-4 decision, the bench held that certain aspects and the accompanying guidelines needed further refinement even though the essential framework laid down by the 1978 ruling stood the test of time. Five judges, including Chief Justice of India Surya Kant, remarked they felt that some of the elements of the earlier ruling could have been articulated differently so as to better reflect the scope and contours of Section 2(j) of the 1947 Act that defined the term "industry". "Therefore, we propose to reformulate the triple test, " they remarked in the ruling.

Nevertheless, they left the interpretation of "industry" under the Industrial Relations Code, 2020 to be determined independently under the new law. The judgment had not been uploaded to the court website at the time of writing this report. Live Events.

Meanwhile, the majority verdict remarked the reformulated test will operate prospectively. Cases pending before courts, tribunals, labour authorities or other fora under the 1947 Act may be adjudicated in accordance with the earlier definition, the CJI remarked, pronouncing the judgment on behalf of himself and other justices, along with a substantially concurring decision by Justice PS Narasimha. Add Now!

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Taken together, the developments around SC modifies 1978 'triple test' for industry point to a situation that is still moving, and the coming days should bring more clarity.