“BUDGE BUDGE MUNICIPALLITY CASE”

ROUGH DRAFT SUBMITTED IN THE PARTIAL FULFILENT OF THE COURSE

TITLED-

LABOUR LAWS -1

Submitted by: Submitted to:

ANDLIB IMROSE Ms. Pallavi Shankar
ROLL NO:1915 (4TH Semester) ( Teacher Associate)
B.A, LL. B, (CNLU, PATNA)
Academic session-2018-20

CHANAKYA NATIONAL LAW UNIERSITY

Nyaya Nagar, Mithapur,Patna 80001
INTRODUCTION

Change is a phenomenon that twists the very fabric of the society. When the
world entered 19th century, the discovery era had just passed by and the era of
invention had begun, and it was out of these inventions that companies were
born. Out of a filament bulb Thomas Elva Edison set up the General Electric
Company and from a car Henry Ford went on to set up The Ford Motor
Company. Eventually Industries became a crucial part of our society; The
rapidness took place after the kick start of the Industrial Revolution in England.
Applying law to the concept of Industry, when a dispute arises in the industry
there is law which is compiled with the rules and regulations to resolve the
Issues. Coming to the Indian scenario there is Industrial Disputes Act, 1947,
which controls the disputes arising in the Industries. The question raised was
what comes under the definition of Industry. The literal meaning of the Industry
is ‘economic activity concerned with the processing of raw materials and
manufacture of goods in factories.’ As per Section 2(j) of the industrial disputes
Act defines “Industry” means any business, trade, undertaking, or calling of
employers and includes any calling, service, employment, handicraft, or
industrial occupation or avocation of workmen. The definition of industry is
adapted from the Australian legislation, The Conciliation and Arbitration Act
1904 inscribed in section 4 which is interpretation section defines ‘industry’ as
“Industry” means business, trade, manufacture, undertaking, calling, service, or
employment, on land or water, in which persons are employed for pay, hire,
advantage, or reward, excepting only persons engaged in domestic service, and
persons engaged in agricultural, viticulture, horticultural, or dairying pursuits.
“Until specific legislative mandates emerge from Parliament the court may
mould the old, but not make the new law. Interstitially, from the molar to the
molecular is the limited legislative role of the Court, as Justice Holmes said”
This was observed by Justice Krishna Iyer in Gujarat Steel Tubes Ltd. v.
Mazdoor Sabha1 , but, only if he could have kept his words in words in
Bangalore Water Supply and Sewerage Board v. A. Rajappa2, where he
actually drafted a new ‘definition’ of the term ‘industry’ assuming the role of a
crusader-legislator. The broad sweep of the judgment brought within the
Industrial Dispute Act several institutions like educational institutions,
solicitor’s offices, State departments and even charitable institutions.
The attention of the Supreme Court has recently been drawn to the definition of
the term “industry” as stated in the Industrial Disputes Act, 1947. The

1
Gujarat Steel Tubes Ltd. v. Mazdoor Sabha, 1980 S.C.R. (2) 146.
2
Bangalore Water Supply and Sewerage Board v. A. Rajappa, A.I.R. 1978 S.C. 610.
uncertainty with regard to the definition assumes great importance as the
machinery for the settlement of industrial disputes can only be set in motion
when there exists a dispute relating to “industry”. However, it is next to
impossible to classify a dispute as industrial or non-industrial without being
certain of what exactly the term “industry” encompasses within its scope.
Starting from D.N. Banerjee v. P.R. Mukherjee3 and passing through various
cases Supreme Court has given conflicting decision regarding definition of the
term industry. In some cases, Supreme Court has, having liberal attitude, given
a very wide interpretation and in some cases a narrow interpretation has been
given. A bench of seven Judges in Bangalore Water Supply and Sewerage
Board v. A. Rajappa , wherein the question was whether the activity of the
Board fell within the ambit of ‘industry’, it went haywire and far beyond the
confines of the case in the name of judicial activism to bring every conceivable
activity in the sweep of the industry. The meaning which was given to the term
‘industry’ is so wide and wild that it covers perhaps any systematic activity
under the sun leading to obscurity.
Bangalore Water Supply and Sewerage Board v. A. Rajappa, still holds the
field as it was the largest Judge Bench decision on the issue but there are cases
which have, though not permissible under the doctrine of ‘precedent’, decided
in contrary to the decision of the Bangalore Water Supply case. A five judge
Bench of the Supreme Court has decided to refer the matter of reviewing the
Bangalore Water Supply case to a larger Bench

3
D.N. Banerjee v. P.R. Mukherjee, A.I.R. 1953 S.C. 58.
RESEARCH METHODOLOGY
Mostly doctrine sources and primary method of research was adopted in the
making of this project.
Few primary and secondary methods were used. Some literary works and books
and articles were referred and the internet through various websites were used
extensively for the collection of data which was required for the study needed
for this research.
AIMS AND OBJECTIVES
In this article the author has done a complete overview of Budge budge
municipality case issue. He has also done an analysis of what the term industry
means under Labour Law and how the courts in India have interpreted this term.
The author has also dealt with through the different case laws as to what other
entities can be brought under the term industry.
RESEARCH QUESTIONS
1. What is the scope of law relating to labour in India?
2. Why do the government, or the state, intervene in the field of labour?
3. Whether improvements have been made related to social security of the
labour?
4. Examine legislation and case law relating to trade unions and trade or
industrial dispute?
HYPOTHESIS
If the dispute arises in connection with the discharge of the normal activities of
government or of a local body, the dispute cannot be regarded as an industrial
dispute.
CHAPTERISATION
1) Introduction
2) Industry under the Industrial Dispute Act
3.0) Triple Test Laid Down in Bangalore Water Supply Case
3.1 Dominant Nature Test
3.2 Decision Overruled
4.0) Is Municipal Corporation an Industry?
4.1) Case analysis of DN Banerjee v. PR Mukherjee
• Facts of the Case
• Issue
• Rules/Laws Applicable
• Judgement
• Analysis
4.2) Some Other Landmark Judgements
5) What Does Not Come Under the Definition of Industry?
6) Recent Developments
7) Conclusions and Suggestions
BIBILIOGRAPHY
Websites;

• https://www.investopedia.com/terms/i/industry.asp
• http://asklabourproblem.info/how-is-industry-defined-under-
labour-laws-in-india/
• https://www.mondaq.com/india/Employment-and-
HR/625206/Labor-Laws-In-India--Indian-Industrial-Disputes-Act-
1947
• https://indiankanoon.org/doc/1418464/
• https://labour.gov.in/industrial-relations
• https://indiankanoon.org/doc/1149369/
• https://indiankanoon.org/doc/1785601/
Books;
• Labour and Industrial Laws- by P. K. PADHI (Originally published:
2007)
• Obligations of Employers Under Labour Laws – by H.L Kumar
• Industrial Relations and Labour Laws Paperback – 30 Aug 2008
-by B. D. Singh (Author)
• Taxmann's Labour Laws with Code on Wages (2020 Edition) Paperback
– 2019 by Taxman Publication Pvt. Ltd. (Author)
• Compliances Under Labour Laws - A User's Guide to Adhere with the
Provisions Under Various Employment Related Acts Paperback – 21 Sep
2017 by H L Kuma
Statues;
• The Industrial Disputes Act, 1947
• Workmen Compensation act, 1923
• Constitution of India, 1947