Question

According to the Supreme Court's judgment, what is the most important factor in determining whether an activity constitutes an industry?

• A. The profit-making motive of the employer
• B. When there are multiple activities carried on by an establishment, its dominant function has to be considered. If the dominant function is not commercial, benefits of a workman of an industry under Industrial Dispute Act may be given.
• C. The nature of the activity and the authority of the employer over its employees
• D. When there are multiple activities carried on by an establishment, all the activities must be considered. Even if one activity is commercial, the employees will not get the benefit of workman of an industry under the Industrial Dispute Act.
• A. It reduced labour protections for workers
• B. It extended labour protections to a broader spectrum of workers
• C. It had no significant impact on labour laws
• D. It only affected private sector workers
• A. Any activity involving profit-making
• B. Any systematic activity organized by cooperation between an employer and employees for producing or distributing goods and services
• C. Only activities conducted by private enterprises
• D. Activities limited to manufacturing sectors
• A. Som Vihar Apartment Owners' Housing Maintenance Society Ltd v. Workmen, 2009 SC
• B. Anand Vihar Apartment Owners' Society Ltd. V. Workmen, 2024 SC
• C. Kanchanjunga Building Employees Union v. Kanchanjunga Flat Owner's Society \ & Anr., 2024 SC
• D. Workmen represented by Secretary v. Reptakos Brett AIR 1992 SC 504
• A. The works committee is a body formed by the central government to address wage disputes between employer and employee in public sector industries.
• B. The works committee is a grievance redressal body constituted by the employer, primarily to promote measures for securing and preserving amity and good relations between the employer and employee.
• C. The Works Committee is responsible for making binding decisions on industrial disputes related to layoffs, retrenchment and closure of industrial units.
• D. The Works Committee is responsible for adjudicating major industrial disputes regarding wages, bonus or retrenchment.

Answer 1

The Correct Option is B

Step 1: Understanding the Question:
The question asks for the most important factor, according to the {Bangalore Water Supply} judgment, for determining if an activity is an "industry" under the Industrial Dispute Act, 1947.
Step 2: Detailed Explanation:
The landmark judgment in {Bangalore Water Supply v. A. Rajappa} laid down the "triple test" to define an industry. It is any systematic activity organized by cooperation between employer and employee for the production and/or distribution of goods and services calculated to satisfy human wants and wishes. The judgment explicitly stated that a profit motive is not essential.
When an organization has multiple and complex activities, the court introduced the "dominant nature" test.

(A) The profit-making motive of the employer: The court specifically rejected this as a necessary condition.

(B) its dominant function has to be considered: This accurately reflects the "dominant nature" test established in the judgment. The court held that one must determine the primary or dominant activity of the establishment. If this dominant activity falls within the definition of "industry," then the entire establishment is considered an industry, and its workers are entitled to the benefits under the Industrial Dispute Act, even if some ancillary functions are not commercial in nature. This option correctly captures this nuanced approach.

(C) The nature of the activity...: This is part of the test, but option (B) is more specific and comprehensive, especially regarding complex organizations.

(D) ...all the activities must be considered: This is incorrect. The dominant nature test implies that one primary activity is the deciding factor, not that all activities must be commercial.

Step 3: Final Answer:
The most important factor for an establishment with multiple activities is its dominant function, as correctly described in option (B).

Answer 2

Step 1: Understanding the Question:
The question asks about the overall effect or impact of the {Bangalore Water Supply} judgment on labour law in India.
Step 2: Detailed Explanation:
Prior to this judgment, the definition of "industry" was interpreted narrowly. The Supreme Court's decision in {Bangalore Water Supply v. A. Rajappa} significantly broadened the scope of the term "industry" as defined in the Industrial Dispute Act, 1947.
By doing so, it brought a vast number of establishments, which were previously considered outside the purview of the Act, under its ambit. This included hospitals, educational institutions, research institutes, charitable organizations, and government departments, as long as they satisfied the "triple test."
The direct consequence of this was that employees in these sectors could now avail the protections and dispute resolution mechanisms provided by the Industrial Dispute Act. Therefore, the judgment's impact was to extend labour protections to a much wider group of workers.
Step 3: Final Answer:
The judgment's broader impact was that it extended labour protections to a broader spectrum of workers.

Answer 3

Step 1: Understanding the Question:
The question asks for the best description of the term 'industry' as defined by the Supreme Court in the {Bangalore Water Supply} judgment.
Step 2: Detailed Explanation:
The core of the judgment was the formulation of a practical test to define 'industry'. This is famously known as the "triple test". According to this test, an 'industry' exists where there is:

Systematic activity,
Organized by co-operation between an employer and his employees,
For the production and/or distribution of goods and services calculated to satisfy human wants and wishes.
Let's evaluate the options against this test:


(A) Any activity involving profit-making: Incorrect. The judgment explicitly stated that the absence of a profit motive or a charitable nature does not take an enterprise out of the definition of 'industry'.

(B) Any systematic activity organized by cooperation between an employer and employees for producing or distributing goods and services: This option is a near-perfect summary of the "triple test" laid down by the court. It captures all the essential elements.

(C) Only activities conducted by private enterprises: Incorrect. The judgment expanded the definition to include government departments, statutory bodies, and other public sector undertakings.

(D) Activities limited to manufacturing sectors: Incorrect. The judgment's main impact was to move beyond the traditional understanding of industry as just manufacturing and to include service-oriented sectors.

Step 3: Final Answer:
The most accurate description of 'industry' from the judgment is provided in option (B).

Answer 4

Step 1: Understanding the Question:
The question asks to identify the Supreme Court judgment which established that a residential apartment owners' society, which employs staff for the personal service of its members (like cleaning, security), is not an "industry" under the Industrial Disputes Act, 1947.
Step 2: Detailed Explanation:
The definition of "industry" under the Industrial Disputes Act was expansively interpreted in the {Bangalore Water Supply} case. However, subsequent judgments have carved out exceptions.


(A) Som Vihar Apartment Owners' Housing Maintenance Society Ltd v. Workmen: This case (from 2002, not 2009) was one of the early landmark judgments that held that a residential society is not an industry as it does not carry on a trade or business and its services are for the members themselves.

(C) Kanchanjunga Building Employees Union v. Kanchanjunga Flat Owner's Society \ & Anr., 2024 SC: This is a very recent judgment where a larger bench of the Supreme Court has reaffirmed and clarified this position. The court held that cooperative societies and apartment owners' associations which are run for and by the members, and are not engaged in a commercial enterprise, do not fall within the definition of 'industry'. This recent pronouncement is a definitive authority on the subject.

The other options are not the primary judgments on this specific issue. Given the presence of a recent, authoritative 2024 ruling, it is the most precise answer.

Step 3: Final Answer:
While {Som Vihar} was an important earlier judgment, the recent 2024 judgment in {Kanchanjunga Building Employees Union} provides the current and authoritative stance of the Supreme Court, making it the best answer.

Answer 5

Step 1: Understanding the Question:
The question asks for the primary function of a "Works Committee" as established under the Industrial Dispute Act, 1947.
Step 2: Key Formula or Approach:
The role and function of the Works Committee are defined in Section 3 of the Industrial Dispute Act, 1947.
Step 3: Detailed Explanation:
According to Section 3 of the Act, in any industrial establishment with 100 or more workmen, the employer is required to constitute a Works Committee. The section explicitly states that "it shall be the duty of the Works Committee to promote measures for securing and preserving amity and good relations between the employer and workmen and, to that end, to comment upon matters of their common interest or concern and endeavour to compose any material difference of opinion in respect of such matters."


This description perfectly matches option (B).

The Works Committee is consultative and recommendatory in nature; it does not have powers of adjudication or making binding decisions on major industrial disputes like wages, layoffs, or retrenchment. Therefore, options (C) and (D) are incorrect.

It is constituted by the employer, not the central government, and its scope is not limited to public sector industries, making option (A) incorrect.

Step 4: Final Answer:
The function of the Works Committee is to act as a consultative body to foster good relations and resolve day-to-day differences, not to adjudicate major disputes.