Industry - Definition - Law Dictionary Home Dictionary Definition industry

Definition :

Industry, 'Industrial dispute' and 'workman' taken in the extended significance, or exclude it. Though the word 'undertaking' in definition of industry is wedged in between business and trade on the one hand and manufacture on the other, and though therefore it might mean only a business or trade undertaking, still it must be remembered that if that were so, there was no need to use the word separately from business or trade. The wider import is attracted even more clearly when we look at the latter part of the definition which refers to 'calling, service, employment, or industrial occupation of, avocation of workman. 'Undertak-ing' in the first part of the definition and 'industrial occupation or avocation in the second part obviously mean much more than what is ordinarily understood by trade or business. The definition was apparently intended to include within scope what might not strictly be called a trade or business venture, Bangalore Water Supply and Sewerage Board v. A. Rajappa, AIR 1978 SC 548: (1978) 36 FLR 266: (1978) 1 LLJ 349 SC: (1978) 11 LLJ 73 SC: (1978) 2 SCC 213: (1978) 3 SCR 207.

Means (1) Diligence in the performance of task (2) Systematic labour for some useful purpose esp., work in manufacturing or production (3) A particular form or branch of productive labour; an aggregate of enterprises employing similar production and marketing facilities to produce items having markedly similar characteristics, Black's Law Dictionary, 7th Edn., p. 779.

The word industry is not to be read in isolation. It must be read in the context of the phrase which it define, realizing that the function of a definition is to give precision and certainty to a word or phrase which would otherwise wague and uncertain, but not contradict or supplant it altogether, B.N. Banerji v. R.P. Mukherjee, (1954) SCR 302.

Means any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen. [Industrial Disputes Act, 1947, s. 2 (j)]

Means any industry or business in which any trade, occupation or subject field in engineering or technology [or any vocational course] may be specified as a designated trade. [Apprentices Act, 1961 (52 of 1961), s. 2 (k)]

Means any industry specified in Schedule I, and includes any other industry added to the Schedule by notification under s. 4. [Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), s. 2 (i)]

The Ahmedabad Textile Industries Research Association carries on an activity which clearly comes within the definition of the word 'industry' in

s. 2(j) and which cannot be assimilated to a purely educational institution and hence when a dispute arises between it and some of its employee, it is an industrial dispute which could be properly referred for adjudication under the Act. Ahmedabad Textile Industry's Research Association v. State of Bombay, AIR 1961 SC 484: (1961) 2 SCR 480.

The word 'industry' in this definition mustake its colour from the definition and discloses that a workman is to be regarded as one employed in an industry if he is following one of the vocations mentioned in conjunction with his employers engaged in the vocations mentioned in relation to the employers. An industry is to be found when the employers are carrying on any business, trade, undertaking, manufacture or calling of employers. If they are not, there is not industry as such, Management of Safdarjung Hospital v. Kuldip Singh Sethi, AIR 1970 SC 1407: (1970) 1 SCC 735: (1971) 1 SCR 177.

The linch-pin of the definition of industry is to ascertain the systematic activity which the organisation is discharging namely whether it par takes the nature of a business or trade, or is an undertaking or manufacture or calling of employers. If it is that and there is co-operation of the employer and the employee resulting in the production of material services, it is an industry notwithstanding that is objects are charitable or that it does not make profit or even where profits are made, they are not distributed among the members, Management of the Federation of Indian Chamber of Commerce and Industry v. Their Workman, Shri R.K. Mittal, AIR 1972 SC 763: (1972) 1 SCC 40: (1972) 2 SCR 353.

The word 'industry' is defined in s. 2(j) of the Industrial Dispute Act, 1947 and that section reads: 'Industry' means any business, trade, undertaking, manufacture or calling of employers, and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen; This definition is in two parts. The first part says that it means any business, trade, undertaking, manufacture or calling of employers and then it goes on to say in the second part that it includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen. 'Industry is ordinarily something employers create or undertake' is gradually yielding place to the modern concept which regards industry as a joint venture undertaken by employers and workmen - an enterprise which belongs equally to both. an activity can be regarded as an 'industry' within the meaning of s. 2(j) only if there is relationship of em-ployer and employees and the former is engaged in 'business, trade, undertaking, manufacture or calling of employers' and the latter, 'in any calling, service, employment, handicraft or industrial occupation or avocation'. Though 'undertaking' is a word of large import and it means anything undertaken or any project or enterprise, in the context in which it occurs, it must be read as meaning an undertaking analogous to trade or business. In order that an activity may be regarded as an undertaking analogous to trade or business, it must be 'organised or arranged in a manner in which trade or business is generally organised or arranged.' It must not be casual nor must it be for oneself nor for pleasure. And it must first on cooperation between employer and employees who associate together with a view to production, sale or distribution of material goods or material services. It is entirely irrelevant whether or not there is profit motive or investment of capital in such activity, Workmen of Indian Standards Institu-tion v. Management of Indian Standards Institution, AIR 1976 SC 145: (1975) 2 SCC 847: (1976) 2 SCR 138.

The definition of the word 'industry' in clause (b) of the Explanation to that section is undoubtedly unduly wide since it includes 'any business, profession, trade, undertaking or manufacture', Maharao Saheb Shribhim Singhji v. Union of India, AIR 1981 SC 234: (1981) 1 SCC 166.

Industry' means: (a) any business, trade, manu-facture, undertaking or calling of employers; (b) any calling, service, employment, handicraft or industrial occupation or a vocation of employees; and includes: (i) agriculture and agricultural operations; (ii) any branch of any industry or group of industries which the State Government may, by notification, declare to be an industry for the purpose of this Act. The M.P. Khadi and Village Industries Board is an 'industry' within the meaning of s. 2(19) of the M.P. Industrial, Relations Act, 1960. One of the functions of the Board is to support, encourage, assist and carry on khadi and village industries and in the matter incidental to such trade or business, Gopal v. Administrative Officer, AIR 1986 SC 504: (1985) 4 SCC 138: (1985) Supp 2 SCR 641.

When personal services are rendered to the members of a society and that society is constituted only for the purposes of those members to engage the services of such employees, its activity cannot be treated as an industry nor are they workmen, MGT of Som Vihar Apt Owners Housing Maintenance Society Ltd. v. Workmen, (2002) 9 SCC 652: AIR 2002 SC 2530 (2531). [Industrial Disputes Act, (14 of 1947), s. 2(j)]