3 min readNew DelhiMar 18, 2026 04:10 AM ISTThe hearing will continue on Wednesday.The Supreme Court on Tuesday asked what should be the scope and relevance of the definition of “industry” adopted by it during the socialist phase in 1978 in ‘Bangalore Water Supply & Sewerage Board v R Rajappa’ case after the economic reforms of 1991.Justice B V Nagarathna, who was part of a nine-judge Constitution Bench revisiting the seven-judge decision that dealt with the definition of industry in the Industrial Disputes Act-1947, said the ruling “came in the 1970s. We have the reforms of 1991, which focussed on liberalisation, privatisation and globalisation. Now, if there is going to be more focus on privatisation and liberalisation, many of the functions which the state was doing would be performed by the private sector. Then what should be the scope of the definition of industry?”She added: “Should it still be very expansive, or should it be restricted, or a balance has to be struck? I think that is one of the angles of this case, since that judgment was delivered almost half a century ago. Now, we are in 2026 and we have had many years of liberalisation … I say … liberalisation, privatisation, globalisation…”The bench presided by Chief Justice of India Surya Kant also comprises Justices P S Narasimha, Dipankar Datta, Ujjal Bhuyan, Satish Chandra Sharma, Joymalya Bagchi, Alok Aradhe and Vipul M Pancholi.Attorney General R Venkataramani said there is need for caution in applying the triple test to identify what may constitute industry, lest it lead to an over expansive definition.“…Caution must also be exercised while applying this test and principles, as not everything that answers the triple test ought to be considered as industry,” the AG said. He said that there may be other factors which may have to be taken into account “so that there is no overboard and indiscriminate application of the triple test principle”.The top law officer said that modern governance cannot be confined to traditional sovereign functions such as defence and maintenance of public order. “Today, a welfare state undertakes several constitutionally mandated activities in furtherance of public welfare … They cannot be prima facie presumed to possess the elements of trade or commerce and therefore the simpliciter application of the triple test could be open to question,” the AG submitted.Story continues below this adHe added that “in the context of changing economic situations in the country and globally, what the government in the 1960s or 70s thought occupies industrial space by nationalisation” may not be the case anymore.The hearing will continue on Wednesday. © The Indian Express Pvt LtdTags:supreme court