All India Radio v. Santosh Kumar, (1998) 3 SCC 237

ALL INDIA RADIO V. SANTOSH KUMAR

Whether the Appellants are “industries” as defined under Section 2(j) of the Industrial Disputes Act 1947(“the Act”)?
Whether the Appellants discharge sovereign functions?

All activities of an employer, except those strictly related to sovereign functions, are considered to fall within the definition of “industry” under Section 2(j) of the Industrial Disputes Act, 1947.
If an organization, even if run by the government, engages in commercial activities or generates revenue through services like advertisements, it is classified as an industry under the Act.

The Respondents (clerks/watchmen) employed at the Appellant (All India Radio) office, set forth and challenged orders of termination and non-regularization before the authorities constituted under the Act.
The Respondent’s terminations were set aside, and they were granted regularization, and the Appellants filed writ petitions against the same in the High Court, which were duly dismissed, and the Appellants then set forth the appeals before the Supreme Court.

The Appellants would come under Section 2(j) and be considered “industries,” and held that the functions discharged by the Appellants could not be considered sovereign state functions since they were carrying out commercial activities and gaining profit through their business.
The Supreme Court held that the termination orders were violative of Section 25-F of the Act.
The reinstatement will be on the same post in which the respondents were working prior to the impugned termination orders.

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