ISSUE:
- Whether a statutory body engaged in activities essential for the provision of basic amenities to citizens can be classified as an “industry” under the definition in Section 2(j) of the Industrial Disputes Act 1947?
RULE:
- Dominant nature test, which applies when an entity performs both industrial and non-industrial functions. The dominant or predominant nature of the entity’s activities determines whether the organization qualifies as an industry. Only strictly sovereign functions, such as defense and law enforcement, are excluded from the definition of “industry.”