Do research centers fall within the definition of Industry?

This is an appeal made before the Supreme Court of India challenging the dismissal of reinstatement of an employee (driver) by the High Court.

The brief facts of the case are this:

A driver who served as a workman on daily wages for a period of three years was terminated by AIIMS. Aggrieved by this, the driver approached the Industrial Tribunal. The Tribunal passed an order favoring the workman directing the AIIMS for reinstatement.

Aggrieved by this order of the Tribunal, the AIIMA appealed before the High Court. The High Court, after going through the facts of this case and relaying on the decision of the Constitutional Bench of the Apex Court in BWSSB vs A Rajappa & Others and other similar citations- to the effect that hospitals, research institutes and training centers render valuable material services to the community qualifying for coming within the purview of section 2 (j) of the Industrial Disputes Act, 1947 affirmed the award.

Section 2 (j) defines ‘INDUSTRY’ and the Apex Court had already held that institutions, establishments like hospitals, research centers, training centers fall under the definition of industry. This means that, all these kinds of institutions/ establishments have to comply with applicable industrial and labour laws.

Accordingly, the Apex Court, in the present case of the workman(driver) stated that there is no necessity for the SC to involve since the as per the decision of the Constitutional Bench and hence there is no merit in the appeal.

2016-III-LLJ-1 (SC) LNINDORD 2016 SC 7216-AIIMS vs Raj  Singh.

The author can also be reached at drgubbilegal@gmail.com