Test for determining whether an establishment is Industrial or not

Test for determining whether an establishment is Industrial or not within section 25L of Industrial Disputes Act, 1947

The hon’ble supreme court has reiterated that test for determining whether an establishment is Industrial or not within section 25L of Industrial Disputes Act, 1947 is what are the predominant functions and activities of the said Department.  Overall the activities and functions of the Department will have to be considered while deciding the question of whether it is carrying on manufacturing activities.

Ref: CIVIL APPEAL NO. 6093 OF 2021: THE STATE OF MADHYA PRADESH & ORS. V. SOMDUTT SHARMA. Judgment date 29.09.2021

Author

  • Prashant Kanha

    Advocate-on-Record at the Supreme Court of India with 14 years’ experience in civil, criminal, commercial and procedural matters. Partner at Redlaw Legal Services and author of legal analyses and commentary.

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