Bombay High Court
SARPANCH, GRAMPANCHAYAT, NANJA KSHIRSAGAR, TAL. BHOKARDAN, DIST.JALNAversusGANPAT RAMKISAN KANADJE
- Disposal
- DISPOSED OFF
Holding
A Grampanchayat is an "industry" within the meaning of Section 2(j) of the Industrial Disputes Act, 1947, and is liable as an employer.
Summary
The petitioner, a Grampanchayat, challenged a Labour Court order that directed it to pay arrears of wages and leave‑encashment to a former employee who claimed to have worked from 2001 to 2012 regulating village water supply. The petitioner argued that a Grampanchayat is not an "industry" within Section 2(j) of the Industrial Disputes Act, 1947, and thus the Act should not apply. The Court examined the Supreme Court’s "triple test" from Bangalore Water Supply & Sewerage Board v. R. Rajappa, which defines an industry as systematic activity organized by employer‑employee cooperation for producing or distributing goods or services. Applying this test, the Court held that civic activities of a local self‑governing body, such as water supply, fall within the definition of industry, making the Grampanchayat an employer under the Act. The petitioner’s counsel conceded this position, and the Court found no jurisdictional error in the Labour Court’s decision. Consequently, the petition was dismissed and any interim relief vacated.
Issues considered
- Whether a Grampanchayat qualifies as an "industry" under Section 2(j) of the Industrial Disputes Act, 1947
Legislation cited
- Industrial Disputes Act, 1947 — s. 2(j), 33(C)(2)
Subjects
- Industrial Disputes Act
- definition of industry
- Grampanchayat
- local self‑government
- wage arrears
- triple test
- labour law
Judgment
2026:BHC-AUG:38790
Writ Petition No.6115/2014
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IN THE HIGH COURT OF JUDICATURE OF BOMBAY
BENCH AT AURANGABAD
WRIT PETITION NO.6115 OF 2014
Sarpanch, Grampanchayat, Nanja Kshirsagar … PETITIONER
VERSUS
Ganpat s/o Ramkisan Kanadje … RESPONDENT
.......
Mr. S.B. Kadu, Advocate for petitioner
Mr. Sanket S. Kulkarni, Advocate for respondent
....…
CORAM : SACHIN S. DESHMUKH, J.
DATE : 18th AUGUST, 2026
PER COURT :
1. The Petitioner has challenged the Judgment and Order dated
30.11.2013 rendered by the learned Jude, Labour Court, Jalna, in
Application (IDA) No.01/2013, partly allowing the application presented
by the Respondent-employee under Section 33(C)(2) of the Industrial
Disputes Act, 1947 and directed the Petitioner to pay arrears of wages and
leave encashment benefits.
2. The Respondent-employee was engaged by the Group
Writ Petition No.6115/2014
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Grampanchayat, Nanja-Kshirsagar to perform the work of regulating and
releasing water supply to the village. The respondent claimed to have
worked continuously from 01.08.2001 to 14.08.2012. Due to non-payment
of minimum wages and statutory leave encashment benefits during the
period, the Respondent presented Application before the Labour Court.
3. The Petitioner resisted the claim before the Labour Court by
presenting a written statement denying the relationship and that the
Grampanchayat is situated in a remote interior area with no source of
income. The objection raised by the Petitioner was that a Grampanchayat
is not an "industry" within the definition of Section 2(j) of the Industrial
Disputes Act, 1947, and therefore, the provisions of the Act are
inapplicable.
4. The only issue falls for determination is whether a local self-
governing body like a Grampanchayat falls outside the scope of Section
2(j) of the Industrial Disputes Act, 1947. The issue is no longer res integra
in the wake of authoritative pronouncement of the Hon’ble Apex Court in
the case of Bangalore Water Supply & Sewerage Board vs. R. Rajappa
& Others [ AIR 1978 SC 548 ]. The law on what constitutes an
"industry" has been authoritatively settled by the Constitution Bench of
the Hon’ble Supreme Court in the case of Bangalore Water Supply &
Writ Petition No.6115/2014
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Sewerage Board (supra).
5. The Hon’ble Apex Court laid down the "Triple Test" to
identify an industry: (i) systematic activity, (ii) organized by co-operation
between employer and employee, (iii) for the production and/or
distribution of goods and services calculated to satisfy human wants and
wishes. The Apex Court held that local bodies, municipal corporations,
and statutory boards performing civic amenities (such as water supply,
sanitation, and maintenance) are covered under the wide sweep of Section
2(j). Consequently, the welfare, administrative, and civic activities of a
Gramanchayat, including supplying water to villagers, satisfy the
requirements of an industry.
6. When confronted with the settled legal position, the learned
counsel appearing for the Petitioner fairly concedes and confirms the
same.
7. In view of the law laid down by the Hon'ble Apex Court and
the fair concession made by the learned counsel for the Petitioner, nothing
survives in this petition. The findings of the learned Judge, Labour Court,
holding the Grampanchayat liable as an employer, after assessing the
material on record, the Tribunal has endorsed the entitlement of employee.
Writ Petition No.6115/2014
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The impugned order does not suffer from any jurisdictional error or patent
illegality. As such, in absence of demonstrable perversity, no interference
is warranted.
8. The petition sans merits and the same is dismissed. Interim
relief, if any, stands vacated. No order as to costs.
(SACHIN S. DESHMUKH, J.)
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