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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

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
                                             :: 1 ::




                     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
                                   :: 3 ::


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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