In a matter, Agra Municipal Corporation (AMC) dismissed two of its employees, Mr. Kuldeep Singh, a Head clerk and Mr. Ramnath, a Sanitary Inspector on charges for negligence, insubordination and indiscipline. The Municip

In terms of Section 2(j) of the Industrial Disputes Act, 1947, 'Industry' means any business, trade, undertaking, manufacture or calling of employers and includes any calling service, employment, handicraft, or industrial occupation or avocation of workmen. The Supreme Court carried out an in-depth study of the definition of the term industry in a comprehensive manner in the case of Bangalore Water Supply and Sewerage Board v. A Rajiappa, (AIR 1978 SC 548) after considering various previous judicial decisions on the subject and in the process, it rejected some of them, while evolving a new concept of the term 'industry'. The above decision of the Supreme Court has a wide sweep. The triple test along with dominant nature criteria will cover almost the entire labour force in the country. The charitable or missionary institutions, hospital, educational and other research institutions, municipal corporations, firms of chartered accountants, solicitors' firms, etc., which were not held to be 'industry' earlier will now are covered by the definition of 'industry'. Sovereign functions: Sovereign functions strictly understood alone qualify for exemption, not the welfare activities or economic adventures undertaken by Government or statutory bodies. Even in departments discharging sovereign functions, if there are units which are industries and they are substantially severable then they can be considered to come within Section 2(j). (Bangalore Water Supply case). If a department of a municipality discharged many functions, some pertaining to 'industry' and other non-industrial activities, the predominant function of the department shall be the criterion for the purposes of the Act (Corpn. of City of Nagpur v. Employees, AIR 1960 SC 675). Municipalities: Following departments of the municipality were held, to be 'industry': (i) Tax (ii) Public Conveyance (iii) Fire Brigade (iv) Lighting (v) Water Works (vi) City Engineers (vii) Enforcement (Encroachment) (viii) Sewerage (ix) Health (x) Market (xi) Public Gardens (xii) Education (xiii) Printing Press (xiv) Building and (xv) General administration. If a department of a municipality discharges many functions some pertaining to industry and others non-industrial, the predominant function of the department shall be the criterion for the purpose of the Act. As per Section 2(k) 'Industrial Dispute' means any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person. Hence, as per the definition of 'Industry' and 'Industrial Disputes', the Agra Municipal Corporation has been considered as Industry and there is an Industrial Dispute between the employer and workman regarding the dismissal of employees. The dispute is connected with the employment of persons and therefore qualifies as an industrial dispute.