
Justice B.V. Nagarathna. File
| Photograph Credit score: PTI
On the coronary heart of Justice B.V. Nagarathna’s 147-page poignant dissent is a stark foreboding that dismantling the expansive definition of ‘trade’ in a 1978 judgment could give free rein to the “skewed bargaining energy” that personal sector and corporates wield over employees.
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The dissent of Justice Nagarathna casts an apprehensive eye to the longer term, when industrial disputes below the brand new Industrial Relations Code 2020 (IRC) would attain courts.
Her dissent questions whether or not the nine-judge Bench’s majority decision to wipe the slate clean of the 1978 judgment (Bangalore Water Provide and Sewerage Board versus R. Rajappa) whereas deciding what ‘trade’ means below the IRC could unsheathe a “supercharged” model of the company bargaining energy.
Labour defend
Justice Nagarathna defined that the 1978 judgment was a baby of its instances, its pervasive definition of ‘trade’ serving as a “bulwark” in opposition to violation of labour rights for almost half-a-century throughout the shift to privatisation after Indian markets opened as much as liberalisation and globalisation. It additionally, considerably, ensured that the state didn’t wriggle out of its obligations to behave within the welfare of employees.
The lone girl decide on the nine-judge Bench disagreed with the bulk’s conclusion that the 1978 judgment wouldn’t act as a precedent in future interpretations of ‘trade’ below the IRC.
“In actual fact, the sooner case legislation on the corresponding provision is related and could also be extremely persuasive, even binding, if the statutory language is, after judicial willpower, discovered to be an identical,” Justice Nagarathna differed along with her colleagues.

The decide referred to an 1880 English case legislation (Greaves v. Tofield) to level out that when a brand new legislation of Parliament, on this case the IRC, replaces the previous legislation, the Industrial Disputes Act 1947, and each share the identical topic and goal, any “well-known” judicial pronouncements on the provisions of the repealed statute would mirror on the brand new one.
“Any pronouncement on the correctness or in any other case of the judgment of this court docket within the Bangalore Water Provide case would positively solid its shadow on the definition of ‘trade’ below Part 2(p) of the IRC,” Justice Nagarathna had cautioned, urging however failing to persuade the bulk on the Bench to drop the reference as ‘not maintainable’.
Revealed – August 22, 2026 09:41 pm IST