Jammu and Kashmir High Court in Ashok Kumar vs. Union of India through Secretary to Govt Industries Department, while referencing the landmark case Bangalore Water Supply Board v. R. Rajappa case [(1978) 2 SCC 213], reaffirmed the ‘triple test’ to determine if an organization qualifies as an ‘industry’. This test includes (i) systematic activity, (ii) cooperation between employer and employee, and (iii) production or distribution of goods/services to fulfill human needs. The court further emphasized that a direct or indirect nexus between employee services and organizational activities is essential to classify an organization as an ‘industry’ under Section 2(j) of the Industrial Disputes Act, 1947. The court also clarified that duties performed by an individual who does not contribute to the organization’s intended services do not categorize the organization as an ‘industry’.
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