Whether an Educational Institution is an "Industry"

The legal status of educational institutions has evolved through landmark judicial interpretations:
  • Historical View: In the University of Delhi v. Ram Nath case, the Supreme Court initially held that educational institutions were not industries because their primary objective was not commercial.

  • The Turning Point: In the landmark case of Bangalore Water Supply & Sewerage Board v. A. Rajappa (1978), the Supreme Court established the "Triple Test." It ruled that if an institution (including a university or school) involves:

    1. Systematic activity,

    2. Cooperation between employer and employee,

    3. Production/distribution of goods and services to satisfy human wants, ...then it is an Industry.

  • Current Status: Educational institutions are considered industries under this test, although "teachers" themselves are generally excluded from the definition of "workman" (though non-teaching staff are included).

No comments:

Post a Comment