Polity · 22 Aug 2026

Industrial Relations Code industry definition

Assertion (A): The Supreme Court held that all industrial disputes pending under the Industrial Disputes Act, 1947, including those not yet decided, will continue to be adjudicated using the 1978 "triple test" laid down in Bangalore Water Supply and Sewerage Board v. A. Rajappa.
Reason (R): The nine-judge Constitution Bench held that the 1978 "triple test" is legally unsound and must be discarded in its entirety.
Which one of the following is correct in respect of the above statements?

ABoth A and R are true and R is the correct explanation of A
BBoth A and R are true, but R is not the correct explanation of A
CA is true, but R is false
DA is false, but R is true
This question is based on: The Court Praised a 1978 Judgment, Then Set It Aside Anyway
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About this question

Why in news

A 9-judge Constitution Bench ruled 5-4 that the 1978 definition of "industry" from Bangalore Water Supply will not automatically govern interpretation of the Industrial Relations Code, 2020, while leaving all pending 1947 Act cases undisturbed.

Why for UPSC

UPSC often uses assertion-reasoning to test whether a "correct outcome" is being attributed to the right "correct reasoning" - a distinction this ruling makes especially sharp since the Court upheld the old test's soundness while still limiting its reach.

Prelims summary

A new statute using language identical to an older one does not automatically inherit the older statute's judicial interpretation; courts can distinguish precedent from the law it interpreted without declaring that precedent wrong and pending cases remain governed by settled law.

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