On Thursday, the Supreme Court is set to hear four important nine-judge bench matters.
It pertains to the definition of ‘industry' in the Industrial Disputes Act, the division of centre and state powers with regards to regulating industries, whether royalty can be construed as tax, and the distribution of resources for the good of the community under Article 39(b) of the Constitution.
Here are the four matters to be heard:
1) Definition Of ‘Industry' In Industrial Disputes Act
The definition of 'Industry', according to Section 2(j) of the Industrial Disputes Act, is: 'Any business, trade, undertaking, manufacturing, or calling of employees and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen.'
In this matter, it was to be decided if this definition covered the social forestry department of the state. The problem started when two different groups of judges in the court disagreed about whether the "Social Forestry Department" fell under the definition of "industry", according to the Bangalore Water Supply and Sewerage Board vs. A Rajappa case.
One group of judges said it did, and the other said it didn't. In 2017, the Supreme Court formed a nine-judge bench to resolve this disagreement.
2) Division Of Central And State Powers With Regards To Regulating Industries
Section 18G of the Industries Act talks about the power to control the supply, distribution, price, etc., of certain articles. While the provision states that the central government will make sure certain important products are distributed fairly and are available at reasonable prices, the 33rd entry of the concurrent list gives this power to the state government.
The entry includes trade and commerce; the production, supply and distribution of domestic and imported products of industry; foodstuffs, including oilseeds and oils; cattle fodder; raw cotton; and jute.
To clarify which has more power over the other, the matter was referred to a nine-judge bench.
3) If Royalty Can Be Construed As Tax
This case dates back to 2011 and relates to a challenge to the Bihar Coal Mining Area Developmental Authority Act. While previously, a set of 11 key issues were raised to be presented before a nine-judge bench, the most important of them all was whether royalty can be construed as tax.
It is pertinent to note that two similar cases, namely State of West Bengal vs. Kesoram Industries and India Cement Ltd. vs. State of Tamil Nadu, were decided by a five- and a seven-judge bench, respectively. That is why this matter was referred to a nine-judge bench directly.
4) Distribution Of Resources For The Good Of The Community Under Article 39(b) Of Constitution
This is one of the oldest matters on this list, dating back to 1992. The case deals with whether a law passed in 1986 to acquire certain properties is constitutional. The law requires the government to pay 100 times the monthly rent for the properties it acquires. The law was passed to implement Article 39(b) of the Constitution, which states that the government should ensure that citizens have access to adequate housing.
The case then trickled down from a three-judge bench to a five-judge bench and then to a seven-judge bench, and finally, in 2002, it was referred to a nine-judge bench.
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