Writ Petition No. 6115 of 2014 · Bombay High Court

Writ Petition No.6115/2014:: 1 ::IN THE HIGH COURT OF JUDICATURE OF BOMBAYBENCH AT AURANGABADWRIT PETITION NO.6115 OF 2014 Sarpanch, Grampanchayat, Nanja Kshirsagar… PETITIONERVERSUSGanpat s/o Ramkisan Kanadje… RESPONDENT.......Mr. S.B. Kadu, Advocate for petitionerMr. Sanket S. Kulkarni, Advocate for respondent....… CORAM : SACHIN S. DESHMUKH, J.DATE : 18th AUGUST, 2026PER COURT :

The Petitioner has challenged the Judgment and Order dated30.11.2013 rendered by the learned Jude, Labour Court, Jalna, in Application (IDA) No.01/2013, partly allowing the application presented by the Respondent-employee under Section 33(C)(2) of the IndustrialDisputes Act, 1947 and directed the Petitioner to pay arrears of wages and leave encashment benefits.

The Respondent-employee was engaged by the Group Writ Petition No.6115/2014:: 2 ::Grampanchayat, Nanja-Kshirsagar to perform the work of regulating and releasing water supply to the village. The respondent claimed to have worked continuously from 01.08.2001 to 14.08.2012. Due to non-paymentof minimum wages and statutory leave encashment benefits during the period, the Respondent presented Application before the Labour Court.

The Petitioner resisted the claim before the Labour Court by presenting a written statement denying the relationship and that the Grampanchayat is situated in a remote interior area with no source of income. The objection raised by the Petitioner was that a Grampanchayatis not an "industry" within the definition of Section 2(j) of the IndustrialDisputes Act, 1947, and therefore, the provisions of the Act are inapplicable.

The only issue falls for determination is whether a local self-governing body like a Grampanchayat falls outside the scope of Section2(j) of the Industrial Disputes Act, 1947. The issue is no longer res integrain the wake of authoritative pronouncement of the Hon’ble Apex Court in the case of Bangalore Water Supply & Sewerage Board vs. R. Rajappa& Others [ AIR 1978 SC 548 ]. The law on what constitutes an"industry" has been authoritatively settled by the Constitution Bench of the Hon’ble Supreme Court in the case of Bangalore Water Supply & Writ Petition No.6115/2014:: 3 ::Sewerage Board (supra).

The Hon’ble Apex Court laid down the "Triple Test" to identify an industry: (i) systematic activity, (ii) organized by co-operationbetween employer and employee, (iii) for the production and/ordistribution of goods and services calculated to satisfy human wants and wishes. The Apex Court held that local bodies, municipal corporations, and statutory boards performing civic amenities (such as water supply, sanitation, and maintenance) are covered under the wide sweep of Section2(j). Consequently, the welfare, administrative, and civic activities of aGramanchayat, including supplying water to villagers, satisfy the requirements of an industry.

When confronted with the settled legal position, the learned counsel appearing for the Petitioner fairly concedes and confirms the same.

In view of the law laid down by the Hon'ble Apex Court and the fair concession made by the learned counsel for the Petitioner, nothing survives in this petition. The findings of the learned Judge, Labour Court, holding the Grampanchayat liable as an employer, after assessing the material on record, the Tribunal has endorsed the entitlement of employee. Writ Petition No.6115/2014:: 4 ::The impugned order does not suffer from any jurisdictional error or patent illegality. As such, in absence of demonstrable perversity, no interference is warranted.

The petition sans merits and the same is dismissed. Interimrelief, if any, stands vacated. No order as to costs. (SACHIN S. DESHMUKH, J.)fmp/-