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        Case ID :

        1962 (2) TMI 96 - SC - Indian Laws

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        Industrial Disputes Act coverage excluded for solicitors' firms where staff assistance is only incidental to professional legal service. A solicitors' firm carrying on the work of attorneys was held not to be an 'industry' under section 2(j) of the Industrial Disputes Act, 1947. The Court ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Industrial Disputes Act coverage excluded for solicitors' firms where staff assistance is only incidental to professional legal service.

                            A solicitors' firm carrying on the work of attorneys was held not to be an "industry" under section 2(j) of the Industrial Disputes Act, 1947. The Court applied the test that an industry requires systematic organisation for producing goods or rendering material services, with the direct and essential co-operation of employer and employees in that result. A solicitor's professional work was treated as an individual liberal profession based on skill, knowledge and judgment, while the assistance of clerks, typists, accountants and other staff was only incidental and supportive. On that basis, the industrial reference was incompetent and the decision went against the appellants.




                            Issues: Whether a solicitors' firm carrying on the work of attorneys constitutes an "industry" within the meaning of section 2(j) of the Industrial Disputes Act, 1947.

                            Analysis: The definition of "industry" in section 2(j) is of wide import, but its scope cannot extend to every activity in which employer and employee cooperate. The relevant test is whether the enterprise is systematically organised for the production of goods or the rendering of material services to the community, and whether the co-operation of employer and employees is direct and essential to that result. In a solicitors' office, the professional service rendered by the solicitor is essentially individual and depends upon professional skill, knowledge and judgment. The work of clerks, typists, accountants and menial staff is only incidental and supportive, and has no direct or essential nexus with the professional advice ultimately given to clients. Such ancillary assistance does not satisfy the statutory test of industrial co-operation. A liberal profession of this kind is also structurally distinct from enterprises based on capital-labour combination for production or service.

                            Conclusion: A solicitors' firm is not an "industry" under section 2(j) of the Industrial Disputes Act, 1947, and the industrial reference was incompetent; the decision was against the appellants.

                            Ratio Decidendi: An enterprise is an "industry" only where the co-operation of employer and employees is directly and essentially involved in the production of goods or the rendering of material services; incidental or auxiliary assistance to a liberal profession does not bring it within section 2(j).


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