Research institutes engaged solely in academic and scientific activities, devoid of commercial character, not an 'industry'

Allahabad High Court Rules Research Institutes Not 'Industries' Under Industrial Disputes Act. CIMAP, a CSIR Constituent, Declared Non-Industrial; Jurisdiction Lies with Administrative Tribunals

In a significant ruling, the Allahabad High Court, Lucknow Bench, has determined that research institutes like the Central Institute of Medicinal and Aromatic Plants (CIMAP) do not qualify as 'industries' under the Industrial Disputes Act, 1947. The decision, delivered by Justice Irshad Ali, clarified that CIMAP, being a research organization under the Council of Scientific and Industrial Research (CSIR), functions solely for scientific and academic purposes devoid of any commercial or economic character.

The judgment stemmed from a series of writ petitions challenging a 2005 award by the Central Government Industrial Tribunal-cum-Labour Court, Kanpur, which had categorized CIMAP as an 'industry'. The High Court's verdict overturned this classification, aligning with the Supreme Court's precedent in Physical Research Laboratory v. K.G. Sharma, which similarly excluded non-commercial research entities from the 'industry' definition.

The court emphasized that CIMAP's primary objective is scientific research for public welfare and national interest, not trade or commerce. Consequently, disputes involving its employees fall under the jurisdiction of administrative tribunals, governed by the Administrative Tribunals Act, 1985, and not the Industrial Disputes Act.

The ruling has broader implications for other CSIR institutes, reinforcing their status as non-industrial entities, thereby directing service-related disputes to administrative tribunals. The decision underscores the distinct legal framework applicable to research institutions, distinguishing them from commercial enterprises.

Bottom Line:

Research institutes engaged solely in academic and scientific activities, devoid of commercial or economic character, do not qualify as 'industry' under the Industrial Disputes Act, 1947.

Statutory provisions: Industrial Disputes Act, 1947 Section 2(j), Administrative Tribunals Act, 1985

Central Institute of Medicinal and Aromatic Plants v. Sri Rishi Dev Mishra, (Allahabad)(Lucknow) : Law Finder Doc Id # 2817053