State of Bombay v. Hospital Mazdoor Sabha

Facts

• Workers (Group D employees) of a government-run hospital in Bombay raised an industrial dispute
• The State of Bombay contended that a hospital is NOT an "industry" because: (a) its purpose is charitable/humanitarian; (b) it is run by government, not for profit; (c) it renders medical service, not "trade or business"
• Workers argued the hospital employs workers in organized activity and the employer-employee relationship exists regardless of charitable purpose

Issue

1. Whether a hospital run by the government constitutes an "industry" under S.2(j) of the Industrial Disputes Act, 1947.

Held

• A government hospital IS an industry
• Where there is systematic activity organized through employer-employee cooperation, and the activity produces services for the community, it is an "industry" regardless of charitable or governmental nature
• The absence of profit motive does not exclude an establishment from being an "industry"
• Hospital employees can raise industrial disputes and access the dispute resolution machinery

Ratio Decidendi

The definition of "industry" must be construed broadly. It includes any activity where a class of employers cooperates with a class of employees to produce goods or render services. The character of the employer (government, charity, trust) and the motive (profit, service, philanthropy) are irrelevant. What matters is the organized activity and the employer-employee relationship.