Attorney General Argues Sovereign Functions Should Not Be Classified as Industry
In a significant legal development, Attorney General R Venkataramani presented arguments before a nine-judge Supreme Court bench on Tuesday. He contended that the government's sovereign functions, fulfillment of constitutional obligations, and implementation of social welfare schemes cannot be encompassed within the broad definition of 'industry' established nearly five decades ago by a seven-judge Supreme Court bench.
Key Arguments Presented in Court
Venkataramani, addressing the bench led by Chief Justice Surya Kant, emphasized that on numerous occasions, the government undertakes activities in exercise of its sovereign functions. These include matters related to defence, economic policies, and statutory duties such as constructing roads, railway tracks, and establishing essential institutions like hospitals, schools, colleges, and universities.
"An approach that mechanically attempts to sever the 'industrial' element of a governmental activity from its broader sovereign or welfare objective risks producing results that may also be both doctrinally unsound and practically unworkable," the Attorney General stated, highlighting the complexities involved in categorizing such multifaceted governmental roles.
Support from State Representatives
Additional Solicitor General K M Nataraj, representing the state of Uttar Pradesh, and senior advocate Shekhar Naphade, appearing for Maharashtra, echoed similar sentiments. They argued that if a government activity is not fundamentally rooted in commerce or does not involve 'profit earning', it should not be classified as an industry. This perspective underscores the distinction between governmental duties aimed at public welfare and commercial enterprises driven by financial gains.
The bench is currently examining whether the expansive interpretation of 'industry' should apply to sovereign and welfare-oriented functions, a question that could have far-reaching implications for labor laws and government operations across the country.
