What was the key legal issue?

Whether All India Radio and Doordarshan are “industries” under Section 2(j) of the Industrial Disputes Act, 1947 or whether they discharge sovereign functions.

Which test guided the decision?

The Bangalore Water Supply test: except for strictly sovereign functions, organised activities of employers are treated as “industry” under the ID Act.

Why were AIR and DD treated as industries?

Because they broadcast paid advertisements and offer organised services; these are commercial, non-sovereign activities.

What was held on termination?

Terminations violated Section 25-F of the ID Act. Reinstatement with benefits, as ordered by tribunals, was upheld.

What about conflicting precedents?

Reliance on Bombay Telephone Canteen Employees’ Association was rejected; it stood overruled by General Manager, Telecom v. A. Srinivasa Rao.

All India Radio v. Santosh Kumar

Quick Summary

The Supreme Court decided whether All India Radio (AIR) and Doordarshan (DD) are “industries” under the Industrial Disputes Act, 1947. The Court said yes. Their activities—like broadcasting paid ads and running organised services—are commercial, not sovereign. Terminations without complying with Section 25-F were illegal. Reinstatement with benefits followed.

Hero image for All India Radio v. Santosh Kumar case explainer

Issues

Are AIR and DD “industries” under Section 2(j) of the Industrial Disputes Act, 1947?
Do AIR and DD perform sovereign functions that would exclude them from the Act?

Rules

Under the Bangalore Water Supply test, all employer activities are “industry” except strictly sovereign functions. If a government body runs organised, revenue-linked or service activities (like paid advertisements), it is an “industry” under Section 2(j). Compliance with Chapter V-A (e.g., Section 25-F) is then mandatory.

Facts — Timeline

Employment: Respondents worked in AIR/DD as clerks, linemen, watchmen, and casual workers across centres.

Disputes: Terminations and non-regularisation were challenged before Industrial Tribunals.

Tribunals: Found terminations illegal; ordered reinstatement/regularisation.

High Courts: Writ petitions by AIR/DD were dismissed; tribunal awards upheld.

Supreme Court: Appeals argued AIR/DD perform sovereign functions and are outside the ID Act.

Case timeline for All India Radio v. Santosh Kumar

Arguments

Employees (Respondents)

AIR/DD run organised services and sell ad time; these are non-sovereign, commercial activities.
As “industry,” they must follow Section 25-F before retrenchment.
Tribunal orders of reinstatement were correct.

AIR & Doordarshan (Appellants)

Broadcasting serves the State’s information duty; activities are sovereign.
Relied on earlier rulings excluding certain govt units from “industry”.
Challenged tribunal directions on reinstatement/benefits.

Judgment

The Supreme Court held that AIR and DD are “industries.” Their work includes commercial elements like paid advertisements and organised service delivery. Sovereign-function immunity did not apply. Terminations violated Section 25-F. Appeals were dismissed, and reinstatement with consequential benefits was directed within a short timeline.

Ratio

Industry—broad coverage: Unless an activity is strictly sovereign, a government unit doing organised, revenue-linked services is an “industry”. Compliance with ID Act protections is compulsory.

Why It Matters

Protects workers in public broadcasters with ID Act safeguards.
Draws a clear line between sovereign duties and commercial services.
Reaffirms Bangalore Water Supply approach across government bodies.

Key Takeaways

Govt ownership alone does not exclude “industry”.
Paid advertising & organised broadcasting = non-sovereign activity.
Section 25-F compliance is essential for retrenchment.
Overruled/updated precedents must be applied correctly.

Mnemonic + 3-Step Hook

Mnemonic: “BAC” — Broadcast ads, Activity organised, Commercial not sovereign.

Check Activity: Is it strictly sovereign?
See Organisation: Structured services with revenue?
Apply IDA: If non-sovereign → ID Act protections apply.

IRAC Outline

Issue	Whether AIR and DD are “industries” under Section 2(j) and whether terminations complied with Section 25-F.
Rule	Bangalore Water Supply test: exclude only strictly sovereign functions; organised services count as “industry”.
Application	Broadcasting with paid ads and structured services shows commercial, non-sovereign activity; Section 25-F applies.
Conclusion	AIR/DD are “industries”; terminations illegal; reinstatement with benefits sustained.

Glossary

Industry (ID Act): Organised activity where employer and workmen cooperate to provide services; excludes only strictly sovereign functions.
Sovereign Function: Core State powers like legislation, defence, taxation, and administration of justice.
Section 25-F: Pre-conditions for lawful retrenchment: notice/pay in lieu and retrenchment compensation.