Madras High Court in the Scientific Officer (SF) Head, Water and Steam Chemistry Laboratory vs. P. Sukumar and Ors. W.P. No. 42419/2006, Mumbai) has held that research work carried out by the constituent laboratory of the Bhabha Atomic Research Centre cannot be excluded from the definition of “industry” for the purposes of the I.D. Act since the research work carried out by the Laboratory has a commercial value and is marketable. The Court further observed that the activity/function of the laboratory establishment will also does not qualify as “sovereign function” so as to exclude from the definition of “industry” for the purposes of the ID Act, since the private participation is not prohibited in the sector and thus it fails the test of inalienability which is a crucial test for determining whether a function is sovereign or otherwise.
Laboratory associated with Bhabha Atomic doing research on commercial basis will be industry under ID Act: Madras HC
June 28, 2022
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