Section 25 of Industrial Disputes Act 1947 - Prohibition of Financial Aid to Illegal Strikes and Lock-outs
Section 25 of the Industrial Disputes Act, 1947 prohibited a person from knowingly spending or applying money in direct furtherance or support of an illegal strike or illegal lock-out. The provision formed part of Chapter V, which regulated strikes and lock-outs.
What did Section 25 prohibit?
The prohibition was directed at financial support. The statutory elements included knowledge, expenditure or application of money, direct furtherance or support, and an underlying strike or lock-out that was illegal under the Act.
Meaning of illegal strike or lock-out under Section 24
Section 25 depended on the strike or lock-out being illegal. Under Section 24, a strike or lock-out was illegal if it was commenced or declared in contravention of Section 22 or Section 23, or continued in contravention of an applicable statutory order under Section 10(3) or Section 10A(4A).
Section 24 also contained qualifications. A strike or lock-out already in existence when an industrial dispute was referred was not automatically illegal merely because of the reference if its commencement was lawful and its continuance had not been prohibited under the specified provisions. Section 24 further provided that a lock-out declared in consequence of an illegal strike, or a strike declared in consequence of an illegal lock-out, was not deemed illegal on that ground.
Meaning of knowingly
The word "knowingly" was an express part of Section 25. Accordingly, the statutory prohibition was not framed as a blanket ban on every payment connected in some remote way with industrial action. Application of the provision required attention to whether money was knowingly expended or applied in direct furtherance or support of an illegal strike or lock-out.
Direct financial furtherance or support
Section 25 referred specifically to money used in direct furtherance or support of the illegal industrial action. Whether a particular payment satisfied that requirement depended on its nature, purpose, surrounding facts and the applicable evidence. The provision should therefore be read with Section 24 when determining whether the underlying industrial action was illegal.
Penalty for financial aid under Section 28
Under the pre-BSA statutory framework, Section 28 separately prescribed the penalty for knowingly expending or applying money in direct furtherance or support of an illegal strike or lock-out. It provided for imprisonment which could extend to six months, or fine which could extend to one thousand rupees, or both.
Related provisions on strikes and lock-outs
- Section 22: imposed special restrictions on strikes and lock-outs in public utility services.
- Section 23: imposed a general prohibition on strikes and lock-outs during specified proceedings and periods.
- Section 24: determined when strikes and lock-outs were illegal and stated specified exceptions.
- Section 25: prohibited knowing financial support in direct furtherance of an illegal strike or lock-out.
- Section 26: prescribed penalties for illegal strikes and lock-outs.
- Section 28: prescribed the specific penalty for giving financial aid to illegal strikes and lock-outs.
Practical legal checklist
- Identify the strike or lock-out said to be supported.
- Determine whether it was illegal under Section 24 for the relevant period.
- Identify the money allegedly expended or applied.
- Examine whether the expenditure directly furthered or supported the illegal strike or lock-out.
- Examine whether the person acted knowingly.
- Check the applicable Central or State amendments, rules and notifications for the relevant date and jurisdiction.
Official legal resources
The historical Central Act can be checked on the India Code portal. Current labour-code legislation, rules and notifications are available from the Ministry of Labour and Employment.
