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.

Historical legal scope: This article explains the law applicable before the Bharatiya Sakshya Adhiniyam, 2023 came into force on 1 July 2024. That enactment concerns evidence law and did not itself amend Section 25. The Industrial Relations Code, 2020 subsequently came into force on 21 November 2025. Current and transitional disputes should therefore be examined under the law, repeal and savings provisions, rules and notifications applicable to the relevant date.

What did Section 25 prohibit?

Section 25 - Prohibition of financial aid to illegal strikes and lock-outs: No person could knowingly expend or apply money in direct furtherance or support of an illegal strike or lock-out.

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

Practical legal checklist

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.