Section 25L of Industrial Disputes Act 1947 - Definitions for Chapter V-B

Section 25L supplied special definitions for Chapter V-B of the Industrial Disputes Act, 1947. It defined the expression "industrial establishment" for that Chapter and specified circumstances in which the Central Government was the "appropriate Government."

Historical legal scope: This article explains the legal position 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 25L. The definitions below should be read with the statutory provisions and amendments applicable on the date relevant to the dispute.

What is Section 25L?

Section 25L began with the words "For the purposes of this Chapter". Accordingly, its definitions were specifically directed to Chapter V-B, which contained special provisions concerning lay-off, retrenchment and closure in qualifying industrial establishments.

Section 25L(a) - Meaning of industrial establishment

For Chapter V-B, "industrial establishment" meant:

a factory as defined in Section 2(m) of the Factories Act, 1948;
a mine as defined in Section 2(1)(j) of the Mines Act, 1952; or
a plantation as defined in Section 2(f) of the Plantations Labour Act, 1951.

Factory

Section 25L incorporated the definition of "factory" from Section 2(m) of the Factories Act, 1948 rather than creating a separate factory definition in Chapter V-B. Whether a premises qualified therefore depended on the incorporated statutory definition applicable at the relevant time.

Mine

A "mine" for Section 25L was a mine as defined in Section 2(1)(j) of the Mines Act, 1952. The Chapter V-B classification therefore depended on that statutory definition.

Plantation

A "plantation" was identified by reference to Section 2(f) of the Plantations Labour Act, 1951. The incorporated definition determined whether an establishment fell within this limb of Section 25L(a).

Section 25L(b) - Appropriate Government

Section 25L(b) operated notwithstanding Section 2(a)(ii) of the Industrial Disputes Act. It specified two situations in which the Central Government was the appropriate Government for Chapter V-B.

In relation to a company in which not less than 51 per cent of the paid-up share capital was held by the Central Government; or
in relation to a corporation, other than a corporation referred to in the specified part of Section 2(a), established by or under a law made by Parliament.

In these situations, the Central Government was the appropriate Government for the purposes of Chapter V-B.

Why the appropriate Government matters

The identity of the appropriate Government was important because Chapter V-B assigned statutory functions to that Government. For example, Section 25K referred questions about seasonal or intermittent establishments to the appropriate Government, while Sections 25M, 25N and 25O contained procedures involving governmental permission or applications in relation to lay-off, retrenchment and closure.

Relationship with Section 25K

Section 25K determined the application of Chapter V-B by reference to the type of industrial establishment, employment threshold and exclusions for establishments of a seasonal character or those in which work was performed only intermittently. Section 25L supplied the Chapter-specific meaning of "industrial establishment" used in applying that framework.

Related Chapter V-B provisions

Section 25K - application of Chapter V-B.
Section 25M - prohibition of lay-off without compliance with the statutory conditions.
Section 25N - conditions precedent to retrenchment of workmen.
Section 25O - procedure for closing down an undertaking.
Section 25Q - penalty relating to lay-off and retrenchment without previous permission.
Section 25R - penalty for closure.
Section 25S - application of specified Chapter V-A provisions.

Practical checklist under Section 25L

Identify whether the establishment was a factory, mine or plantation within the incorporated statutory definition.
Apply the Chapter V-B coverage rules in Section 25K.
Identify the appropriate Government for the particular establishment.
For a company, check whether the Central Government held at least 51 per cent of its paid-up share capital.
For a statutory corporation, identify the law under which it was established and the interaction with Section 2(a).
Check Central and State amendments and the legal position applicable on the relevant date.

Official legal resources

The Industrial Disputes Act and other Central enactments can be checked through the India Code portal. Labour legislation, rules and notifications may also be checked through the Ministry of Labour and Employment. State amendments and notifications should be verified from the competent State source where relevant.