Section 25P of Industrial Disputes Act 1947 - Restarting Undertakings Closed Before the 1976 Amendment

Section 25P was a special Chapter V-B provision empowering the appropriate Government, where specified statutory conditions were satisfied, to direct the restarting of an undertaking that had closed before commencement of the Industrial Disputes (Amendment) Act, 1976.

What is Section 25P?

The Central provision was titled "Special provision as to restarting of undertakings closed down before commencement of the Industrial Disputes (Amendment) Act, 1976." It applied to an undertaking of an industrial establishment to which Chapter V-B applied and which had closed before commencement of the 1976 Amendment Act.

Four statutory conditions for a restarting direction

Opportunity of hearing and Official Gazette order

After the above conditions were satisfied, the appropriate Government had to give the employer and workmen an opportunity before directing restart. The direction had to be made by an order published in the Official Gazette.

Minimum time allowed for restarting

The Government order could specify the time within which the undertaking had to be restarted, but the Central provision required that period to be not less than one month from the date of the order.

Meaning of industrial establishment and appropriate Government

For Chapter V-B, Section 25L supplied the relevant definition of "industrial establishment" and a special rule for identifying the "appropriate Government." Section 25K governed the application of Chapter V-B.

Nature and historical purpose of Section 25P

Section 25P was transitional in character. Unlike Section 25O, which regulated an intended closure through a prior-permission process, Section 25P addressed qualifying undertakings that had already closed before the commencement of the Industrial Disputes (Amendment) Act, 1976.

Rajasthan State amendment and Section 25PP

The source page records that Rajasthan Act No. 8 of 1984 substituted Section 25P and added Section 25PP. The full substantive material from the source is retained below because it contains additional hearing, review, Tribunal-reference and reinstatement provisions.

RAJASTHAN

For section 25P the following section shall be substituted,

namely:-

"25P. Special provisions as to restarting of undertaking

closed down before commencement of the Industrial Disputes

(Rajasthan Amendment) Act, 1984.- (1) Where the undertaking of

an industrial establishment to which this Chapter applies had

been closed down before the commencement of the Industrial

Disputes (Rajasthan Amendment) Act, 1984, and the State

Government, after giving reasonable opportunity of being heard

to the employer, workmen and the office-bearer of the

representative union of the concerned industrial establishment

and after making such enquiry as it thinks fit, is satisfied

that,-

(a) such undertaking was closed down otherwise than on

account of unavoidable circumstances beyond the control of the

employer;

(b) there are possibilities of restarting the undertaking;

(c) it is necessary for the rehabilitation of the workmen

employed in such undertaking before its closure or for the

maintenance of supplies and services essential to the life of

the community or both to restart the undertaking; and

(d) the restarting of the undertaking will not result in

hardship to the employer in relation to the undertaking;

it may direct, by order published in the Official Gazette,

that the undertaking shall be restarted within such time (not

being less than one month, from the date of the orders) as may

be specified in the order.

(2) An order of the State Government directing the restarting

of the undertaking under sub-section (1) shall, subject to the

provisions of sub-section (3), be final and binding on all the

parties.

(3)The State Government may either on its own motion or on

the application made by the employer and after giving to such

employer, the workmen and the office-bearer of the

representative union of the concerned industrial establishment

an opportunity of being heard, review its order directing the

restarting of the undertaking under sub-section (1) or refer the

matter to a Tribunal for adjudication:

Provided that where a reference has been made to a Tribunal

under this sub-section, it shall pass an award within a period

of sixty days from the date of such reference and pending award

by the Tribunal, the undertaking shall continue to remain

restarted." - Rajasthan Act No. 8 of 1984.

After section 25P as so substituted, the following new

section shall be added, namely:-

"25PP. Special provision as to reinstatement of workmen

retrenched before the commencement of the Industrial Disputes

(Rajasthan Amendment) Act, 1984- (1) Notwithstanding any award

or order of a Tribunal or any judgment, order or direction of

any Court upholding the validity of retrenchment of any workman

employed in any industrial establishment to which this Chapter

applies who is retrenched at any time during six months

immediately before the commencement of the Industrial Disputes

(Rajasthan Amendment) Act, 1984, the State Government shall,

either on its own motion or on the application made by any such

retrenched workman or by the office-bearer of the representative

union of the concerned industrial establishment, examine the

validity of retrenchment of such workman and if, after making

such enquiry as it thinks fit and after giving reasonable

opportunity of being heard to the employer, the retrenched

workman, or, as the case may be, to such office-bearer, it is

satisfied that,-

(a) the retrenchment of the workman was without genuine or

adequate reasons;

(b) the retrenchment was by way of victimisation and unfair

labour practice; and

(c) the reinstatement of the workman is required for

maintaining industrial peace in the industrial establishment.

It shall, by order and for reasons to be recorded in writing,

direct the employer to reinstate the retrenched workman within

such time as may be specified in the order and if it is not so

satisfied, it shall by such reasoned order uphold the validity

of retrenchment of the workman and shall communicate its order

to the employer and the workman.

(2) An order of the State Government under sub-section (1),

subject to the order passed by it as a result of review under

sub-section (3) and, where a reference has been made by it to a

Tribunal under the said sub-section, subject to the award passed

by the Tribunal, shall be final and binding on the employer and

the workman.

(3) The State Government may, either on its own

motion or on the application made by the employer or

the retrenched workman, review its order directing

reinstatement of the retrenched workman or, as the

case may be, the order upholding the validity of

retrenchment of the workman under sub-section (1) or

refer the matter to a Tribunal for adjudication:

Provided that where a reference has been made to a Tribunal

under this sub-section, it shall pass an award within a period

of thirty days from the date of such reference." - Rajasthan Act

No. 8 of 1984.

West Bengal State amendment

The source page also records a substituted Section 25P for West Bengal under West Bengal Act No. 33 of 1989. It includes a review or Tribunal-reference mechanism in addition to the restarting criteria.

For section 25P, the following section shall be substituted:-

"25P. Special provision as to re-starting of the undertaking

closed down before the commencement of the Industrial Disputes

(West Bengal Second Amendment) Act, 1986.-(1) If the

appropriate Government is of opinion in respect of any

undertaking of an industrial establishment to which this Chapter

applies and which is closed down before the commencement of the

Industrial Disputes (West Bengal Second Amendment) Act, 1986,-

(a) that such undertaking was closed down otherwise than on

account of unavoidable circumstances beyond the control of the

employer,

(b) that there are possibilities of re-starting the

undertaking,

(c) that it is necessary for the rehabilitation of the

workmen employed in such undertakings before its closure or for

the maintenance of surplus and services essential to the life of

the community to re-start the undertaking or both, and

(d) that the re-starting of the undertaking shall not result

in hardship to the employer in relation to the undertaking, it

may, after giving such employer and the workmen an opportunity

of being heard, direct, by order published in the Official

Gazette, that the undertaking shall be restarted within such

time (not being less than one month from the date of the order)

as may be specified in the order.

(2) Notwithstanding anything contained in sub-section (1) the

appropriate Government may, either on its own motion or on the

application made by the employer and after giving the employer

and the workmen an opportunity of being heard, review its order

under sub-section (1) or refer the matter to the Tribunal for

adjudication:

Provided that where a reference has been made to a Tribunal

under this sub-section, it shall pass an award within a period

of sixty days from the date of such reference and, pending such

award, the undertaking shall not be closed down" -West Bengal

Act No. 33 of 1989.

Practical checklist under Section 25P

• Confirm that the undertaking belonged to an industrial establishment to which Chapter V-B applied.
• Confirm that the closure occurred before the commencement date specified by the applicable Central or State provision.
• Examine whether the closure resulted from unavoidable circumstances beyond the employer's control.
• Assess whether restarting the undertaking was realistically possible.
• Consider rehabilitation of former workmen and the need to maintain essential community supplies or services.
• Consider whether restarting would cause hardship to the employer in relation to the undertaking.
• Ensure the employer and workmen receive the hearing required by the applicable provision.
• Check that any restarting direction is published in the Official Gazette and allows at least the minimum statutory period.
• For Rajasthan or West Bengal, verify the substituted State text, review/reference provisions and subsequent amendments applicable on the relevant date.

Related Chapter V-B provisions

Section 25M dealt with lay-off, Section 25N with retrenchment, Section 25O with closure procedure, and Section 25R with penalties relating to closure.

Official legal resources

Central legislation 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 should be verified from the competent State Government or State Gazette source.