Section 25R of Industrial Disputes Act 1947 - Penalty for Closure

Section 25R formed part of Chapter V-B of the Industrial Disputes Act, 1947 and prescribed criminal penalties for specified contraventions of the special closure regime, principally the requirements of Section 25O and directions under Section 25P.

What is Section 25R?

Section 25R was titled "Penalty for closure." It supplemented the substantive closure procedure in Section 25O and the special restarting provision in Section 25P by attaching punishment to specified violations.

Section 25R(1) - Closure without complying with Section 25O(1)

Section 25R(2) - Contravention of refusal order or Section 25P direction

Section 25O - Procedure for closing an undertaking

Section 25O prescribed the prior-permission regime for closing an undertaking of an industrial establishment to which Chapter V-B applied. Its Central framework required an application at least 90 days before the intended closure, stated reasons, service on workmen's representatives, enquiry and hearing, and a reasoned Government decision. Section 25R(1) and (2) provided penal consequences for the closure-related contraventions specified in those sub-sections.

Section 25P - Restarting certain closed undertakings

Section 25P was a special provision concerning restarting of qualifying undertakings closed before commencement of the Industrial Disputes (Amendment) Act, 1976. A contravention of a direction under that provision was included within the penalty framework stated in Section 25R(2).

Continuing contravention after conviction

The additional daily fine in Section 25R(2) addressed a continuing contravention after conviction. It was distinct from the principal imprisonment or fine prescribed for the underlying contravention.

Relationship with Section 25Q

Section 25Q dealt with penalties for contravention of the Chapter V-B provisions governing lay-off and retrenchment under Sections 25M and 25N. Section 25R, by contrast, dealt with penalties associated with closure and specified Section 25P directions.

State amendments

The source page contains State-specific amendments for Madhya Pradesh, Maharashtra, Orissa and Rajasthan. These are retained below because the applicable State text can affect the precise form of Section 25R.

Madhya Pradesh

In section 25R,-

(a) for sub-section (2), the following sub-section shall be

substituted, namely:-

"Any employer, who contravenes an order refusing to grant

permission to close down an undertaking under sub-section (2) of

section 25-O or a direction given under section 25-P, shall be

punishable with imprisonment for a term which may extend to one

year, or with fine which may extend to five thousand rupees, or

with both, and where the contravention is a continuing one, with

a further fine which may extend to two thousand rupees for every

day during which the contravention continues after the

conviction;"

(b) sub-section (3) shall be omitted - Madhya Pradesh Act No.

32 of 1983.

Maharashtra

For section 25R, the following section shall be substituted,

namely :-

"25R. Penalty for closure.-(1) Any employer who closes down an

undertaking without complying with the provisions of sub-section

(1) of section 25-O shall, on conviction, be punished with

imprisonment for a term which may extend to six months, or with

fine which may extend to five thousand rupees, or with both.

(2) Any employer who contravenes a direction given under

sub-section (2) of section 25-O or section 25P shall, on

conviction, be punished with imprisonment for a term which may

extend to one year, or with fine which may extend to five

thousand rupees, or with both, and where the contravention is a

continuing one, with a further fine which may extend to two

thousand rupees for every day during which the contravention

continues after the conviction.' - Maharashtra Act No. 3 of

1982.

Orissa

In section 25R,-

(a) in sub-section (2), for the words, brackets, figures and

letters "a direction given under sub-section (2) of section 25-O

or section 25P", the words, brackets, figures and letters "an

order refusing to grant permission to close down an undertaking

under sub-section (2) of section 25-0 or a direction given under

section 25P" shall be substituted ;

(b) sub-section (3) shall be omitted - Orissa Act No. 6 of

1983.

Rajasthan

In section 25R-

(a) for sub-section (2), the following sub-section

shall be substituted, namely:-

"(2) Any employer, who contravenes an order refusing to grant

permission to close down an undertaking under sub-section (2) of

section 25-0 or a direction given under section 25P, shall be

punishable with an imprisonment for a term which may extend to

one year, or with fine which may extend to five thousand rupees,

or with both, and where the contravention is a continuing one,

with a further fine which may extend to two thousand rupees for

every day during which the contravention continues after the

conviction."; and

(b) sub-section (3) shall be omitted - Rajasthan Act No. 8 of

1984.

Practical legal checklist

• Identify the State and date of the alleged closure or contravention.
• Confirm that Chapter V-B applied under Section 25K and any relevant State amendment.
• Examine the applicable version of Section 25O and whether its prior-permission procedure applied.
• Determine whether the allegation concerns non-compliance with Section 25O(1), contravention of a refusal order, or contravention of a Section 25P direction.
• Where continuing contravention is alleged, distinguish the principal offence from the additional daily fine after conviction.
• Check the relevant State amendment because the wording of Section 25R may differ from the Central text.
• Verify the law, rules, notifications and Gazette amendments in force on the relevant date before relying on the penalty provision.

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.