Section 28 Industrial Disputes Act 1947 - Financial Aid to Illegal Strikes and Lock-outs

Section 28 of the Industrial Disputes Act, 1947 prescribed punishment for knowingly spending or applying money in direct furtherance or support of an illegal strike or lock-out. The present legal framework is contained in the Industrial Relations Code, 2020, which came into force on 21 November 2025.

Current law: Section 64 of the Industrial Relations Code, 2020 prohibits knowingly spending or applying money in direct furtherance or support of an illegal strike or lock-out. Section 86(16) prescribes the punishment for contravention. Whether a strike or lock-out is illegal is determined principally under Sections 62 and 63 of the Code.

Section 28 of the Industrial Disputes Act 1947

The earlier provision addressed financial assistance given with knowledge that the money was being used in direct furtherance or support of a strike or lock-out that was illegal under the Industrial Disputes Act.

Section 28 - Penalty for giving financial aid to illegal strikes and lock-outs

Any person who knowingly expends or applies any money in direct furtherance or support of any illegal strike or lock-out shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

Legacy provision: Section 28 remains relevant when examining events, liabilities, proceedings or other matters arising under the earlier Industrial Disputes Act regime. For present-day conduct after commencement of the Industrial Relations Code, the corresponding provisions of the Code should be examined along with its repeal and saving provisions.

Section 64 of the Industrial Relations Code 2020

Section 64 is titled Prohibition of financial aid to illegal strikes or lock-outs. It carries forward the central prohibition formerly found in Section 28 of the Industrial Disputes Act.

Section 64 - Prohibition of financial aid to illegal strikes or lock-outs

No person shall knowingly spend or apply any money in direct furtherance or support of any illegal strike or lock-out.

Penalty Under Section 86(16)

Section 86 contains the penalty provisions under the Industrial Relations Code. Sub-section (16) specifically deals with knowingly spending or applying money in direct furtherance or support of an illegal strike or lock-out.

Section 86(16) - Current penalty

Any person who knowingly spends or applies any money in direct furtherance or support of any illegal strike or lock-out shall be punishable with fine which shall not be less than ten thousand rupees, but which may extend to fifty thousand rupees or with imprisonment for a term which may extend to one month, or with both.

Essential Elements of the Prohibition

Knowledge

The statutory wording expressly uses the term knowingly. The provision therefore concerns expenditure or application of money made with the requisite knowledge in relation to an illegal strike or lock-out. Whether the necessary knowledge exists is a question to be determined from the facts and evidence of the particular case.

Spending or applying money

The prohibition applies where a person spends or applies money. The provision is directed at financial support and requires the money to be connected with the prohibited purpose stated in Section 64.

Direct furtherance or support

The money must be spent or applied in direct furtherance or support of an illegal strike or lock-out. The statutory language therefore requires a direct connection between the financial expenditure or application and the illegal strike or lock-out.

Illegal strike or lock-out

Section 63 provides when a strike or lock-out is illegal. A strike or lock-out is illegal if it is commenced or declared in contravention of Section 62, or continued in contravention of an order made under Section 42(7). Section 63 also contains provisions concerning continuance of an existing strike or lock-out and a responsive strike or lock-out.

Section 62 - Restrictions on Strikes and Lock-outs

Section 62 regulates strikes and lock-outs. It includes requirements relating to advance notice and restrictions during specified periods, including the pendency of conciliation, Tribunal or National Industrial Tribunal proceedings, certain arbitration proceedings, and periods during which a settlement or award is in operation in respect of matters covered by it.

Old Section 28 and Current Law

Provision	Rule	Penalty
Section 28, Industrial Disputes Act 1947	Knowingly expending or applying money in direct furtherance or support of an illegal strike or lock-out	Imprisonment up to six months, or fine up to Rs. 1,000, or both
Sections 64 and 86(16), Industrial Relations Code 2020	Knowingly spending or applying money in direct furtherance or support of an illegal strike or lock-out	Fine from Rs. 10,000 to Rs. 50,000, or imprisonment up to one month, or both

Related Provisions

Section 86(13) deals with a worker who commences, continues or otherwise acts in furtherance of an illegal strike. Section 86(14) deals with an employer who commences, continues or otherwise acts in furtherance of an illegal lock-out. Section 86(15) covers instigation or incitement of participation in, or other acts in furtherance of, an illegal strike or lock-out. Section 86(16) specifically addresses financial support.

Repeal and Saving of Earlier Labour Laws

Section 104 of the Industrial Relations Code, 2020 contains repeal and saving provisions relating to the Industrial Disputes Act, 1947, the Trade Unions Act, 1926 and the Industrial Employment (Standing Orders) Act, 1946. These provisions are relevant when determining the treatment of earlier actions, rights, liabilities, proceedings and other matters arising under the repealed enactments.

This page provides general statutory information. The applicable law in an individual matter may depend on the date of the relevant conduct, repeal and saving provisions, applicable rules and notifications, the appropriate Government and the facts of the case.