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Government sanction essential for adjudication under Industrial Disputes Act, 1947

Case Law Details

TaxGuru Citation
2025 taxguru.in 251
Case Name
Aditya Jajodia Vs State of Chhattisgarh (Chhattisgarh High Court)
Date of Judgement/Order
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Aditya Jajodia Vs State of Chhattisgarh (Chhattisgarh High Court)

Chhattisgarh High Court addressed petitions filed by Aditya Jajodia and others seeking to quash proceedings initiated under the Industrial Disputes Act, 1947. The case stemmed from complaints alleging unlawful retrenchment of workers by Jai Balaji Industries Ltd. without adhering to Section 25-N of the Act, which requires prior permission from the appropriate government. The petitioners argued that the complaint, filed by the Labour Inspector, lacked proper authorization from the state government as mandated by Section 34 of the Act. This section stipulates that cognizance of such offenses requires prior government sanction to avoid frivolous complaints.

The court observed that the absence of authorization from the state government rendered the proceedings unsustainable. Furthermore, it noted that only the company’s directors were named as accused, while the company itself was not included, which contradicted legal principles of vicarious liability. Citing precedents from the Supreme Court, the High Court emphasized that government sanction is essential for maintaining the integrity of prosecutions under the Act. Consequently, the court quashed the proceedings and set aside the impugned order dated October 26, 2016, passed by the Judicial Magistrate First Class, Labour Court, Durg.

FULL TEXT OF THE JUDGMENT/ORDER OF CHHATTISGARH HIGH COURT

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CA Sandeep Kanoi
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Location: Mumbai, Maharashtra
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