Industrial Disputes Act, 1947 · Chapter VB: Special Provisions Relating to Lay-Off, Retrenchment and Closure in Certain Establishments
Section 25R: Penalty for closure
The Industrial Disputes Act, 1947 was repealed and replaced by the Industrial Relations Code, 2020 from 21 November 2025. It still applies to matters and proceedings from before that date, as the repealing law provides.
In plain words
An employer who closes an undertaking without applying for permission under section 25-O can be punished with imprisonment up to six months, or a fine up to five thousand rupees, or both.
- Closing despite refusal of permission, or disobeying a restart direction under section 25P, is punishable with imprisonment up to one year, or a fine up to five thousand rupees, or both, plus up to two thousand rupees for each day it continues after conviction.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
(1) Any employer who closes down an undertaking without complying with the provisions of sub-section (1) of section 25-O shall be punishable 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 [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 25P], 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. * * * *
Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 25R
No Supreme Court judgment in our database cites this section yet.