Supreme Court in Harinagar Sugar Mills Ltd. (Biscuit Division) & Anr. vs. State of Maharashtra & Ors., SLP(C) No. 4268/2023, on June 4, 2025, upheld the closure application submitted by the factory management under Section 25(O) of the Industrial Disputes Act, 1947 (“ID Act”) for the shutdown of its biscuit division. The Court noted that the relevant authorities, specifically the Labour Minister had failed to either approve or reject the application within the statutory 90-day period. The Court further ruled that the order issued by the Deputy Secretary directing the factory management to amend and resubmit its closure application was without legal authority, as this power rests exclusively with the Labour Minister. Importantly, the Minister had not independently evaluated the merits of the application or applied his mind to the matter in any form. Since the law does not permit sub-delegation of this responsibility, any action or communication by the Deputy Secretary lacked legal validity.
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