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

The Industrial Relations Code, 2020 (Act No. 35 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter VIII: Strikes and Lock-Outs
Competent Labour Forum
Act No. 35 of 2020
Section 63 All 104 Sections of Industrial Relations Code, 2020 Section 65

Legal Commentary & Landmark Judgments: Section 64

Section 64 of the Industrial Relations Code, 2020 enacts an absolute statutory ban prohibiting any person or organization from knowingly expending or applying funds in direct furtherance or support of an illegal strike or illegal lock-out, imposing severe personal and institutional liabilities.

  • Strict Prohibition on Financial Subsidies: Prohibits any person, trade union, employers' association, or third-party entity from expending or applying financial resources in direct furtherance or support of an illegal stoppage.
  • Mens Rea Requirement of 'Knowingly': The statutory offense requires proof of knowledge that the strike or lock-out is illegal, preventing inadvertent humanitarian or non-strike disbursements from attracting liability.
  • Institutional and Penal Repercussions: Violations attract criminal prosecution and fines under Chapter XIII, personal liability for disbursing officers, and potential cancellation of trade union registration for unlawful application of general funds.
Key Landmark Precedents:
  • Rohtas Industries Ltd. v. Rohtas Industries Staff Union (1976) 2 SCC 82: Supreme Court held that trade unions and their executives cannot claim immunity when expending funds or organizing activities in direct violation of statutory prohibitions.
  • Buckingham and Carnatic Co. Ltd. v. Workers AIR 1953 SC 47: Affirmed that illegal stoppages disrupt industrial stability and cannot be financially subsidized through union treasuries.
Courtroom Practice & Strategic Litigation Guidance:

Trade union treasurers and federations must immediately freeze strike pay disbursements upon receiving formal communication that a strike is illegal under Section 63. Disbursing strike relief during an illegal strike exposes union executives to personal penal prosecution and provides management with grounds to seek derecognition or cancellation of union registration.

Section 63 All 104 Sections of Industrial Relations Code, 2020 Section 65