The Delhi High Court has issued notice to the Union Government on a petition challenging the implementation of the Industrial Relations (IR) Code, 2020, highlighting that pending labour disputes from erstwhile Labour Courts and Tribunals under the Industrial Disputes Act, 1947 stand transferred to new Industrial Tribunals that have not yet been constituted.
A Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela observed that the Centre’s notification dated 21 November 2025 appointing that date for commencement of the IR Code has created a legal vacuum. Under Section 51 of the Code, all pending cases before pre-existing Labour Courts and Tribunals are automatically transferred to the new regime’s Industrial Tribunals on commencement, but Section 44 mandates constitution of such Tribunals comprising Judicial and Administrative Members. Interestingly, no such bodies exist owing to the absence of qualifying rules under Section 184 of the Finance Act, 2017.
The Court prima facie observed that the necessary provisions for the transition period allowing a smooth transfer of the Labour Code seemed to have been overlooked by the Central Government, resulting in labour disputes remaining unattended. It remarked there is “no likelihood” of Tribunals being constituted soon, leaving transferred cases in limbo and preventing adjudication of even new disputes.
The Bench suggested a simple solution, noting that the transition could have been easily managed by issuing notifications to enforce different provisions from different dates. It directed Additional Solicitor General Chetan Sharma to seek urgent instructions and consider remedial steps.
The petition seeks stay on the 21 November notification to avert this “inadvertent” disruption. The matter is listed for hearing on 10 December 2025.
Appearances:
For the Petitioner(s): Mr. Ravindra S. Garia, Mr. Sanjay Kumar, Mr. Adrija Bhadra, Mr. Sarfuddin Khan, Mr. Tej Bahadur Srivastava, Advocates.
For the Respondent(s): Mr. Chetan Sharma, ASG with Mr. Ashish Dixit, CGSC, Ms. Gurleen Kaur Waraich, SPC, Mr. Surjeet Singh, GP, Mr. Jaideep Singh Waraich and Mr. Vivek Sharma, Advocates for UOI.
