NCLT cannot Decide on Legality of Closure of Factory under Industrial Dispute Act: NCLAT

The NCLAT ruled that the National Company Law Tribunal (NCLT) does not have the authority to decide on the legality of a factory's closure under the Industrial Disputes Act. The case involved a dispute over the closure of a factory, with the company arguing that it had followed the legal procedures required. However, the NCLAT clarified that such matters fall under the jurisdiction of labor courts, not NCLT. The decision emphasizes the separation of powers between different legal frameworks and jurisdictions. NCLT's role is limited to matters concerning corporate insolvency and restructuring, and it cannot interfere with industrial relations issues, which should be adjudicated under the Industrial Disputes Act or other relevant labor laws.