NCLT Is Not Right Forum To Decide Whether Closure Of Factory Under Industrial Dispute Act Was As Per Law: NCLAT

The NCLAT has determined that the NCLT is not the appropriate forum for deciding issues related to factory closures under the Industrial Disputes Act. The tribunal emphasized that such matters fall outside the scope of insolvency proceedings and should be addressed through appropriate industrial dispute resolution mechanisms. This ruling delineates the jurisdictional boundaries between industrial and insolvency laws, ensuring that each is applied in its relevant context. The decision seeks to prevent jurisdictional overreach and maintain the procedural integrity of industrial dispute resolutions separate from insolvency proceedings.