A legal issue concerning punishment for an unlawful closure of an undertaking of an industrial…

Section 86(1) of the Industrial Relations Code, 2020 (formerly section 25R of the Industrial Disputes Act, 1947) punishes an employer who closes down an undertaking of a Chapter X establishment in contravention of section 80, that is, without the prior permission required, so this scenario falls under it. Section 80 lays down the closure procedure, section 82 applies certain Chapter IX provisions, and section 86(5) punishes unfair labour practices.