Smooth transition not thought of: Delhi High Court to Centre on failure to constitute tribunals under IR Code

The Delhi High Court on Wednesday sought the Central government's stand on a petition raising concern over the failure to constitute tribunals under the Industrial Relations (IR) Code, 2020 [N A Sebastian & Anr v. Union of India].

The Court was told that the IR Code, which came into effect recently on November 21, transferred all the industrial disputes to the new industrial tribunals. However, these tribunals have not been constituted under the new Code till date. 

The petition thus seeks a stay on the notification appointing November 21, 2025 as the date of the IR Code coming into force.

The Division Bench of Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela said,

“This petition raises an important issue which has arisen in terms of impugned notification dated November 21, 2025 issued by the Ministry of Labour & Employment whereby the Industrial Code came into effect on November 21, 2025. Under the Code, from the date of commencement of the Code, the pending cases before labour courts and tribunals created under Industrial Tribunals Act stand transferred to the tribunals instituted under the Code. However, the tribunals have not been constituted."

The Court further observed that it appears that the Central government did not think of a smooth transition to the new labour code beforehand. 

“It appears prima facie that the requisite provisions for the transition period permitting smooth transfer of the Labour Code has not been thought of by the Central Government. As a result, the labour disputes remain unattended,” the Court noted.

The Court stated that there is no likelihood of the industrial tribunals being created in the near future. 

“In absence of said Rules, there is no likelihood that the industrial tribunal would be constituted in the near future. However, by section 51 the cases of the labor courts and tribunals created under Industrial Tribunals Act shall transferred. As a result of non-availability of the industrial tribunals, the   disputes cannot be pursued any further."

The Court has asked Additional Solicitor General Chetan Sharma to take instructions in this regard. 

“You could have easily sailed through this transition by issuing notification for enforcing different provisions from different dates. Please think over it. Simple solution would have been to notify different provisions on different dates.”

The petition has been drafted by Ravindra S Garia & Associates. 

Along with ASG Sharma, Central Government Standing Counsel (CGSC) Ashish Dixit appeared for the Union of India.

The matter will be heard next on December 10.