Legal Analysis: Bhartiya Mazdoor Sangh, U.P. & Anr. vs. State of U.P. & Ors

Citation: 2026 INSC 364
Court: Supreme Court of India
Bench: Justice Rajesh Bindal and Justice Vijay Bishnoi (Division Bench)
Judgment Author: Per curiam (jointly authored)
Date of Decision: April 13, 2026
Nature of Judgment: Writ Petition (Civil) under Article 32 of the Constitution of India seeking enforcement of workmen’s dues.

Synopsis of the Judgment

The writ petition was filed by labour unions seeking payment of wages and dues of workmen of Jaipur Udyog Ltd. (JUL), a company declared sick in 1987. A rehabilitation scheme submitted by Gannon Dunkerley & Co. Ltd. (GDCL) was sanctioned by BIFR in 1992 but failed. BIFR recommended winding up in 2000. Pending appeals abated upon repeal of SICA in 2016. Meanwhile, GDCL, which had been handed over management, sold assets of JUL and its subsidiary JAIL without legal authority or court permission. The Supreme Court held that GDCL had no locus after abatement of proceedings; its conduct was illegal. The Court directed payment of workmen’s dues as per Justice Aftab Alam’s report, set aside illegal sale of scrap, rejected revival schemes by investors, and appointed a Court Administrator to oversee verification, valuation, and disbursement.

1. Basic Information of the Judgment

Field Details Case Title Bhartiya Mazdoor Sangh, U.P. & Anr. vs. State of U.P. & Ors. Writ Petition (Civil) No. 392 of 2015 (with Contempt Petition Diary No. 61491/2025) Bench Justice Rajesh Bindal and Justice Vijay Bishnoi Date of Decision April 13, 2026 Citation 2026 INSC 364 Nature of Proceedings Public interest litigation / labour welfare writ petition

2. Legal Framework

Laws Involved:

• Sick Industrial Companies (Special Provisions) Act, 1985 (SICA): Sections 3(1)(o), 20(1) (winding up recommendation).

• Sick Industrial Companies (Special Provisions) Repeal Act, 2003: Section 4 as amended by IBC, 2016 – abatement of pending proceedings.

• Insolvency and Bankruptcy Code, 2016 (IBC): Section 252, Eighth Schedule – abatement and 180-day window to approach NCLT.

• Companies Act, 1956/2013: Share allotment, subsidiary relationship.

• Industrial Disputes Act, 1947: Section 10-B (arbitration), settlement of dues.

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