Closure permission reference under Industrial Disputes law does not suspend the Government's order; Tribunal decides the matter independently.

Under section 25-O of the Industrial Disputes Act, a Government order granting or refusing closure permission does not lose legal force merely because a reference is made under section 25-O(5); it continues to operate unless stayed, varied, replaced, or otherwise ceases under the statute. The phrase "refer the matter" is broad enough to include the closure application, the proceedings before the Government, and the order passed under section 25-O(2), rather than the application alone. On reference, the Industrial Tribunal must decide the closure issue independently on the statutory criteria and does not function as an appellate authority over the Government's order.

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Issues: (i) Whether an order of the appropriate Government granting or refusing permission to close an undertaking under section 25-O(2) ceases to have legal existence or effect pending a reference under section 25-O(5). (ii) Whether the expression "refer the matter" in section 25-O(5) empowers the Government to refer only the application for closure or also the order passed under section 25-O(2) and the proceedings leading to it. (iii) Whether the Industrial Tribunal, on a reference under section 25-O(5), acts as a court of appeal over the Government's order or is required to adjudicate the closure issue independently.

Issue (i): Whether an order of the appropriate Government granting or refusing permission to close an undertaking under section 25-O(2) ceases to have legal existence or effect pending a reference under section 25-O(5).

Analysis: Section 25-O(4) makes the Government's order final and binding, subject to section 25-O(5). The expression "subject to" was read as postponing the finality of the order only to the extent that it may be reviewed or altered in the manner provided by the statute. Mere invocation of review or reference does not, by itself, suspend, eclipse, or extinguish the order. The order continues to operate unless stayed, varied, or replaced in accordance with law, and it also lapses only by efflux of the statutory period.

Conclusion: The order under section 25-O(2) does not cease to exist or operate merely because a reference is made under section 25-O(5).

Issue (ii): Whether the expression "refer the matter" in section 25-O(5) empowers the Government to refer only the application for closure or also the order passed under section 25-O(2) and the proceedings leading to it.

Analysis: The word "matter" was construed broadly in the light of the statutory scheme, the quasi-judicial character of the Government's inquiry, and the requirement of a reasoned order after hearing affected parties. The expression includes the closure application, the proceedings before the Government, and the order passed under section 25-O(2). It does not denote only the application in isolation, nor does it convert the reference into a reference solely on the legality of the prior order. The order remains part of the relevant record for consideration, but the reference covers the entire matter.

Conclusion: The phrase "refer the matter" covers the application, the proceedings, and the Government's order, and is not confined to the application alone.

Issue (iii): Whether the Industrial Tribunal, on a reference under section 25-O(5), acts as a court of appeal over the Government's order or is required to adjudicate the closure issue independently.

Analysis: The Tribunal's function under section 25-O(5) is adjudicatory, not appellate. It must decide the closure question on its own merits, permit parties to lead evidence, and pass an award after independent scrutiny of the statutory conditions. The Tribunal does not sit in appeal over the Government's order, although that order is relevant material. The adjudication is to be completed expeditiously and in accordance with the statutory framework.

Conclusion: The Industrial Tribunal exercises independent adjudicatory jurisdiction and does not function as an appellate authority over the Government's order.

Final Conclusion: The reference power under section 25-O(5) was construed broadly, the Government's earlier order was held to remain operative until altered in accordance with law, and the Tribunal was required to decide the closure matter afresh on the statutory parameters, without sitting in appeal over the Government's decision.

Ratio Decidendi: Under section 25-O of the Industrial Disputes Act, 1947, a reference to the Tribunal does not automatically suspend or extinguish the Government's closure order, and the phrase "refer the matter" encompasses the entire closure proceedings while leaving the Tribunal to adjudicate independently on the statutory criteria.

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