Background

The Allahabad High Court has delivered an important judgment highlighting the legal consequences of the implementation of the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code). In M/s New Rajshree Sweet (P) Ltd. v. State of U.P. & Others, Writ-C No. 28179 of 2026, decided on 13 August 2026, the Court considered the validity of a notice issued under the Factories Act, 1948.

The Disputed Notice

The notice was issued on 2 June 2026 by the Assistant Director of Factories, Varanasi Region, under the Factories Act, 1948. The petitioner challenged the notice on the ground that the Factories Act had already been repealed following the coming into force of the OSH Code.

What Did the Court Hold?

Justice Saurabh Shyam Shamshery found merit in the petitioner’s argument. The Court noted that the OSH Code, 2020 came into force on 21 November 2025 and that Section 143 provides for the repeal of the Factories Act, 1948 and other specified enactments from that date.

The Court therefore held, in substance, that an Act which has already been repealed cannot be used as the legal basis for initiating an inquiry against the petitioner.

Result of the Judgment

The High Court set aside the notice dated 2 June 2026, as well as any subsequent order based on that notice. The writ petition was accordingly disposed of.

Importantly, the Court Did Not Give Blanket Immunity

The judgment contains an important qualification. The Court clarified that its order does not prevent the authorities from initiating proceedings under the Occupational Safety, Health and Working Conditions Code, 2020, or under any other Act applicable to the facts and circumstances of the case.

Why Is This Judgment Important for Employers?

The decision reinforces an important compliance principle in the post-Labour Codes environment: authorities must initiate proceedings under the law that is legally in force and applicable on the relevant date.

For factories and other establishments covered by the new OSH framework, employers should therefore carefully examine notices, inspections and proceedings issued by authorities – particularly where a notice continues to rely upon provisions of the repealed Factories Act, 1948.

At the same time, the judgment should not be interpreted as meaning that factory or workplace safety obligations have disappeared. The Court expressly preserved the authorities’ ability to proceed under the OSH Code or another applicable law.

KEY TAKEAWAY

The transition from the old labour-law framework to the Labour Codes is not merely a change in terminology. It can have direct consequences for the legal validity of notices, inspections and enforcement proceedings initiated by authorities.

Source: Judgment of the High Court of Judicature at Allahabad, Writ-C No. 28179 of 2026, dated 13 August 2026.