DISPUTE SETTLEMENT MECHANISMS IN THE TEXTILE INDUSTRY

Abstract

Industrial disputes are an unavoidable reality in India’s dynamic economic environment, particularly in labour-intensive sectors such as textiles where production schedules, employer-employee relations, and vendor reliability are crucial. India’s legal framework provides multiple avenues for dispute resolution, including statutory forums like Labour Courts and Industrial Tribunals, commercial courts under the Commercial Courts Act, 2015, and specialised mechanisms such as MSME Facilitation Councils. Alongside these, alternate dispute resolution methods, arbitration, mediation, and conciliation—have become increasingly significant for addressing contractual and commercial conflicts. Despite this institutional variety, procedural delays, high litigation costs, and limited awareness often restrict effective access, especially for small and medium enterprises. Judicial interventions in matters such as denial of export incentives, mill closures, and labour disputes reveal that general mechanisms frequently fall short when applied to the complex realities of the textile industry. Courts have played a corrective role, ensuring fairness and protecting both business viability and worker welfare, but reliance on litigation is not sustainable. This study highlights the need for sector-specific reforms that emphasize speed, industry expertise, and practical fairness. Establishing a dedicated institutional framework would reduce judicial burden, safeguard industrial harmony, and strengthen the textile sector’s contribution to India’s economy