Irani was charged with negligence for causing the fire in the roof of a gallery where families of the officials were assembled for the celebrations in Jamshedpur. The Jharkhand high court in 2007 had allowed the authorities to proceed with the prosecution. Therefore Irani appealed to the Supreme Court.
In its judgment, the bench consisting of Justice S J Mukhopadhaya and Justice S A Bobde accepted the argument of the company that there was no negligence and the accident happened outside the factory and therefore the provisions of the Factories Act would not apply.
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Criminal cases were filed after a report by the chief inspector of factories had said that the fire was due to lack of preventive measures on the factory premises.
Irani had stepped down from the board of Tata Steel after serving the company for over four decades when he reached the age of 75 in 2011.