Bombay High Court Dismisses Union's Challenge to Tribunal Order Refusing to Treat Company's Closure Application as Withdrawn. Held that the Tribunal's refusal was not perverse and the Union's application was premature under Section 25-O of the Industrial Disputes Act, 1947.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The judgment concerns two writ petitions filed by the General Motors Employees Union challenging an order of the Industrial Tribunal dated 28.04.2023 passed below Exhibit U-25 in Reference (IT) No.15 of 2021. The Union sought to treat the Company's application for closure under Section 25-O of the Industrial Disputes Act, 1947 as withdrawn. The Company had filed the closure application on 20.11.2020, intending to close with effect from 20.04.2021. The Government refused permission on 18.01.2021, and the Company sought review, leading to a reference to the Tribunal under Section 25-O(5) on 19.03.2021. The Union challenged the reference in Writ Petition No.5139 of 2021, which was dismissed on 17.06.2022. The Company filed a Special Leave Petition before the Supreme Court, which was dismissed on 13.12.2022. During the pendency of the reference, the Union filed an application to treat the closure application as withdrawn, which the Tribunal rejected. The High Court held that the Tribunal's order was not perverse and the Union's application was premature, as the Company had not withdrawn its application. The petitions were dismissed.

Headnote

A) Industrial Law - Closure of Undertaking - Section 25-O of the Industrial Disputes Act, 1947 - Withdrawal of Application - The Union sought to treat the Company's closure application as withdrawn, but the Tribunal refused. The High Court held that the Tribunal's order was not perverse and the Union's application was premature as the Company had not withdrawn the application. (Paras 1-10)

B) Industrial Law - Reference to Tribunal - Section 25-O(5) of the Industrial Disputes Act, 1947 - Adjudication - The appropriate Government referred the matter to the Tribunal after the Company's review against refusal of closure permission. The Union challenged the reference, but the High Court dismissed the challenge. (Paras 3-5)

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Issue of Consideration

Whether the Industrial Tribunal erred in refusing to treat the Company's application for closure under Section 25-O of the Industrial Disputes Act, 1947 as withdrawn, and whether the Union's application was maintainable.

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Final Decision

Both writ petitions are dismissed. The order of the Industrial Tribunal dated 28.04.2023 is upheld.

Law Points

  • Industrial Disputes Act
  • 1947
  • Section 25-O
  • closure of undertaking
  • withdrawal of application
  • Industrial Tribunal
  • perversity
  • premature application
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Case Details

2024 LawText (BOM) (01) 212

Writ Petition No. 7992 of 2023 with Writ Petition No. 9311 of 2023

2024-01-09

Milind N. Jadhav

2024:BHC-AS:739

Mr. Sanjay Singhvi, Senior Advocate a/w. Mr. Rahul Kamerkar and Brazillia Vaz, Advocates for Petitioner; Mr. J.P. Cama, Senior Advocate a/w. Mr. Zubin Behramkamdin, Senior Advocate a/w. R.N. Shah, Mr. Vijay Purohit, Mr. Ravish Kumar and Mr. Faizan M. Mithaiwala i/by P & A Law Office, Advocate for Respondent

General Motors Employees Union

General Motors India Private Limited

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Nature of Litigation

Writ petitions challenging an order of the Industrial Tribunal refusing to treat the Company's application for closure as withdrawn.

Remedy Sought

The Union sought to quash the Tribunal's order and treat the Company's closure application as withdrawn.

Filing Reason

The Union alleged that the Company had withdrawn its closure application and the Tribunal erred in not treating it as withdrawn.

Previous Decisions

The Government refused closure permission on 18.01.2021; the matter was referred to the Tribunal on 19.03.2021; the Union's challenge to the reference was dismissed by the High Court on 17.06.2022; the Company's SLP was dismissed by the Supreme Court on 13.12.2022.

Issues

Whether the Industrial Tribunal erred in refusing to treat the Company's application for closure under Section 25-O of the Industrial Disputes Act, 1947 as withdrawn. Whether the Union's application was maintainable and not premature.

Submissions/Arguments

The Union argued that the Company had withdrawn its closure application and the Tribunal should have treated it as withdrawn. The Company contended that it had not withdrawn the application and the Union's application was premature.

Ratio Decidendi

The Tribunal's order refusing to treat the Company's closure application as withdrawn was not perverse. The Union's application was premature as the Company had not withdrawn its application.

Judgment Excerpts

Both these Writ Petitions are disposed of by the following common Judgment. The Union has submitted that the order of Reference dated 19.03.2021 was challenged in the Writ Petition No.5139 of 2021 before this Court which came to be dismissed on 17.06.2022.

Procedural History

The Company filed closure application under Section 25-O on 20.11.2020. Government refused permission on 18.01.2021. Company filed review, and Government referred matter to Tribunal on 19.03.2021. Union challenged reference in WP 5139/2021, dismissed on 17.06.2022. Company filed SLP, dismissed on 13.12.2022. Union filed application to treat closure application as withdrawn, rejected by Tribunal on 28.04.2023. Union filed present writ petitions.

Acts & Sections

  • Industrial Disputes Act, 1947: 25-O, 25-O(5)
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