Case Note & Summary
The appeal arose from an order of a single judge of the Bombay High Court dismissing the appellants' application for interim relief in a writ petition challenging the closure of Kamala Mills. The appellants, Sarva Shramik Sangh (a trade union) and six individual workers, sought to restrain the mill from closing down pending final hearing of the writ petition. The mill had obtained permission for closure under Section 25-O of the Industrial Disputes Act, 1947 from the appropriate government. The single judge declined interim relief, holding that the closure was legal and that the workers' interests were adequately safeguarded by the statutory provisions for compensation and benefits. On appeal, the division bench affirmed the single judge's order, noting that the appellants failed to establish a prima facie case or balance of convenience in their favor. The court observed that the closure permission was granted after due process and that the workers' rights to retrenchment compensation, notice pay, and other benefits under the Industrial Disputes Act would be determined in the main petition. The appeal was dismissed with no order as to costs.
Headnote
A) Industrial Law - Closure of Undertaking - Section 25-O of Industrial Disputes Act, 1947 - Interim Relief - Workers challenged closure permission granted to mill - Court held that no prima facie case for interim relief was made out as closure was legal and workers' rights to compensation and benefits would be protected under Section 25-O - Balance of convenience was against granting injunction - Appeal dismissed (Paras 1-10).
Issue of Consideration
Whether the appellants (workers' union and individual workers) are entitled to interim relief restraining the closure of the mill pending adjudication of their challenge to the closure permission granted under Section 25-O of the Industrial Disputes Act, 1947.
Final Decision
Appeal dismissed. No order as to costs.
Law Points
- Closure of industrial undertaking
- Section 25-O of Industrial Disputes Act
- 1947
- interim relief
- balance of convenience
- prima facie case
Case Details
Appeal No.640 of 1997 in Writ Petition No.502 of 1997
Mr. P.M. Patel for the appellants; Mr. S.K. Talsania, Senior Counsel i/by M/s. Kanga & Co. for the respondent No.1
Sarva Shramik Sangh and others
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Nature of Litigation
Appeal against order of single judge dismissing application for interim relief in writ petition challenging closure of mill.
Remedy Sought
Appellants sought interim injunction restraining the closure of Kamala Mills pending final hearing of the writ petition.
Filing Reason
The mill obtained permission for closure under Section 25-O of the Industrial Disputes Act, 1947, and the workers challenged the closure as illegal.
Previous Decisions
Single judge dismissed the application for interim relief on 7th April, 1997.
Issues
Whether the appellants are entitled to interim relief restraining the closure of the mill pending adjudication of the writ petition.
Submissions/Arguments
Appellants argued that the closure was illegal and would cause irreparable hardship to workers.
Respondent mill argued that closure permission was validly obtained and workers' rights are protected under Section 25-O.
Ratio Decidendi
Interim relief cannot be granted when the closure permission is prima facie valid and the workers' statutory rights to compensation and benefits are adequately protected under Section 25-O of the Industrial Disputes Act, 1947. The balance of convenience lies against granting an injunction that would prevent the closure.
Judgment Excerpts
This appeal is directed against the order dated 7th April, 1997 passed by the learned single Judge in Writ Petition No.502 of 1997.
The appellants have not been able to make out a prima facie case for grant of interim relief.
The balance of convenience is also not in favour of the appellants.
Procedural History
The appellants filed Writ Petition No.502 of 1997 challenging the closure permission granted to Kamala Mills under Section 25-O of the Industrial Disputes Act, 1947. An application for interim relief to restrain the closure was dismissed by the single judge on 7th April, 1997. The present appeal is against that order.
Acts & Sections
- Industrial Disputes Act, 1947: Section 25-O
