SWADESHI PANCHALAI THOZILALAR Vs. SECRETARY, INDUSTRIES AND COMMERCE

JUDGEMENT

(1.) These Writ Petitions have been filed, seeking to quash the impugned notice dtd. 29/9/2020, by which a notice was issued by the 5th Respondent with regard to closure of two Mills, namely, M/s.Swadeshi Cotton Mill and M/s.Sri Bharathi Mills. The Petitioner / Union also sought a direction to the Respondents to take appropriate steps to make the 5th Respondent Mill operative.

(2.) The Petitioners / Sangam are the registered Unions under the Trade Unions Act, 1926. According to Sangam, the Mills are in existence for more than 90 years and on account of loss, it has been decided to wind up the Mills by means of filing a closure application under Sec. 25-O of the Industrial Disputes Act, 1947 (in short 'the I.D.Act, 1947'). The Management has issued a closure notice dtd. 29/9/2020, indicating that the Mills would be closed with effect from 30/9/2020.

(3.) According to the Sangam, the notice under Sec. 25(O) of the I.D.Act, 1947 was issued in the prescribed format only on 2/6/2020 and as there was a defect in the application, the said application was returned, which was re-submitted on 1/7/2020. In the closure application dtd. 2/6/2020, it was decided to close Mills with effect from 1/9/2020. The Mills were closed on 30/9/2020 and according to the Sangam, no notice of enquiry was issued for making objection before the Authority concerned and without taking up the matter for hearing, the Government has replied stating that there is a deemed closure after 60 days in terms of Sec. 25(O) of the I.D.Act, 1947. The stand of the Government was that if no orders were passed within 60 days from the date of receipt of application, the closure will come into effect and that Mills have been closed with effect from 30/9/2020.