WORKMEN OF UBL Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The petitioner is a Trade Union known as "United Bleachers Thozhilalar Munnetra Sangam". A substantial number of workmen employed by the respondent management herein are the members of the petitioner's Trade Union. Some other workmen are the members of the 5th and 6th respondents Trade Unions.

(2.) The respondent management is a company governed by "The Companies Act". According to the respondent management, due to the continued loss sustained by the Company, during the year 1997, it became sick. Therefore, the respondent management filed an application on 30.06.1997 under Section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as 'the SICA') to the Board for Industrial and Financial Reconstruction (hereinafter referred to as 'the BIFR') to declare the respondent management unit as a sick company in terms of the provisions of the SICA [vide Case No.131 of 1997].

(3.) The BIFR, by an order, dated 18.11.1997, declared the respondent management as a sick industrial company in terms of Section 3(1)(o) of SICA. So far as rehabilitation of the respondent management company is concerned, the respondent management had requested the "South India Textile Research Association" [hereinafter referred to as 'the SITRA'] to make a detailed study and submit a report making suggestions for the rehabilitation of the company. As on 18.11.1997, a detailed technical report from the SITRA was awaited. The SITRA report was submitted only on 23.12.1997. In the said report, SIRTA had, among other things, recorded that as on 19.11.1997, there were a total number of 356 workmen under the respondent management. The SITRA suggested for labour complement of only 242, including 28 workmen in the printing section of the respondent management.