JAY SHREE TEA LTD Vs. INDUSTRIAL TRIBUNAL 1

JUDGEMENT

(1.) In this and the companion Writ Petition Nos. 8214 of 1986,3294 of 1985,13015 of 1984 and 9948 of 1983 the employers feel aggrieved by the refusal of the State of Uttar Pradesh to accord them permission to close down either undertakings or units.

(2.) In this petition the material averments of Jay Shree Tea and Industries Ltd., a public limited company, are these. Amongst other businesses, the company has an establishment of Jay Shree Tyres and Rubber Products at Allahabad (hereinafter referred to as the Allahabad Unit). Each business run by the company is a separate establishment having a separate finance, management and control. The Allahabad unit has been suffering huge losses year after year. It has suffered losses from its very inception. In 1976-77 its loss was of Rs. 1.68 lacs, in 1977-78 the loss was of Rs. 49.98 lacs, in 1978-79 the loss was of Rs. 44.37 lacs, in 1979-80 the loss was Rs. 92.08 lacs, in 1980-81 the loss was of Rs 114.5 lacs, in 1981-82 the loss was of Rs. 110.15 lacs, in 1982-83 the loss was of Rs. 109.65 lacs, in 1983-84 the loss was of Rs. 133.55 lacs, in 1984-85 the loss was of Rs. 164.25 lacs and in 1985-86 the loss was of Rs. 195.91 lacs. The total loss suffered is of Rs. 1,022.17 lacs. On September 29,1986, the State Government re jected the application, dated August 4, 1986 seeking permission to close down the unit. Upon an application for review made by the petitioner, the State Government referred the matter for adjudication to a Tribunal and on February 26, 1987, the Tribunal passed an award maintaining the order of the State Government.

(3.) In Writ Petition No. 8214 of 1986 M/s Amitabh Textile Mills Limited is the petitioner. The material averments are these. The petitioner has been suffering heavy losses for last few years and is one of the sick units in textile in Northern India. There is no possibility of improvement in the foreseeable future. On August 7, 1985, the State Government declined to grant the permission to close down its factory. The prayer made by the petitioner for review of its order was not acceded to by the State Government. However, it made a reference to a Tribunal which on March 6, 1986 passed an award maintaining the order of the State Government.