MODI CLOTH MILLS Vs. STATE OF U P

JUDGEMENT

(1.) This petition has been filed by M/s. Modi Cloth Mills, Modinagar, Ghaziabad against an order dated 3.3.1994 passed by the Deputy Labour Commissioner who is the appropriate authority under Section 25-O (4) of the Industrial Disputes Act, 1947 (hereinafter referred to as the Act), The petitioner mill had moved an application on 11.12.1993 under Section 25-O of the Act, seeking permission to close down its unit at Ghaziabad as it had ceased to be viable.

(2.) The facts of the case are that petitioner mill was established in 1949 and over the years, the petitioner company could not modernize its unit and the company started facing heavy losses. By the year 1993 the condition of the petitioner unit was very poor as neither the company was able to update and modernize its plant and machinery nor it was able to cope with the other financial liabilities and was unable to run its unit.

(3.) In fact the petitioner unit had been declared as a sick unit on 15.6.1990 and the matter was pending before the BIFR which declared the unit as sick unit from that date.