HARINAGAR SUGAR MILLS LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) The Challenge : Petitioners are aggrieved by the action of the State Government in not treating their establishments as deemed to have been closed under provisions of Sec. 25-O(3) of the Industrial Disputes Act, 1947 ("ID Act"). The deeming fiction is invoked alleging non decision of applications seeking permission for closure of establishments within 60 days. The petitioners assail communications dtd. 4/11/2019 calling upon the petitioner to resubmit application for closure as well as letters dtd. 20/11/2019 and 22/11/2019 directing them not to close their establishments. Petitioners also seek a declaration that their establishments are deemed to have been granted permission for closure on expiration of period of 60 days from the date of applications of closure dtd. 28/8/2019 under Sec. 25-O(3) of the ID Act.

(2.) Facts in both the Writ Petitions are identical. The petitioners are companies incorporated under the provisions of Companies Act, 1956 and were engaged in manufacturing of biscuits for Britannia Industries Limited ("BIL") under Job Work Agreements. It is averred that BIL terminated the Job Work Agreements with effect from 20/11/2019. Petitioners accordingly intimated to all its workmen as well as Unions about termination notice by BIL. Petitioners decided to apply for closure of their manufacturing activities at Bhandup and submitted applications for permission for closure on 28/8/2019 in Form XXIV-C prescribed under Rule 82-B(1) of the Industrial Disputes (Maharashtra) Rules read with Sec. 25-O(1) of the ID Act. Petitioners simultaneously informed its workmen and the recognised trade unions about applications for closure by giving them closure notices dtd. 28/8/2019.

(3.) Petitioners received letters dtd. 25/9/2019 from the office of the Deputy Secretary Labour, Government of Maharashtra intimating that they failed to disclose the efforts made by them for closure of the manufacturing business nor cited complete and cogent reasons for closure. Petitioners were therefore called upon to resubmit applications by disclosing efforts to prevent closure and by furnishing valid and complete reasons for closure.