PAINT EMPLOYEES UNION Vs. KANSAI NEROLAC PAINTS LTD

JUDGEMENT

(1.) The appellant is the original respondent and the respondent is the original petitioner in Writ Petition No. 1332 of 2007. The said writ petition was filed by the respondent challenging order dated 24/4/03 passed by the Commissioner of Labour, Maharashtra State insofar as it dealt with review of earlier order dated 27/3/03. It is necessary to begin with the facts of the case.

(2.) The respondent is a company registered under the Companies Act, 1956 ("the respondent company" for convenience). It has various manufacturing units in different parts of the country. It had a manufacturing unit at Lower Parel. The appellant is a registered trade union and has been representing the employees of the Lower Parel unit of the respondent company since 1945. It is a recognized union under Chapter II of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 ("MRTU & PULP Act" for short). For convenience, we shall refer to the appellant as "the appellant union".

(3.) On 27/1/03, the respondent company made an application seeking permission to close down the Lower Parel factory unit under section 25-0 of the Industrial Disputes Act, 1947 ("the said Act" for short). In the application several reasons for proposed closure were noted. It was stated that the financial condition of the Lower Parel factory unit had deteriorated to a great extent; that the Lower Parel factory unit as a whole had incurred losses of about Rs. 320 lakhs in the first half of the current year; that it is estimated that the same trend would follow in the second half of the current financial year and that there are no chances of revival of the unit. This application was resisted by the appellant union. On 27/3/03, after hearing the parties the Commissioner of Labour who is the Specified Authority under the said Act ("Specified Authority" for convenience) granted permission to the respondent company to close down the Lower Parel unit. On 15/4/03 the appellant union filed an application under section 25-O(5) of the said Act seeking review of the order dated 27/3/03 or a reference to the Industrial Tribunal. That application was opposed by the respondent company.