TECHNOLOGICAL INSTITUTE OF TEXTILE AND SCIENCE Vs. FINANCIAL COMMISSIONER AND PRINCIPAL SECRETARY TO GOVERNMENT OF HARYANA

JUDGEMENT

(1.) THE present writ petition has been filed challenging the orders dated 10.12.2010 (Annexure P -1) whereby, the Government has rejected the application of the petitioner under Section 25 -O of the Industrial Disputes Act, 1947 (in short 'the Act') for permission to close the textile mill of the institute on the ground that it would be in the public interest specially keeping in view the conduct of the management and it would result in the polarization of the affected population against the management and other social problems also apparent from rendering the workmen unemployed. The subsequent order dated 09.06.2011 (Annexure P -2) wherein, a review application preferred under Section 25 -O(5) of the Act was also dismissed on the ground that the petitioner -management had given no cogent reasons on the basis of which the review application could be allowed and is also a subject matter of challenge.

(2.) THE pleaded case of the petitioner is that it is a society registered under the West Bengal Societies Registration Act, 1961 and the Technological Institute of Textiles and Sciences (TITS) was set up under the aegis of the Birla Education Trust established in the year 1943. The institute celebrated its diamond jubilee in December, 2003 on completing 60 years of service to the Nation and remained part of the said trust upto 30.03.1985. The institute was separated from the Trust from 01.04.1995 and an independent society was formed in the name of Technological Institute of Textiles which is registered under the West Bengal Societies Registration Act, 1961 and the name was subsequently changed to TITS. The society is an educational institution providing Graduate and Post Graduate degrees in Textile Technology, Textile Chemistry, Fashion & Apparel Engineering and Computer Engineering and providing Graduate degrees in Electronics and Communication Engineering, Information Technology and Electronic & Instrumentation Engineering being affiliated to M.D. University, Rohtak. The students' strength was 1611 and management courses of MBA and approved center for Doctoral Research leading to Ph.D. Degree was also there. The factory had been attached to the institute for imparting training to the students under actual mill working conditions and for conducting research and perfecting the process necessary for and incidental to the manufacture of textile yarn. The mill was almost 100 years old and engaged in the manufacture of viscose and viscose blended yarn and had been purchased to provide practical training to the students on the pattern of a hospital attached to a medical college and had its own industrial license covered under various Labour Laws including the Factories Act, 1948. On account of the mill incurring losses over considerable period of time and as per the audited balance sheet dated 31.03.2010, Rs. 254.02 lacs was the loss and the cumulative losses of the society had gone upto Rs. 1,565.01 lacs. The reason for losses was that the plant and machinery had gone age old, traditional and not viable in the present competitive market, high cost of production, poor quality of yarn, low productivity of labour and machines, higher competitive market, rise in cost of raw material, prolonged power cuts, higher power costs, increase in labour costs, lack of adequate working capital and higher interest cost etc. On account of the said facts, the petitioner -institute applied to the State Government on 27.10.2010 under Section 25 -O of the Act seeking permission to close down the yarn manufacturing undertaking (mill) run by the institute and the intended date of closure was 01.02.2011, which was beyond the period of 90 days from the date of filing the application.

(3.) THE respondent -State, in short reply, submitted that proper procedure had been followed as per the provisions of the Act and there was no scope of review and the management during the last few years itself allowed the unit to slide into irretrievable losses and the large number of workers were to retire and the management could close down the unit in the next 2 -3 years and it was not necessary to move the application for closure. The management was not bothering about the fate of 464 workers and their families and the Act being a social welfare enactment, the Government had rightly declined the permission. The review application had also been rightly dismissed after affording personal hearing to all concerned. The respondents no. 2, 3, 5 and 7 were proceeded against ex parte on 20.03.2013 and reply on behalf of respondent no. 4 was not filed.