The High Court has overturned the closure orders of two textile factories
07 January 2022, Mumbai:
The Madras High Court in Tamil Nadu has overturned the orders of two government-owned textile factories in Puducherry to down their shutters. According to reports in the media, Justice S. Vaidyanathan overturned the orders of Swadeshi Cotton Mills and Sri Bharathy Mills, units of Swadeshee Bharathi Textiles Mills Limited, Government of Puducherry undertakings, allowing them to close the next day, September 30.
Notably, the bench recently granted two writ petitions filed by the individual mills' labour unions, which challenged the September 2000 closure orders.
They petitioned the court to make the units operational, and the court granted the petitions, stating that the amount previously obtained as compensation by the protesting employees would be modified, and the remaining amount would be paid within six months.
Meanwhile, the employer may file new petitions for the closure of the enterprises under the provisions of the Industrial Disputes Act, if so advised, after complying with the obligatory legislative provisions and the applicable waiting period.
"This Court believes that the Corporation is a part of the Government of Puducherry, and that any closure application filed by the Corporation can be scrutinised by the authority concerned, and the matter can be immediately referred to a Tribunal, so that instead of two adjudications, one before the authority and the other before the Tribunal, a comprehensive decision can be reached."
The Industrial Disputes Act, 1947, needs to be amended, according to the court, so that a Labour Court or Tribunal can decide the case because the IAS officers entrusted with such quasi-judicial work are unfamiliar with the Act's strict provisions due to their other administrative/official responsibilities.
The judge stated that if any of the workers had already settled the issue and accepted the monetary rewards, they would be ineligible for any remedy. Employees who have previously had their claims resolved cannot be permitted to have the best of both worlds.
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