- (1.) Whether in a case of closure of an industrial undertaking, prior permission of the appropriate Government is imperative and whether a settlement arrived at by and between the employer and the workmen would prevail over the statutory requirements as contained in Section 25-N and section 25-O of the Industrial Disputes act, 1947 ('the Act', for short) are the primal questions involved in this appeal which arises from a judgment and order passed by a Division Bench of the Punjab and Haryana High Court dated 10. 7.1998 in cwp No. 8214 of 1997 allowing the writ petition filed by the respondents herein. background FACTS :
(2.) The appellant's industrial undertaking was set up as a 100% export oriented unit for paddy processing furfural and rice bran extraction. Allegedly, in view of lack of demand in the international market of its product, rice bran oil was sold by it in the local market, wherefor no registration- cum-allocation certificate below the minimum price was obtained. The said purported statutory violation was the subject- matter of a writ petition filed by the appellant herein before the Delhi High Court which was allowed.
(3.) The matter came up for consideration before this Court and in its judgment rendered in Agricultural and Processed food Products etc. v. Oswal Agro furane and Others etc. this Court held that the appellant is liable to pay a sum of rs. fifty crores under different heads to the State. Allegedly, on the ground such a huge liability had been incurred, a notice dated 29.5.1996 was issued to the state Government in terms of Section 25-0 of the Act. Notices were also issued to the workmen on 12.6,1996 whereupon a purported settlement was arrived at on or about 14.6.1996 in terms of Section 12 (3) of the Act, The respondents herein questioned the said settlement by filing a writ petition which, as noticed hereinbefore, was allowed. HIGH COURT :;