RAKESH TIWARI, J. - (1.) HEARD Counsel for the parties.
(2.) THE respondent company is engaged in business of Export of Carpets does not have any manufacturing unite of its own. The Carpet manufacturing industry is a cottage industry. Most of the carpets are woven by the weavers at home. The respondent company had set up about 10 looms on experimental basis in the year 1968 at Guria factory, which at the relevant time was a production centre. Services of 48 bunkers/weavers engaged on the experimental looms were terminated by notice dated 12.4.1982, which is appended as Annexure 1 to the writ petition. The reason behind the closure of weaving section at Guria factory, was because of extremely bad economic recession in North America and Western Europe in the beginning of the 1982, which adversely affected the business of the respondents. According to the Employers there was drastic reduction of orders from these countries primarily because of high cost of production of Carpets in India, which resulted in severe financial crises. The loss suffered by the Company in the year 1981 -82 was to the tune of Rs. 30.84 lakhs and as such it became necessary for the company to adopt such measures as to effect economy and cut down of cost of production.
(3.) THE cost of weaving on Company experimental looms set up by the Company at Guria was very high and running of weaving activity was not economically viable. The Company, therefore, decided to close down the Weaving Department of Guria factory and issued letter dated 12th April, 1982 terminating the services of 48 bunkers working on the looms for aforesaid trade reasons. The notice dated 12th April, 1982 is as under: - "As a measure of economy mixed with other reasons the management has decided to close down the Guria Factory Pvt. Looms and as such your services have become surplus to the requirements of the Management and the same are hereby retrenched with immediate effect. You are hereby advised and directed to collect your dues, if any, along with one month's pay in lieu of one month's notice and retrenchment compensation as required under law today at 10.00 A.M. from the factory office. You are further advised to leave your permanent address with our office so that in event your services are required, you may be called." ;