JUDGEMENT
Nishita Mhatre, J. -
(1.) The petition challenges the order of the
Industrial Court, Pune dated 18.12.1995 dismissing the
complaint filed by the petitioners. The petitioners
were all employed with Respondent No.1 for about 2 or 3
years prior to the closure of the establishment of
Respondent No.1 It appears that the respondent was not
paying minimum wages to the petitioners and had not
complied with various provisions of law in respect of
providing attendance cards, contributing to ESI and
Provident Fund, etc. The workmen filed complaint (ULP)
No.312 of 1990 for redressal of their grievances. The
complaint resulted in an agreement on 27.2.1992. The
respondent agreed to pay minimum wages and issued
attendance cards, ESI cards, letters of permanency, etc.
to the workmen. The complaint was withdrawn and the
workmen resumed work with the respondent. All the terms
of the settlement were complied with by the respondent.
However, on 31.3.1992, a notice of closure was displayed
on the notice board by the respondent, closing down the
concern with immediate effect. Aggrieved by the
decision of the respondent to close down the
establishment, the petitioners preferred complaint (ULP)
No.173 of 1992 under Item 9 of Schedule IV of the MRTU &
PULP Act, 1971 before the Industrial Court. This
complaint was filed on 30.6.1992. It was contended in
the complaint that the closure was illegal as the
petitioners had been duped into signing the settlement
of 27.2.1992 and immediately thereafter, within a month,
the respondent decided to close down the concern.
According to the petitioners, the respondent had
violated the spirit of the agreement entered into by
them with the respondent and, therefore they had
committed unfair labour practice under Item 9 of
Schedule IV of the MRTU & PULP Act.
(2.) The Industrial Court has dismissed the complaint
and in my view rightly after considering the evidence
led on behalf of the parties. The Industrial Court has
held that undisputedly the closure was effected on
31.3.1992. It has been observed rightly that whether a
closure is sham or bogus cannot be considered by the
Industrial Court and, therefore, the complaint has been
dismissed.
(3.) It is now well settled that the motive of the
employer for closing an undertaking cannot be questioned
by the workmen or the union representing them. In
M/s.Indian Hume Pipe Co. v/s. v/s. Their Workmen, AIR
1968 SC 1002, the Apex Court has held that once the
Tribunal finds that the employer has closed down its
factory as a matter of fact, the Tribunal cannot
question the motives of the employer for his decision to
close the factory. It is only if there is an illegal
and unjustified closure that such a closure can be
called in question. Admittedly, in the present case,
there were only 7 workmen employed with the respondent.
Thus, neither the provisions of section 25-O nor the
provisions of section 25FFA would be attracted while
considering the legality of closure in the
establishment. An employer who employs less than 50
workmen is entitled to close down his business on
payment of compensation to the workmen as if they have
been retrenched as provided under the Industrial
Disputes Act. The employees in the present case who
were only 7 in number, could not have therefore called
in question the motives of the employer to close down
the concern nor could there be any legal challenge to
such a closure as the employer had offered compensation
to the workmen which was refused by them. Thus, the
order of the Industrial Court impugned in this petition
is confirmed and the petition stands dismissed.;
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