C C I CEMENT FACTORY MENS UNION (INTUC) (REGD ) AND OTHERS Vs. GOVERNMENT OF INDIA AND OTHERS
LAWS(P&H)-2008-10-164
HIGH COURT OF PUNJAB AND HARYANA
Decided on October 23,2008

C C I CEMENT FACTORY MENS UNION (INTUC) (REGD ) AND OTHERS Appellant
VERSUS
GOVERNMENT OF INDIA AND OTHERS Respondents

JUDGEMENT

- (1.) The challenge in the present writ petition is to the order 14.7.2008 passed by the Appropriate Government granting permission to the respondent-Cement Corporation of India (hereinafter referred to as 'the Corporation') for closure of the undertaking in terms of Section 25-0 of the Industrial Disputes Act, 1947 (for short the Act.').
(2.) The Corporation has earlier approached the Board of Industrial and Financial Reconstruction (for short the BIFR). The BIFR declared the Corporation as a sick company vide order dated 8.8.1996 and M/s. Industrial Financial Corporation of India was appointed as an operating agency. Subsequently, on 3.5.2006 a Scheme was circulated providing for closure of seven non-operating units including the Charkhi Dadri unit i.e. the unit where the petitioners were employed. The said Scheme was challenged, but the same has attained finality with the dismissal of the Special Leave Petition on 28.4.2008 (Annexure P.4) by the Hon'ble Supreme Court. In such proceedings, there was an interim order of status quo granted by the Delhi High Court on 21.2.2007.
(3.) The Corporation, after the Scheme circulated by the BIFR, moved for closure of the undertaking and sought permission from the Appropriate Government. On 29.3.2007, the Appropriate Government, in view of the status quo order passed by the Delhi High Court, declined permission of the Government for closure of seven units. However, liberty was granted to the management to approach the Government under sub-section (5) of Section 25-O of the Act, as and when the interim order is vacated or the matter was disposed of by the Delhi High Court. The contents of the said communication read as under : "I am directed to refer to your applications submitted under Section 25 O of the Industrial Disputes Act, 1947 seeking permission of the Government for closure of the seven non-operating units of Cement Corporation of India and subsequent clarifications provided vide your letter No. PAR/4(2)/2006/777 dated 20.3.2007, and to say that the request for closure has been considered in all its details on the basis of documents filed and submissions made during the hearing held in the Ministry of 9th March, 2007. During the course of the said hearing it was brought to the notice of this Ministry that a stay order has been passed by the Hon'ble High Court at Delhi directing status quo to be maintained by the parties in W.P. No. 1322/2007. Keeping in view this order by the Hon'ble High Court, Delhi, permission of the Government is not granted for closure of the seven units of Cement Corporation of India Ltd. Namely, (i) Akaltara Cement factory (ii) Mandhar Cement factory in Chattisgarh, (iii) Adilabad Cement factory, Andhra Pradesh, (iv) Delhi Cement Grinding Unit/Bhatinda Grinding Unit (Punjab), (v) Nayagaon Cement factory, Madhya Pradesh, (vi) hurkunta Cement factory in Karnataka, and (vii) Charkhi Dadri Cement factory in Haryana. 2. The management of the Cement Corporation of India may, however, approach the Government again in the matter under sub-section (5) of Section 25 O of the Industrial Disputes Act, 1947 as and when the stay order is vacated or the matter is disposed off by the Hon'ble High Court at Delhi.";


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