2024 LLR WEB 36 (BOMBAY HIGH COURT)
Unemployment of workers and continuous losses are grounds to close down an establishment

A. INDUSTRIAL DISPUTES ACT, 1947 - Section 25-O - Closure Application - Union in the Application filed statutory Application for closing down of Company under Section 25-O of the Act - Tribunal by the impugned order rejected the Application - High Court Held, if a Company approaches the Court for closure on ground of accumulated losses then in that event the possible unemployment of the workers cannot be a ground to compel the Company to run its business and refuse closure - Accumulated losses substantial - Reasons are attributable for the accumulated losses and evidence to that effect has been led by the Company - Not a hidden fact that the losses have occurred progressively - Efforts taken by the Company to come out of the losses have been clearly documented - Company is not a public limited company or a company concerned with public utility so as to force the Company to continue its operations despite accumulated losses - Issue was not agitated before Tribunal - Section 25-O(1) of t... subscribe to read more..