JUDGMENT

GOSWAMI, J. :—A complaint was made to the Labour Court by the respondent, Mazdoor Mahajan Mandal, Baroda (briefly the union) alleging the lock-out declared by the appellant to be illegal. The appellant, Priya Laxmi Mills Ltd. (briefly the management) resisted the petition. After examining the oral and documentary evidence the Labour Court came to the conclusion that the lock-out was illegal under clauses (c) and (h) of sub-section (1) of Section 98 of the Bombay Industrial Relations Act, 1946 (briefly the Act).

2. A brief reference to the facts will be appropriate at this stage.

3. The present appellant purchased this textile mill from M/s. Sayaji Mills Ltd. in 1973 when it had about 3500 workmen besides officers. It is said that in 1974 the textile industry suffered adverse market conditions, accumulation of stocks, shortage of raw materials and bank credit squeeze in consequence of which the management started experiencing acute financial difficulties which were aggravated by a spate of litigations between the appellant and the previous owners. The appellant somehow continued to pay the wages of the workmen upto February 1975 although in an irregular manner.

4. The mill wo