Judgment

CHINNAPPA REDDY, J.:- The Fine Knitting Mills owned by the Fine Knitting Company Limited was notified as a sick textile undertaking under the Sick Textile Undertakings (Taking Over of Management) Act, 1972 and included in the First Schedule to the Act as Item No. 13. The Company was incorporated in 1908 and its principal activity was then the manfacture of hosiery. In 1924, the company installed spinning machinery, with 9000 spindles with a view to ensure suitable and even supply of yarn for its hosiery manufacture. A question arose in 1961 whether for the purposes of S. 11 of the Bombay Industrial Relations Act, the hosiery and spinning sections of the Companys establishment were a single concern or two separate undertakings. It was the contention of the Company that the undertaking was one and not two. The Supreme Court accepted the finding of the Industrial Court that there were two distinct and independent undertakings. The judgment of the Supreme Court is reported in The Fine Knitting Co. Ltd. v. Industrial Court, Bombay, 1962 Supp (3) SCR 196. Subsequently, on August 1, 1970, the Spinning unit was closed down. Thereafter, the management of the undertaking was taken ov