JUDGMENT

MADON, J. - This is an appeal by special leave granted by this Court against the order of the Industrial Court, Maharashtra, dismissing a complaint filed by the appellant Union under Section 28 of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (Maharashtra Act 1 of 1972) complaining of an unfair labour practice on the part of the first respondent Company, namely, a failure to implement the settlement dated February 1, 1979, entered into between the appellant Union and the first respondent Company. This Act will hereinafter be referred to in short as "the Maharashtra Act".

2. The first respondent Company, S.G. Chemicals and Dyes Trading Limited (hereinafter referred to as "the Company") is a wholly owned subsidiary of Ambalal Sarabhai Enterprises Limited and carries on the business of pharmaceuticals, pigments and chemicals. The second respondent is the General Manager (Marketing) of the Company. The appellant Union, S.G. Chemicals and Dyes Trading Employees Union (hereinafter referred to as "the Union") is a trade union registered under the Trade Unions Act, 1926 (Act 16 of 1926) representing the employees of the Company. In 1984 the Company was operating in Bombay through three divisions, namely, the Pharmaceuticals Division at Worli, the Laboratory and Dyes Division at Trombay and the Marketing and Sales Division at Express Building, Churchgate. The registered office of the Company was also situate in the same place as the Marketing Division, namely, in Express Building. Ambalal Sarabhai Enterprises Limited is also the owner of a chemicals and dyes factory called S.G. Chemicals and Dyes, situate at Ranoli in Baroda District in the State of Gujarat.

3. By a notice dated July 16, 1984, given in Form XXIV-B prescribed by Rule 82-A of the Industrial Disputes (Bombay) Rules, 1957, the Company signing itself as "S.G. Chemicals and Dyes Trading Limited (Chemicals & Dyes Division)", intimated to the Secretary, Government of Maharashtra, Industries and Labour Department, Bombay, that in accordance with the provisions of sub-section (1) of Section 25-FFA of the Industrial Disputes Act, 1947 (Act 14 of 1947), it intended to close down "the Undertaking/Establishment/Office of Chemicals & Dyes Division, located at Express Building, 14 E Road, Churchgate, Bombay-400 020, with effect from September 17, 1984". In the said notice the number of workmen on the roll was stated to be ninety, the name of the Undertaking (and the establishment proposed to be closed)" was given as "Chemicals & Dyes Division Office of S.G. Chemicals and Dyes Trading Limited". The industry was described in the said notice as "Marketing and Sales operations of Chemicals and Dyes". In the statement of reasons annexed to the said notice it was stated as follows :

Ambalal Sarabhai Enterprises Limited, have agreed to sell its business and undertaking known as S.G. Chemicals and Dyes, situated at Ranoli to M/s Indian Dyestuff Industries Ltd., Bombay, with effect from June 25, 1964. Chemicals and Dyes Division of S.G. Chemicals and Dyes Trading Limited was rendering staff and other services to S.G. Chemicals and Dyes as also to their Marketing Companies who handled the sale of S.G. Chemicals and Dyes products. Indian Dyestuff Industries Ltd., propose to handle the future sale of S.G. Chemicals and Dyes products through their own distribution channels. S.G. Chemicals and Dyes and the Marketing Companies have informed us that the staff services offered by us to them would no longer be required by them resulting in there being no work for the staff working at Express Building office of Chemicals and Dyes Division of S.G. Chemicals and Dyes Trading Limited. The management has, therefore, no other alternative but to close down their office operations of Chemicals and Dyes situated at Express Building, 14 E road, Churchgate, Bombay-400 020.

Copies of the said notice were sent to the Commissioner of Labour, Maharashtra, the