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1956 Supreme(Ker) 51

M.S.MENON
General Produce Ltd. , Alleppey – Appellant
Versus
Ambalapuzha Taluk Head Load Conveyance Workers Union, Alleppey – Respondent


Judgment :-

1. Ext. A is an award of the Industrial Tribunal, Alleppey, dated 15.11.1956 in a dispute between the petitioner - the General Produce Limited, Alleppey - and its workmen. One of the directions in the award is that the workmen concerned should be paid wages in lieu of notice and retrenchment compensation under S.25-F of the Industrial Disputes Act, 1947. The contention of the petitioner is that the award in so far as it directs payment of retrenchment compensation has to be quashed by an appropriate writ or direction in that behalf.

2. On 29.7.1954 the petitioner issued a notice to the effect that it was closing its business on account of financial losses and that the services of the workmen will not be required with effect from 30.7.1954. The petitioner repeated the contention that the closure was for financial reasons before the Tribunal and urged that such a closure did not attract the provisions of S.25F of the Industrial Disputes Act, 1947. The Tribunal states this contention as follows in Para.4 of its award;

"They (the Management) further contend that S.25(F) is inapplicable to the facts of this case because the closure was for genuine financial reasons".

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