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1994 Supreme(Mad) 851

K.A.SWAMI, SOMASUNDARAM
Messrs Metal Box India Limited and Another – Appellant
Versus
State of Tamil Nadu and Others – Respondent


Appearing Advocates:P. Chidambaram For B. Sai Chandravathan, Ors., K. M. Srirangam (G.A.) V. Prakash, Anr., Advocates.

Judgment :-

SOMASUNDARAM, J.

The 1st petitioner is a company incorporated under the Companies Act and having its registered office at Calcutta. It has manufacturing units in several places including Tamil Nadu. They are engaged in the manufacture of metal containers, collapsible tubes, paper packages, plastic moulded goods etc. It is the case of the petitioners that they are incurring heavy losses for several years. They have therefore, applied for the relief under the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as S.I.C.A.) on May 27, 1988 the company has been declared as a sick industry. Further proceedings relating to the framing of a scheme is pending with the Board for Industrial and Financial Reconstruction. With effect from December 20, 1987 the Madras Factory suspended its operation in view of the cumulative loss reaching the figure of Rs. 90.20 Crores till March 31, 1987. On the assurance given by the workers and on the advice of the Commissioner of Labour, the Unit was restarted in April, 1989. The primary conditions on which the unit was restarted were, (1) there will be a 20% cut in wages and in salaries including D.A. of the workers














































































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