The short facts of the case are as follows:

The petitioner submits that he was working under the respondent Company from 20.09.1989 as Doffer. The said company was functioning up to 2000. Thereafter, the respondent Company was unable to run adequately. Hence, another company namely “M/s. MAHIR SPINNING MILLS” was conducting the respondent company namely Veeraraghava Textiles, Private Limited. During, that period the Company was unable to pay the Electricity Connection Charges around several Crores to the Tamil Nadu Electricity Board. Thereafter, no one came forward to run the Company. The petitioner further states that the respondent's company had not paid the salary to the petitioner from the year of 2000. The petitioner had received a sum of Rs.3,715/- as his last pay drawn salary. Further the petitioner is entitled to service salary arrears from January 2001 to October 2006 in total Rs.2,60,050/- from the respondent company as salary arrears. Hence, the petitioner has filed a Claim Petition No.37 of 2007, on the file of the 2nd respondent herein namely the Presiding Officer, II Additional Labour Court, Chennai.

2. The respondent Company had filed a counter statement and