RAKESH TIWARI, J.

( 1 ) HEARD Counsel for the parties.

( 2 ) THE respondent company is engaged in business of Export of Carpets does not have any manufacturing unite of its own.

( 3 ) THE Carpet manufacturing industry is a cottage industry. Most of the carpets are woven by the weavers at home. The respondent company had set up about 10 looms on experimental basis in the year 1968 at Guria factory, which at the relevant time was a production centre. Services of 48 bunkers/weavers engaged on the experimental looms were terminated by notice dated 12. 4. 1982, which is appended as Annexure 1 to the writ petition. The reason behind the closure of weaving section at Guria factory, was because of extremely bad economic recession in North America and Western Europe in the beginning of the 1982, which adversely affected the business of the respondents. According to the Employers there was drastic reduction of orders from these countries primarily because of high cost of production of Carpets in India, which resulted in severe financial crises. The loss suffered by the Company in the year 1981-82 was to the tune of rs. 30. 84 lakhs and as such it became necessary for the company to adopt suc