HON’BLE SRI JUSTICE NAGESH BHEEMAPAKA WRIT PETITION No. 9126 OF 2017

O R D E R:

Heard Sri L. Ravichander, learned Senior Counsel on behalf of Sri Srinivas Bobbili, learned counsel for petitioner and Ms. V. Uma Devi, learned Standing Counsel for Respondents 3 and 4.

2. The case of petitioner in a nutshell is that it is a registered and recognised trade union and is operating in Adilabad Unit of Cement Corporation of India (CCI). Adilabad Unit is one of the twelve units of CCI which was declared as sick company by Board of Industrial & Financial Reconstruction (BIFR) on 08.08.1996. It was found viable up to 2004, but strangely, BIFR, by order dated 21.3.2006 directed to close Adilabad Unit. The Appellate Authority for Industrial & Financial Reconstruction (AAIFR), by order dated 17.11.2006 confirmed BIFR order dated 21.03.2006. Then CCI sought to close Adilabad Unit and announced Voluntary Separation Scheme-2007 ('VSS-2007'). Aggrieved by the same, Petitioner Trade Union filed Writ Petition No. 5487 of 2007, wherein this Court granted an interim order of status quo dated 20.04.2007. Later, by order dated 27.02.2008, the said order was modified permitting CCI to file an Application before the Ministry of Labour in the prescribed manner under Section 25-O of the Industrial Disputes Act, 1947 and take a decision, but such final decision shall not be implemented till further orders from this Court. In view of this interim order, CCI continued Adilabad employees in service till 19.05.2017. It is stated, CCI transferred some of the employees from Adilabad unit to other units from 20.04.2007 to 19.05.2017; CCI paid terminal benefits to Adilabad employees, who died while in service and who retired from service between 20.04.2007 and 20.02.2017.

It is further stated, subsequently, Writ Petition No.5487 of 2007 was dismissed by order dated 07.02.2017. Challenging the said order, Petitioner filed Writ Appeal No. 223 of 2017, wherein the Division Bench by order dated 27.02.2017 permitted the State Government to persuade Central Government to reconsider its earlier decision to close Adilabad Unit and directed CCI not to proceed with tender notice for three months till 26.05.2017. Even before completion of this three months period, CCI issued impugned closure notice dated 20.02.2017, wherein it was declared that (i) Cement Factory at Adilabad stands closed with retrospective effect from 31.10.2008 and members of Petitioner Trade Union, who have been working in the said factory as on 20.2.2017, stand terminated with retrospective effect from 31.10.2008 and directed them to opt Voluntary Separation Scheme-2007 if they are willing. Thus it is clear that this is a case of retrospective closure of an industry and retrospective termination of employees, who have been working as on 20.2.2017. According to petitioner, as on the date of Division Bench order in Writ Appeal i.e. 27.02.2017, Adilabad Unit should not be closed till 26.5.2017, and all the workmen are on rolls of CCI and their services were being used by CCI in the Adilabad Unit and in other units, hence, the claim of CCI that Adilabad Unit was closed and services of workmen are terminated from 31.10.2008 is illegal.

3. While admitting the Writ Petition, this Court by order dated 17.03.2017, passed the order to the effect that ‘in terms of the notice of closure dated 20.02.2017, the members of the petitioner– Union are granted liberty to exercise option as required by the respondent Corporation. However, the Corporation may complete the exercise in terms thereof but shall not pass final orders on the options exercised by all or any of the members of the petitioner – Union or apply the provisions of Industrial Disputes Act, 1947 against those employees who have not exercised their options, until the time granted by the Division Bench in Writ Appeal No. 223 of 2017 expires. However, it is needless to observe that if a decision is taken acceding to the request of the Government of Telangana, th