Right to close industries not unfettered: SC

New Delhi, January 20: | Updated: Jan 21 2002, 05:30am hrs
In a major decision affecting workmen, the Supreme court held that though owners have right to close down their industrial establishments, the government had the power to refuse or grant permission for the intended closure after making an inquiry into the grounds of closure.

Upholding the constitutional validity of Section 25-O of the Industrial Disputes Act, a five-judge constitution bench said amended Section 25-O laid down guidelines which were to be followed by the appropriate government in granting or refusing permission to close down. The decision of the government would depend on the genuineness and adequacy of the reasons stated by the employer to close down the industry, the bench said.

As per amended section, an employer intending to close his establishment shall apply to the appropriate government for prior permission 90 days before the intended date of closure stating clearly the reasons for the closure with a copy simultaneously to the workmen.— PTI