UNION OF INDIA versus SHREE SHANKAR TEXTILES EX-EMPLOYEES UNION AND ORS.

UNION OF INDIA versus SHREE SHANKAR TEXTILES EX-EMPLOYEES UNION AND ORS.

The High Court erred in holding the Scheme conditions relating to Section 25-O of the Industrial Disputes Act, 1947, as unconstitutional and arbitrary without adequate reasoning; factual closure date before the relevant date disentitled workers from benefits under the scheme; orders of High Court are set aside.

Parties
Appellant: Union of India; Respondent No. 1: Shree Shankar Textiles Ex-Employees Union
Jurisdiction
India
Judgment Date
14 September 2007
Procedural Posture
Civil Appeal / Final Supreme Court Appeal From High Court Judgment
Outcome
Appeal allowed. Orders of Single Judge and Division Bench of High Court set aside. Writ application dismissed. No order as to costs.
Legal Topics
Closure of Textile Mills, Textile Workers Rehabilitation Fund Scheme, Industrial Disputes Act, 1947, Discrimination Under Articles 14 and 16 of the Constitution
Labour Law Constitutional Law Closure of Textile Mills Textile Workers Rehabilitation Fund Scheme Industrial Disputes Act, 1947 Discrimination Under Articles 14 and 16 of the Constitution

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Parties

Union of India

Appellant

Shree Shankar Textiles Ex-Employees Union

Respondent No. 1

Procedural Posture

Civil Appeal / Final Supreme Court Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the eligibility conditions under the Textile Workers Rehabilitation Fund Scheme, specifically closure under Section 25-O of the Industrial Disputes Act, 1947, are unconstitutional, discriminatory, or arbitrary
  2. 2 Whether the factual date of closure entitles workers to benefits under the Scheme

Ratio Decidendi

The High Court erred in holding the Scheme conditions relating to Section 25-O of the Industrial Disputes Act, 1947, as unconstitutional and arbitrary without adequate reasoning; factual closure date before the relevant date disentitled workers from benefits under the scheme; orders of High Court are set aside.

Court Disposition

Appeal allowed. Orders of Single Judge and Division Bench of High Court set aside. Writ application dismissed. No order as to costs.

Orders

  • The orders of the learned Single Judge and the Division Bench are set aside.
  • The writ application filed by the respondent No.1 is dismissed.