In Brief
A trade union challenged the closure of a manufacturing unit on grounds that the employer failed to comply with statutory provisions applicable to units employing 100+ workers. The Industrial Court found 115 workers were employed; the High Court found 99. The Supreme Court upheld the High Court's finding that 99 workers were employed, holding that 16 of 36 disputed employees could not be proved to be 'workers'. Since the threshold was below 100, statutory closure procedures did not apply and the closure was legal. However, the Court awarded Rs. 2,50,000 compensation each to workers who had not accepted the employer's earlier settlement offer, with the Industrial Court to oversee distribution within three months."
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