M/s. HATISINGH MFG. CO. LTD.AND ANOTHER vs UNION OF INDIA AND OTHERS.

The Supreme Court upheld the constitutional validity of Section 25FFF(1) of the Industrial Disputes Act, 1947, as amended by Act 18 of 1957, which mandates compensation for workmen upon the closure of an industrial undertaking. The Court found that this provision does not violate Articles 19(1)(g), 14, and 20 of the Constitution, emphasizing that restrictions on the right to carry on business must be assessed in light of public interest and the nature of the right. The Court clarified that while closure does not require conditions like retrenchment under Section 25F, it aims to provide social justice by protecting unemployed workmen, thus affirming the law's intent to ensure fair compensation based on length of service.