S.G. CHEMICAL AND DYES TRADING EMPLOYEES' UNION vs S.G. CHEMICALS AND DYES TRADING LIMITED AND ANOTHER

The Supreme Court interpreted Section 25-O of the Industrial Disputes Act, 1947, which mandates that an employer must seek prior permission for closure of an industrial establishment at least ninety days in advance. The Court held that the closure of the respondent-company's Marketing and Sales Division was illegal as it did not comply with the statutory requirement, thus entitling the terminated employees to all benefits as if the closure had not occurred. Additionally, the Court found that the company's actions constituted an unfair labor practice under Item 9 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971.