PRAKASH COTTON MILLS PVT. LTD. vs RASHTRIYA MILLS MAZDOOR SANGH

The Supreme Court held that under Section 42(4) and Section 78(1)(a)(iii) of the Bombay Industrial Relations Act, 1946, employees are entitled to challenge a company's refusal to pay closure compensation, regardless of whether the closure was due to circumstances beyond the company's control. The Court affirmed the Industrial Court's order for compensation to regular employees but set aside the order regarding Badli workmen, establishing that they are not entitled to closure compensation. The appeal was allowed in part, maintaining the compensation for regular employees while excluding Badli workmen from such entitlement.