THE PAPANASAM LABOUR UNION vs MADURA COATS LIMITED

The Supreme Court upheld the Madras High Court's ruling that Section 25-M of the Industrial Disputes Act, 1947, as amended by the Industrial Dispute (Amendment) Act, 1976, is unconstitutional. The Court found that the requirement for prior permission to lay off workers infringes upon the rights of employers and is thus void. Consequently, the appeal against the High Court's decision was dismissed, affirming the invalidity of the contested provision.