Dayakar Reddy vs M.D. Allwyn Auto Ltd. & Ors.

The Supreme Court upheld the State Government's decision to grant permission for the closure of Allwyn Auto Ltd. under Section 25(O) of the Industrial Disputes Act, finding that the company was not viable despite government support and discussions with trade unions. The Court noted that the closure decision followed proper procedures and considered relevant factors, including the acceptance of a Voluntary Retirement Scheme by a majority of workers. The petition was dismissed, but the Court extended the application deadline for remaining workers to avail benefits under the applicable schemes.