M/S OSWAL AGRO FURANE LTD. vs OSWAL AGRO FURANCE WORKERS UNION

The Supreme Court held that prior permission from the appropriate Government is mandatory for the closure of an industrial undertaking under Section 25-O of the Industrial Disputes Act, 1947. The Court ruled that a settlement between the employer and workmen cannot override statutory requirements, and since the closure was deemed illegal due to lack of prior permission, the workmen were entitled to benefits under Section 25-O(6). The appeal was dismissed, affirming the High Court's decision that the purported settlement was void and could not be sustained in law.