UNION OF INDIA vs SHANKAR TEXTILES .

The Supreme Court upheld the Karnataka High Court's decision that the conditions imposed under the Textile Workers Rehabilitation Fund Scheme (TWRFS) were unconstitutional as they violated Articles 14 and 16 of the Constitution of India. The Court found that the requirement for closure under Section 25-O of the Industrial Disputes Act, 1947, was arbitrary and discriminatory. Consequently, the appeal was dismissed, affirming the High Court's ruling that the stipulations regarding eligibility under the Scheme were not legally sustainable.