Sarva Shramik Sanghatana (K.V) Mumbai vs State Of Maharashtra And Others

5. The respondent-company further alleged that its manufacturing activities in its textile mill came to an end on 13.12.2006 since it was left with only 275 workers. All supervisors and departmental heads had left after taking the VRS. In these circumstances, the respondent-company was constrained to file an application seeking permission for closure under Section 25-O of the Industrial Disputes Act (hereinafter in short 'the Act') vide application dated 13.2.2007.

7. In response, the respondent-company wrote a letter to the Hon'ble Minister for Labour dated 11.4.2007 stating that it was willing to discuss the matter in dispute and would attend the meeting. However, in the same letter dated 11.4.2007 the respondent-company also mentioned that under Section 25-O(3) of the Industrial Disputes Act, an application under Section 25-O(1) has to be decided within 60 days, otherwise it would be deemed to have been allowed. Since the application was made on 13.2.2007, the 60 days' limitation was shortly about to expire and then the application would be deemed to have been allowed. However, in order to create a conducive atmosphere for discussing the problems of the remaining employees who had not taken VRS, the respondent-company was withdrawing its application under Section 25-O(1), but reserving its right to move fresh application under Section 25-O as and when necessary. Accordingly, the Commissioner of Labour, Mumbai by his order dated 12.4.2007 allowed the respondent-company to withdraw its application under Section 25-O (1). The respondent-company alleged that it could have very easily pretended to discuss the matter with the workers' Union and bided its time till 13.4.2007 and then claimed the benefit of deemed grant of permission for closure. But, instead of doing so, the respondent-company decided to bona fide explore the possibility of an overall settlement with the remaining employees. Since that could not have been done within the remaining 4 days, the respondent- company withdrew its application under Section 25-O(1) so that an attempt for settlement could be made. Thus, the respondent-company alleged that its conduct was bona fide in seeking withdrawal of its closure application.

We entirely agree with the above observations.

68. However, this does not mean that all provisions in the CPC will strictly apply to proceedings which are not suits.

24. No doubt, Order XXIII Rule Rule 1(4) CPC states that where the plaintiff withdraws a suit without permission of the court, he is precluded from instituting any fresh suit in respect of the same subject matter. However, in our opinion, this provision will apply only to suits. An application under Section 25-O(1) is not a suit, and hence, the said provision will not apply to such an application.

26. Leaned counsel submitted that the order of the Labour Commissioner dated 12.4.2007 allowing the respondent-company to withdraw its closure application dated 1.2.2007 should be deemed to be an order refusing to grant permission, and hence a fresh application under Section 25-O(1) could not be filed before the expiry of one year from the date of the said order. We do not agree. In our opinion, Section 25-O(5) only applies when an order is passed on merits either granting or refusing to grant permission for closure. Since in the present case no order on merits was passed, but only an order permitting withdrawal of the closure application was passed, Section 25-O(5) has no application.

27. For the reasons given above this appeal fails and is hereby dismissed. There shall be no order as to costs.

28. Since it has been alleged by the respondent-company that it is suffering a liability of Rs. 2.84 lakhs per day although the Mill is lying closed and the concerned workers are getting wages for doing nothing for a long time, we direct that the petitioner's application dated 11.5.2007 be decided very expeditiously by the concerned authority in accordance with law, preferably within a period of two months of production of copy of this order to it.