Nafed Krishi Workers Union and Another vs Nafed and Another

Mital, J.

(1) Nafed Krishi Yantra Udhyog Bhiwadi was a separate unit of the National Agriculture Marketing Federation of India Ltd. and the said unit had separate workers union. In the meeting of the Board of Directors held on 11th July, 1990 it was decided to close down the Nafed Krishi Yantra Udhyog Bhiwadi with effect from 27th July, 1990 and the employees were allowed to collect their dues on account of salary of July, salary in lieu of one month notice and retrenchment compensation up to I p.m. on that date, failing which the same was to be remitted by demand draft at their mailing addresses available in the office. As a result of the aforesaid order, the unit was closed and the entire payment was received by the workmen of that unit.

(2) The workers union has espoused the cause of 16 workmen out of 41 workmen, to challenge the closure and retrenchment through this writ petition. On a consideration of the matter, we are of the view that there was a closure of separate and independent unit and as such the closure is legal in view of the two decisions of the Supreme Court in management of Management of Hindustan Steel Ltd. Vs. The Workmen and Others, and Avon Services (Production Agencies) Pvt. Ltd. v. Industrial Tribunal, Haryana Faridabad 1979 (1) Llj 1.

(3) Accordingly, we find no ground for interference in the extraordinary writ jurisdiction with the closure of the separate and independent unit or retrenchment of the workers and the writ petition is dismissed in liming.