The Hon’ble Supreme Court while interpreting the scope of deemed permission to close and undertaking under Section 25-O(3) of the Industrial Disputes Act, 1947 has held that procedural lapses by the State Government cannot frustrate the statutory right of an employer to close a business when no timely decision is communicated by the appropriate authority. In the present case, HSML (the Appellant) was engaged in Job Work Agreement with Britannia Industries Ltd. For over three decades. Upon termination of the agreement, HSML applied for closure of its biscuit division under section 25-O of the Industrial Disputes Act, 1947. The Maharashtra Government did not issue a formal order within the statutory 60-day period. The Company claimed deemed permission for closure but the same was denied, and the same was upheld by the Bombay High Court calling [Read More]

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