Laxmi Starch Ltd. And Ors. vs Kundara Factory Workers' Union And Ors. on 14 November, 1991
Another single Bench of the Allahabad High Court in Jay Shree Tea and Industries Ltd. Industrial Tribunal (1991-II-LLJ-159) also struck down Section 6-W of the U.P. Industrial Disputes Act, which corresponds to Section 25-O of the Act in question holding that Parliament was not able to remove the basis upon which the Supreme Court in Excel Wear's case (supra) took the view that the old Section 25-O imposed excessive and unreasonable restrictions within the meaning of Article 19(6) of the Constitution. The decision said that even under the present Section 25-O, an employer can be compelled not to close down his undertaking in spite of the fact that both from the point of view of security and finance it will be impossible for him to do so and he can still be compelled to pay minimum wages to the employees even though he is not capable of doing so. The decision went on to say that even now he can be compelled to carry on his business on pain of being completely ruined and eventually annihilated and the Legislature has not given a thought to the via media evolved by the Supreme Court in resolving the conflict between the interest of the employer and the interest of the labour in the event of the closure of an undertaking by providing for a graded compensation or different slabs of compensation to meet different situations.