Karnataka High Court imposes Rs1 lakh fine on textile mill

The high court on Monday imposed Rs1 lakh cost on a textile company.

Binny Limited Company, a textile mill on Agraharam Road, was not able to pay its labourers due to financial loss. The accumulated loss of the company went up to Rs67 crore in December 1988.

The labourers had filed several cases for payment of wages, but in vain.

On December 26, 1998, the company, without taking prior permission from the state government as required under Section 25(O) of the Industrial Disputes Act, closed down the mill.

The Industrial Tribunal had passed an order declaring the closure of the mill as illegal and had directed the management to pay wages and other consequential benefits to the workers from December 26, 1988, to August 6, 1989. A judge, on November 3, 1999, upheld the industrial tribunal order.
The company, however, had filed an appeal to set aside the order.
A division bench headed by acting Chief Justice Vikramajit Sen and Justice AS Bopanna observed that the appeal was devoid of merit and they imposed `1 lakh cost on the company. The bench observed that it is regrettable that such litigation is reduced to a scourge for the weak, and some workers have died without the benefit of the wages because of vexatious litigation.