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2018 (9) TMI 941 - HC - Companies LawTermination of employee on termination of project - whether the closure was bona fide act with a drying up of funding by the Ministry of Human Resources Development, Government of India? - Held that:- In the written statement, it has been explained that services of the petitioners have not been dispensed with on account of the allegations of not performing their duties to the satisfaction of the Project implementors, rather the entire project has been closed down on the directions of the Central Social Welfare Board, New Delhi. The question whether the services rendered by the petitioners were satisfactory or not, the fact still remains and stares at the face that the Project in which they worked was closed down rendering the petitioners surplus. If the petitioners insist in the amended petition that they were 'workmen' within the meaning of term in the Industrial Disputes Act, 1947, then law requires only closure compensation to be paid to them. Right to reinstatement would not exist. It is also not that the posts have been abolished, rather the Project has been closed down and they cannot claim an alternative job on closure of the Project as a matter of right. Closure of an industry would not attract the provisions of Section 25-F of the Industrial Disputes Act. See MANAGING DIRECTOR, HARYANA SEEDS DEVELOPMENT CORPN., LTD. VERSUS PRESIDING OFFICER AND ORS. [1997 (7) TMI 689 - SUPREME COURT] and more specifically in the case of Amar Singh [2003 (4) TMI 591 - SUPREME COURT] on the issue of Project employees and their rights. No justification in accepting this petition. The writ petition is dismissed. However a direction is issued to the respondents, that in case any amount is found due or owing to the petitioners as far as CPF, leave encashment and gratuity are concerned, the same be paid to them since it is the admitted position in para.10 of the reply on merits. If unpaid, these amounts be calculated and disbursed to the petitioners with 6% interest per annum within a period of three months from the date of accrual.
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