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1985 (1) TMI 343

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..... ons one way or the other expeditiously. Time is of the essence and delay will destroy the advantages conceived by extension of the benefits of such welfare measures. 2. We are tempted to preface this judgment with these remarks because of the stand taken by the Regional Provident Fund Commissioner of the Gujarat State in regard to meeting the claims of the dependents of 129 deceased workmen who were working in the textile mills at Ahmedabad. Whatever might have been the stand taken by the respondent earlier, at least, after issue of notice, a different stand if taken, could have been appreciated but the respondent has chosen to contest the petition. 3. The point for our determination is quite simple. These 129 workmen represented by t .....

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..... mum limit of insurance payable in respect of a workman who is a member of the Fund is the amount of ₹ 10,000/-. 4. The 129 persons mentioned in Annexure A were admittedly members of the Fund, they being employees of various mills covered by the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. This is not disputed. That they died is also not disputed. But it is said that since on the respective dates of their deaths, the mills had been under closure, their services must have been taken as terminated and, therefore, on the date of their death, they were not members of the Fund. If so, their legal representatives would not be entitled to the benefit of the insurance. This, in short, is the stand by the responde .....

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..... of the Industrial Disputes Act. We are referring to this because the learned counsel for the respondent submitted that this is a matter of contract. It is certainly not so. The provision in S. 25FFA of the Industrial Disputes Act, 1947, prescribes 60 days' notice to be given of intention to close down any undertaking and the notice is required to state clearly the reasons for the intended closure of the undertaking. The proviso is admittedly not relevant to the present case and, therefore, that is not referred to S. 25FFF(1) stipulates the need for a notice and payment of compensation in accordance with the provisions of S. 25F as if the workmen are retrenched when the undertaking is closed. These provisions make it clear that closure, .....

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..... reason of the closure is to be found in the provisions of S. 25FFA read with S. 25FFF of the Industrial Disputes Act, 1947. In other words, there would be termination of the services by reason of closure only if there is compliance with Ss. 25FFA and 25FFF. That there is no such compliance is a matter beyond controversy. 8. The 129 employees who had died during closure are employees of 14 different mills whose names are shown in para 3 of the affidavit-in-reply filed by the respondent. We notice from the averments in the rejoinder filed by the petitioner association, averments which are not disputed, that out of the 14 so named, Mills Nos. 2, 3, 5, 11, 12 and 13 are mills which have closed without giving any notice whatsoever, Mills Nos. .....

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..... be said to be meager or to come to a Court complaining of the failure to get such benefit in spite of repeated approaches. Fortunately for the dependents of the deceased whose cases have come up in this petition, there is a well organised institution to sponsor their cause. Even so, considerable time has been taken to obtain redress. 10. As we have already said, mere closure without notice or closure simultaneously with putting up a notice would not satisfy the requirement of S. 25FFA. Closure, specifically keeping employees in service, would negative the very concept of termination of service. Even the closure in regard to one of the Mills, viz. No. 6, would not operate to terminate their services, for S. 25FFF requires notice and compe .....

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