Wednesday, Aug 13, 2003
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By Our Staff Reporter
Justice R. Rajendra Babu allowed writ petitions filed by 13 trade unions challenging the management's action.
The State Government had rejected a request by the management to lay off the employees under Section 25(M)(1) of the Industrial Disputes Act.
The management approached the Central Government with the request in April 2003 after withdrawing a review petition that was pending before the State Government.
The petitioners contended that the Central Government had no authority to grant permission to lay off employees since the powers under the Act had been delegated to the State Government.
When the management had exercised the option to approach the State Government, it was bound by the order of the State.
The Supreme Court observed that since the Central Government had delegated power to the State Government under the Industrial Disputes Act, the State had the concurrent power to consider the request.
After the management withdrew the review petition, the order of the State Government had become final.
The management can file an application before the State or Central Government with a fresh request after one year under the Act.
The court said that the State Government order of October 26, 2002 would remain in force for one year.
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