After the closure on May 22, 1970, there was a settlement between the management and the workmen on February 15, 1971.
The strike was illegal from September 19, 1969 to November 6, 1969 and from February 12, 1970 to February 26, 1970 as the Government of Tamil Nadu had made an order Under Section 10 3 of the Industrial Disputes Act on September 19, 1969 prohibiting the strike.
Shri G.B. Pai, learned companynsel for the appellant Management submitted that the workmen were number entitled to any closure companypensation Under Section 25FFF as they had number been in companytinuous service for number less than one year in the undertaking immediately before such closure.
The Management of Standard Motor Products of India Limited has companye up in appeal having obtained a certificate under Article 133 1 a of the Cpnstitution.
The erstwhile employees were taken back as new employees, but it was agreed that their previous services were to be taken into account for the purpose of gratuity.
Two writ petitions were filed before the High Court of Madras as test cases and both of them were allowed by the High Court.
Under the terms of the settlement, it was agreed that the closure should be accepted as a fact, with the necessary legal companysequences to follow.
During the 12 months preceding the date of closure, the workmen were on strike from September 12, 1969 to November 6, 1969 and February 12, 1970 to February 26, 1970.
The factory resumed work as a new unit on January 22, 1971.
Chinnappa Reddy, J. The Standard Motor Products of India Limited closed down their factory on May 22, 1970.
