Closure compensation and Labour Court computation upheld where no statutory transfer of undertaking occurred.

Where an undertaking is closed and the arrangement does not amount to a statutory transfer, workmen remain entitled to closure compensation under the Industrial Disputes Act. The transferee corporation is not liable as a successor to absorb the workmen or pay such compensation. The workmen's claim survives against the party legally liable on closure, and the Labour Court may compute the monetary claims in computation proceedings. A closure driven by financial reasons is not treated as a closure caused by unavoidable circumstances beyond the employer's control. Liability was therefore fastened on the Union of India, not the transferee corporation.

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Issues: Whether, on closure of the undertaking and in the absence of a transfer attracting statutory consequences, the workmen were entitled to compensation under the Industrial Disputes Act and whether their claims could be computed by the Labour Court.

Analysis: The scheme of arrangement provided for closure of the company and not a transfer of the undertaking in the statutory sense. On that footing, the transferee corporation was not liable to absorb the former workmen or to pay compensation as a successor. The workmen's remedy, however, survived against the party liable on closure, and claims arising from closure compensation were capable of being examined and computed by the Labour Court in proceedings under the relevant provision for computation of monetary benefits. A closure brought about for financial reasons did not fall within the category of closure on account of unavoidable circumstances beyond the employer's control.

Conclusion: The workmen were held entitled to compensation on closure, the Labour Court was held competent to compute the claims, and the liability was fastened on the Union of India, not on the transferee corporation.

Ratio Decidendi: Where an undertaking is closed and the case does not amount to a statutory transfer of the undertaking, workmen may claim closure compensation, and such monetary claims may be computed by the Labour Court under the provision governing execution-like computation proceedings.

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