SC Stays Closure of Maral Overseas’ Textile Unit in Khargaon

The Supreme Court has stayed proceedings of closure of Maral Overseas Limited’ textile unit in Khargaon as directed earlier by Madhya Pradesh High Court.

Issuing notice to state government, a bench headed by Justice Dalveer Bhandari stayed the proceedings of closure before the Industrial Disputes Tribunal.

Maral Overseas has challenged the Madhya Pradesh High Court ruling that dismissed its plea and instructed the state government to refer the matter on the closure of its textile unit to the tribunal.

According to the petition, the Industrial Disputes Act says that in case the state government does not communicate the reason for rejecting the application for closing a unit within 60 days of filing the application for closure, it is deemed that approval is given.

After suffering losses for more than three years, Maral decided to wind up its garment unit and filed a closure application under the Act on September 12, 2007.
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