Law:

Section:

Industrial Relations Ordinance (XXIII of 1969)--- ----S. 25-A---West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance (VI of 1968); S. Os. 11-A & 12(3)---Termination of services of employees---Services of employees were terminated by way of retrenchment on ground that due to rise in Excise Taxes and heavy losses it was not possible for employers to carry on business any longer---Board of Directors of employer's company in consultation with their Chartered Accountants and in the light of Report of Auditors, decided to close down factory---Employers before closing down factory, filed application under S.O. 11-A of West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968, for grant of permission for closing down factory, before Labour Court, which was accepted---In absence of any allegation that employers had terminated services of employees on account of their union activities, employers could not be charged with mala fides---Termination of employees, thus, was bona fide and legal. South British Insurance Employees' Union v. Sindh Labour Court 1975 SCMR 49 ref. DECISION These are 54 connected appeals arising from the judgment of Sindh Labour Court No. 3, Karachi, rejecting grievance petitions under section 25-A of the I.R.O., 1969, for reinstatement and back benefits. 2. The appellants were the employees of M/s. A & B Beverage (Pvt.) Ltd., the Manufacturers of Seven-Up. This Company employed 146 persons out of which they retrenched 87 persons by orders in writing giving reasons. This was done for the purpose of closing down the factory and an application under Order 11-A of the W. P. Standing Orders Ordinance had already been made to the Labour Court for grant of permission in this behalf. The reasons for closure of the factory were that the factory was suffering huge losses due to rise in Excise Taxes etc. and it was not possible to carry on the business any longer. The Board of Directors of the appellant company in consultation with, their Chartered Accountants passed a Resolution, dated 18-2-1992 as, according to the advice of the Chartered Accountants and according to the report of the Auditors, the…

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