HC upholds HMT tractor factory’s closure in Pinjore

Chandigarh, September 1

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The Punjab and Haryana High Court has upheld the closure of the HMT Tractor Division at Pinjore after holding that the Central government had accorded its approval after following the due process prescribed under the Industrial Disputes Act

The ruling by Justice Rajbir Sehrawat came on a bunch of petitions challenging the order of the tractor division’s closure vide order dated February 14, 2017. The Bench, during the course of hearing, was told that 850 employees had opted for the VRS offered by the company even before the formal closure order could be passed. The rest of the employees were paid the retrenchment compensation at the time of closure.