Institute of Technological Studies v. Commissioner of Labour and Others – sllr 2009 volume 2 page 130

In the case between Institute of Technological Studies and the Commissioner of Labour and Others, the court addressed whether the unilateral discontinuation or transfer of security personnel constituted a “closure” of a branch or section of business under the Termination of Employment (Special Provisions) Act and the Industrial Disputes Act. It was held that the transfer of security duties to another company amounted to a constructive closure of the affected section of the petitioner’s business, thus justifying the Commissioner of Labour’s order to award compensation rather than reinstate the workmen. The principle reaffirmed was that “closure” under the relevant statutes encompasses cessation of employment in a distinct section or branch, not necessarily a total shutdown of the entire und