The question (10 marks)
A company runs a factory employing 150 workmen. Facing losses, it closes the factory on 1 July, giving the workmen sixty days' notice and offering compensation. It made no application to the State Government. The workmen challenge the closure. Advise them, and state whether your advice would be the same if the closure had taken effect after 21 November 2025. (10 marks)
Problem question from the pack exam workshop (P5), with the Code limb put expressly to the candidate.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 6 · Strikes, lock-outs, lay-off, retrenchment and closure of Labour Law and Industrial Relations – I.
Authorities you will need
- Excel Wear v Union of India
- Orissa Textile & Steel Ltd v State of Orissa
- Hope Textiles Ltd v State of M.P.
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.