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Bombay High Court upholds closure of General Motors manufacturing plant over loss of ₹9,656 crore

The General Motors Employees Union had filed a complaint on October 27, 2020 for unfair labour practices (ULP) after a change of service conditions. On December 22, 2020, the industrial court at Pune rejected interim relief.

On November 20, 2020, General Motors filed an application seeking permission for closure of its Talegaon plant on the ground of accumulated losses to the tune of ₹8,500 crore. On December 24, 2020, the company declared end of production at its Talegaon Plant.

Meanwhile, on December 22, 2020, the industrial tribunal rejected the Union’s complaint.

January 18, 2021 – The Maharashtra government rejected the closure application because the company could recover from the losses.

January 21, 2021 – The company filed a review application before the State government.

March 18, 2021 – The State government made a reference before the industrial tribunal.

February 21, 2023 – The Union filed an application before the industrial court seeking a restraining order against GM from creating any third-party rights in favour of Hyundai Motors in the company’s Talegaon plant. The Tribunal rejected this on March 8, 2023.

June 30, 2023 – An award was passed in the reference, permitting the closure of the company with effect from April 30, 2021.

Source: Barandbench

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