Closure
Ashvin Khambhata
(Querist) 03 September 2009
This query is : Resolved
My friend is running one enginreenig industries having employed 110 employees .Out of said srentgh,14 are holding managinarl position.My friend want to close down this unit due to financial lose but he has started one small unit in Maharasrta & he willmanufacture one item of present unit. whather is it obligation to club this two units under i.d.act.Is in necessary to obtain prior permission from appropiate Government? pl give some judgments
Raj Kumar Makkad
(Expert) 05 November 2009
The permission before the closure of the present unit is mandatory to be obtained from appropriate Govt. The provisions of ID Act are to be adhered to in case of woekers. After closure of the present unit, if he starts a new one, it shall not be treated as part of earlier and no past liability shall be recoverable from the new one.
