Supreme Court Upholds Unit Closure for Britannia Biscuit Manufacturer: HSML to Compensate Employees

The Supreme Court allowed the closure of a Harinagar Sugar Mills Ltd (HSML) unit producing biscuits for Britannia Industries, overruling a Bombay High Court decision. The court sanctioned the closure and increased employee compensation to Rs 15 crore, acknowledging the impact on workers and ensuring statutory adherence.

The Supreme Court has sanctioned the closure of a Harinagar Sugar Mills Ltd (HSML) unit, which had been manufacturing biscuits for Britannia Industries Limited for over 30 years. This decision overrules a previous Bombay High Court verdict.

Justices Sanjay Karol and Prashant Kumar Mishra made this ruling following HSML's appeal against the high court's earlier order. Initially, HSML offered Rs 10 crore as compensation to its employees. However, the Supreme Court enhanced this figure to Rs 15 crore and mandated its distribution within eight weeks.

The court acknowledged the long-term employment many workers had with HSML and the significant impact of the closure on them. The decision highlighted the importance of adhering to statutory procedures to protect public interest and employee rights, while also appreciating HSML's willingness to offer additional compensation.

(With inputs from agencies.)