The Supreme Court held that the right to carry on any occupation, trade, or business under Article 19(1)(g) of the Constitution also includes the right to close down a business.
This right is not absolute and is subject to reasonable restrictions, especially concerning workers’ rights under Section 25-O of the Industrial Disputes Act, 1947.
The Court ruled that Harinagar’s application to shut its biscuit unit was valid and time-bound, stating that authorities cannot delay closure approvals indefinitely.
The court further directed enhanced compensation of ₹5 crore to affected workers, reinforcing that closure decisions must balance business freedom with labour welfare.
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