Labour Court states closure of hotel Hyatt Regency illegal

Alka Verma-

Published on: November 05, 2021 at 15:08 IST

Under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labor Practices (MRTU and PULP) Act, 1971, a Mumbai-based Labour Court has stated the closure of the Hotel Hyatt Regency as illegal.

“It is held and declared that Respondents (Hotel Hyatt Regency) have engaged in unfair labour practice under Item 6 of Schedule II and Item 9 and 10 of Schedule IV of MRTU and PULP Act 1971. Respondents are directed to cease and desist from the same,” stated the Order issued by SV Suryawanshi, member of the Industrial Court, Mumbai.

In the said case, the management of Hyatt on June 7 stated that the hotel would be closed till further notice as the parent company, Asian Hotels (West) Ltd, was not making payments for salaries and other functions.

In response to the shutdown, around 200 odd workers at Hyatt, who are also a part of Bhartiya Kamgar Sena, moved to the Industrial Court and Labour Commission requesting protection from termination.

After listening to the matter, the Labor Court ordered Asian Hotels to, “Provide work and/or wages to the concerned workers so far as they are in the employment, including arrears of earned wages from time to time.”

The Court also restrained both Hyatt Regency and Asian Hotels from disposing of or creating any third interest in the properties owned by them.

Bhartiya Kamgar Sena’s Union secretary Manoj Dhumal stated, “The Labour Court has ruled in favour of the employees and asked the hotel to pay its employees.”

It should be noted here that when the hotel was closed in June, Asian Hotel in its official statement stated that this happened because Yes Bank Ltd, which maintains its account, blocked the account and held back all funds after default in loan repayment occurred.

Earlier this week, it was reported that Yes Bank has taken possession of the Hotel Hyatt Regency building after Asian Hotels defaulted on loan repayment of Rs 267 crore.

Also Read: Delhi Police summons Niira Radia in Yes Bank Fraud Case

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