Jk Cotton Closure Order Likely Today

The Board for Industrial and Financial Reconstruction (BIFR) may issue a winding up order for the Kanpur-based JK Cotton Spinning & Weaving Mills today.

The trade unions of the mill, however, are making a fervent bid to prevent this since they see such an event as favouring the company's management led by Gaur Hari Singhania.

The BIFR bench set to meet today will only include banks and financial institutions. No representative from any trade union or the state government is being invited, it is believed.

Trade union members alleged that the management, having failed in its attempt earlier, has now resorted to another method of obtaining a winding up order from BIFR. This, they said, will give them leverage to decide whom to pay first and what to pay.

 

According to Citu leader Subhasini Ali, Singhania had told her that if BIFR offered concessions to his company similar to the ones being offered to PSUs, the company's management would be prepared to open the mills. He cited the example of JK Jute Mill in this regard.

However, Ali said, that this move to get a winding up order will be resisted and since she will be in New Delhi in connection with the textile workers dharna in front of the PM's house, they will surely approach the BIFR and prevent it from passing any such order.

Vishnu Shukla, the leader of the JK Cotton workers co-operative, is already in New Delhi, trying to prevent the bench from issuing the winding up notice.

Meanwhile, the workers of the mill plan to take out a demonstration to the Labour Commissioner's office here on February 26 to demand their wages.