Bombay Wire Ropes Ordered to Pay Compensation Following Industrial Court Decrees
Bombay Wire Ropes Ltd has been notified of two orders from industrial courts in Maharashtra regarding long-standing labor disputes. The company was directed to pay compensation based on rulings issued by both the Industrial Court and the Industrial Tribunal, both dated January 24, 2026.The orders concern alleged unfair labour practices and unjustified factory closures that occurred between 1995 and 2006. These decisions stipulate that the company must pay a lump sum compensation of Rs. 1,00,000/- per year per workman. The details of these court actions, including the alleged violations and associated timelines, are as follows:
| Authority | Order Details | Allegation/Violation Details |
|---|---|---|
| Industrial Court, Maharashtra at Thane (Complaint No. 238 of 1995) | Directing payment of compensation at the rate of Rs. 1,00,000/- per year per workman for the period March 13, 1995, to November 1, 2006. | The alleged violation is committing an unfair labour practice under Item 6 of Schedule II of the MRTU & PULP Act, 1971, by imposing and continuing an illegal lock out for the specified period. |
| Industrial Tribunal, Maharashtra at Thane (Reference No. 35 of 2006) | Directing payment of compensation at the rate of Rs. 1,00,000/- per year per workman from November 1, 2006, until the employee's respective date of retirement. | The alleged violation is effecting an unjustified factory closure on November 1, 2006, without obtaining mandatory prior permission from the State Government under Section 25-O of the Industrial Disputes Act, 1947. |
The company received notification regarding these orders on June 24, 2026.
Financial and Operational Impact Assessment
Bombay Wire Ropes Ltd has stated that there is expected to be no impact whatsoever on the operations or financial position of the company resulting from these proceedings. The liability related to both the Industrial Court order and the Tribunal award rests solely with a Developer who undertook to bear and fulfill the terms as outlined in Consent Terms filed before the Bombay High Court and recorded vide its Order of July 13, 2012.The matter has been brought to the notice of exchanges only as a matter of precaution.
Stock Price Movement
At the close of trade on Wednesday, Bombay Wire Ropes Ltd settled lower, closing at ₹45.50 in a 6.76% decline. The shares traded within an intraday range that spanned from a low of ₹45.31 up to a high of ₹46.99.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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