Date:13/01/2006 URL: http://www.thehindu.com/2006/01/13/stories/2006011315400400.htm

New Delhi

Decks cleared for auction of Rachna cinema theatre

Staff Reporter

Management asked to pay dues of retrenched workers

NEW DELHI: The decks for auction of Rachna cinema theatre on Pusa Road in Central Delhi were cleared on Thursday with the Delhi High Court directing the cinema hall management to pay Rs. 34 lakhs towards full and final settlement of the dues of the theatre's retrenched workers.

Compensation

Justice Swatanter Kumar passed the order on a petition by the retrenched workers. Of the total compensation granted, Rs. 25 lakhs is lying with the Local Commissioner appointed by the Court.

The theatre was launched in 1976. However, one of the partners of the hall had moved the High Court in 1981 seeking its closure on the ground that it had incurred loss.

Labour disputes

The petitioner partner had recently told the Court that the hall had incurred a loss of Rs. 1.8 lakh during the six-week screening of the film "Salaam Namaste'' last year.

However, another partner of the building contended that the theatre had actually earned profit during the screening of the film.

Closure

The Court had earlier ordered the closure of the hall.

However, it was pending due to the labour disputes.