(Legality of Undertaking Transfer and Re-employment Claims)
The Industrial Disputes Act, 1947, specifically Sections 25F, 25FF, and 25FFF, which deal with conditions precedent to retrenchment and the effect of transfer of undertakings. Nava Bharath Ferro Alloys Limited (NBF Alloys) sold its Pugalur sugar mill to EID Parry India Limited (EID Parry) on November 13, 1992. The agreement specified that EID Parry would not take over NBF Alloys' employees, whose services were terminated with statutory notice pay and compensation as mandated by Section 25FF of the ID Act.
Aggrieved by the non-employment, the workmen initiated an Industrial Dispute. The Industrial Tribunal, in its award, held the transfer of ownership to be valid and genuine, but deemed the resultant non-employment of workmen unjustified, ordering their re-employment from December 1, 2008.