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Transfer of Undertaking - Section 25FF of the Industrial Disputes Act and Identification of the Workmen Reinstated by Awards of the Industrial Tribunal

By Bijoy Kumar

Published In

Lab IC 1993

The Hon'ble Supreme Court (5 Judges Bench), in the case of Anakapalle Cooperative Agricultural and Industrial Society Ltd. v. Its Workmen, reported in AIR 1963 SC 1489 and other Journals,, in the case of transfer of an undertaking either by agreement or operation of law under Section 25FF, of the Industrial Disputes Act, 1947, held that the transferee is a successor-in-interest, in all such cases in which Section 25FF applies, but the only Claim which the employees of the transferred concern can legitimately make is a Claim for compensation against their employers (transferor). No claim can be made against the transferee of the said concern. The Hon'ble Supreme Court, further held, "This double benefit in the form of payment of Compensation and immediate re-employment cannot be said to be based on fair play and social justice to both the parties". The aforesaid judgments was followed by the smaller later Benches of the Hon'ble Supreme Court in the case of Central I ....

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