SUNIL KR. GHOSH & ORS. versus K. RAM CHANDRAN & ORS.

SUNIL KR. GHOSH & ORS. versus K. RAM CHANDRAN & ORS.

Workmen who refuse to give consent to work under a new employer after the transfer of an undertaking are entitled to retirement/retrenchment benefits in terms of the Industrial Disputes Act; management is bound to comply with the High Court's mandatory direction regarding payment unless challenged, and cannot compel workers to join transferee company against their will.

Parties
Appellants: Sunil Kr. Ghosh & Ors.; Respondents: K. Ram Chandran & Ors.
Jurisdiction
India
Judgment Date
18 November 2011
Procedural Posture
Civil Appeal / Final Disposition Before Supreme Court After Appeal From High Court
Outcome
Appeals allowed
Legal Topics
Transfer of Undertakings, Workmen's Rights, Voluntary Retirement Scheme (vrs), Retirement and Retrenchment Benefits, Industrial Disputes Act
Labour and Industrial Law Transfer of Undertakings Workmen's Rights Voluntary Retirement Scheme (vrs) Retirement and Retrenchment Benefits Industrial Disputes Act

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Parties

Sunil Kr. Ghosh & Ors.

Appellants

K. Ram Chandran & Ors.

Respondents

Procedural Posture

Civil Appeal / Final Disposition Before Supreme Court After Appeal From High Court

Legal Issues

  1. 1 Are workmen entitled to retirement/retrenchment compensation on refusal to join transferee company after transfer of ownership?
  2. 2 Whether management is obliged to comply with High Court's direction regarding payment of retirement benefits to non-consenting workmen?

Ratio Decidendi

Workmen who refuse to give consent to work under a new employer after the transfer of an undertaking are entitled to retirement/retrenchment benefits in terms of the Industrial Disputes Act; management is bound to comply with the High Court's mandatory direction regarding payment unless challenged, and cannot compel workers to join transferee company against their will.

Court Disposition

Appeals allowed

Orders

  • Respondent-Management directed to comply with High Court Single Judge's order dated 08.10.2001 within three months of receipt of Supreme Court judgment, paying all retirement/retrenchment benefits as per normal rules and conditions of service including retrenchment benefits.