N.T.C. (SOUTH MAHARASHTRA) LIMITED versus RASHTRIYA MILL MAZDOOR SANGH AND ORS. ETC. ETC.

N.T.C. (SOUTH MAHARASHTRA) LIMITED versus RASHTRIYA MILL MAZDOOR SANGH AND ORS. ETC. ETC.

Transfer of management of textile mills under the Textile Undertakings (Taking Over of Management) Act, 1983 did not, by itself, end the contract of employment of workmen not involved in the management or holding managerial posts. The provisions of the Act and Section 25-FF of the Industrial Disputes Act, 1947 do...

Source-derived case information.

Parties
Appellant: N.T.C. (South Maharashtra) Limited; Respondents: Rashtriya Mill Mazdoor Sangh and Ors. etc. etc.
Jurisdiction
India
Judgment Date
24 November 1992
Procedural Posture
Civil Appeal and Transferred Cases / Supreme Court Decision on Appeal From Bombay High Court and Labour Court
Outcome
Appeals and transferred cases dismissed with costs.
Legal Topics
Transfer of Management, Employee Rights on Transfer, Termination of Employment, Workmen's Compensation
Labour Law Industrial Law Transfer of Management Employee Rights on Transfer Termination of Employment Workmen's Compensation

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Parties

N.T.C. (South Maharashtra) Limited

Appellant

Rashtriya Mill Mazdoor Sangh and Ors. etc. etc.

Respondents

Procedural Posture

Civil Appeal and Transferred Cases / Supreme Court Decision on Appeal From Bombay High Court and Labour Court

Legal Issues

  1. 1 Whether the workmen ceased to be workmen of the mills and of NTC after transfer of management under the Textile Undertakings (Taking Over of Management) Act, 1983
  2. 2 Whether transfer of management by itself ends the contract of employment of workmen
  3. 3 Whether notice and payment of compensation to workmen is necessary in such transfer

Ratio Decidendi

Transfer of management of textile mills under the Textile Undertakings (Taking Over of Management) Act, 1983 did not, by itself, end the contract of employment of workmen not involved in the management or holding managerial posts. The provisions of the Act and Section 25-FF of the Industrial Disputes Act, 1947 do not cause termination unless the transfer specifically interrupts service, alters less favourably the service conditions, or new employer fails to assume legal liability for retrenchment compensation. In the present case, none of these occurred and the workmen continued to be employees of the mills and hence of NTC.

Court Disposition

Appeals and transferred cases dismissed with costs.

Orders

  • Labour Court directed to dispose of the pending matter within two months from receipt of this judgment.
  • All interim orders passed by the Supreme Court stand vacated.