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2011 (11) TMI 891 - SC - Companies Law
Issues:
Appeal against dismissal of contempt application and appeal by employees/workers of a company regarding transfer of ownership and entitlement to benefits. Analysis: The case involved employees/workers of a company who challenged the transfer of ownership of a factory to another company without their consent. The employees filed various legal actions, including a suit, writ petitions, and a contempt application, seeking benefits and challenging the transfer. The High Court initially passed orders in favor of the employees, directing the company to pay retirement benefits. The company did not challenge these orders before higher forums. The Supreme Court considered whether the employees were entitled to the benefits as per the High Court's order. The Supreme Court analyzed the facts, noting that the employees did not consent to the transfer and took legal actions to protect their interests. The High Court's order directed the company to pay retirement benefits to the employees, which became final as it was not challenged further by the company. The Court emphasized that without consent, employees cannot be forced to work under different management and are entitled to retirement/retrenchment compensation. The Court found the High Court's order justifiable, considering the employees' efforts to protect their rights through legal avenues. The Court held that the company had a mandatory duty to comply with the High Court's order directing payment of retirement benefits to the employees. The Court criticized the company for attempting to avoid compliance by arguing that the employees had not retired, resigned, or been retrenched. The contempt application was based on the company's violation of the High Court's order, and the Court directed the company to implement the order within three months. In conclusion, the Supreme Court allowed the appeals filed by the employees, directing the company to comply with the High Court's order for payment of retirement benefits. No costs were awarded in the case.
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