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Issues: Whether termination of employees on closure of the undertaking attracted retrenchment safeguards under Section 25-F of the Industrial Disputes Act, 1947, or whether the case fell within Section 25-FFF of that Act governing closure of an undertaking.
Analysis: The respondents' services were dispensed with because the undertaking and its sales counters had been closed due to unavoidable circumstances. Section 25-FFF specifically deals with closure of an undertaking and provides that, upon such closure, workmen are entitled only to notice and compensation as provided in Section 25-F, as if retrenched. The statutory scheme excludes the full application of Section 25-F in a closure situation, and the Labour Court's approach treating the matter as retrenchment was inconsistent with that framework.
Conclusion: The termination was a consequence of closure and did not amount to retrenchment attracting Section 25-F. The award could not be sustained, and the conclusion was in favour of the appellant.
Final Conclusion: The appeals succeeded and the award of the Labour Court was set aside, leaving the respondents free to seek fresh consideration for reappointment if similarly situated juniors were subsequently taken back.
Ratio Decidendi: Where services are dispensed with because of closure of an undertaking, Section 25-FFF governs the consequence and excludes the ordinary retrenchment regime under Section 25-F.
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