https://www.taxtmi.com/caselaws?id=312480 On transfer of an undertaking, workmen retain continuity of service and avoid retrenchment only if the statutory proviso conditions are met. Where the undertaking vests in the purchaser free from the transferor's liabilities, and employees are offered and accept fresh temporary employment on less favourable terms, continuity of service is lost and earlier service benefits cannot be claimed. In that situation, retrenchment compensation is not a separate liability of the transferee; any protected employee dues attach to the purchase money instead. The stated principle is that remedies for such dues lie against the transfer consideration, not as an independent burden on the transferee. en-us Fri, 22 Nov 1996 00:00:00 +0530 Fri, 01 Mar 2024 18:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312480 On transfer of an undertaking, workmen retain continuity of service and avoid retrenchment only if the statutory proviso conditions are met. Where the undertaking vests in the purchaser free from the transferor's liabilities, and employees are offered and accept fresh temporary employment on less favourable terms, continuity of service is lost and earlier service benefits cannot be claimed. In that situation, retrenchment compensation is not a separate liability of the transferee; any protected employee dues attach to the purchase money instead. The stated principle is that remedies for such dues lie against the transfer consideration, not as an independent burden on the transferee. Case-Laws Indian Laws Fri, 22 Nov 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312480