In a landmark judgment, the High Court of Gujarat in IPCL Employees Association v India Petrochemical Corporation Ltd interpreted sections 391 to 394 of the Companies Act, 1956, read in conjunction with section 25FF of the Industrial Disputes Act, 1947, in an effort to answer queries relating to the rights of employees in an amalgamated company.
The main contentions raised before the high court were: a) whether a worker has the right to participate in the formulation of the scheme of amalgamation; b) whether employees of one company could be transferred to another company without their consent; c) what rights are granted to employees of a transferor company who opt against joining a transferee company; d) the conditions of service for workers of a transferor company after amalgamation; and e) public interest.
The high court confirmed the order of the company judge, granting sanction to the scheme of amalgamation of Indian Petrochemicals Corporation (transferor) and Reliance Industries (transferee).
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章，欢迎成为我们的订阅会员成为我们的订阅会员。
The update of court judgments is compiled by Bhasin & Co, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
