M SHASHIKUMAR Vs. MANAGEMENT OF BPL LTD

JUDGEMENT

(1.) THE appellants in W. A. 1082/07 were the workmen of the first respondent- (BPL Limited) working in one of the units wherein the unit was engaged in the manufacture of components of electronic products connected with colour television business.

(2.) THE first respondent said to have entered into transfer agreement with the second respondent M/s. Sanyo BPL Private Limited on 14-12-2005. The relevant clause 5. 1 of the business Transfer Agreement (hereinafter referred to as "bta") pertaining to employee's matters indicates "parties agree that the employees of the BPL Ltd. (transferor or seller)shall become the employees of the Sanyo BPL (transferee or purchaser) on and from the closing date subject to terms and conditions set out in the employment contract to be executed between such employee and the transferee/ purchaser. In advance, a notice came to be displayed by transferor dated 9-12-05 advising employees to accept the employment with the second respondent. If not, such employee would be given such service benefits applicable along with the gratuity etc. available as on 14-12-2005. As per the offer of employment in the respondent purchaser company, it was subject to condition that the employee concerned should settle the accounts with the seller or previous employer and seller should deliver to the purchaser a letter to that effect that accounts of such employee whoever was willing to join the service of second respondent were settled. It is not in dispute that the details of all the names of employees who were working for first respondent were set out at Annexure No. 2 to the BTA. Most of the employees accepted such offer except appellants 1 to 37. The compensation payable under S. 25ff of Industrial Disputes Act (for short, referred to as 'the Act') sent to appellant employees was returned to the management.

(3.) AGGRIEVED by the same, the appellants approached the Labour Court which was contested by the management. It is not in dispute that only 37 employees neither accepted the employment nor the compensation offered by the management in terms of Sec. 25-FF of the act.