THE INDIAN HUME PIPE CO. LTD. vs THE WORKMEN AND ANOTHER

The Supreme Court interpreted Section 25F(b) of the Industrial Disputes Act, 1947, which mandates that no workman can be retrenched without receiving compensation equivalent to fifteen days' average pay for each completed year of service. The Court held that the introduction of Section 25F did not eliminate the entitlement to gratuity for retrenched workers, as both benefits serve different purposes. The ruling clarified that workmen could claim both retrenchment compensation and gratuity, thus ensuring they are not deprived of their rightful dues upon retrenchment.