STATE 0F BOMBAY & OTHERS vs THE HOSPITAL MAZDOOR SABHA & OTHERS

The Supreme Court affirmed the Division Bench's decision that the J. J. Group of Hospitals is an 'industry' under Section 2(j) of the Industrial Disputes Act, 1947, and that retrenchment of employees without compensation as mandated by Section 25F(b) is invalid. The Court clarified that the mandatory language of Section 25F(b) establishes payment of compensation as a condition precedent to retrenchment, and Section 25I provides a remedy for recovery of dues, not a substitute for compensation. Thus, the retrenchment orders were deemed bad in law due to non-compliance with statutory requirements.