M/S. OM OIL & OILSEEDS EXCHANGE LTD., DELHI vs THEIR WORKMEN

The Supreme Court held that the Labour Court erred in inferring mala fides from the appellant's departure from the 'first come, last go' rule in retrenching employees. The Court established that while the rule is generally applicable, management has the discretion to retain employees based on special skills or aptitudes necessary for business continuity. The Court further ruled that if retrenchment is properly executed, no additional compensation beyond what is statutorily required under Section 25F of the Industrial Disputes Act, 1947, is warranted for those retrenched employees.