BOARD OF DIRECTORS OF THE SOUTH ARCOT ELEC-TRICITY DISTRIB vs N.K. MOHAMMAD KHAN, ETC.

The Supreme Court ruled that employees of a company taken over by the Government of Madras were entitled to retrenchment compensation under Section 25F and Section 25FF of the Industrial Disputes Act, 1947. The Court held that the conditions of service under the Madras Electricity Supply Undertakings (Acquisition) Act, 1954 were less favorable than those under the company, thus the proviso to Section 25FF could not be invoked to deny the claim. The Labour Court's jurisdiction to determine the compensation was upheld, affirming the High Court's decision.