N.P. VERMA & ORS. vs UNION OF INDIA & ORS.

The Supreme Court addressed the amalgamation of employees from ESSO, Lube India, and Caltex Oil Refining Co. with Hindustan Petroleum Corporation Ltd. under the ESSO (Acquisition of Undertakings in India) Act, 1974. The Court held that the rationalization scheme for fitment of employees must adhere to the principles of functional similarity and co-equal responsibility as recommended by the Tandon Committee. The Court found the scheme arbitrary and violative of Articles 14 and 16 of the Constitution, leading to a directive for proper fitment based on equitable criteria.