M P State Textile Corpn. Ltd vs Mehendra & Ors

The Supreme Court upheld the Labour Court's decision that the respondent-workmen were employees of the appellant-Corporation, despite their transfer to Indore Textile Mills, Ujjain, which had since closed. The Court found that the retrenchment was unjustified and directed the appellant to reinstate the workmen and pay them salaries and benefits equivalent to those of other employees in the Corporation, citing principles of employment law and the validity of appointment letters. The appeal was dismissed, affirming the Labour Court's award dated 4.5.2000.