M.D., M.P.STATE TEXTILES CORPN. LTD. vs MAHENDRA .

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. The Court found that their retrenchment was unjustified as they were appointed following proper procedures and were entitled to the same pay-scale as other employees of the Corporation. The appeal by the appellant-Corporation was dismissed, affirming the order to reinstate the workmen and provide them with appropriate salary and benefits.