M/S. TATA IRON & STEEL CO. LTD. vs STATE OF JHARKHAND .

The Supreme Court held that under Section 25FF of the Industrial Disputes Act, 1947, the transfer of business does not interrupt the services of employees, and the terms of service must remain favorable post-transfer. The Court found that the employees of Tata Iron & Steel Co. Ltd. were not adequately informed about their transfer to Lafarge India Pvt. Ltd. and were deprived of benefits they previously enjoyed, thus ruling that the employees should be reinstated with Tata Steel. The appeal was allowed, and the employees were directed to be taken back by the appellant company.