Madras High Court upholds Industrial Tribunal's order on sale of sugar factory to EID Parry

Justice V Parthiban upheld the tribunal’s order while dismissing a batch of writ petitions from the management of EID Parry and various workers unions challenging the award.

Published: 14th February 2018 02:34 AM  |   Last Updated: 14th February 2018 06:14 AM   |  A+A-

Madras High Court (File | PTI)

By Express News Service

CHENNAI: The Madras High Court has upheld an order of the Industrial Tribunal, Chennai, in 2008, holding that the sale of the sugar factory of Nava Bharat Ferro Alloys Limited at Pugalur to EID Parry India Limited, as a genuine transaction and ordering ‘re-employment’ of workmen of the erstwhile company with effect from December 1, 2008.

Justice V Parthiban upheld the tribunal’s order while dismissing a batch of writ petitions from the management of EID Parry and various workers unions challenging the award.

“This court is of the view that the award passed by the Tribunal does not suffer from any infirmity or irregularity calling for interference of this court”, the judge said.

Originally, pursuant to an agreement, Nava Bharat sold its sugar mill unit at Pugalur to EID Parry. While doing so, it terminated the services of workmen after settling all the amounts due to them, including compensation. After taking over the company, EID Parry recruited its own employees and had also offered fresh employment to more than 190 workmen originally employed by Nava Bharat.

Aggrieved by the transfer of ownership and resultant non-employment, the workmen raised an issue before the tribunal, which had held that the sale was genuine and the same was not sham. It had also ordered the ‘re-employment’ of the erstwhile workmen. Aggrieved over the direction for re-employment, the management and workers unions filed the present petitions.

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