SC dismisses petition of Oswal employees for absorption

New Delhi, Jan 25 (UNI) The Supreme Court today dismissed a petition filed by the Truck Chalak Evam Helpers Kalyan Samiti, Oswal Chemicals&Fertilisers Ltd seeking directions to the new employer who has purchased the company to absorb them.

Goodwill Indeevar, appearing for the petitioner samiti, pleaded before the apex court that 580 members of the Samiti were entitled to be absorbed by the new owner of the company namely Shyam Basic Infrastructure Projects Pvt Ltd to whom Oswal has transferred its entire business as per the agreement signed between the Samiti and Oswals on January 16, 2006, saying that the interests of the workers would be protected.

A bench comprising Chief Justice K G Balakrishnan and Justices Altamas Kabir and D K Jain, however dismissed the petition holding that the samiti had made a statement before Allahabad high court that it would invoke the provision of the Industrial Disputes Act.

The Krishak Bharti Co-operative Limited (KRIBHCO) holds 60 per cent equity shares while 40 per cent shares are held by Shyam Limited in the respondent company which is taking the services from Sanjay Transport Co.

The Company sold is worth over Rs 100 crores.

Counsel for the petitioner has also contended that new company being a Co-operative society is state within the meaning of Article 12 of the Constitution as per the law laid down by this court and hence the writ petition in the high court was maintainable. M/s Oswal is located at Shahjahanpur in UP.

UNI