ISSUE:
- Whether the erstwhile workmen were entitled to claim compensation under clause (b) of Section 25F of the Industrial Dispute Act, 1947?
- Whether the workmen had been retrenched within the meaning of the expression ‘retrenchment’ in the Industrial Dispute Act of 1947?
RULE:
- Retrenchment refers to the discharge of surplus labor in a continuing business and does not include termination due to a bona fide closure or transfer of ownership.