P&H: Sets Aside Order for Absorption of Retrenched PPPL Employees in Government Jobs

punjab-haryana
⚖️ Order Date: 04 Aug 2026
Headnotes

(i) Industrial Disputes Act, 1947, Section 25H — Re-employment of retrenched workmen of closed entity — Employees are only entitled to benefit which accrues to them under law — Upon closing of an entity, employees have right to claim benefit admissible under 1947 Act, which benefit...

(ii) Industrial Disputes Act, 1947, Section 25H — Re-employment of retrenched workmen of closed entity — Even if, Corporation is State owned Corporation, then also, Corporation has a separate legal entity distinct from Government and such employees cannot claim right against Government for adjustment to post...

(iii) Industrial Disputes Act, 1947, Section 25H — Absorption of retrenched employees — Direction to absorb employees of an entity which is no longer in existence is beyond jurisdiction when no rule or pre retrenchment offer provided such benefit — No such rule or offer was...

(iv) Industrial Disputes Act, 1947, Section 25H — Absorption of retrenched employees — Prior absorption of some employees during subsistence of the undertaking does not create a right to similar treatment after closure of the undertaking — Any decision taken qua one or two persons at...

(v) Industrial Disputes Act, 1947, Section 25H — Absorption of retrenched employees — Notional absorption — Claim for notional absorption after decades of retrenchment cannot be accepted — Such prayer on notional basis would give a financial burden upon State without there being any liability to...


Facts of the Case

P&H: Sets Aside Order for Absorption of Retrenched PPPL Employees in Government Jobs

The Punjab and Haryana High Court has set aside a Single Judge order that had directed the State of Punjab to absorb retrenched employees of Punjab Power Packs Limited in alternate government employment.

The case arose from a 2013 order passed in a writ petition filed by employees of Punjab Power Packs Limited, a subsidiary of Punjab State Electronics Development and Production Corporation Limited. The employees had been retrenched after the company went into liquidation, and the Single Judge had directed that they be absorbed in other employment under the State so that they would not suffer because of the...

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