Summary
- The acquisition of Hindustan Composites Limited Friction Business by Rane (Madras) Limited raises critical questions about employee transfers under Section 73 of the Industrial Relations Code, 2020.
- While the business was sold for ā¹370 crore on a slump-sale basis, the transfer of employment relationships is not automatically guaranteed.
- The Bombay High Court's ruling in Vidyut Metallics Pvt. Ltd. highlights that actual working arrangements, rather than commercial agreements, determine employment continuity and rights.
- This case underscores the need for a detailed employee schedule in business transfer agreements to navigate potential liabilities and ensure compliance with statutory protections.
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