Employees who have received compensation and not offered themselves for re-employment as mandated by Section 25-H of the Industrial Disputes Act are not entitled to claim re-employment as of right.

Elipe Dharma Rao, J.

The first respondent Anglo French Textiles is a Unit of Pondicherry Textile Corporation Limited, Pondicherry, a Company created under the Companies Act and it is a Government of Pondicherry Undertaking. Originally, the Anglo French Textiles Limited was a private concern and was owning a Mill, which was one of the largest Mills in the Union Territory of Pondicherry and it was functioning till July,1983 and thereafter, there was no manufacturing process. Since the efforts of the Government of Pondicherry to reopen the Mill by negotiations with the private management and the trade Union Leaders failed, it has promulgated the Anglo French Textiles Limited (Acquisition and transfer of Textile Undertaking) Act, 1986 and the Mill was taken over by the Government of Pondicherry with effect from 212. 1985 by promoting a Government company in the name and style of Pondicherry Textile Corporation Limited. It is seen from the materials placed on record that the appellants herein, who were the employees of the Anglo French Textiles Limited, were removed from their services on some charges of instigation of strike, misbehaviour etc. and the particulars regarding their removal are as follows:

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2. Aggrieved over their removal, the appellants have raised industrial disputes before the Labour Court, which has ordered for their reinstatement with half/full wages and subsequently by virtue of the orders passed in various forums, they have also received their compensation. In this backdrop, the appellants herein have filed W.P.No.9019 of 1993, praying to issue a Writ of Mandamus, directing the first respondent to provide them re-employment with effect from the date when their juniors and freshers were appointed. The appellants would contend that since the present Corporation is a successor in interest to the erstwhile Anglo French Textiles Limited, they will have to discharge those obligations which the previous employer has to discharge, had the undertaking not been transferred and on such obligation, there is right to reemployment under Section 25-H of the Industrial Disputes Act. They would further submit that the Mill is under statutory obligation to give re-employment because they have taken over the assets and liabilities of the previous Mill Anglo French Textiles Limited.

3. For this claim of the appellants, a detailed counter-affidavit was filed before the learned single Judge. In the counter, inter alia, it has been submitted that the unique character of the Anglo French Textiles Limited (Acquisition and Transfer of Textile Undertaking) Act,1986 is that the right, title and interest of the owner in relation to the Textile Undertaking got vested in the Pondicherry Textile Corporation Limited, freed and discharged from any trust, obligation, mortgage, charge, lien and all other encumbrances, affecting it as per Section 4(2) of the said Act and the liabilities and obligations of the erstwhile owner were not taken over by the Corporation and it is also provided therein that any attachment, injunction or decree or order of any Court restricting the use of such property in any manner shall be deemed to have been withdrawn and therefore, under the abovesaid provisions of Law, by force of such vesting under Section 3(1) of the said Act, the Awards of the Labour Court should be deemed to have been withdrawn and the Pondicherry Textile Corporation Limited should also be deemed to have been discharged from the obligation of implementing the said Awards.

4. It is their specific case that the reliance on Section 25-H of the Industrial Disputes Act by the appellants/petitioners for seeking reemployment is untenable in view of the express provisions contemplated under Section 11(3)(b) of the Act, which says that "a person whose services stand terminated under sub-clause (1) of clause (a) shall not be entitled to claim employment in the Corporation as of right" and therefore, the persons who have not been employed by