Supreme Court in Armed Forces Ex-officers Multi Services Cooperative Society Ltd. vs. Rashtriya Mazdoor Sangh (INTUC) C.A. No. 293/2022, on August 11, 2022, while recognising the settled principle of law that a bona fide policy decision for reorganising the business based on economic considerations is within an enterprise’s proprietary decision and retrenchment in this context must be accepted as an inevitable consequence, however the said decision should fulfil the test of ‘bona fide’ requirement. The Supreme Court confirmed the decision made by the Tribunal and the High Court setting aside the termination and directed reinstatement of employees and affirmed the conclusion drawn by them that the entirety of business is not lost due to the strike and the retrenchment seems to have been imposed as retribution against the workmen for going on a strike.
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