Karnataka High Court in Stumpp Schuele and Somappa Pvt. Ltd. vs. Basavaraja M. W.P. No. 58467/2013, while holding that the applicability or non-applicability of the Industrial Employment (Standing Orders) Act, 1946 (“IESO Act“) is premised on an industrial establishment and not the employer per se observed that each Industrial establishment needs to have a certified standing order (“CSO“), depending on the agreement between the employer and workmen, different industrial establishments can have the same CSO or each industrial establishment can have a separate CSO. The Court further observed that on an amalgamation of two companies/employers, the standing orders applicable to each of the units/industrial establishments as it exists prior to amalgamation would continue to exist and apply to each of the industrial establishment and there would be no change or supersession or negation of the standing orders merely because there is an amalgamation. The Court also observed that amalgamation of two companies does not ipso-facto results in modification of CSO and for the purpose of such modification, the procedure prescribed under Section 10 of the IESO Act is required to be followed.
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