Homnath Neopaney Vs NHPC Ltd. (Sikkim High Court)
Summary: The Sikkim High Court dismissed a writ petition seeking absorption of the petitioners as permanent employees of National Hydro Electric Power Corporation (NHPC) Limited following the 2025 amalgamation of Lanco Teesta Hydro Power Limited (LTHPL) with NHPC. The petitioners had originally been recruited as regular employees of LTHPL. The Ministry of Corporate Affairs’ order dated 02.01.2025 approving the amalgamation provided that, upon the scheme becoming effective, employees of LTHPL would be deemed employees of the transferee company and would be entitled to the benefits for which they were eligible. The High Court held that entitlement under this stipulation depended upon whether the petitioners continued to be employees of LTHPL on the effective date of amalgamation.
The Court noted that insolvency proceedings had been initiated against LTHPL before the NCLT, Hyderabad in 2019 on a petition filed by ICICI Bank Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. Pursuant to the resolution plan, LTHPL became a subsidiary of NHPC with effect from 09.10.2019 and thereafter became a Government company within the meaning of Section 2(45) of the Companies Act, 2013. NHPC subsequently offered the petitioners fixed-tenure employment for one year with effect from 26.12.2019, which they accepted.
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