Authority: High Court at Calcutta, Constitutional Writ Jurisdiction, Appellate Side

Order Date: 08 October 2026 (judgment delivered)

Case Overview

  • Parties: Hindustan Cables Company Limited (petitioner) vs Union of India & others (respondents) and private respondents.
  • Writ application WPA 8883 of 2025 challenging an order dated 3 March 2025 passed by the Central Government Industrial Tribunal‑cum‑Labour Court at Asansol (LC Application No. 01 of 2018).
  • Claim was filed under Section 33‑C(2) of the Industrial Disputes Act, relying on a Memorandum of Settlement dated 20 August 2001, which was deemed effective from 1 January 1997.
  • Key provisions of the settlement: Clause‑16 excludes ex‑employees who left service after 1 Jan 1997 (by dismissal, termination or voluntary retirement); Clause‑3 sets the settlement duration from 1 Jan 1997 to 31 Dec 2006, continuing thereafter unless modified under the Industrial Disputes Act.
  • A government order dated 28 September 2006 (Ministry of Heavy Industries & Public Enterprises, Department of Heavy Industry) released Non‑Plan loan funds and directed recovery of 10% of arrears paid for the 1997 wage revision, stating that the arrears payment was erroneous and must be recovered.
  • Petitioner's counsel argued that the 2006 order extinguished any pre‑existing rights, making the Section 33‑C(2) application untenable.
  • Respondents counter‑argued that the settlement rights persisted, citing multiple partial payments of the 1997 wage arrears (Rs 3.79 crore out of Rs 15.78 crore), balance‑sheet cash of Rs 33.10 crore (FY 2015‑16), projected cash of Rs 1084.32 crore by Sept 2016, and asset sales worth Rs 29.95 crore, indicating sufficient resources.
  • Additional government order dated 31 May 2017 granted permission to close Hindustan Cables Ltd., Rupnarainpur unit, subject to payment of all statutory dues and retrenchment compensation (15 days average pay for each completed year of service).

Final Outcome

  • The Court held that Clause‑3 of the Memorandum of Settlement and paragraph 7 of the 28 September 2006 order together demonstrate that any pre‑existing right of the workers no longer exists.
  • Accordingly, the Industrial Tribunal’s order dated 3 March 2025 is not in accordance with law and is set aside.
  • WPA 8883/2025 is allowed; the writ is granted.
  • All applications connected thereto are disposed.
  • Parties may obtain a certified copy of the judgment upon compliance with formalities.

Topics: Industrial Disputes, Labour Law, Court Judgment