Authority: High Court at Calcutta (Constitutional Writ Jurisdiction, Appellate Side)
Order Date: 05 October 2026
Case Overview
- Parties: Hitachi Payment Services Pvt. Ltd. (formerly Prizm Payment Services) and Indusind Bank Limited (petitioners) versus Union of India and multiple respondents including trade unions and subcontractors.
- Background: Indusind Bank closed 43 ATM sites in West Bengal, prompting Hitachi to withdraw caretakers and instruct subcontractors to retrench workers. Retrenchment notice issued on 26 May 2026, effective 30 June 2026.
- Trade union issued strike notice on 29 May 2026 and invoked conciliation under the Industrial Relations Code, 2020; conciliation meetings held on 16 June, 29 June, and 29 July 2026.
- Conciliation officer issued orders on 29 June 2026 and 1 September 2026 declaring the dismissals illegal, directing status‑quo and payment of dues.
- Petitioners contended the officer exceeded jurisdiction because the retrenchment notice preceded any pending industrial dispute and Section 90 of the Code was inapplicable.
- The Court examined statutory provisions (Sections 33, 60, 70, 90 of the Industrial Relations Code, 2020) and case law (L. Robert D’Souza, North Brook Jute, Lokmat Newspapers, Bhavnagar Municipality, etc.).
- Finding: the notice of retrenchment was served before the first conciliation meeting (16 June 2026) and no application under Section 90(2)(b) was made; therefore the officer’s orders were ultra vires.
Final Outcome
- Orders dated 29 June 2026 and 1 September 2026 passed by the conciliation officer are quashed and set aside.
- WPA 27330 of 2026 and WPA 27944 of 2026 are allowed; any interim restraining orders are vacated.
- Parties are directed to release pending dues to the workers, who are deemed to remain in service.
- A photostat certified copy of the judgment shall be provided to the parties upon compliance with formalities.
Topics: Legal/Industrial Relations, Banking Operations, Labour Dispute