DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY

VISAKHAPATNAM, A.P., INDIA

PROJECT TITLE

Demographic dividend

SUBJECT
LABOUR LAW

NAME OF THE FACULTY

Prof. R. Bharat Kumar

Name : Dharmendra Tripathi

Roll No. - 2013134
Semester- IVth

Table of content
1

S
NO

PARTICULARS
Acknowledgement
Abstract

Introduction

Historical background

Trade Association

Review of literature

History of enactment

II

Recommendation of commission

III

Begging of TU

Trade union

Recognition of trade union by employers

Legislation

Mode of registration

Application of registration

10

Conclusion
Bibliography

List of cases

PAGE NO

Binny& Co filed

(1995) ILLJ 588

Mad

Kulkarni v. State of Bombay

1954 SCR 384

Sitharamachary v. Senior Dy. Inspector of A.P

4
5

Tirumala Tirupathi Devasthanam v. Commissioner of Labour

IFFCO, Phulur Karamchari Sangh v. Registrar of Trade Unions and
others

Northeast Rly Mazdoor Union v. Registrar of Trade Union

In Re Indian Steam Navigation Workers Union

BFFSU, Mumbai v. Registrar Trade Unions, Bombay

Jay Engineering Workers Vs. Its Staff

Sri Ramavikas Services Ltd. Vs. Simpson & Grp Co. Workers
Union

10
11

Rohtas Industries Staff Union v. State of Bihar

12

Ram Chandra Singh and others v. State of Bihar & others

1958 A.P. 78
1996 LLJ 362.
II LLJ 239 (All)
1969 lab. I.C.
209 (All.)
A.I.R. 1936 Cal
57
(2003) IILLJ 1100
Bom
(AIR 1968 Cal.
407)

1979 II LLJ 284

Mad
A.I.R 1963 Pat
170
(2002) IIILLJ
1069 Jhak

ACKNOWLEDGEMENT
The gratification and elation on the completion of this project will be incomplete without
mentioning all the people who helped to make it possible, whose guidance and encouragement
was valuable to us.
We express our sincere and heartiest thanks to Mr. R. Bharat Kumar who has been a constant
source of inspiration to us in completing the project to its rightful path. We are immensely
indebted to him for his kind guidance and suggestions in carrying out the project.

1. Introduction: -Trade Union when we discuss in general background of trade union it

discus with Development of modern industry, especially in the Western countries, can be
traced back to the 18th century. Industrial development in India on Western lines,
however commenced from the middle of the 19th century. The first organized Trade
Union in India named as the Madras Labour Union was formed in the year 1918. Since
then a large number of unions sprang up in almost all the industrial centers of the country.
Similarly, entrepreneurs also formed their organizations to protect their interests. In 1926,
the Trade Unions Act was passed by the Indian Government. The Act gave legal status to
the Registered Trade Unions. The Registrars of Trade Unions in different states were
empowered to register the Trade Unions in their respective states. These registered Trade
Unions (Workers & Employers) are required to submit annual statutory return to the
Registrar regarding their membership, General Funds, Sources of Income and Items of
Expenditure and details of their assets and liabilities, which in turn submit consolidated
return of their state in the prescribed proformae to Labour Bureau.
Trade Unions Act, 1926 provides for the registration of the

Trade Unions with the

Registrars of Trade Unions of their territory. Any seven or more members of a trade union by
submitting their names to the registrar of trade unions and otherwise complying with the
provisions of the Act with respect to registration may apply for the registration of the Trade
Union under the Trade Unions Act. The Act gives protection to registered trade unions in
certain cases against civil and criminal action.
Trade Association also known as an industry trade group, business association or sector
association, is an organization founded and funded by businesses that operate in a
specific industry. An industry trade association participates in public relations activities such
as advertising, education, political donations, lobbying and publishing, but its main focus is
collaboration between companies, or standardization. Associations may offer other services,
such as producing conferences, networking or charitable events or offering classes or
educational

materials.

Many

associations

are non-profit

by bylaws and directed by officers who are also members.

organizations governed

2. Historical Background: - when will be discus about the background of trade union the
trade union is voluntarily organizationof Workers as well as Employers formed to protect
and promote the interest of their members. They are the most suitable organizations for
balancing and improving the relations between the employer and the employees. Trade
Unions have made headway due to rapid industrial development. The workers come
together to maintain and improve theirbargaining power on wages and working
conditions. The first organized Trade Union in India named as the Madras Labour Union
was formed in the year 1918. From the beginning itself, Trade Unions were not confined
to workers alone. From 19thCentury itself there were Employers associations in the form
of Chamber of Commerce, Industrial Associations etc. to protect and promote the
interests of their members in a concerted manner. After independence, expansion of
industrial activity and grouping workers Trade Unions acted as a spur for strengthening
and expansion of employers organization.

Trade Union movement began in India after the end of First World War. After a decade
following the end of First World War the pressing need for the coordination of the activities
of the individual unions was recognised. Thus, the All India Trade Union Congress was
formed in 1920 on a National Basis, the Central Labour Board, Bombay and the Bengal
Trades Union Federation was formed in 1922. The All India Railwaymen's Federation was
formed in the same year and this was followed by the creation of both Provincial and Central
federations of unions of postal and telegraph employees.
3. Trade Association- The trade union movement in India can be traced back to 1890, when
the Bombay Millhands Association was formed. The Association acted merely as a
clearinghouse for the grievances of the Bombay Mill-workers and cannot therefore be
regarded as a trade union in the real sense of the term. Intense industrial unrest prevailed
in the country during the period following the termination of the First World War owing
largely to then prevailing high cost of living. This economic discontent was further
accentuated by the political agitation in the country. The result was a number of strikes.
The success of these strikes, the world- wide uprising of labour consciousness and the

establishment of the International Labour Organization in 1919 influenced the growth of

the trade union movement in India.

4. Review of Literature: I.
History of enactment of trade union: - Trade Unions and their activities were not
considered lawful in the beginning anywhere in the world. This was so in India also.
Until 1926, there was no law in India for registration and protection of Trade Unions.
In 1920, when Binny& Co filed1 a suit against the officials of the Madras Textile
Union, the High Court of Madras, following the common law in England, granted an
injunction restraining the Union officials from influencing the workmen to break their
contracts with employers by striking. This led to the agitation by Indian political
leadership as well as British labour party. As a result in 1926, the Indian Trade Unions
Act, 1926 was enacted on the pattern of English law.
In 1929 the Act was amended by the Act XV of 1928 to facilitate the procedure of
appeal against decisions of the Registrars refusing to register a trade union or
withdrawing a certificate of registration
II.

RECOMMENDATION OF THE ROYAL COMMISSION OF LABOUR: -The

Royal commission of labour examined the working of the Act and found that the Act
had helped to give trade unions stability and enhanced sense of cooperation and
responsibility.It recommended inter alia, that the Actshouldbe re-examined in not
more than 3 years time; that all the limitations imposed on the activities of registered
unions and their officers and members should be reconsidered. No significant action

III.

was however taken on this matter.

Beginning of Trade union: - the formation of trade union started with the formation
of association in first time which is that related that it would organize the mill-hands
of Bombay in support of proposals for labour legislation, and a Millhands'
Association was formed. But this did not survive and, prior to the war, Organisation
scarcely extended beyond the better-paid railway employees and some classes of

1(1995) ILLJ 588 Mad

7

Government servants. The two or three years following the close of the war saw the
formation of a large number of organisations, owing their origin mainly to the grave
economic difficulties of industrial labour. The leading industries were yielding
phenomenal profits, but wages lagged behind prices, and labour, so far from
participating in the unprecedented prosperity, often found conditions harder than
before. The worldwide uprising of labour consciousness extended to India, where for
the first time the mass of industrial workers awoke to their disabilities, particularly in
the matter of wages and hours and to the possibility of combination.
5. Trade union: -The primary object of trade unions is to replace individual negotiation by
collective bargaining with a view to ensure uniform and reasonable terms of employment
and conditions of labour between the management and the representatives of trade unions
in the interest of workers which would ultimately lead to lasting peace and harmony in
the industry.
The fundamentals of trade unionism are:
Right to form association (guaranteed to workers and/or employers as a fundamental or an
ordinary right or both;
Right of a trade union to be recognized as sole bargaining agent for the workers at the plant,
local or national level;
Right to collective bargaining (as a statutory obligation to bargain in good faith on voluntary
basis); Right to permissible industrial action for bringing the parties to a negotiating table;
and Prevention of unfair labour practices.
The right to form associations or unions is a fundamental right under Article 19(1)(c) 2
of the Constitution of India. The right to form associations and unions and their
registration was recognized for conferring certain rights on trade unions. The
necessity to form unions is obviously for voicing the demands and grievances of
labour. Trade unionists act as mouthpieces of labour as they advocate the general
feeling of member of the Trade Union.
2 Bare Act of constitution of India published by professional book publishers Delhi
8

I.

Right to form a Trade Union: - The right to form and continue the trade union is
a fundamental right guaranteed under Art 19(1)(c) of the Constitution of our
country, which can only be subjected to reasonable restrictions in the public
interest as, provided by the Art 19(1)(6) of the Constitution. Provision is also
made in the Indian Trade Unions Act, 1926 for providing those immunities from
criminal prosecution in certain circumstances, which further ensure the safe
conduct of the trade unions. Under the various laws, the trade unions are required
to get themselves registered for certain purposes. Every trade union is required to
register itself under the Trade Unions Act in order to operate as a trade union.

II.

The right to form association and trade union; Kulkarni v. State of Bombay3:
-

Fact: -A strike during the pendency of an appeal would be an illegal strike under ss. 24 and
25 of the industrial Disputes (Appellate Tribunal) Act, 1950, even though the appeal is not a
valid or competent one. The Bombay Industrial Relations Act, 1946, provided that a union
may be registered as a "representative union" if it had a membership of not less than 15 per
cent. of the total number of employees employed in any industry in any local area and if a
union had a membership of less than 15 percent and not less than 5 per cent. it can be
registered only as "qualified union" :
Issue: - if it had a membership of not less than 15 per cent. of the total number of employees
employed in any industry in any local area and if a union had a membership of less than 15
percent and not less than 5 per cent. it can be registered only as "qualified union" :
Held: - that the above provisions did not infringe the fundamental right of the workers to
freedom of speech and expression and to form associations or unions under article 19(1) (a)
and (c) of the Constitution. The classification of unions as "Representative and "qualified"
according to the percentage of membership and giving the right to unions with a membership
of not, less than 15 per cent. Alone to represent the workers was a reasonable classification,
and did not infringe the rule of equality before the law.
3 1954 SCR 384
9

On constitutional right to form a union or association: this case discuss by high court o A.P.
Sitharamachary v. Senior Dy. Inspector of A.P.4: Fact:-(1.) THIS is an application under Art. 226 of the Constitution for the issue of an
appropriate writ to direct the Senior Deputy Inspector of Schools, Gannavram Range, and the
State of Andhra, represented by its Secretary, Education Department, not to enforce Rr. 3, 4
and 5 of G.O.Ms. No. 418, Education and Public Health, dated the 24th of February, 1939.
The applicant has been working as an elementary school teacher since 1940. He was elected
as the Secretary of the Elementary School Teachers' Association Centre, Telaprolu. He was
also elected as the Joint Secretary of the Andhra RastraElementary Teachers' Federation. The
Elementary School Teachers Association Centre. Telaprole, was constituted under the rules
framed in G.O.Ms. No. 418, Education and Public Health, dated the 24th February, 1939.
Rules 3, 4 and 5 run as follows:
(3) All teachers (men and women teachers) in recognised elementary schools, whether under
public or private management in the area served by the Association, including teacher
-manager in the area, shall be members of the Association. None other than these shall be
admitted as members.
(4) The Association shall meet once a month and with a program of work determined at the
previous meeting, A teacher who absents himself from two consecutive meetings will be
liable to be punished by the controlling authority, the controlling authority for the purpose in
the case of a school under private management being the Deputy Inspector, Senior Grade, or
the Sub -Assistant Inspectors, as the case may be.
(5) The Deputy Inspector or the Sub -Assistant Inspectors of Schools having jurisdiction in
the area served by the Association, shall be ex -officio President of the Association. When the
ex -officio President is unable to attend a meeting, the teachers assembled shall elect a
President from among themselves. The members of the Association may elect a Secretary
and Treasurer from among themselves subject to the approval of the President.

4 1958 A.P. 78
10

Issue: -Government compulsion to become member of a Government sponsored associations

held unreasonable5.
Judgment: -IT is submitted by the petitioner that the rules have the result of abridging the
fundamental rights guaranteed to him by the Constitution, and more particularly, Art. 19(1)
(a) and (c). The contention in brief is that the aforesaid rules in so far as they make it
compulsory for every teacher, in an elementary school, to become a member of the
Association sponsored by the Government, at the risk of suffering disciplinary action, are
inconsistent with the fundamental right guaranteed by the Constitution. In the counter
-affidavit filed by the Assistant Secretary to the Government in the Education Department, it
is submitted that the Association has been sponsored by the Government with the object of
increasing the efficiency of teachers; that making the membership of this Association
compulsory to every teacher under R. 3, does not in any way violate the fundamental right of
the petitioner; that it is in no sense a restriction imposed upon his fundamental right
guaranteed to him under Art. 19(1)(c) and even assuming that it is a restriction, it is in the
interests of public order and morality.
(3.) ARTICLE 19(1)(c) of the Constitution declares that all citizens have the right to form
associations or unions and clause (4) of Art. 19 provide that a law imposing a reasonable
restriction on the right of association can be made only in the interest of public order or
morality.
6. RECOGNITION OF TRADE UNIONS BY EMPLOYERS: - After the registration of
the trade union, the question of its recognition by the employer comes to the forefront in
as much as if it is recognized by the employer for the purpose of collective bargaining,
then it will have certain privileges and an opportunity to fulfill its role. There is no
provision in the Indian Trade Unions Acts or Industrial Disputes Act, 1947, the only two
central enactments in this respect in the country, regarding recognition of the trade union
by the employers. No union registered or otherwise, can lay claim to recognition by the
management foe participation in negotiations as a matter of a legal right. However, it
5http://www.the-laws.com/Encyclopedia/Browse/Case?CaseId=407591063000
11

cannot be denied that fair play requires the management to consider grant of recognition
when a body of persons legitimately expects to be affected. A mere recognition in the
absence of an agreement does not create any legal right in favour of the union. Similarly,
where a management withdraws its recognition of a union, such withdrawal does not
violate any right of the union.
The right of recognition has, therefore, to be secured by the trade unions by raising an
industrial dispute. The Code of Discipline regulates this aspect, though not on a statutory
level. The National Commission on Labour has recommended such a statutory right for
unions. Nonrecognition of a trade union for collective bargaining constitutes an unfair
practice. Provision has however have been made in the State of Maharashtra by Maharashtra
Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971. The
question whether the employer is an industry or not is not relevant to the definition of Trade
union under Section 2(b), which define in this case
Tirumala Tirupathi Devasthanam v. Commissioner of Labour6: Fact: - The facts in this appeal are that the employees working in Power and Water Works
Wings of the appellant-Devasthanam had applied for registration of their association under
the Trade Unions Act, 1926 (hereinafter referred to as the "Act') which application was
allowed. However, the appellant-Devasthanam thereafter made an application under Section
10 of the Act for cancellation of the registration of the said Union. The Registrar rejected the
application. In appeal, the High Court went into the question as to whether the two wings,
viz., the Water and Power Wings of the appellant-Devasthanam were an 'industry' and came
to the conclusion that they were an 'industry', and therefore, held that the certificate granted
to the Union was not 'liable to be cancelled. Aggrieved by the decision of the High Court, the
appellant has come in appeal before us.
Issue: - an application under Section 10 of the Act for cancellation of the registration. The
Registrar rejected the application ?
Judgment: - the Registrar of the Trade Unions for cancellation of its certificate of
registration. No ground mentioned in Section 10 of the Act was available to the appellant for
making such application. As far as the ground mentioned in Sub-Section (a) of the said
Section is concerned, it is only the Trade Union which can approach the Registrar on the said
61996 LLJ 362.
12

ground for the cancellation of its certificate. As regards Sub-section (b) of the Section, there
is nothing in the application which would show that any of the grounds mentioned therein
exists.

In the view we have taken, the workmen concerned are entitled to get their

Association registered under the Act We dismiss the appeal subject, of course, to the
observation that we express no opinion on the findings recorded by the High Court that the
wings in question are an industry and keep the question open. In the circumstances of the
case, the appeal is dismissed with no order as to costs.

7. Legislation: Section:- 2 definition of appropriate government means, in relation to Trade Unions whose
objects are not confined to one State, the Central Government, and in relation to other Trade
Unions, the State Government.
: - "executive" means the body, by whatever name called, to which the management of the
affairs of a Trade Union is entrusted.
[office-bearer]", in the case of a Trade Union, includes any member of the executive thereof,
but does not include an auditor;
"prescribed" means prescribed by regulations made under this Act;
"registered office" means that office of a Trade Union which is registered under this Act as
the head office thereof;
2(g): - "trade dispute" means any dispute between employers and workmen or between
workmen and workmen, or between employers and employers which is connected with the
employment or non-employment, or the terms of employment or the conditions of labour, of
any person, and "workmen" means all persons employed in trade or industry whether or not
in the employment of the employer with whom the trade dispute arises;
2(h): - "Trade Union" means any combination, whether temporary or permanent, formed
primarily for the purpose of regulating the relations between workmen and employers or
between workmen and workmen, or between employers and employers, or for imposing
restrictive conditions on the conduct of any trade or business, and includes any federation of
two or more Trade Unions:

13

Section (3): - Appointment of Registrars.- [The appropriate Government] shall appoint a

person to be the Registrar of Trade Unions for [each State].
(2) The appropriate Government may appoint as many Additional and Deputy Registrars of
Trade Unions as it thinks fit for the purpose of exercising and discharging, under the
superintendence and direction of the Registrar, such powers and functions of the Registrar
under this Act as it may, by order, specify and define the local limits within which any such
Additional or Deputy Registrar shall exercise and discharge the powers and functions so
specified.
8. Mode of registration: - Any seven or more members of a Trade Union may, by
subscribing their names to the rules of the Trade Union and by otherwise complying with
the provisions of this Act with respect to registration, apply for registration of the Trade
Union under this Act.
(2) Where an application has been made under sub-section (1) for the registration of a Trade
Union, such application shall not be deemed to have become invalid merely by reason of the
fact that, at any time after the date of the application, but before the registration of the Trade
Union, some of the applicants, but not exceeding half of the total number of persons who
made the application,
9. Application for registration.Every application for registration of a Trade Union shall be made to the Registrar, and shall
be accompanied by a copy of the rules of the Trade Union and a statement of the following
particulars, namely:-the names, occupations and addresses of the members making the application;
the name of the Trade Union and the address of its head office; and
the titles, names, ages, addresses and occupations of the [office-bearers] of the Trade
Union.

14

I.

SECTION 6- Provisions to be contained in the rules of a Trade Union.- A Trade

Union shall not be entitled to registration under this Act, unless the executive thereof
is constituted in accordance with the provisions of this Act, and the rules thereof
provide for the following matters, namely:-- the name of the Trade Union; the whole
of the objects for which the Trade Union has been established; the whole of the
purposes for which the general funds of the Trade Union shall be applicable, all of
which purposes shall be purposes to which such funds are lawfully applicable under
this Act; the maintenance of a list of the members of the Trade Union and adequate
facilities for the inspection thereof by the [office-bearers] and members of the Trade
Union; the admission of ordinary members who shall be persons actually engaged or
employed in an industry with which the Trade Union is connected, and also the
admission of the number of honorary or temporary members as [office-bearers]

II.

required under section 22 to form the executive of the Trade Union;

SECTION 7- Power to call for further particulars and to require alteration of
name.- (1) The Registrar may call for further information for the purpose of
satisfying himself that any application complies with the provisions of section 5, or
that the Trade Union is entitled to registration under section 6, and may refuse to
register he Trade Union until such information is supplied.

If the name under which a Trade Union is proposed to be registered is identical with that by
which any other existing Trade Union has been registered or, in the opinion of the Registrar,
so nearly resembles such name as to be likely to deceive the public or the members of either
Trade Union, the Registrar shall require the persons applying for registration to alter the
name of the Trade Union stated in the application, and shall refuse to register the Union until
such alteration has been made.
III.

SECTION 8- Registration.-The Registrar, on being satisfied that the Trade Union

has complied with all the requirements of this Act in regard to registration, shall
register the Trade Union by entering in a register, to be maintained in such form as
may be prescribed, the particulars relating to the Trade Union contained in the
statement accompanying the application for registration.

15

IFFCO, Phulur Karamchari Sangh v. Registrar of Trade Unions and others7

Fact: - IFFCO Phuipur Karmachari Sangh is a registered Trade Union. Like all trade unions
it suffers from the malaise of factionalism. Two groups have emerged, one led by Rajendra
Rai who has presented this petition in the name of the Trade Union, and the other by A.K.
Jaiswal, the third respondent herein, who represents the other. For the past two years or more
both these warring groups have been vying with one another for seeking recognition in the
shape of entry of the names of the office-bearers elected every year at the meeting held
separately by them for that purpose in the Register of Trade Unions. In regard to the last
year's elections two petitions are already pending in this Court. We are, however, concerned
with the elections held by the two groups for the current year, i.e. 1990-91 and the order
dated July 3, 1991 passed by the Dy. Labour Commissioner/Dy Registrar, Trade Unions,
U.P., Allahabad Region, upholding the claim of the group represented by A.K. Jaiswal and
rejecting that put forward by the faction led by Rajendra Rai.
Issue: - register once the trade union certificate of Registration continues to hold good until it
is cancelled? Can the action of the Registrar of Trade Unions registering the change of names
of office bearers of a union does not amount to registration of trade union?
Judgment: - The office bearers of the trade unions, however, keep on changing from time to
time with the elections which are held under the rules of the trade union periodically. These
changes are required to be intimated to the Registrar for making consequential changes in the
Register of Trade Unions maintained under Section 8. that the Registrar of Trade unions
under Section 8 of the Trade Unions Act, 1926, register once the trade union certificate of
Registration continues to hold good until it is cancelled. The action of the Registrar of Trade
Unions registering the change of names of office bearers of a union does not amount to
registration of trade union.
In the case of Northeast Rly Mazdoor Union v. Registrar of Trade Union8: 7 (1992) II LLJ 239 (All)
8 1969 lab. I.C. 209 (All.)
16

Fact: - The North-Eastern Railway Employees' Union, petitioner No. 1 is the union of the
employees of the North-Eastern Railway, having its headquarters at Gorakhpur. The union is
registered as a trade union under the Trade Unions Act, 1926, with the Registrar of Trade
Unions at Kanpur, O.P. Tripathi, petitioner No. 2 claims to be the General Secretary of the
union. There have been two rival groups claiming themselves to be the office-bearers of the
petitioner-union, one group claimed to have been elected at the meeting of the general body
of the union at Lucknow while the other group claims to have been elected at Sonepur in
Bihar in 1971. Both the groups submitted their returns to the Registrar of the Trade Unions in
the prescribed form for registering the change in the office-bearers of the union. The
Registrar of Trade Unions at Kanpur registered the office-bearers alleged to have been
elected at Lucknow in 1971 with the result Mahabir Rai, respondent No. 3 was registered as
president while O.P. Tripathi, petitioner No. 2 was registered as secretary of the union. The
dispute was taken to civil Court by the rival group and a suit was filed before the Munsif at
Gorakhpur for declaration. During the pendency of the suit the leaders of the National
Federation of Indian Railways intervened in, as a result of which both the groups agreed to
settle their disputes amicably outside the Court as would appear from a letter of the General
Secretary, National Federation of Indian Railways dated 8-12-1972 addressed the leaders of
the two rival groups, one led by O.P. Tripathi, petitioner No. 2 and the other led by K.P.
Verma, respondent No. 6 a copy of which has been filed as Annexure 3 to the petition. The
two rival groups agreed to withdraw the suit without obtaining any decision on the merits of
the dispute raised by them and they further agreed that the working committee of the
petitioner union should be convened at the earlier to take decisions regarding the restoration
of status quo which prevailed before the meeting of the general body dated 24-7-1971. It was
also agreed, that the date for holding the annual general meeting of the Sangh for the election
of office-bearers and members would be fixed by the working committee.
Issue: - petition under Article 226 of the Constitution for the issue of a writ of certiorari
quashing the order of the Registrar. Trade Unions. Kanpur, dated 24-9-1973 registering
changes in the office-bearers of the North-Eastern Railway Employees' Union, and the order
of the General Manager. North-Eastern Railway, dated 28-9-1973 granting recognition to the
office-bearers as registered by the Registrar of Trade Unions.

17

Judgment: - it was held that where different set of office bearers are filed by rival groups in
a Trade union the Registrar has no power to hold a quasi-judicial inquiry. He has no power
for adjudication although he is given quasi-judicial power in registering the Trade Union or
in their cancellation. He has an administrative duty to record changes in office bearers under
Section 8 and Section 28. In exercising the function the Registrar can only reasonably
enquire to discover whether the changes to be recorded conform to actual facts and rules. But
this power cannot convert his inquiry into quasi-judicial proceeding in which each side has
the right to lead evidence and cross-examine witnesses. He can hold a summary inquiry for
his own satisfaction.

SECTION 9- Certificate of registration.- The Registrar, on registering a Trade

Union under section 8, shall issue a certificate of registration in the prescribed form
which shall be conclusive evidence that the Trade Union has been duly registered
under this Act.

Case: - In Re Indian Steam Navigation Workers Union9: Fact: - "Any person aggrieved by any refusal of the Registrar to register a Trade Union or by
the withdrawal or cancellation of a certificate of registration may, within such period as may
be prescribed, appeal (a) where the head office of the Trade Union is situated within the
limits of a Presidency town or of Rangoon, to the High Court, or (b) where the head office is
situated in any other area, to such Court, not inferior to the Court of an additional or assistant
Judge of a principal Civil Court of original jurisdiction, as the Local Government may
appoint in this behalf for that area. (2) The appellate Court may dismiss the appeal, or pass an
order directing the Registrar to register the union and to issue a certificate of registration
under the provisions of Section 9 or setting aside the order for withdrawal or cancellation of
the certificate, as the case may be, and the Registrar shall comply with such order. (3) For the
purposes of an appeal under Sub-section (1) an appellate Court shall, so far as may be, follow
the same procedure and have the same powers, as it follows and has when trying a suit under
the Code of Civil Procedure, 1908, and may direct by whom the whole or any part of the
costs of the appeal shall be paid, and such costs shall be recovered as if they had been
awarded in a suit under the said Code.
9 A.I.R. 1936 Cal 57
18

In the petition which brings the matter before us it is stated that on 8th March 1935 a meeting
of the employees of all Inland Steamer Services in the Province of Bengal was held at
Jorabagan Park in the town of Calcutta and the employees assembled resolved to form a
Union in the name of "Inland Steam Navigation Workers' Union" and the said Union was
formed on the date. It is also stated in para. 2 that the rules of the said "Inland Steam
Navigation Workers' Union" were so framed as to enable all employees of all Inland Steamer
Services in India to become members of the said Union and the subscription was fixed on a
monthly basis. Para. 3 states that thereafter, on the 26th March 1935, an application was filed
before the Registrar of Trade Unions for registration of the said Union under the provisions
of the Indian Trade Unions Act, 1926.. Para. 4 states that thereupon, on the 16th May 1935,
the Registrar refused to register the Union
Issue: - whether duty of registrar to examine the application of and to look at the objects
for which the Union was formed.
Judgment: - the Calcutta High Court held that it was the duty of the Registrar to examine
the application and to look at the objects for which the Union was formed. If these objects
were objects set out in the Act and if these did not go outside the objects re-scribed in the act
and if all the requirements of the act and the regulations made thereunder had been complied
with, it was his duty to register the Union. The Registrar was not at that stage entitled to go
into the question whether the Union was another Trade Union which was registered and
which was seeking the registration under a different name. The Registrar when he relied on
the letter of Bengal Government ought to have brought it to the notice of the Union before he
acted on it and given it an opportunity to say anything that it had to say with regard to it.
SECTION 10. Cancellation of registration.- A certificate of registration of a Trade Union
may be withdrawn or cancelled by the Registrar-on the application of the Trade Union to be verified in such manner as may be
prescribed, or
if the Registrar is satisfied that the certificate has been obtained by fraud or mistake,
or that the Trade Union has ceased to exist or has willfully and after notice from the
Registrar contravened any provision of this Act or allowed any rule to continue in
19

force which is inconsistent with any such provision, or has rescinded any rule
providing for any matter provision for which is required by section 6:
Provided that not less than two months' previous notice in writing specifying the ground on
which it is proposed to withdraw or cancel the certificate shall be given by the Registrar to
the Trade Union before the certificate is withdrawn or cancelled otherwise than on the
application of the Trade Union.
Case: - Bombay Fire Fighters Service Union, Mumbai v. Registrar Trade Unions,
Bombay10: Fact: - The appellant is a trade unionregistered under the Trade Unions Act, 1926 and was
also accorded the status of a recognized union by the Bombay Municipal Corporation. From
the nomenclature of the appellant, it appears to represent the employees of the fire fighting
department of the Corporation.
The appellant union is aggrieved by the order of the Trade Unions Registrar to cancel the
registration of the appellant union as communicated to the appellant union by a letter dated
March 4, 2003 in reply to the letter dated February 10, 2003 addressed by the appellant to the
Registrar. From the said letter, it appears that the order of cancellation of the registration of
the appellant union was published in the Maharashtra Government Gazette dated August 5,
1999. It was notified that on March 16, 1998, the aforesaid order of cancellation of the
registration of the appellant union was passed. Along with the said communication a copy of
the notification of the gazette was forwarded to the appellant union for ready reference and
for further steps. From the order communicated to the appellant, it appears that the reason for
cancellation of the registration was the continued contravention of the provisions of Section
28

of

the Trade

Unions Act,

1926

read

with

Rule

17

of

the

Bombay Trade Unions Regulations, 1927. The gist of the contravention alleged was that the
appellant union had not submitted by the prescribed date the annual general statements of
account in the annual return form I for the year ending December 31, 1992. It appears that by

10 (2003) IILLJ 1100 Bom

20

a letter dated February 10,2003, the appellant union had tried to submit the annual returns of
the past period and to renew the registration.
Issue: - can union challenging the order of the Registrar canceling its registration for
continued contravention of Section 28 of the Trade Union Act, 1926?
Judgment: - an appeal was filed by the Union challenging the order of the Registrar
canceling its registration for continued contravention of Section 28 of the Trade Union Act,
1926. Setting aside the impugned order the High Court observed that the said order was in
violation of the mandatory provision of section 10 of the Act. The respondent, Registrar had
not addressed a previous show cause notice in writing to the appellant union at its correct
address. Therefore, the cancellation of registration was held illegal and improper.

11. Appeal.- (1) Any person aggrieved by any refusal of the Registrar to register a Trade
Union or by the withdrawal or cancellation of a certificate of registration may, within such
period as may be prescribed, appeal,-where the head office of the Trade Union is situated within the limits of a Presidency-town
to the High Court, or
where the head office is situated in any other area, to such Court, not inferior to the Court of
an additional or assistant Judge of a principal Civil Court of original jurisdiction, as the
3*[appropriate Government] may appoint in this behalf for that area.
The appellate Court may dismiss the appeal, or pass an order directing the Registrar to
register the Union and to issue a certificate of registration under the provisions of section 9 or
setting aside the order for withdrawal or cancellation of the certificate, as the case may be,
and the Registrar shall comply with such order.
For the purpose of an appeal under sub-section (1) an appellate Court shall, so far as may be,
follow the same procedure and have the same powers as it follows and has when trying a suit
under the Code of Civil Procedure, 1908 (5 of 1908), and may direct by whom the whole or

21

any part of the costs of the appeal shall be paid, and such costs shall be recovered as if they
had been awarded in a suit under the said Code.
In the event of the dismissal of an appeal by any Court appointed under clause (b) of subsection (1), the person aggrieved shall have a right of appeal to the High Court, and the High
Court shall, for the purpose of such appeal, have all the powers of an appellate Court under
sub-sections (2) and (3), and the provisions of those sub-sections shall apply accordingly.]
12. Registered office.- All communications Union may be addressed to its registered office.
Notice of any change in the address of the head office shall be given within fourteen days of
such change to the Registrar in writing, and the changed address shall be recorded in the
register referred to in section 8.
13. Incorporation of registered Trade Unions.- Every registered Trade Union shall be a
body corporate by the name under which it is registered, and shall have perpetual succession
and a common seal with power to acquire and hold both movable and immovable property
and to contract, and shall by the said name sue and be sued.
10. Immunity from Criminal Conspiracy
Criminal conspiracy in trade disputes (sec-17): - No office- bearer or member of a
registered Trade Union shall be liable to punishment under sub- section (2) of section 120B
Indian Penal Code (45 of 1860 ), in respect of any agreement made between the members for
the purpose of furthering any such object of the Trade Union as is specified in section 15,
unless the agreement is an agreement to commit an offence.
Firstly,
Any office bearer or members of registered T.U is not liable to punishment under sub section
(2) of section 120-B of IPC.
Secondly,
The agreement between the members of T.U should only be for the purpose of carrying out
its legitimate and lawful activities as are detailed in Sec.15 and not for any other purpose.
Thirdly,
No immunity for agreement to commit an offence
(eg. Sec 339, 340)
Section 120B in The Indian Penal Code, 1860
Punishment of criminal conspiracy.
22

Whoever is a party to a criminal conspiracy to commit an offence punishable with

death, imprisonment for life or rigorous imprisonment for a term of two years or
upwards, shall, where no express provision is made in this Code for the punishment
of such a conspiracy, be punished in the same manner as if he had abetted such
offence.
Whoever is a party to a criminal conspiracy other than a criminal conspiracy to
commit an offence punishable as aforesaid shall be punished with imprisonment of
either description for a term not exceeding six months, or with fine or with both.
Case: - Jay Engineering Workers Vs. Its Staff11
CJ Sinha of Calcutta High Court in clear terms summed up the cumulative effects and scope
of Sec. 17 & 18 of T.U act.
There is no exemption against either an agreement to commit an offence or intimidation,
molestation or violence, where they amount to an offence.
Where a T.U resorts to unlawful confinement of persons, criminal trespass or where it
becomes violent and indulges in criminal force or criminal assault or mischief to person or
property or molestation or intimidation, the exemption can no longer be claimed.
Sri Ramavikas Services Ltd. And Anr. Vs. Simpson & Group Companies Workers
Union and Anr12.
Issue: - Can employer obtain Injunction Against T.U?
Judgment: - The HC held that if the workers on strike resort to picketing officers and
managerial staff from entering or leaving the premises and indulge in threat, intimidation and
gherao, the employer can approach the civil court and an injunction retraining the workers
from doing such unlawful act can be obtained.
Section 18: - Immunity from civil suit in certain cases.- (1) No suit or other legal proceeding
shall be maintainable in any Civil Court against any registered Trade Union or any 1*[officebearer; or member thereof in respect of any act done in contemplation or furtherance of a
11 (AIR 1968 Cal. 407)
12 (1979 II LLJ 284 Mad HC)
23

trade dispute to which a member of the Trade Union is a party on the ground only that such
act induces some other person to break a contract of employment, or that it is in interference
with the trade, business or employment of some other person or with the right of some other
person to dispose of his capital or of his labour as he wills.
A registered Trade Union shall not be liable in any suit or other legal proceeding in
any Civil Court in respect of any tortious act done in contemplation or furtherance of
a trade dispute by an agent of the Trade Union if it is proved that such person acted
without the knowledge of, or contrary to express instructions given by, the executive
of the Trade Union.
Case: - Rohtas Industries Staff Union v. State of Bihar13: Issue: - the question for determination was, whether the employers have any right to claim
damages against the employee participating in an illegal strike and thereby causing loss of
production and business?
Judgment: - Ramaswami, C.J observed that, Upon the consideration of the various
provisions of the Act it is manifest that the overriding purpose of the Act is the benefit of the
community and not the benefit of the employees or the employers. It is true that Section 24
imposes a statutory duty on the employees not to commence or declare an illegal strike. But
it is manifest that if there is a breach of this statutory duty on the part of the employees, the
employer has no right of Civil action against the employees in default apart from the
statutory penalty provided by Section 26 (1). Similarly, if the employer declares an illegal
lockout, there is a breach of the statutory obligation created by Section 24, but the employees
have no right of civil action. The exclusive remedy open to them is criminal prosecution
under Section 26 (2) of the Act. For these reasons I hold that the duties imposed by Sections
22, 23 and 24 of the Act arc statutory duties owed by the employees not to the employers
concerned but duties owed to the public which can be solely enforced by criminal
prosecution under Section 26 (1) of the Act. It follows, therefore, that the employers have no
right of civil action for damages against the employees participating in an illegal strike within
the meaning of Section 24 (1) of the Industrial Disputes Act.
13 A.I.R 1963 Pat 170
24

Section 28: - Returns. (1) There shall be sent annually to the Registrar, on or before such
date as may be prescribed, a general statement audited in the prescribed manner, of all
receipts and expenditure of every registered Trade Union during the year ending on the 31st
day of [December] next preceding such prescribed date, and of the assets and liabilities of the
Trade Union existing on such 31st day of [December]. The statement shall be prepared in
such form and shall comprise such particulars as may be prescribed.
(2) Together with the general statement there shall be sent to the Registrar a statement
showing all changes of [office-bearers] made by the Trade Union during the year to which
the general statement refers, together also with a copy of the rules of the Trade Union
corrected up to the date of the despatch thereof to the Registrar.
A copy of every alteration made in the rules of a registered Trade Union shall be sent
to the Registrar within fifteen days of the making of the alteration.
Case: - Ram Chandra Singh and others v. State of Bihar & others14
Overview: - that when rival groups of trade union claims status of office bearer after
election, the Registrar has no authority to adjudicate as to which group of office bearers is
validly elected. The letter of Registrar intimating the management of its recognition as
validly elected office bearers cannot be termed to be a mere inquiry for the purpose of
maintaining its register but it amounts to adjudicating the issue as to which group of the
office bearers is validly elected. The high court held that this is not permissible.
Section 29: - Poser to make regulations: - (1) The appropriate Government] may make
regulations for the purpose of carrying into effect the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such
regulations may provide for all or any of the following matters, namely:-- the manner in
which Trade Unions and the rules of Trade Unions shall be registered and the fees payable on
14 (2002) IIILLJ 1069 Jharkhand
25

registration; the transfer of registration in the case of any registered Trade Union which has
changed its head office from one State to another; the manner in which, and the qualifications
of persons by whom, the accounts of registered Trade Unions or of any class of such Unions
shall be audited; the conditions subject to which inspection of documents kept by Registrars
shall be allowed and the fees which shall be chargeable in respect of such inspections; and
any matter which is to be or may be prescribed.
10. Conclusion: - The issue of trade union recognition is still a source of industrial conflict
in many industries. It appears that though some progressive industries and employers
have taken the trade union movement as a necessity for industrial harmony, there are yet
many employers who frown upon the ideas of trade union recognition and it is not
infrequent to find cases where the employers make frantic efforts to break trade unions in
their formative stages. It is obvious that a section of the employers have not been able to
adjust themselves with the trade union movement and hence problems of recognition etc.
arise.
They are not exhaustive in themselves and are supplemented by frequent decisions taken at
the different labour committees with the result that these provisions are mostly unknown to
the industry in general.

26

Bibliography
PRIMARY SOURCES

CONSTITUTION OF INDIA
TRADE UNIONS ACT, 1926
SUPREME COURT CASES
ALL INDIA REPORTER

SECONDARY SOURCES
BOOKS REFERRED

S.N MISHRA, LABOUR AND INDUSTRIAL LAWS, 14TH ED., 1995,

CENTRAL LAW PUBLICATIONS, ALLAHABAD.

AVTAR SINGH, INTRODUCTION TO LABOUR AND INDUSTRIAL LAW,
2ND ED., 2008, LEXIS NEXIS, BUTTERWORTHS, DELHI

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