Rights and liabilities of a registered trade union

Objects on which general funds may be spent (sec-15)

The general funds of a registered Trade Union shall not
be spent on any other object than the following:
•Payment of salaries, allowances & expenses
• Payment of expenses for the administration
•Prosecution
•Funds for compensation for loss or injury out of trade
dispute
•Allowances to the members of their dependents
•Education
•Publication
• Financial assistance to other unions subject to a maximum
of ¼ of total gross income.
Constitution of a separate fund for political purposes (sec-16)
(i)
• A registered trade union may constitute a separate fund for political
and civic purpose from the contributions separately levied or made
to that fund, no expenditure from the general fund for such
purpose will be permitted.

Object
• Payment of expenses for election by any candidate to any legislative
body constituted under the Constitution or any local authority.
• Political meeting or distribute documents in support of such
candidate
• Maintenance of any person who is a member of any legislative body
or local authority.
• Registration of Electors.
• Political meeting of any kind or distribute any political document.
(ii)
• No compulsion to contribute political Fund
• No Contribution- No Discrimination
• Political Fund no condition for admission.
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.
(1) 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.
(2) 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.
Example:
1. A Registered T.U Goes on Strike
2. Strike is a Breach of Contract of employment
3. It is a ground for taking civil action for the
damages suffered.
4. U/s. 43 of IPC- Anything which furnishes a
ground for a civil action is illegal.
5. U/s. 120-A- Two or more person agree to do or
cause to do be done an illegal act amounts to
criminal conspiracy for which punishment is
prescribed u/s. 120-B.
6. Going on strike amounts to Criminal Conspiracy
and it would give rise to civil liability because of
breach of contract.
Immunity from civil suits

Immunity from civil suit in certain cases(Sec. 18)-

(1) No suit or other legal proceeding shall be maintainable in any Civil
Court against any registered Trade Union or any office- bearer; or
member thereof in respect of any act done in contemplation or
furtherance of a 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.

(2) 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.
(i)
• An act done in contemplation or furtherance
of trade dispute to which a member of the T.U
is a party only on the ground that such act
induces some other person to break a contract
of employment.

• Peaceful picketing is protected.

(ii) Immunity against tortious Liability.
An act done in contemplation or furtherance
of a trade dispute by an agent of T.U if it is
proved that such person acted without the

• knowledge of express Instruction or

• Contrary to express Instruction
Jay Engineering Workers Vs. Its Staff (AIR 1968 Cal. 407)
• 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.
• Q Can employer obtain Injunction Against T.U?
Sri Ramavikas Services Ltd. And Anr. Vs.
Simpson & Group Companies Workers Union
and Anr. (1979 II LLJ 284 Mad HC)

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
reatraining the workers from doing such
unlawful act can be obtained.
Right to inspect books of trade unions (sec-20)

The account books of a registered trade union

and the list of members of trade union shall be
open to inspection by an officer or member of
the trade union at such times as may be provided
for in the rules of trade unions.

Right of minors to membership of trade unions

(sec-21)
– A person who has attain the age of 15 years may be a
member of a registered trade union.
– A person who has attain the age of 18 can become
office Bearer.
Disqualification of office bearers (sec-21A)
A person shall be disqualified for being chosen
as, and for being a member of executives or
any other office bearer of any registered trade
union, if-
1. He has not attained the age of 18 years
2. He has been convicted by a court in India for
any offence and sentenced to imprisonment,
unless a period of 5 years has elapsed since
his release.
• Proportion of office bearer to be connect with industry
(sec-22)
Not less than one half of the total number of the of
every registered Trade Union shall be persons actually
engaged in an industry with which the Trade Union is
convicted.

• Enforceability of agreement (sec-19)

Provides that an agreement, made between the
members of registered trade union not to accept
employment unless conditions as to pay, hours of work
etc., are fulfilled, will not be void
• Change of name (sec-23)
Provides that any trade union may, with the consent of
not less than 2/3 of the total number of its member
and subject to the provision of section 25of the act,
change the name of trade union
• Amalgamation of trade unions (sec-24)
Any two or more trade unions may, with the consent
of not less than one half of the members of each trade
union without the division or dissolution of the funds
via the voting method where minimum 60% vote in
favor, amalgamate, and this new trade union shall have
give and seek prior notice (sec-25) and application for
registration (sec-6) thus the amalgamation shall have
effect from the date of registration.
Amalgamation & Dissolution of T.U
• Sec.24 to 26 provides for the procedure for
amalgamation of T.U.

Procedure(Sec.24)
• 2 or more T.U could be amalgamated or merged
after dissolution of such unions or without
dissolving those unions.
• At least 50% of the members of each of the T.U
intending to merger must vote.
• Out of this Min. required to vote atleast 60% of
the (undivided) vote must have been recorded in
favour of amalgamation.
• If these requirements are completed
amalgamation is said to have taken place.
Notice: (Sec.25)
• Notice of amalgamation must be given to the
RoTU.
• The notice must be signed by the Secretary and
atleast 7 members of each and every TU which is
a party to the amalgamation.
• Notice should be sent to the Registrar of the
states in which the different amalgamation
unions are situated.
• If the Registrar is satisfied that all requirements of
the Act are complied with he will register the
amalgamated T.U.
Effect of change of name and of amalgamation:
(S.26)
• The change of name or amalgamation of T.U
shall not affect any right or obligation of the
T.U.
Dissolution(S.27)
• Procedure must be contained under the rules
of the T.U
• In case no, the funds of such T.U shall be
divided by the Registrar in proportion to the
amounts contributed by the members by way
of subscription during their membership.
Notice
• When registered T.U is dissolved the notice of
such dissolution shall be sent to the registrar
of T.U of that state.
• The notice must be signed by the Secretary
and atleast 7 members of dissolved TU.
• The notice must be sent within 14 days of the
dissolution.
• If the registrar is satisfied that the dissolution
is according to the rules of T.U, he shall record
the same.
Returns(S.28)
• Every registered T.U is under a legal obligation
to submit to the registrar its annual returns,
on or before the date fixed for this purpose.

• Failure to submit annual returns, even after

notice from the Registrar, would entitle the
Registrar to cancel the registration of T.U .
Annual returns includes the following:
• Statement of all receipts and expenditure
• Any changes of the office bearer made by the
T.U
• Any changes in rules of the T.U-during the
period for which return is submitted.
Failure to Submit the Returns: (S.31)

• The office bearer or if any person is bound under

the rules of the T.U to submit such return, such
person shall be liable with fine which may extend
to Rs. 5.
• In case of continuing offence, additional fine of
Rs. 5 for each week subject to max. of Rs.50 only.
• If any person willfully makes false entry or
omission in the general statements required
under s.28 shall be punishable with a fine which
may extend to Rs.500/-.
Supplying false information regarding T.U(S.32)
• Supply of false information regarding any
registered T.U is made punishable.
• Any person who intentionally furnishes the
incorrect copy of rules of T.U, is punishable
with a fine which may extent to Rs.200/-.
Cognizance of Offence(S.33)
• No court below the rank of JMFC shall try any
offence under the act and such court shall not
take cognizance of any offence under this Act,
unless complaint is made by or, with the
previous sanction of the registrar.