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    CHAPTER 5 TRADE UNIONS ACT, 1926 SYNOPSIS 1. Objects and Application of the Trade Unions Act, 1926 2 Definitions of Terms 2.1. Appropriate Government 22 Executive 23 Offce-bearer A Principle of England B. Election of Office bearer ©. Disqualfications of a Person to be Chosen as Ofce-bearer D. Proportion of Office-bearers E No Power of Registrar to Decide Disputes F. Exemployee not to Employee 24 Registered Office 25 Registered Trade Union 26 Registrar 27 Trade dispute A Trade B. Industry C Workmen 28 Trade Union A. Object B. Federation CC. Meaning of Trade or Business D. Minimum Number of Members of a Trade Union 3. Registration of Trade Unions ‘A. Application B. Provisions of Act and Rules to be ‘Complied with C. Power of Registrar D. Registering of Trade Unions Representation in Represent 11. fect of Registration 4. Procedure for Cancellation of R Appeal 5. Rights and Liabilities of Unions 5:1 Criminal Conspiracy 5.2 Immunity from Civil Suit ‘A. Action for Tort B, Jurisdiction of Civil Cours 53. Right of Members 54 Enforceability of Agreement ‘A. Compulsory Trade Unionism B. Obligation of Union to Member 55. Right to Inspect Books of Trade Ung 56 Membership of Minor in Trade Unc” 57 Disciplinary Proceedings Against Vong 5.8 Suspension of Member 5.9. Expulsion of Member 5.10 Other Rights and Liabilities 5.11 Change of Name 5.12 Amalgamation of Trade Unions 5.13 Effects of Change of Name and y ‘Amalgamation 5.14 Dissolution of a Trade Union 5.15 Annual Returns 6. Regulations 7. Penalties 8 Code of Discipline for Recognition of Traie Union 8.1. Recognition by Secret Ballot A, Secret Ballot System and Represenabe ‘Character of Trade Union 82 Withdrawal of Recognition Rtn Risen tte 1, OBJECTS AND APPLICATION OF THE TRADE UNIONS ACT, 1926" The object with which the Trade Unions Act, 1926 was passed is to provide for the registration of trade unions so that they may acquire a legal and corporate Status. As Sx" as a trade union is registered, it is treated as an artificial person in the eye of law capub of enjoying rights and discharging liabilities like a natural person. In certain respects the Act has also attempted to define the law relating to registered trade unions. With the change of socio-economic structure in the country the trade union laws 82 amended suitably to fit into it. Trade Unions Act, 1926 was amended on several occasions to suppress the mischief 1. Act 16 of 1926. s provisions and to pave @ scanned with OKEN Scanner Trade Unions Act, 1926 373 “eo adeancement . labour movement in India. The Act was first amended! in 1928 Ste em anding, apreal st PAPy that was refused registration by the Registrar. The Sature EE ee nen Akainst the decision of the Registrar refusing, the registration iat he (Amendment) ack & FeRistration certificate was clearly defined in the India 1 eaeion of Indham LAC '228: The Act was then adapted by the Government of A with the powers Ns) Order, 1937 by virtue of which the Central Government weetTade unions. whose th® State Government to frame regulations in respect rade Union Regulation Vales were carried out in more than one State. The Get ise objects are nm 1938 were made to govern the activities of those trade ine Ae was amended by Ariel to the one State. Subsequently the Indian Trade Ui TE is to be noted that aie 2,f 1942, Act 3 of 1951, Act 42 of 1960 and Act 38 Fe ved of the Cones tth® Fight to form associations oF unions guaranteed under At ot ful purpose (UtOn of India includes the right of workman to form trade arans for 2 Tawi Purpose. The purpose of an association is an integral part of that right, 2 Ae eye TOU ar ce the Fight is inevitably restricted. Thus ifthe State tries to gacumvent Article 19(1(c) ofthe Constitution which confers on al citizens the right to form 1) of the Constitution does not carry with ita ight in the union so formed fp achieve every object for which it was formed isl the igh guaranteed under Article 194@) does not extend to concomitant right to effective collective bargaining or to strike.” Article § of the International Covenant on Economic, Social and Cultural Rights, 1966 to which India is a signatory has provided guarantees to the Trade Unions’ rights including their right to strike. Originally the Act was called the Indian Trade Unions Act, 1926, but by the amending Act 33 of 1964 the word “Indian” has been deleted. Now this Act may be called the Trade Unions Act, 1926.4 The provisions of the Act are applicable to the trade unions having their registered offices in any State in India’ Prior to the Central Labour Laws (Extension to Jammu and Kashmir) Act, 1970 (Act 51 of 1970) the Trade Unions Act extended to the whole of india except the State of Jammu and Kashmir which occupies a privileged position in the Constitution of India. This Act came into force on June 1, 1927 under a notification published in the Official Gazette by the Central Government. 2 DEFINITIONS OF TERMS Certain terms have been used in the Trade Unions Act, 1926. These terms are to be interpreted in the sense as these are defined in the Act itself. Notwithstanding anything contained in any other law regarding the meaning of the terms specifically defined in the Ac these wil be used and construed only in that context as defined forthe purpose ofthis ‘Act. Where no specific definition is given of any term, expression or word in the Act, thus nay be construed in an ordinary sense 90 thatthe ultimate object of the Act is upheld 21 Appropriate Government® The “appropriate Governme: confined to one State, the Central unions are confined exclusively to one State of this Act will be deemed to by a State. Similarly, means in re i nt” means in relation to trade unions wl jects are not TGovernment, On the other hand, when the objects of trade » the “appropriate Government” for the purpose Oe te ey “appropriate Government” has also fie ssi rit Bank DPS, Bombay, ATR 1969 Sc 3. All India Bank Employees’ Associaton v. Natio 171: (1962) 1 SCA 604: (1962) 3 SCR 269. 4. Section 1(1), Trade Unions Act. 5. Section 12), as amended by Act 51 of 197. ant 40.860 6. Section 2, Trade Unions Act as amended by AO. 1957 @ scanned with OKEN Scanner wa Teathook on Labour & Industrial Law been defined in sec strial Disputes Act, 1947. In all the cases ction 2(a) of the Industrial Dispute dl ‘ Governm mis oo id be the appropriate Government when the subject ay ernment is consi 0 appropt matte, eehen the effect of the subject tof al ao of national sponte, Toten ws Thehands of the Centra Gove ain ane State it Tf an the hands of thy Earareael ve ia Wo deal with it, But when the e oe sublet mate m Aa aan eo ate except that one within whose jurisdiction is strictly cong, ot concem any other State exc hin whose ri the Sate concerned is the appropriate Goverment for this PurPe oes + ig an individual oF g£0UP constitute, cof the word ‘executive’ is 4 : on the ae sein jets an organisation. The sense with which 5 rnc pases [ in the Act is almost similar. It ee Becton in eee a 1 Rg i e it trade uth calle, to whic gemnent ofthe affairs of a trade U sed. The ean aria eel ‘body when in fact formulates the policy of rade of a trade union is ‘ Union, 23 te a, trade union an “office-bearer” nee ae Leute : . : tor. In other words, an executive a doen ne rade union. Officer eaters are distin designated ent {cade union whereas an executive is a mass of elected members of a ade union ica st auditor Specified office-bearers, such as the president or secretary of a fade ion \ scent the interest of the workmen composing the union. ers of 5 eee trade union are empowered to represent the members in @ proceeding under ii following Acts: (A) Industrial Disputes Act, 19473 (B) Employees’ State Insurance Act, 1948.4 (©) Workmen's Compensation Act, 19235 (D) Minimum Wages Act, 1948 (©) Payment of Wages Act, 19367 A. Principle of Representation in England In Setar een of representation by a trade union on behalf of its members in a trade dispute was firmly established in National Association of Local Government Officers Bolton Corporation.* It is in fact the office-bearer of a registered trade union who acts as its active organ in all legal proceedings in which a registered trade union is a party. B. Election of Office-bearer In W. Willard, Wirtz v. H.M. & C.E. Union, AIR 1969 USSC 25: (1968) 20 Law Edn, 24763 it has been held that bye-law of a union limiting the eligibility of election to union officers only to seven per cent. of the members is invalid for being unreasonable qualification. In B.C. Sharma v. M.L. Bhalla, (2006) 10 SCC 410: AIR 2006 SC 3293: 2006 AIR SCW 4982 fresh election could not be held because of disputes between two groups of the union relating to electoral roll, Serious allegations of financial irregularities and mismanagement were levelled by the respondents against the appellants who were old office-bearers holding office under the interim order of the Trial Court. It was held by the Supreme Court that the Registrar of the Trade Union should be appointed for this purpose. The Registrar offices ‘not exceeding three in number if he himself was unable to carry out the function. Section (a), Trade Unions Act. Section 2b), Trade Unions Act ‘Section 36. ‘Section 79. Section 24 Section 20(2) Sections 15(2), 17(1)(b). (1942) 2 All ER 428, @ scanned with OKEN Scanner Trade Unions Act, 1926 ia i alifcations of @ “en At be Chosen as Office-bearer Ape ade union if he me 2S an office-bearer or as a member of the eslot ister ro ee a = : ie en years, «i) He has been convicted by Court in indi f ard sentenced 10 imprisonment yi of release, Moral turpitude iggy anes of morality. ct whic office bearer oF a member of 4 acement of the Indian Tre Uae sence involving moral turpitude and g te footeaet OF a member of the exert oiribed period of five years hy ' any offence involving moral turpitude a period of five years has elapsed since his ‘related to inherent baseness or depravity a registered trade union who, before the ndment) Act, 1964, has been convicted to Sentenced to imprisonment, must cease to be the 2S elapsed gn the date of such commencement, unless the spective in its effect. But the ath Se his release before that date™ This provision SFashmir would be effective © *PPiation of thi Provision to the State of Jammu renter of the executive or an offce ben ate as that State would decide. The office of a ‘valifcaton as laid down in Section AG) matically vacant if he suffers from the i) of the Act il 1, 1965 which is the 4nte of commencement of the Indian Trade Unions (Amendment) Ret 1964 a p, Proportion of Office-bearers . aa aL. ee rape for proportion of Jot less than one4 oan on i an Uneeoone af of the total number ofS office-bearers of a registered the ge, Stor shall be persons actually = d : or employed in an industry with which the trade union is connected. But the “pproprite Govermmest an by or general order, declare the non i fspovson an “unrecognised senor nab of ths provision Forte rawpane 3 "ans any sector which the appropriate Government my, vote rptred ie et Caz, Specify. Save the above provision. all offen ‘bearers union not be more the who are actually engaged ore more than one-third of the total number of ployed in the establishment or indust te Trade Union is connected. But forthe purpose of th Drowion a rete or retrerehcy rovision a retired or retrenched ding an office in a trade union. No member of the ing an offce of profit in the Union or State shall be a ice-bearer of a registered trade union, These provisions have been made t to confer the right oficebearers from amongst the workmen ofthe industry ‘he union from interference by outsiders who used to mot extraneous interest rather than internal interest of the indus oficebearers from amongst the internal members of an industry was suggested by different aubortes differently. The Whitley Commission recommended in 1931 that the twor thinks of the office-bearers must be chosen from the members-cum-workmen of the industry. On ‘he other hand, the Trade Unions Bill, 1950* provided that (i) rade unions of civil servaney Were not permitted to have outsiders on their executive committe; (i) other trade unions Not have more than four outsiders or one-fourth of the total number of executive, whichever was less. The suggestion for restriction on the number of oe members on executive is made with a view to preventing the atmosphere in an industry from being Politically polluted. EN ide Disputes ra Under chr ed of ee so A he Rpt + ra authority to hold any inquiry by allowing parties to examine witnesses oy att to hold office-bearers to be connected with of majority representation on the concerned. The object is to save uld the policy previously in the stry concemed. The proportion of 1. Section 21A(1), Trade Unions Act, as amended by Act Se Section 21A(), Trade Unions Act, a5 amended by Act 3 4 Vide Notification No. $0. 834, dated 31965 4 Bill 14 of 1950, _§_—£r._ @ scanned with OKEN Scanner iil Le 7 Textbook on Labour & Industrial Lai veto who are real office ao Oe IC 555. 1988 Labs I "8 OF Union as so as to decide the dispute Association v. State of West Bengal Workmen's F. Ex-employee not to Represent Emplover state Bank of India, AIR1996 6 In State Bank of India Staff Asso iat" ° 10 SCW 1764 oq) 4 SC Ata DEY ME that an employer whan by the Staff Union Association ind in bilateral discussions with the Aany* " hand employment can not represent emPs ee een sew’ ae een dened 19 19M 2) oF he Ty The expression “registered io ohh i egitered under this Aca Act mea tha he the sen that does include Office thereof, This definition 6 TT ned in the application for registration as yy of trade union even i hes legal processes are made to the ada Of the union, Alea communsaten TN hthge in the address ofthe head ses registered fice of the union. NPT change to the Registrar in writing, and the ¢p, — eee cli +01 ester maintained under section 8 of the Aq" May address must be recorded if 25 Registered Trade Union’ 4 trade union registered under the Trade Uni A “registered trade uni ered to the expression ‘registered trade union py St An ordinary meaning Nas rence has been made in the Act to an unregistere ig defition. Though m0 SPS exist without going through strict formalities ay peg prio yet _ registered trade union. A trade union may therefore be registeey s gistered i ' 8 na registered trade union and an unregistered — pacestrer Sees a atatutocy legal entity end is alone In the fist place, 2 re uating body of individuals and not being incorporate, although consisting OF fs agent As soon as a trade union is registered under this Ac o eee etatus of a persona juridica. An unregistered trade union has no legal persona it simply a composition of individuals who do not lose their personal legal status an are held liable collectively and severally for the act of the union. Secondly, a registers: trade union may enjoy a number of immunities and privileges to which an unregistre: ‘rade union is not entitled. Thirdly, a registered trade union is required to observe strc 2 number of formalities under the law which an unregistered trade union can ignore. Ever, registered trade union must be considered as a body corporate by the name under which is registered * A registered trade union must have a perpetual succession and a common sei with power to acquire and hold movable and immovable property and to contract. It mist by the said name, sue and be sued. In short, a registered trade union is given all powers v! 2 persona juridica except (a) those which are sole characteristics of a natural person, and (> those which are expressly excepted by the creating or enabling statute. There is no specific provision in the Act for compulsory recognition of a regist trade union. In absence of special law passed by a State, recognition of a registered trai: meine on the sweet will of an employer. In many cases the question ¢! comvosing tee ay : o recurring source of friction between the employers and the workmen (mended) cy ie! trade union, To remove this flaw in the Act, the Indian Trade Uno , 1947” was passed. The amending Act provided for compulsory recogniti’ Section 2(d), Trade Unior Section 12, Trade Uns Ace Section 2(e), Trade Unions Act. Osborne v. Amalgamated Soci ity of Rly. Seroa Section 13, Trade Unions Aut 2 t Seroamts (1908) 1 Ch 189. National Union of General i Act XLV of pad cnet att Municipal Workers v. Gian, (1945) 2 All ER 593, hat where BY practice and yqa 8? lng RE recog) Al @ scanned with OKEN Scanner Trade Unions Act, 1926 37 jatrade union on fulfilment of certain conditions. A registered trade union which could not Sain RTT APPIication from an employer was entitled to apply to the Labour Court Fee eee ctaa ever The Labour Court after necessary investigation and on being eae vot come inte = tegistered union could order directing, such recognition, But Tee eer eeame re: Subsequently various labour policies have been formulated Fesseeeteeerent fouching the question of compulsory recognition of the registered 1 eee tered tie but nothing has been implemented an unregistered trade union has no loc stion ction 18 no locus standi to file writ petition to question cavemment INN appointing: Managing Director on contract basis. Moreover, when the 1 ee oe Whe cent that it isa registered trade union, the court cannot grant any reel C iess Reddy KUL a with unclean hands and with mala fide intention ts ative Fee es Suppl 1s ition, Al ite ater Supply & Drainage Board Employees’ Association ap Registrar 2 ndinarily, a “Registrar” means a ke A bla eper of records. But in the Trade Unions Act 2 i official appointed with specific functions relating to trade apc Wl ion. Thus a ‘Registrar’ means for th of this Act the falowing persons: e ee (i) He must be appointed by the appropriate Govemment under section 3 and may be designated as an Additional or Deputy Registrar of trade unions. i) In elation to any trade union, he is appointed as Registrar for the State in which the hea i ce a office, as the case may be, of the trade union is situated. Itisstatutory duty of the appropriate Government to appoi ra : ;ppoint a person to be the Registrar «(trade union for each State? It is well within the power of the appropriate Government tp appoint as many Additional and Deputy Registrars of trade unions as it thinks fit. The ‘Additional Registrar and Deputy Registrar are required to discharge their functions under the itendence and directions of the Registrar. The appropriate Government may, by order, specfy and define the local limits within which any such Additional or Deputy Registrar ‘ust exercise and discharge the powers and functions so specified? Where an Additional or Deputy Registrar exercises or discharges the powers and functions of a Registrar in an area within which the registered office of a trade union is situated, he will be deemed to be the fegistrar for the purpose of this Act. 27 Trade Dispute® ‘A trade dispute’ means any dispute (a) between employers and workmen, or (b) between viorkmen and workmen, or (c) between employers and employers which is connected with {) the employment, or (ii) non-employment, or (ii) the terms of employment, or (iv) the conditions of labour, of any person. ‘Workmen’ means for the purpose of the Act all persons employed in trade or industry whether or not in the employment of the Employer with whom the trade dispute arises. This definition is similar to that given in section 5(3) of the Trade Disputes Act. A. Trade No definite meaning has been attached to the word ‘trade’ in the Trade Unions Act. The word ‘trade’ can however be used in wide sense so as to embrace all kinds of workmen for the purpose of forming a trade union. Both musicians and actors wert regarded as workmen tnd were govemed by the provisions of the Trade Disputes Act, 1906! Sut Wis see in 8 retricied sense so faras the Trade Unions Act, 1926 is concerned. In ordinary sense, trade is ER sense 8 1, Section 2(9, Trade Unions Act, 1926 as amended by Act 42 of 190 2 Section 3(1), Trade Unions, Act, 1926, as amended by Act 42 of 1960. 3. Section 32), Trade Unions, Act, 1926 as amended by Act 42 of 196 4 Secon 3), Trade Unions, Act, 1926 as amended by Act 42 of 96) 5. Seton 2(g), Trade Unions, Act, 1926, as amended by Act 42 of lee ch 30d 6 Dalimore Wiliams & Jssom, (1913) 29 TLR 67; Brinlow v. Casson (1928) 1 fie @ scanned with OKEN Scanner - Tevthook on Labour & Industrial Lave defined as “traffic by way of sale or exchange or commercial dealing” There are differes, in the meanings of ‘trade’, ‘industry’ and ‘business’ though = ey interchan ran Business’ is a wider term than ‘trade’? Rvery business includes 1008 0° 10 hice ot other words, a business is a genus, whereas a trade 18 a SPP CARTY NAS neces, includes the element of profit, But a trade does not necesss 1 by ply . : fered at length by the Hotise ag tMich a profit is made.’ The meaning of the ‘trade’ is consid “on orpoation | This ou "I len, ‘in National Association of Local Government Officers ¥ Bolt ent 1 collective Wer in a wider sense when dealing with conditions of employee "implies a wanting Etymologically: the word ‘trade’ springs from ‘tread’ and @ OF lite an occupation B. Indus 6 Act, 19 Sechickry” has been defined in section 2G) of the industrial Diora Coa oe amended by Act of 1982, No doubt the word ‘industry’ for the purest inc At is used in a wider sense. So far as the Trade Unions Act eI eae a ‘indy should be used in the same sense as used in the Le ea Soverase Bien g 8 have been i don by hee a Nae a pn Ac A to construe the word “industry” forthe purpose of Ihe Inet tional ud at these tests for the purpose of the Trade Unions e decisive test ie the hatere of the activity with special emphasis of the employer-empio ee ices are to be rendered by a statutory corporation ma} Tato The as tha sch ere oor nonemplyment” nwa the Gustin dismissal or refusal to employ, or contemplation of tet rcontract Sea The Words

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