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Trade Unions Act, 1926 | Registration, Object,
Dispute
 29 May 2023 -  22 mins read -  Business Law
The Trade Unions Act, 1926

According to the Trade Unions Act, 1926, ‘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”
Table of Content [Show]
Introduction to Trade Unions Act

The origin of the passing of Trade Union Act in India was the historic Buckingham Mills Case of
1920 in which the Madras High Court granted an interim injunction against the Strike Committee of
Madras Labour Union forbidding them to induce certain workers to break their contract of
employment by refusing to return to work.
Trade Union leaders found that they were liable to prosecution and imprisonment for bonafide
union activities and it was felt that some legislation for the protection of trade unionism was
necessary.
In March, 1921, Mr.N.M.Joshi, the then General Secretary of the all India Trade Union Congress
successfully moved a resolution in the Central Legislative Assembly that Government should
introduce legislation for registration and protection of trade unions. But opposition from employers
to adoption of such measure was so great that it was only in 1926 that Trade Union Act was passed.
Object of Trade Unions Act
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The object of passing the Act was to make necessary provisions in regard to the registration of
Trade Unions and to define the law relating to registered Trade Unions.
The Royal Commission on Labour in India observed that the object is to give trade unions the
necessary protection from civil suits and criminal laws relating to conspiracy in order to enable
them to carry on their legitimate activities.
The Act extends to the whole of India including the state of Jammu and Kashmir. It came into force
on the first day of June, 1927.
Trade Dispute
A trade dispute means any dispute:
between employers and workmen

between workmen and workmen
between employers and employers
Any such dispute as mentioned to be a Trade Dispute must also be associated with:
the employment
non-employment
the terms of employment
the conditions of labour of any person
The definition of Trade Dispute in this Act is almost similar to the definition of Industrial Dispute
given in the Industrial Disputes Act, 1947. In Trade Dispute, it is necessary that there must be a
demand from one party and refusal to accept those demands by other party. There can be real and
substantial between parties to such dispute.
Trade Union
The term trade union can be expressed both in an ordinary sense and in broad sense. In ordinary
sense it is a combination of workmen and in a broader sense it includes combination of employers
and federation of two or more such combinations. The trade union means:
Any combination whether temporary or permanent formed for the purpose of regarding relations
between
workmen and employers

workmen and workmen (c) employers and employers
The above combinations put restrictions on the conduct of any trade or business but certain
agreements given below have been excluded from the scope of the term trade union.
Agreement between partners in a business

Agreement in consideration of the sale of the goodwill of a business or of instruction in any
profession, trade or handicraft.
Registration of Trade Union

Appointment of Registrars (Section 3)
Mode of registration of trade union
Application for Registration (Section 5)
Rules for Registration of Trade Union (Section 6)
Registration
Certificate of Registration (Section 9)
Advantages of Registration
Cancellation of Registration (Section 10)
Appeal (Section 11)
Body Corporate (Section 13)
The Objects on which General Funds may be spent (Section 15)
Penalties and Procedure
Appointment of Registrars
As regards registration of a trade union, the Act empowers the appropriate Government to appoint a
person to be the Registrar of Trade Union for each state. The appropriate Government may appoint
as many additional and deputy registrar’s trade unions as it think fit.
They shall work under the superintendence and direction of the Registrar. The appropriate
Government shall specify and define the local limits within which any additional and Deputy
Registrar shall exercise and discharge his powers and functions.
Mode of registration of trade union
The registration of a trade union can be made under this Section 4 of the Indian Trade Unions Act,
1926 Act which says that any seven or more members of a trade union may by subscribing by their
names to the rules of trade union and by otherwise complying with the provision of this Act with
respect to registration, apply for registration of the trade union Trade Union Legislation under this
Act.
The section also provides that in case members applying for registration disassociate themselves
from the application, or cease to be members of the union, after the date of application, but before
the registration of the union and their number does not exceed half of the total number of the
persons applying, the application shall not be deemed to be invalid.
Application for Registration

For registration of a trade union, seven or more members of the union can submit their application
in the prescribed form to the Registrar of trade unions.
The application shall be accompanied by a copy of the ‘rules of the trade union’ and a statement
giving the following particulars:
Names, occupations and addresses of the members making the application;

The name of the trade union and the address of its head office;
The titles, names, ages, addresses and occupations of the office bearers of the trade union as per
the format given in the Trade Unions Act 1926.
Every application for registration of a Trade Union shall be made to Registrar. It shall be
accompanied by a copy of the rules containing matters as given in Section 6. It also contains a
statement of the following particulars.
The names, occupations and addresses of 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 officebearers of the Trade Union
Where a Trade Union has been in existence for more than one year before its registration, a general
statement of the assets and liabilities of the Trade Union in the prescribed form must be submitted
along with the application.
Registration
The Section 8 of the Indian Trade Unions Act, 1926 prescribes a duty on the Registrar to register
the trade union if all the requirements of the Act with regard to registration have been complied
with. The Registrar will, in such a case enter the particulars relating to the trade union in a register
maintained in the prescribed form.
The Registrar has the powers to examine whether the Union is to be registered or not and after
fulfilling the conditions prescribed in the Act and the Registrar will have to make the registration of
the trade union.
Where that is a dispute as to who are elected office bearers of trade union, it is not within the
jurisdiction of the Trade Union, to determine which of the rival group of office bearers the real one
is. In the absence of any provision in the Act such dispute has to be resolved in a Civil Court.
Certificate of Registration
The Registrar, on registering a Trade Union, shall issue a certificate of registration which shall be
conclusive evidence that the Trade Union has been duly registered under the Act.
It is obligatory on the part of the Registrar to register a Trade Union provided the provisions of the
Act are complied with. He is not entitled to question whether the Union is lawful or unlawful.
Advantages of Registration
Although it is not legally necessary for a Union to be registered, registration does provide it with
certain advantages. Some of the advantages gained by registration as given in Section 13 are as
under:
A Trade Union becomes a body corporate by name under which it is registered and it a legal
entity distinct from its members of which it is composed.
It gives perpetual succession and common seal.
It can acquire and hold both movable and immovable property.
It can enter into a contract.
It can sue and be sued in its registered name.
Cancellation of Registration
Power to withdraw or cancel registration of a Trade Union is given to the Registrar. The Registrar
can exercise the power in the following case, namely:
On the application of the Trade Union for such a course
Where the certificate of registration has been obtained by fraud or mistake
Where the Trade Union ceased to exist
Where the Trade Union has willfully and after notice from the Registrar allowed any rule to
continue in force which is inconsistent with the provision of this Act
Where the Trade Union has willfully and after notice from the registrar violated any provisions
of this Act
Where the primary objects of the Union are no longer statutory objects Where the Union desires
to have its certificate of registration withdrawn or cancelled, the Registrar on receiving much
application, must, before granting the application satisfy himself that the withdrawal or
cancellation was approved by a general meeting of the Trade Union or if it was not so approved,
it had the approval of the majority of the members of the Trade Union.
The Registrar is not competent to cancel registration of a Trade Union without giving requisite
notice and giving an opportunity to the Trade Union to show cause against the proposed action.
Appeal
Section 11 of the Act gives a limited right of appeal from the decisions of the Registrar. Any person
who is aggrieved by the refusal of the Registrar to register a Trade Union or the withdrawal or
cancellation of certificate of registration is given the right of appeal. The appeal must be within 60
days of the date of which Registrar passed the order against which appeal is made.
Body Corporate
Every registered Trade Union is a body corporate by the name under which it is registered. A
registered Trade Union is an artificial person in the eyes of law capable of enjoying rights like a
natural person.
It has a perpetual succession and a common seal. It has the right to acquire and hold both movable
and immovable property. It can enter into a contract and can sue and be sued in its registered name.
The registered trade unions (workers & employers) are required to submit annual statutory returns
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 submits a consolidated return of
their state in the prescribed proforma to Labour Bureau, Ministry of Labour Bureau, Ministry of
Labour and employment.
The Objects on which General Funds may be spent

Salaries, allowances and expenses to office bearers
Expenses for administration and audit of the accounts of funds of the union
Towards Prosecution or defense of any legal proceeding to which the union or its member is a
party
The conduct of trade disputes on behalf of the union or its members
Compensation for the members at the time of dispute.
Business Law Notes

(Click on Topic to Read)
What is Business Law?

Indian Contract Act 1872
Types of Contract
Offer: Types, Elements
Elements of a Valid Contract
Performance of a Contract
Discharge of Contract
Sales of Goods Act 1930
Goods & Price: Contract of Sale
Conditions and Warranties
Doctrine of Caveat Emptor

Transfer of Property
Rights of Unpaid Seller
Negotiable Instruments Act 1881
Types of Negotiable Instruments
Types of Endorsement
Promissory Note
Bill f E h
Bill of Exchange
Cheque
Crossing of Cheque
Business Law Book References

1. Goel, P. K. (2006). “Business Law for Managers” Wiley
2. Sheth, T. (2017). “Business Law” (2ed.) Pearson.
3. Kuchhal. M.C. & Prakash. “Business Legislation for Management” (2ed.) Vikas Publishing.
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Trade Unions Act, 1926 | Registration, Object,

The Trade Unions Act, 1926

Table of Content [Show]

Introduction to Trade Unions Act

Object of Trade Unions Act

between employers and workmen

workmen and employers

Agreement between partners in a business

Registration of Trade Union

Application for Registration

Names, occupations and addresses of the members making the application;

The names, occupations and addresses of members making the application

Where the certificate of registration has been obtained by fraud or mistake

Where the Trade Union ceased to exist

The Objects on which General Funds may be spent

Business Law Notes

What is Business Law?

Doctrine of Caveat Emptor

Business Law Book References

Go On, Share article with Friends

TAGS: BUSINESS LAW, HUMAN RESOURCE, LAW, TRADE UNIONS ACT

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Brand Strategy Course

Business Law Course

Strategic Management Course

Marketing Analytics Course

Business Strategy Course

Marketing Management Course

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Mutual Fund Course

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Value Investing Course