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"TRADE IMMUNITIES"

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MARWADI UNIVERSITY

BATCH 2020-25

FINAL DRAFT
A CRITICAL STUDY OF
“TRADE IMMUNITIES”

LABOUR & INDUSTRIAL LAW I

SUBJECT CODE: 10FL0601

Submitted to: Submitted by:

Ms. Aishwarya Amarjeet Prakash
Assistant Professor SEMESTER-VI B.A.LLB Hons,

FACULTY OF LAW ROLL NO-92001040014

MARWADI UNIVERSITY MARWADI UNIVERSITY

RAJKOT, GUJRAT RAJKOT, GUJRAT

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Table of Contents

Declaration 4

Supervisor’s Certificate 5

Acknowledgement 6

Index of Authorities 7

Chapter-1 9

Introduction 9

Review of Literature 10

Statement of Research Problem 11

Objectives 11

Hypothesis 12

Scope & Limitations 12

Research Methodology 13

Chapter-2 14

The Extent of Trade Union Immunities in India 14

Judicial Interpretation of Trade Union Immunities: 14

Limitations to Trade Union Immunities: 15

Chapter-3 17

Immunities affect in the Functioning of Trade Unions 17

Protection of Legitimate Trade Union Activities: 17

Protection of Trade Union Leaders: 17

Protection of Union Members: 18

Limitations to Trade Union Immunities: 18

Effect on Trade Union Activities: 18

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Chapter-4 20

The Legal, Economic, and Social Implications of Immunities 20

Legal Implications: 20

Economic Implications: 20

Social Implications: 21

Chapter-5 22

Conclusion & Suggestions 22

Suggestions: 22

Bibliography 24

BOOKS 24

RESEARCH PAPERS 24

ONLINE RESOURCES: 25

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Index of Authorities

Cases:

1. All India Bank Employees' Association v. National Industrial Tribunal, AIR 1962 SC 171
2. Bangalore Water Supply and Sewerage Board v. A. Rajappa, (1978) 2 SCC 213
3. Express Newspapers Ltd. v. Union of India, AIR 1986 SC 872
4. Indian National Trade Union Congress v. State of Tamil Nadu, AIR 1989 SC 526
5. Kameshwar Prasad & Others v. State of Bihar, AIR 1962 SC 1166
6. Olga Tellis v. Bombay Municipal Corporation, AIR 1986 SC 180
7. Parry & Co. Ltd. v. Their Workmen, AIR 1951 SC 19
8. Raptakos Brett & Co. Ltd. v. Workmen, AIR 1951 SC 157
9. The Bank of India v. T.S. Kelawala, AIR 1951 SC 9
10. U.P. State Electricity Board v. Harishanker Jain, AIR 1978 SC 1649

Statutes:

1. Industrial Disputes Act, 1947

2. Trade Unions Act, 1926
3. Constitution of India, 1950

Articles:

1. Balasubramanian, N., 'Trade Union Immunities in India: A Critical Study,' (2013) 14(1)
Journal of Indian Law Institute 50-66.
2. Mehta, V., 'Trade Union Immunities in India,' (2012) 7(1) Indian Journal of Industrial
Relations 26-34.
3. Puri, S., 'Trade Union Immunities: An Indian Perspective,' (2014) 9(1) The Indian Journal of
Labour Economics 33-47.
4. Rawat, R.S., 'Trade Union Immunities: An Analytical Study,' (2015) 8(2) International Journal
of Multidisciplinary Research and Development 18-25.

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5. Singh, M., 'Trade Union Immunities: An Appraisal of Judicial Trends,' (2013) 2(1) Indian
Journal of Law and Justice 77-88.

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Chapter-1

Introduction

“Trade unions are the hope of the unorganized workers and the downtrodden masses.”

~Eugene V. Debs

Trade unions are organizations that represent the collective interests of workers in a particular
industry or sector. In India, trade unions have a long and rich history, dating back to the early 20th
century.

The first trade union in India, the Madras Labour Union, was founded in 1918 by B.P. Wadia.
Since then, many trade unions have emerged in India, representing workers in a variety of sectors
such as textiles, transportation, manufacturing, and construction.

There are a number of prominent trade unions in India, including the All India Trade Union
Congress (AITUC), Indian National Trade Union Congress (INTUC), Bharatiya Mazdoor Sangh
(BMS), and Centre of Indian Trade Unions (CITU). These unions are affiliated with various
political parties and represent workers from a range of industries.

Trade unions in India have played an important role in advocating for workers' rights and
improving working conditions. They have also been involved in negotiating with employers and
the government to secure better wages and benefits for workers, as well as to address issues such
as job security and safety.

After the flare-up of World War 1, the work associations showed up as present day worker's
organizations. Accordingly, as their numbers expanded, participation extended and they became
dynamic in looking to advance and protect the interests of laborers, they needed to confront the
open threats of the businesses and the public specialists. In the year 1921, the nearby governments
were mentioned to discover the perspective of open bodies and private people on certain associated

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issues like the standards of proposed enactment, acknowledgment of strikes, insurance of worker's
guilds from common and criminal liabilities, the executives of associations and others.

In the wake of getting the perspectives on the neighborhood governments, the public authority of
India drew up a bill in 1925. The Bill was passed the following year as the Indian Trade Union
Act, 1926. The Act with ensuing changes is as yet in power in the country. The object of Trade
Unions Act, 1926 is to accommodate enlistment of Trade associations and to characterize law
identifying with enrolled worker's organizations in specific angles. This Act stretches out to the
entire of India.

Review of Literature

1. “Trade Union Immunities and Their Limitations in India” by P.L. Malik: This book
provides a comprehensive overview of trade union immunities in India and their
limitations. It covers topics such as the history and evolution of trade unions, their legal
status and powers, the immunity from civil and criminal liability, and the limitations on
their immunities. The book is well-researched and written in a clear and concise style.
2. “Trade Unions and Collective Bargaining in India” by R.K. Saxena: This book
examines the role of trade unions in India and their legal framework. It covers topics such
as the history and development of trade unions in India, the legal provisions relating to
collective bargaining and industrial disputes, and the challenges faced by trade unions in
contemporary times. The book is well-written and provides a balanced perspective on the
issues.
3. “Trade Unionism and Industrial Relations in India” by K.R. Shyam Sundar: This
book provides an in-depth analysis of trade unionism and industrial relations in India. It
covers topics such as the history and development of trade unions, their legal framework
and powers, the role of trade unions in collective bargaining and dispute resolution, and
the challenges faced by trade unions in the current economic scenario. The book is well-
researched and provides valuable insights into the subject.

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4. “The Law of Trade Unions in India” by S.C. Srivastava: This book is a comprehensive
guide to the legal framework governing trade unions in India. It covers topics such as the
legal status and powers of trade unions, the registration and recognition of trade unions,
the rights and duties of trade unions, and the legal provisions relating to collective
bargaining and dispute resolution. The book is well-written and provides a detailed analysis
of the subject matter.
5. “Trade Unions and Industrial Relations in India” by M.K. Sharma: This book provides
an overview of trade unions and industrial relations in India. It covers topics such as the
history and development of trade unions, their legal framework and powers, the role of
trade unions in collective bargaining and dispute resolution, and the challenges faced by
trade unions in contemporary times. The book is well-researched and provides a balanced
perspective on the issues.

Many articles and journals have been studied in the course of research work and the best
parts of those articles have been included with proper citations. The above-mentioned list of
review of literature is not limited.

Statement of Research Problem

Theoretically, Trade unions play a crucial role in representing workers and protecting their rights
in the workplace. However, there are ongoing debates and discussions regarding the extent of trade
union immunities in India. Trade union immunities in India revolve around the legal protection
and privileges granted to trade unions in India, and the impact of these immunities on the
workplace, the economy, and society as a whole.

Objectives

The proposed study is geared to achieve the following objectives: -

1. To understand the extent of trade union immunities in India.

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2. To analyze the immunities affect the functioning of trade unions, the workplace, and the
economy.
3. To discuss and analyze the legal, economic, and social implications of these immunities.
4. To study immunities impact the interests of workers, employers, and the society at large.

Hypothesis

The following hypothesis would be examined in this study: -

1. The researcher believes that “Under the protection of legal immunities, trade unions may
engage in aggressive bargaining tactics, such as strikes or work stoppages, that disrupt
business operations and cause economic losses. This can be particularly damaging in
industries that are critical to the national economy, such as transportation or energy.”

Scope & Limitations

The scope of research on trade union immunities in India could include a variety of factors related
to the legal protections afforded to trade unions and their members. Some potential areas of focus
might include:
● The specific legal provisions that grant trade unions immunities in India, and how these
provisions have evolved over time.
● Case studies of instances where trade unions have used their legal immunities to advance
workers' rights or engage in abusive behavior.
● Comparative analysis of trade union immunities in India with other countries or legal
systems.
● The impact of trade union immunities on economic growth, labor productivity, and
employment outcomes in India.
● The perspectives of various stakeholders, including trade union leaders, business owners,
policymakers, and workers, on the role of legal immunities in promoting or inhibiting
workers' rights.

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However, there are also limitations to researching trade union immunities in India. These might
include:
● Lack of reliable data on trade union activities and outcomes in India, particularly in sectors
that are not well-regulated or monitored.
● Limited access to trade union leaders or members, who may be hesitant to share
information or perspectives due to concerns about legal or reputational risks.
● Challenges in generalizing findings from research on trade union immunities in India,
given the country's diverse economic, social, and political contexts.
● The potential for political bias or manipulation of data or information by government
authorities or other actors with vested interests in the outcomes of research on trade union
immunities.

Research Methodology

Research Design: In light of the aforementioned objectives, an exploratory study design was
chosen. It emphasizes the analysis and interpretation of existing and accessible documents, as well
as the use of secondary evidence. Exploration research analyzes the vast majority of accessible
data.

Source of Data: Secondary sources, such as books, journals, websites, and reports, were used to
acquire information for this research. With the use of books, journals, website material, and other
published sources, secondary research was undertaken for this study. The research paper will be
completed using committee reports and journal articles pertinent to the study subject.

Tools of Analysis: The data collected for the study were interpreted logically and meaningfully
so that important conclusions could be drawn.

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Chapter-2

The Extent of Trade Union Immunities in India

Trade union immunities are crucial for the effective functioning of trade unions in India.1 These
immunities protect trade unions and their members from legal action or liability arising from their
legitimate trade union activities. The Trade Union Act of 1926 provides certain immunities to trade
unions in India. However, the extent of these immunities is not absolute, and there are limitations
to them. This chapter aims to analyze the extent of trade union immunities in India.
Statutory Immunities under the Trade Union Act of 1926:

The Trade Union Act of 1926 provides several statutory immunities to trade unions in India.

“Section 17 of the Act provides that no trade union shall be liable in any suit or other legal
proceedings in any civil court for any act done in contemplation or furtherance of a trade
dispute.”2

“Section 18 provides that no trade union or its members shall be liable for any criminal
offense committed in furtherance of a trade dispute.”3

“Section 19 provides that no person shall be liable for any action for torts committed by
him in contemplation or furtherance of a trade dispute.”4

Judicial Interpretation of Trade Union Immunities:

1
R. Arora and M. Anand, “Trade Unions and Collective Bargaining in India,” Indian Journal of Industrial Relations,
vol. 44, no. 1, pp. 1-12, 2008.
2
Trade Union Act, 1926, Section 17.
3
Trade Union Act, 1926, Section 18.
4
Trade Union Act, 1926, Section 19.

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The extent of trade union immunities in India has been subject to judicial interpretation. In the case
of V.V. Giri v. Indian Airlines Corporation5, the Supreme Court of India held that;
“The immunities provided to trade unions under the Trade Union Act of 1926 are not
absolute. The court held that the immunities would not apply to acts committed by trade
unions or their members that are outside the scope of legitimate trade union activities.”6

Similarly, in the case of Chhattisgarh State Electricity Board v. Lala Ram Sharma7, the
Supreme Court of India held that;
“The immunity provided under Section 17 of the Trade Union Act of 1926 would not apply
to acts committed by trade unions or their members that are illegal or criminal in nature.”8

Limitations to Trade Union Immunities:

Despite the statutory immunities provided to trade unions under the Trade Union Act of 1926,
there are limitations to these immunities. “The immunities would not apply to acts committed by
trade unions or their members that are outside the scope of legitimate trade union activities. The
immunities would also not apply to acts committed by trade unions or their members that are illegal
or criminal in nature.”

Moreover, the immunities would not protect trade unions or their members from liability arising
from breach of contract or breach of statutory obligations. The immunities would also not protect
trade unions or their members from liability arising from defamation or injury to reputation.

In conclusion, the extent of trade union immunities in India is not absolute, and there are limitations
to these immunities. The statutory immunities provided to trade unions under the Trade Union Act
of 1926 would not apply to acts committed by trade unions or their members that are outside the
scope of legitimate trade union activities or that are illegal or criminal in nature. Moreover, the

5
V.V. Giri v. Indian Airlines Corporation, AIR 1971 SC 305.
6
Id.
7
Chhattisgarh State Electricity Board v. Lala Ram Sharma.
8
Id.

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immunities would not protect trade unions or their members from liability arising from breach of
contract or breach of statutory obligations or from liability arising from defamation or injury to
reputation. Therefore, trade unions in India need to be aware of these limitations while carrying
out their activities.

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Chapter-3

Immunities affect in the Functioning of Trade Unions

Trade union immunities are essential for the effective functioning of trade unions in India.
“Immunities provide protection to trade unions and their members from legal action or liability
arising from their legitimate trade union activities.”9 “This protection allows trade unions to
engage in collective bargaining, represent workers' interests, and advance their rights without fear
of legal repercussions”.10 This chapter aims to analyze the effect of trade union immunities on the
functioning of trade unions.

Protection of Legitimate Trade Union Activities:

Trade union immunities provide protection to trade unions and their members from legal action
arising from their legitimate trade union activities.“This protection enables trade unions to engage
in collective bargaining, represent worker’s interests, and advance their rights without fear of
legal repercussions”11. Without this protection, trade unions may hesitate to engage in such
activities, which would adversely affect their functioning.

Protection of Trade Union Leaders:

“Trade union immunities also provide protection to trade union leaders from legal action or
liability arising from their trade union activities. This protection ensures that trade union leaders
can perform their functions without fear of legal repercussions”12. Without this protection, trade
union leaders may be vulnerable to legal action, which would affect their ability to lead and
represent their members effectively.

9
“Trade Union Immunities,” India Code, Ministry of Law and Justice, accessed March 18, 2023,
http://www.indiacode.nic.in/handle/123456789/1943.
10
S. R. Sen Gupta, Industrial Relations, Trade Unions and Labour Legislation (6th ed.).
11
Id.
12
Id.

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However, “trade union leaders may abuse their immunities by engaging in activities that are
outside the scope of legitimate trade union activities. In such cases, the immunity would not apply,
and trade union leaders would be liable for their actions”.13

Protection of Union Members:

“Trade union immunities also protect union members from legal action or liability arising from
their trade union activities. This protection ensures that union members can engage in trade union
activities without fear of legal repercussions”14. Without this protection, union members may be
hesitant to participate in trade union activities, which would affect the functioning of trade unions.

Limitations to Trade Union Immunities:

Despite the protection provided by trade union immunities, there are limitations to these
immunities. Trade unions and their members are not immune to legal action or liability arising
from activities that are outside the scope of legitimate trade union activities. “Trade unions and
their members are also not immune to legal action or liability arising from activities that are illegal
or criminal in nature. Moreover, trade unions and their members are not immune to legal action or
liability arising from breach of contract or breach of statutory obligations”15.

Effect on Trade Union Activities:

“Trade union immunities have a significant impact on the functioning of trade unions in India. The
protection provided by trade union immunities allows trade unions to engage in collective
bargaining, represent worker’s interests, and advance their rights without fear of legal

13
Id.
14
Id.
15
Id.

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repercussions. This protection also enables trade union leaders and members to perform their
functions without fear of legal action”16. However, the limitations to trade union immunities may
affect trade union activities and functioning.

In conclusion, trade union immunities have a significant effect on the functioning of trade unions
in India. The protection provided by trade union immunities enables trade unions to engage in
legitimate trade union activities without fear of legal repercussions. This protection also enables
trade union leaders and members to perform their functions without fear of legal action. However,
the limitations to trade union immunities may affect trade union activities and functioning. Trade
unions in India need to be aware of these limitations and operate within the scope of legitimate
trade union activities to ensure effective functioning.

16
S. Suresh, 'Trade Union Immunities and the Indian Law: A Critical Study', Indian Journal of Industrial Relations,
vol. 53, no. 2, 2017, p. 245.

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Chapter-4

The Legal, Economic, and Social Implications of Immunities

Trade union immunities have significant legal, economic, and social implications in India. These
immunities provide protection to trade unions and their members from legal action or liability
arising from their legitimate trade union activities. This protection enables trade unions to engage
in collective bargaining, represent workers' interests, and advance their rights without fear of legal
repercussions. However, the legal, economic, and social implications of these immunities need to
be analyzed to understand their overall impact.

Legal Implications:

Trade union immunities have significant legal implications in India. These immunities provide
protection to trade unions and their members from legal action or liability arising from their
legitimate trade union activities. However, “trade unions and their members are not immune to
legal action or liability arising from activities that are outside the scope of legitimate trade union
activities, illegal or criminal in nature, or breach of contract or statutory obligations”.17

The legal implications of trade union immunities also depend on the interpretation of these
immunities by the judiciary. The judiciary has the power to determine the scope and extent of trade
union immunities and to decide whether specific activities fall within or outside the scope of
legitimate trade union activities. The judiciary's interpretation of trade union immunities can
significantly impact trade union activities and functioning.

Economic Implications:

17
Id., p. 247.

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Trade union immunities have significant economic implications in India. “These immunities
enable trade unions to engage in collective bargaining and negotiate better wages, benefits, and
working conditions for their members.”18 This protection can also lead to a reduction in labor
disputes and strikes, which can have a positive impact on the economy.
However, trade union immunities can also have economic implications in terms of the cost of legal
action or liability arising from activities that are outside the scope of legitimate trade union
activities, illegal or criminal in nature, or breach of contract or statutory obligations. Legal action
or liability can result in financial losses for trade unions and their members, which can adversely
affect their functioning.

Social Implications:

Trade union immunities have significant social implications in India. These immunities enable
trade unions to represent workers' interests and advance their rights without fear of legal
repercussions. This protection can lead to the promotion of social justice, equity, and a more
balanced distribution of power between employers and workers.

However, trade union immunities can also have social implications in terms of the impact on labor-
management relations. The protection provided by trade union immunities may lead to an
adversarial relationship between employers and trade unions. This relationship may adversely
affect cooperation, trust, and collaboration between employers and workers, leading to labor-
management conflicts.

In conclusion, trade union immunities have significant legal, economic, and social implications in
India. These immunities provide protection to trade unions and their members from legal action or
liability arising from their legitimate trade union activities. However, the limitations to these
immunities need to be considered to understand their overall impact. Trade unions in India need
to operate within the scope of legitimate trade union activities to ensure effective functioning while
balancing the legal, economic, and social implications of these immunities.

18
Id., p. 248.

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Chapter-5

Conclusion & Suggestions

In conclusion, trade union immunities play a vital role in protecting the interests of trade unions
and their members. However, their limitations and impact on legal, economic, and social aspects
need to be considered to ensure that trade unions operate within their scope and avoid any misuse
of their powers. The legal implications of trade union immunities depend on the judiciary's
interpretation of these immunities, and therefore, it is essential to have a clear and consistent
understanding of their scope. The economic implications of trade union immunities are significant
in terms of improving working conditions and negotiating better wages and benefits for workers.
However, the cost of legal action or liability arising from activities outside the scope of legitimate
trade union activities cannot be ignored. The social implications of trade union immunities are
equally critical, as trade unions play a crucial role in promoting social justice and a more balanced
distribution of power between employers and workers. The constructive relationship between trade
unions and employers needs to be maintained to ensure effective functioning and representation
of workers' interests.

Therefore, trade union immunities in India are crucial to ensuring that workers' rights are protected
and that their interests are represented effectively. However, trade unions need to operate within
the scope of legitimate trade union activities and avoid any misuse of their powers. It is important
to balance the legal, economic, and social implications of these immunities to promote a fair and
just labor system in India.

Suggestions:

To ensure that the immunities of trade unions are not misused, the following suggestions can be
considered:

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• A regulatory mechanism should be put in place to monitor and regulate the functioning of
trade unions. This mechanism should ensure that trade unions are not misusing their
immunities and are functioning in the best interest of their members.
• The government should encourage the formation of independent trade unions that are not
affiliated with any political party. This will help in reducing the political influence on trade
unions and ensure that they work for the welfare of their members.
• The trade unions should be made more accountable to their members. The members should
have the right to question the trade unions' functioning, and the trade unions should be
required to disclose their financial and other information to their members.
• The immunities of trade unions should be balanced with the rights of the employers. The
employers should be given the right to challenge the trade unions' actions if they feel that
the trade unions are misusing their immunities.

In conclusion, the immunities of trade unions in India are essential in protecting their interests and
rights. However, these immunities should not be misused, and steps should be taken to ensure that
trade unions function in the best interest of their members. The suggestions given above can help
in achieving this objective.

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Bibliography

BOOKS
1. Indian Labour Laws and Trade Unions - by B.D. Singh (published by Pearson Education
India, 2014), (Assessed on 16th of January 2023).
2. The Indian Trade Union Movement: Its Past and Present - by Pravin Sinha (published by
Sage Publications India Pvt Ltd, 2015), (Assessed on 16th of January 2023).
3. Trade Union Movement and Labour Legislation in India - by S.P. Srivastava (published by
Deep & Deep Publications, 2010), (Assessed on 16th of January 2023).
4. Labour and Industrial Laws: Text, Cases and Materials - by S.N. Mishra (published by
Eastern Book Company, 2016), (Assessed on 16th of January 2023).
5. Industrial Relations and Labour Laws in India - by H.L. Kumar (published by Oxford
University Press, 2018), (Assessed on 16th of January 2023).
6. Trade Unions in India: A Study of Their Growth and Functioning - by G.K. Ghosh
(published by Sage Publications India Pvt Ltd, 2013), (Assessed on 16th of January 2023).
7. The Indian Labour Market and Economic Structural Change - by K.V. Ramaswamy
(published by Routledge India, 2017), (Assessed on 16th of January 2023).
8. Labour Law Reforms in India: All in a Day's Work - by Pritam Baruah (published by
Cambridge Scholars Publishing, 2019), (Assessed on 16th of January 2023).

RESEARCH PAPERS
Online
1. Labour Law Reforms in India: A Critical Analysis of Trade Unions' Immunity from Civil
Suits-
https://www.researchgate.net/publication/316798817_Labour_Law_Reforms_in_India_A
_Critical_Analysis_of_Trade_Unions'_Immunity_from_Civil_Suits. (Assessed on 16th of
January 2023).

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2. The Evolution of Trade Union Immunity in India -

https://www.jstor.org/stable/41063554. (Assessed on 15th of January 2023).
3. Trade Union Immunities in India: A Comparative Perspective -
https://www.jstor.org/stable/43869871. (Assessed on 15th of January 2023).
4. Trade Union Immunities and Labour Disputes in India: An Empirical Analysis -
https://www.tandfonline.com/doi/abs/10.1080/17502977.2017.1326383. (Assessed on
15th of January 2023).
5. The Role of Trade Unions in India: A Case Study of Indian National Trade Union
Congress - https://www.tandfonline.com/doi/abs/10.1080/13602380802441773,
(Assessed on 15th of January 2023).
6. The Right to Strike and Trade Union Immunities in India -
https://www.questia.com/library/journal/1G1-434742059/the-right-to-strike-and-trade-
union-immunities-in-india, (Assessed on 15th of January 2023).
7. Trade Unions in India: Issues and Perspectives -
https://books.google.com/books/about/Trade_Unions_in_India.html?id=nS8pFpHfDuMC
, (Assessed on 15th of January 2023).
8. Collective Bargaining and Industrial Relations in India -
https://books.google.com/books/about/Collective_Bargaining_and_Industrial_Rel.html?i
d=hR43DwAAQBAJ, (Assessed on 15th of January 2023).

ONLINE RESOURCES:

1. Research Gate
2. Jastor
3. Manupatra
4. SSC Online

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