SALIENT FEATURES OF THE TRADE UNIONS ACT OF 1926

I) INTRODUCTION

Trade union is a voluntary organization of workers pertaining to a particular trade,

industry or accompany and formed to promote and protect their interests and welfare
by collective action. They are the most suitable organizations for balancing and
improving the relations between the employer and the employees. Trade Unionism
has made its headway owing to growth of industrialization. Trade Unionism asserts
collectively the rights of the workers. The Trade unions are concerned with the
welfare of workers which include: Securing fair wages for workers and improve their
opportunities for promotion and training. Safeguarding security of tenure and
improve their conditions of service.

The trade unions are seen as one of the main ways through which the views of the
workmen of as elect establishment can be put forward. In very simple terms it can be
construed as a provision that gives the Freedom of Speech and expression to the
workmen. One of the prominent features of the Trade Unions Act of 1926 is that it
talks about the immunities that are to be granted to a trade union that so is registered
under the aforementioned act. For example, in the period before 1926, the conducting
of a strike or engaging in peaceful demonstrations are taken into account as an act of
criminal conspiracy with the respective trade union being held liable for such an
offense whose gravity was obviously exaggerated by several times.

The main crux of the functioning of a trade union is to engage in trade or negotiations
with the company, which when looked upon as a serious threat to the society
completely destroys the purpose of existence of such a union representing a fraternity
of workers who are given various rights as citizens /of the country (Fundamental
Rights-Freedom to form associations). As a result immunities are an important feature
when it comes to the Trade Unions Act of 1926. Such immunities take into
consideration the various Fundamental Rights that are enshrined under the Indian
Constitution which involves Right of Freedom of Speech and Expression, The Fight
to Assemble Peacefully, The Right to form Unions, The Right to carry out any
profession, trade or business and Right against any form of exploitation. It is
important to note that the Trade Union is a mere representative of the interests of all
the workmen in that particular company as are sult of which the Union that acquires a
Legal personality is should also be conferred with such rights. This section of the
paper looks forward to analyze the nature and the scope of immunity that so is
provided to the members.

A trade union is an organized group of workers who strive to help the

workers in the issues relating to the fairness of pay, good working
environment, hours of work and other benefits that they should be entitled
to instead of their labor. They act as a link between the management and
workers. In spite of being newly originated institutions, they have turned
into a powerful force because of their direct influence on the social and
economic lives of the workers. To control and manage the working of these
trade unions different legislations regulating the same required.

1
II) HISTORY OF TRADE UNIONI IN INDIA

In India trade unions have developed into an important platform for putting
up the demands of the workers. They have also turned into one of the most
influential pressure groups, which is an aggregate seeking to influence the
government in framing legislation in favour of workers without aspiring to
become part of the government. As an organized institution, trade unionism
took its concrete shape after the end of World War 1. The trade unions in
India are essentially the product of modern large scale industrialization and
did not grow out of any existing institutions in society. The need for an
organized trade union was first realized in 1875 by various philanthropists
and social workers like Shri Sorabji Shapaji Bengali and Shri N.M.
Lokhandey whose constant efforts resulted in the formation of trade unions
like The Printers Union of Calcutta (1905), the Bombay Postal Union
(1907).

The setting up of textile and mill industries at the beginning of the 19th
century in the presidency towns of Bombay, Madras, and Calcutta gave
impetus to the formation of industrial workforce association in India. The
Bombay Mill-Hands Association, founded by N.M. Lokhande in 1890 is the
first labour association of India. The following years saw the rise and
growth of several other labour associations and unions in India like the
Madras Labour Union which is the first properly registered trade-union
founded by B.P. Wadia in the year 1918, in the year 1920 the country saw
the growth of the Ahmedabad Textile Labourer's Association in Gujarat
which turned into a union under the guidance of Mahatma Gandhi and is
considered to be one of the strongest unions in the country of that time
because of the unique method of arbitration and conciliation it had devised
to settle the grievances of the workers with the employers. Since the union
followed the ideals of truth and nonviolence laid down by Mahatma Gandhi
it was able to secure justice to the workers in a peaceful manner without
harming the harmony In the society. In the same year, the first trade union
federation All India Trade Union Congress (AITUC) saw the light of the
day, it was formed after the observations made by the International Labour
Organization which highlighted the influence of politics on trade unions
and associations and how the same is detrimental for any economy to
prosper.

The importance of the formation of an organized trade union was realized

by nationalist leaders like Mahatma Gandhi who to improve the employer
and worker relationship gave the concept of trusteeship which envisaged
the cooperation of the workers and employers. According to the concept,
the people. who are financially sound should hold the property not only to
make such use of the property which will be beneficial for themselves but
should make such use the property which is for the welfare of the workers
who are financially not well placed in the society and each worker should
think of himself as being a trustee of other workers and strive to safeguard
the interest of the other workers.

2
Many commissions also emphasized the formation of trade unions in India
for eg. The Royal Commission on labour or Whitley commission on labour
which was set up in the year 1929-30 recommended that the problems
created by modern industrialization in India are similar to the problems it
created elsewhere in the world and the only solution left is the formation of
strong trade unions to alleviate the labours from their miserable condition
and exploitation.

3
III) DEVELOPMENT OF TRADE UNION LAW IN INDIA

Labour legislation in India has a key impact on the development of

industrial relations. The establishment of social justice has been the
principle of all the labour legislation in India. The establishment of the
International Labour Organization to uplift the condition of labour all over
the world gave further impetus to the need for well-framed labour
legislation in the country. Several other internal factors like the Swaraj
movement of 1921-24, the royal commission on labour also paved the way
for various labour laws and also encouraged the framers of the constitution
to incorporate such laws in the constitution which will benefit the
labourers. Under the constitution, labour is the subject of the concurrent
list and both centre and state can make laws related to the subject. The
different legislation on labour in the country are as follows: • Apprentices
Act, 1961: The object of the Act was the promotion of new manpower at
skills and Improvement and refinement of old skills through practical and
theoretical training. Contract Labour (Regulation and Abolition) Act, 1970,
The object of the Act was the regulation. Of employment of contract labour
along with its abolition in certain circumstances.

Employees' provident funds and misc. Provision Act, 1952, The Act
regulated the payment of wages to the employees and also guaranteed them
social security. Factories Act, 1948: The Act aimed at ensuring the health
of the workers who were engaged in certain specified employments.

Minimum wages Act, 1948: The Act aimed at fixing minimum rates of
wages in certain employments.

The Apprentices Act, 1961: The object of the Act was the promotion of new
manpower at skills and the improvement and refinement of old skills through practical
and theoretical training.

The Contract Labour (Regulation and Abolition) Act, 1970: The object of the Act was
the regulation of employment of contract labour along with its abolition in certain
circumstances.

The Employees’ Provident Funds and Misc. Provision Act, 1952: The Act regulated
the payment of wages to the employees and also guaranteed them social security.

The Factories Act, 1948: The Act aimed at ensuring the health of the workers who
were engaged in certain specified employments.

The Minimum wages Act, 1948: The Act aimed at fixing minimum rates of wages in
certain occupations.

Trade Union Act, 1926: The Act provided for registration of trade unions
and defined the laws. Relating to registered trade unions.

4
IV) SALIENT FEATURES OF THE TRADE UNIONS ACT OF 1926

The Trade Union Act of 1926 was passed in the year 1926 but it came into
effect in the year 1927. The Act contains the provisions related to
registration, regulation, benefits, and protection for trade unions. Section 3
to Section 14 of Chapter 2 of the Act deals with the registration of trade
unions in the territory of India

i) The Trade Union (Amendment) Act, 1947 1

The labours, especially the ones who work in the unorganized sectors lack
the capacity to bargain and this becomes a major reason for their
exploitation. The Right of collective bargaining is provided only to those
trade unions which are registered but in India, there are legislations
regarding the recognition of trade unions but there is no single legislation
on registration of trade unions. Realizing the need of having central
legislation for registration of trade unions, the parliament passed the Indian
Trade Union (Amendment) Act in the year 1947. The said Act sought to
Introduce Chapter III-A into the Trade Union Act, 1926, which enumerated
the conditions required for mandatory recognition of any trade union.
However, this Act was never brought to force Therefore, the mandatory
recognition of trade unions is not present under any law in force in India.
Registration of Trade Unions

1) Section 2(h) lays down the definition of trade unions. It states the following:

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:

Provided that this Act shall not affect –

(i) Any agreement between partners as to their own business;
(ii) Any agreement between an employer and those employed by him as to such
employment; or
(iii) Any agreement in consideration of the sale of the good-will of a business or of
instruction in any profession, trade or handicraft.

A trade union is typically thought of as a group of wage earners or workers. It is a

voluntarily formed group of workers in a specific trade or business. An organization
of wage workers known as a trade union was created largely for the purpose of taking
collective action to further the defense of its professional interests.
These are the components of a trade union:
There must be a combination of employers and workers in a union;
The business trade is necessary, and
The primary goal of the union must be to control employer-employee interactions and
establish limitations on how any trade or company may be conducted. Since it
includes employers’ unions and workers’ unions, the definition of a trade union under
1
The Trade Union (Amendment) Act, 1947

5
Section 2(h) is excessively broad.
It was held in National Organization of Bank Workers’ Federation of Trade Unions
v. Union of India (1993)2 that a federation is not a trade union in accordance with
Section 2(h) of the Trade Unions Act of 1926 if it is not a registered organization
under that Act. Any federation made up of two or more unions is included in the
definition. The appellant lacked the authority to initiate or make any demands for and
on behalf of the employees because it is not a registered organization.

The Madras High Court in the case of the Registrar of Trade Unions, Union
Territory of Pondicherry v. the Government Press Employees Union represented by
its Secretary V. Thirunavukkarasu (19753) observed that the workmen who are
employed in an industrial undertaking, for example, a government press, are
‘workmen’ entitled to the benefits of the Trade Unions Act of 1926

ii) Registration of trade unions

The regulations relating to the registration of trade unions are outlined in Sections 3 to
14 of Chapter 2.

Section 3: Appointment of Registrars

Section 3 4 of the Act empowers the appropriate government to appoint a

person as the registrar of a trade union. The appropriate government can
also appoint as many additional and deputy registrars in a trade union as it
deems fit for carrying on the purposes of the Act.

Section 4: Mode of Registration

Section 4 5 of the Act provides for the mode of registration of the trade
union. According to the Section, any seven or more than seven members of
a trade union may by application apply for the registration of the trade
union subject to the following two conditions:

At Least 7 members should be employed in the establishment on the date of

the making of the application.

At Least 10% or a hundred members whichever is less, are employed in the

establishment should be a part of it on the date of making the application.

2
1992(65)FLR164
3
(1975)2MLJ347
4
Supra note 01, sec 03
5
Supra note 01, sec 04

6
Section 5: application of registration
According to Section 56 of the Act, every application for a trade union’s registration
must be presented in writing to the Registrar and include a copy of the union’s rules
as well as a statement of the information listed below:

1. Firstly, the members submitting must mention their names, occupations, and
addresses;
2. Secondly, the name of the Trade Union and its headquarters’ address must
also be included; and
3. Finally, the titles, names, ages, addresses, and occupations of the Trade
Union’s office holders must also be included.
A trade union’s executive must be organised in conformity with the Act’s
requirements before it may be registered

Section 6: provisions to be contained in the rules of a trade union

Section 67 of the Act enlists the provisions which should be contained in the rules of
trade union and it provides that no trade union shall be recognized unless it has
established an executive committee in accordance with the provisions of the Act and
its rules, specifies the following matters, namely:

 Name of the trade union;

 The object of the establishment of the trade union;
 Purposes for which the funds with the union shall be directed;
A list specifying the members of the union shall be maintained. The list shall
be inspected by office bearers and members of the trade union;
 The inclusion of ordinary members who shall be the ones actually engaged or
employed in an industry with which the trade union is connected;
 The conditions which entitle the members to any benefit assured by the rules
and also the conditions under which any fine or forfeiture may be imposed
on the members;
 The procedure by which the rules can be amended, varied or rescinded;
 The manner within which the members of the manager and also the alternative
workplace bearers of the labour union shall be elective and removed;
 The safe custody of the funds of the labour union, an annual audit, in such
manner, as may be prescribed, of the accounts thereof, and adequate
facilities for the inspection of the account books by the workplace bearers
and members of the labour union, and;
 The manner within which the labour union could also be dissolved.

6
Ibid note 05, sec 05
7
Ibid note 05, sec 06

7
The Supreme Court ruled in the case of M. T. Chandrasenan v. Sukumaran
(1974)8 that a member cannot be regarded as a trade union member if the subscription
fee is not paid. However, subscriptions cannot be rejected on the basis of a reason that
prevents membership.

The Supreme Court of India ruled in the 2004 case of Bokajan Cement Corporation
Employees Union v. Cement Corporation of India 9 that membership in the union did
not end immediately upon loss of employment.

Section 7: Power to call for further particulars and require alteration of the
name

Section 7 10 of the Act furnishes upon the registrar power to call for
information in order to satisfy him that any application made by the trade
union is in compliance with the Section 5 and 6 of the Act. In matters
where the discrepancy is found the registrar reserves the right to reject the
application unless such information is provided by the union.

This Section also confers power to the registrar to direct the trade union to
alter its name or change the name if the registrar finds the name of such
union to be identical to the name of any other trade union or if it finds its
name to so nearly resemble the name of any existing trade union which
may be likely to deceive the public or members of either of the trade union.

The Bombay High Court in the case of All India Trade Union Congress v. Deputy
Registrar of Trade Unions (2005)11 set aside a request to register a trade union with a
name that already existed, claiming it to be expressly contrary to the language in
Section 7(2), leading to the cancellation of registration. It further observed that the
very purpose behind Section 7 is to avoid misleading the general public or trade union
members into thinking that the union seeking registration under the name for which
registration is requested is somehow associated with the union already registered.

Section 8: Registration

According to Section 8 of the Act, if the registrar has fully satisfied

himself that a union has complied with all the necessary provisions of the
Act, he may register such union by recording all its particulars in a manner
specified by the Act.

Each registered trade union should be a body corporate, which makes it a legal entity
with perpetual succession. It shall have a common seal, the ability to buy, possess,
and enter into contracts with both movable and immovable property, as well as the
ability to sue and be sued using that name.

8
AIR1974SC1789
9
AIR 2004 SUPREME COURT 245
10
Supra note 01, sec 07
11
ILR2005KAR3052

8
The Supreme Court ruled in the 1935 case of the Re-Indian Steam Navigation
Workers Union that a Registrar just needs to check that all the technical conditions are
being met, not whether it could be deemed illegal.

Whereas in another case before the Supreme Court of India, ACC Rajanka Limestone
Quarries Workers Union v. Registrar of Trade Unions (1958)12, it was determined
that an appeal might be filed to the High Court under Article 226 of the Indian
Constitution if the registrar fails to register the trade union within 3 months of the
application.

Section 9: Certificate of Registration 13

The registrar shall issue a registration certificate to any trade union which
has been registered under the provision of Section 8 of the Act and such
certificate shall act as conclusive proof of registration of the trade union.

Section 9A: Minimum requirement related to the membership of a

Trade Union 14

Section 9A of the Act lays down the minimum number of members required
to be present in any union which has been duly registered, the Sections
mandates that a trade union which has been registered must at all times
should continue to have not less than 10% or one hundred of the workmen,
whichever is less, subject to a minimum of seven, engaged or utilized in an
institution or trade with that it's connected, as its members.

Section 10: Cancellation of Registration 15

The registrar, according to Section 10 of the Act has the power to withdraw
or cancel the registration certificate of any union in any of the following
conditions:

 On an application made by the trade union seeking to be verified in

such manner as may be prescribed;

 If the registrar is satisfied with the fact that the trade union has
obtained the certificate by means of fraud or deceit;

 If the trade union has ceased to exist;

 If the trade union has wilfully and after submitting a notice to the
Registrar, has contravened any provision of the Act or has been
continuing with any rule which is in contravention with the
provisions of the Act;

12
AIR1958PAT470,
13
Supra note 01, sec 09
14
Ibid note 13, sec 9A
15
Ibid note 13, sec 10

9
  If any union has rescinded any rule provided under Section 6 of the
Act.

In the case of Tata Electric Companies Officer’s Guild v. Registrar of Trade Unions
(199416), the Bombay High Court ruled that willful disregard of the notification is a
requirement for the registrar to cancel the registration. The registrar cannot cancel the
registration on the grounds that the account statement was not filed earlier if the trade
union provides the account statement after receiving notification from the registrar.

Where a 2-month show cause notice was not sent by the registrar to the changed
address of the union, it was held by the Bombay High Court in Bombay Fire Fighters
Service Union v. Registrar of Trade Unions, Bombay (200317) that the registrar did
not comply with the mandatory provisions of Section 10 and quashed the order of
cancellation.

Section 11: Appeals 18

According to Section 11 of the Act, any union which is aggrieved by a

refusal to register or withdrawal of registration made by the registrar can
file an appeal:

 In any High Court, if the head office of the trade union is located in
any of the presidency towns;

 In any labour court or industrial tribunal, if the trade union is

located in such a place over which the labour court or the trade
union has jurisdiction;

 If the head office of the trade union is situated in any other location,
an appeal can be filed in any court which is not inferior to the Court
of an additional or assistant choose of a principal Civil Court of
original jurisdiction Section 12: Registered office

As observed by the Bombay High Court in Mukand Iron & Steel Works Ltd. v. V.G.
Deshpande, Registrar of Trade Unions, Bombay and another (1986)19, a trade union
has the choice to file an appeal or apply for new registration if the Registrar of Trade
Unions cancels or withdraws its registration. If the appeal is successful, the trade
union would continue to be included on the register as if the decision of cancellation
or withdrawal of recognition had never been made. If a new registration is allowed, it
will take effect as of that date. The Registrar loses all authority over that order once he
cancels or withdraws a trade union’s registration. Because of the following
circumstances, he is unable to evaluate it or rescind it.

16
1994(68)FLR656
17
(2003)IILLJ1100BOM
18
Supra note 01, sec 11
19
1987(1)BOMCR286

10
In Philips Workers Union v. Registrar of Trade Unions (1989) 20, the Calcutta High
Court observed that Section 11 of the Trade Unions Act, 1926 is no bar to filing an
application under Article 226 of the Indian Constitution.

Section 12 of the Act lays down that all communications and notices to any
trade union must be addressed to its registered office. If a trade union
changes the address of its registered office, it must inform the same to the
registrar within the period of fourteen days in writing and the registrar
shall record the changed address in the register mentioned under Section 8
of the Act.

Section 13: Incorporation of Registered Trade Union 21

Section 13 of the Act states that every trade union which is registered
according to the provisions of the Act, shall:

 Be corporate by the name under which it is registered.

 Have perpetual succession and a common seal.
 Power to contract and hold and acquire any movable and immovable
property.
 By the said name can sue and be sued.
 Rights and Liabilities of Registered Trade Unions

iii) Rights and liabilities of registered trade unions

Sections 15 to 28 elucidate the rights which a registered trade union has and also the
liabilities which can be imposed against them.

Section 15: Objects on which general funds may be spent 22

Section 15 of the Act lays down the activities only on which a registered
trade union can spend its funds. These activities include:

 Salaries to be given to the office-bearers.

 The cost Incurred for the administration of the trade union.
 Compensation to the workers due to any loss arising out of any trade
dispute.
 Expenses incurred in the welfare activities of the workers.
 Benefits conferred to the workers in case of unemployment,
disability, or death.
 The cost incurred in bringing or defending any legal suit.
 Publishing materials with the aim of spreading awareness amongst
the workers.
 Education of the workers or their dependents.
 Making provisions for medical treatment of the workers.

20
(1994)IIILLJ1159CAL
21
Supra note 01, sec 13
22
Supra note 01, sec 15

11
Taking insurance policies for the welfare of the workers. The Section also
provides that the reason of non-contribution to the said fund and also a
contribution to the fund cannot be made as a criterion for admission into
the union.

Section 16: Constitution of a Separate Fund for Political purposes 23

Section 16 provides that a trade union, in order to promote the civic and
political interests of its members can constitute a separate fund from the
contributions made separately for the said purposes. No member of the
union can be compelled to contribute to the fund.

 The recovery of all costs incurred, directly or indirectly, by a candidate or

prospective candidate for election as a member of any governmental body or
local authority. The costs cover all outlays in connection with his candidacy
before, during, or after the election.
 Maintenance of any individual who serves on a local or legislative authority.
 The election of a candidate for any legislative body or municipal authority, or
the registration of voters.
 The staging of political gatherings of any type or the dissemination to trade
union members of any political material or papers.
Section 17: Criminal conspiracy in Trade Disputes 24

Section 17 of the Act states that no member of a trade union can be held
liable for criminal conspiracy mentioned under sub Section 2 of Section
120B regarding any agreement made between the members of the union in
order to promote lawful interests of the trade union.

The office bearers of the registered trade unions are exempt from penal punishment
for criminal conspiracy, per Section 17 of the Trade Unions Act of 1926. An
agreement between two or more people to carry out an illegal act or a legitimate act
through an illegal method is referred to as a conspiracy in English law.

In the case of West India Steel Company Ltd. v. Azeez (1988)25, a trade union
representative protested against the delegation of a worker to another sector by
blocking or stopping work inside the factory for five hours. It was decided that a
worker in a factory had to obey the directives issued by his superiors. A trade union
leader is not exempt from following the rules. There is no legal authority for a trade
union official or any other employee to share managerial responsibilities.

Section 18: Immunity from civil suits in certain cases

Section 18 of the Act immunes the members of trade union from civil or
tortious liabilities arising out of any act done in furtherance or
contemplation of any trade disputes.

23
Ibid note 21, sec 16
24
Supra note 01, sec 17
25
1990(60)FLR802]

12
For example. In general, a person is subject to tortious liability for
inducing any person to breach a contract. But, the trade unions and its
members are immune from such liabilities provided such inducement is in
contemplation or furtherance of any trade disputes. Further, the inducement
should be awful and should not involve any aspect of any violence, threat
or any other illegal activity.

The Kerala High Court ruled in the case of P. Mukundan and Ors. v. Mohan Kandy
Pavithran (1991)26 that a strike by itself is not a legally actionable offence.
Furthermore, it was determined that the provisions of Section 18 shield the trade
union, its officers, and its members from legal actions related to the workmen’s strike.

In the landmark decision, Rohtas Industries Staff Union v the State of Bihar
(1962)27 by the Patna High Court, it was decided that employers did not have the right
to sue an employee who participated in an illegal strike and subsequently lost business
and output.

In another case, Simpson & Group Companies Workers & Staff Union v. Amco
Batteries Ltd. (1990)28 by the Karnataka High Court, the Court relied on the
judgement in Chandrana Bros. & Others v. Venkata Rao (1976) to observe that
workers’ protection under Section 18 of the Trade Unions Act is unaffected by
“strike” or “lock-out” situations and remains unchanged. In both circumstances, the
consideration and the principle are similar. Physically impeding the movement of
management staff, contractors, goods, or trucks transporting raw materials is neither a
trade union right nor a basic freedom protected by Article 19 of the Constitution.
Section 18 immunity cannot be invoked for such actions. Picketing is a highly
undefined right that only extends to other people’s freedom of movement. The only
acceptable means of persuasion are vocal and visual; physical interference with
people or objects is not permitted.

In the 2005 case of Shahdol Pipe Works v. Zala Loghu Udyog Kamgar Sangh 29, it
was claimed that the employer had suffered a loss of Rs. 22,500 due to the strike that
the defendant’s trade union had arranged. The Court dismissed the employer’s request
for damages and determined that members of a registered trade union were exempt
from being held accountable for any torts committed in advance of or in support of a
trade dispute. Furthermore, it was not possible to conclude from the evidence in the
current case that the loss was brought on by the defendant’s trade union members,
officers, and supporters.

The provision puts an end to action against trade unions while looking at the right of
trade unions to use and to be used. The union or its members are not prohibited from
bringing a claim for wrongs done to the union. Unlawful threats and coercion are not
protected since doing so would deprive the person of the Section’s protection.

26
(1992)IILLJ160KER
27
AIR1963PAT170,
28
1991(61)FLR708

29
(2005)IILLJ355MP

13
In East India Hotels Ltd. v. Oberoi International Hotel Employees Union (1994 30),
the Court emphasized that it is well established that no one has a basic right to stage
demonstrations on company property if doing so will interfere with the office’s
regular operations. The freedom of expression, organization, and unionization that
citizens have does not grant them the right to use these rights wherever they wish. The
moment someone else’s right to own their property interferes, the exercise of this
freedom will terminate. The Court added that the law acknowledges both the
existence of unions and the scope and ambit of legal activity. Such actions or acts may
be protected under Section 18 of the Trade Unions Act of 1926, depending on the
specifics of each instance. However, in order to obtain this safety net, the temptation
and interference must be done so legally.

Section 19: Enforceability of agreement 31

According to Section 25, any agreement in restraint of trade is void. But

under Section 19 of the Trade Unions Act, 1926 any agreement between the
members of a registered trade union in restraint of trade activities is
neither void nor voidable. However such right is available only with the
registered trade unions as the unregistered trade unions have to follow the
general contract law.

Section 20: Right to inspect the books of Trade Union 32

According to Section 20 of the Act, the account books and the list of the
members of any registered trade union can be subjected to inspection by
the members of the trade union at such times as may be provided under the
rules of the trade union. Section 21: Rights of minors to membership of
Trade Union

Section 21 provides that a person who is above 15 years of age can be a

member of any trade union and if he becomes a member he can enjoy all
the rights conferred upon the members of the trade union subject to the
conditions laid down by the trade union of which he wants to be a part of.

Section 21-A: Disqualifications of office-bearers of Trade Union 33

Section 21A of the Act lays down the conditions the fulfillment of which
disqualifies a person from being a member of the trade union. The
conditions laid down in the Act are as follows:

If the member has not attained the age of majority

If he has been convicted by any of the courts in India for moral turpitude
and has been sentenced to Imprisonment unless a period of five years has
elapsed since his release.

30
(1995)ILLJ1177DEL
31
Supra note 01, sec 19
32
Ibid note 30, sec 20
33
Supra note 01, sec 21 A

14
Section 22: Proportion of office-bearers to be connected with the
industry

Section 22 34 of the Act mandates that not less than half of the members of
the trade union should be employed in the industry or work with which the
trade union is connected. For example trade union is made for the welfare
of the agricultural labourers then, as per this Section half of the members
of such a trade union should be employed in agricultural activities.

The Calcutta High Court in the case of Kesoram Rayon Workmen’s Union v.
Registrar of Trade Unions (1966)35 observed that if all officers and members of the
executive were needed to be employees of the industry to which the union is related,
Section 22 would have no purpose. Of course, Section 2(h) of the Act defines a trade
union as a group of workers employed in a certain industry. However, Section 22
specifically states that a non-member of the union may be a member of the executive
or another officer, as long as the required proportion is not exceeded.

Section 23: Change of name

Section 23 36 states that any registered union is free to change its name
provided it does so with the consent of not less than 2/3rd of its members
and subject to the fulfillment of the conditions laid down in Section 25 of
the Act.

Section 24: Amalgamation of Trade Unions

Section 24 37 lays down that two or more trade unions can join together and
form one trade union with or without dissolution or division of the fund.
Such amalgamation can take place only when voting by half of the
members of each trade union has been effectuated and that sixty per cent of
the casted votes should be in favour of the proposal.

Section 25: Notice of change of name or amalgamation Section 25 of the

Act provides that 38 :

A notice in writing of every change of name and of every amalgamation

which is duly signed by the Secretary and by seven members of the Trade
Union changing its name, and, in the case of an amalgamation, by the
Secretary and by seven members of each and every Trade Union which is a
party thereto, should be sent to the Registrar.

If the Registrar feels that the proposed name is Identical with the name of
any other existing Trade Union or, it so nearly resembles such name as it is
likely to deceive the public or the members of either Trade Union, the
Registrar may refuse to register the change of name.
34
Ibid note 32, sec 22
35
AIR1967CAL507
36
Ibid note 32, sec 23
37
Supra note 01, sec 24
38
Ibid note 36, sec 25

15
If the Registrar of the State in which the head office of the amalgamated
Trade Union is situated is satisfied that the provisions of this Act have
complied with the amalgamation shall be given effect from the date of such
registration.

In D.C.M. Chemical Mazdoor Ekta Union v. Registrar of Trade Unions, Delhi

(1978)39),the Delhi High Court held that according to Sections (3) and (4) of Section
25, the Registrar has the same authority to register a trade union as he or she does
under Section 8. Regardless of whether the registration is made in accordance with
Section 8 or Section 25, the Registrar must issue the certificate of registration.
Therefore, it cannot be claimed that the revocation of the certificate of registration
under Section 10 solely applies to the issuance of the certificate under Section 9,
which is a result of an order made under Section 8. It cannot be argued that Section 25
does not include the grant of certificates, and as a result, anyone who is requesting the
reversal of the Section 25 judgment cannot seek the remedy of cancellation of the
certificates of registration. The Court further observed that Section 10 must be read to
cover both situations where fraud or mistake were used to gain the registration itself
as well as only the certificate of registration.

Section 27: Dissolution 40

Section 27 of the Act talks about the dissolution of a firm as follows:

If a registered trade union has been dissolved, a notice of such dissolution

which must be signed by seven members and by the Secretary of the Trade
Union should be served to the registrar within 14 days of such dissolution
and if the registrar is satisfied that the dissolution has been effected in
accordance with the rules laid down by the trade union may register the
dissolution.

Where a union has been dissolved but its rules do not lay down the way in
which the fund is to be distributed after its dissolution, the registrar may
distribute the funds in any prescribed manner.

Section 28: Returns 41

Section 28 provides that each trade union should send the returns to the
registrar annually on or before such a day as may be prescribed by the
registrar. The return Includes:

General statement

Audit report

39
1979)81BOMLR139

40
Supra note 01, sec 27
41
Ibid note 39, sec 28

16
 All the receipts and expenditure incurred by the trade union

Assets and liabilities of the firm on the 31st day of December

Sub-Section 2 of the Section provides that along with the general statement
a copy of the rules of the trade union corrected up to the date of dispatch
thereof and a statement indicating all the changes made by the union in the
year to which the statement is referred to be sent to the registrar. Section
31: Failure to submit returns

Section 31 states that 42 :

If any trade union was required to send any notice, statement or any
document to the registrar under the Act and if the rule did not prescribe a
particular person in the union to provide such information then in case of
default each member of the executive shall be imposed with the fine
extendible to five rupees. In case of continuing default, the fine may be
extended to five rupees a week.

If any person willfully makes or causes to be made any false entry or

omission in the general statement required under Section 28 of the Act
shall be punishable with fine extendible to 500 rupees.

The Madras High Court observed in the judgement of Neyveli National Workers
Union v. Additional Registrar II of Trade Unions and Deputy Commissioner of
Labour II, Chennai (199843) that in addition, under Section 10(b) of the Act, the
penalty of cancellation is applied if the Registrar determines that the registration
certificate was obtained through deception, error, etc. All union members who violate
the law will get punishment. However, the penalty outlined in Section 31 of the Act is
only applicable to officeholders who are overdue in completing their returns. Because
the union’s members or the entire body of the union cannot be punished, they alone
must be punished when they fail to perform their duties. Section 10 of the Act, in
summary, foresees the violation by the union. As a result, Section 10 is related to the
offence of the union, whereas Section 31 is related to the offence of the office-
holders. It’s important to keep this distinction in mind. Section 31 was specifically
enacted to punish office bearers only for this reason. According to that interpretation,
the first respondent is likewise ineligible to use the provisions of Section 10 of the Act
to punish the entire union for the offences committed by the office-bearers.

Section 32: Supplying false information regarding Trade Unions 44

Any person who in order to deceive a member of any trade union or any
other person who purports to be the part of the trade union,

Gives a copy of the document with the pretext of it containing the rules of
a trade union. Which he knows or has reason to believe that it is not a
42
Ibid note 39, sec 31
43
1999(1)CTC301
44
Supra note 01, sec 32

17
correct copy of such rules and alteration and, Any person with the like
intent give the copy of any document purporting it to be a copy of the rules
Of a registered trade union which in reality is an unregistered union, Shall
be imposed with fine which may extend to two hundred rupees.

Section 33: Cognizance of offences 45

Section 33 contains the provisions with respect to the cognizance of

offence. It says that no court which is inferior to presidency magistrate or
magistrate of the first class shall try an offence under the Act. Courts can
take cognizance of the offences under the Act only in the following cases:

When the complaint has been made with the previous sanction of the
registrar

When a person has been accused under Section 32 of the Act, he shall be
tried within six months of the commission of the alleged offence.

This are the essential features of trade union act, A closer view of the labor laws in
India indicates that most of the workers who are employed in the organized sectors of
the economy are protected under various labor legislation. The Fifth Economic
Census of 1999 revealed that more than 97 percent of enterprises employ less than ten
workers, and most of these employ less than five workers. This clearly shows that
labor laws apply to less than 3 percent of enterprises.

Further, the acceleration of the formalization of the workforce with the onset of
liberalization has also changed the formal sector in terms of shifting jobs from the
formal to the informal sector and, along with it, the formalization of jobs. Today, in
the formal sector, the number of formal workers is about 33.7 million, and the number
of informal workers is about 28.9 million (2004-05).

45
Ibid note 43, sec 33

18
V) Conclusion

Trade Union Act of 1926 is welfare legislation that has been enacted to
protect the workers in the organized and unorganized sector from inhuman
treatment and protection of their human rights. As such the legislation
contains the provisions for registration, regulation, benefits, and protection
for trade unions. Thereby benefitting the workers.

Trade unions are important organs for the democratic development of any
country as it puts up the needs and demands of the workers by collective
bargaining. Collective bargaining is an important aspect of the employer-
employee relationship. However, collective bargaining is not provided to
all the trade unions but is only provided to those trade unions which are
recognized. Therefore, the demand for mandatory recognition of trade
union which has not been provided under the Trade Union Act 1926 has
been raised time and again by the workers. Today, the growth of media has
resulted in the empowerment of trade unions and they have turned into
influential pressure groups not only in industrial sectors but also in
agricultural and other allied sectors.

19
VI) BIBLOGRAPHY

A) BARE ACT

i) The Trade Union Act, 1926

ii) The Trade Union (Amendment) Act, 1947

B) JOURNAL ARTICLES

1. B.P. Guha: Wage Movement in Indian Industries: As Reflected in

Collective Bargaining Agreements.

2. Bare Act: Trade Unions Act, 1926 along with Central Trade Unions
Regulations, 1938. Universal Law Publishing

3. Justice P.S. Narayana: The Trade Unions Act, 1926

4. https://indiankanoon.org/doc/1903729/

5. https://Indiankanoon.org/doc/1897847/

6. http://www.nishithdesal.com/fileadmin/user_upload/pdfs/Research
%20Papers/India-Trade-Unions- and-Collective-Bargaining.pdf

7. https://study.com/academy/lesson/what-is-collective-bargaining-
definition-process-quiz.htm/

C) LIST OF CASES

1. National Organisation of Bank Workers’ Federation of Trade Unions v. Union

of India (1993) 1992(65)FLR164

2. Registrar of Trade Unions, Union Territory of Pondicherry v. the Government

Press Employees Union represented by its Secretary V. Thirunavukkarasu
(1975) (1975)2MLJ347

3. The Supreme Court ruled in the case of M. T. Chandrasenan v. Sukumaran

(1974) AIR1974SC1789

4. Bokajan Cement Corporation Employees Union v. Cement Corporation of

India AIR 2004 SUPREME COURT 245

5. All India Trade Union Congress v. Deputy Registrar of Trade Unions (2005)
ILR2005KAR3052

20
6. ACC Rajanka Limestone Quarries Workers Union v. Registrar of Trade
Unions (1958) AIR1958PAT470,

7. Tata Electric Companies Officer’s Guild v. Registrar of Trade Unions (1994),

1994(68)FLR656

8. Bombay Fire Fighters Service Union v. Registrar of Trade Unions, Bombay

(2003) (2003)IILLJ1100BOM

9. Mukand Iron & Steel Works Ltd. v. V.G. Deshpande, Registrar of Trade
Unions, Bombay and another (1986), 1987(1)BOMCR286
10.
11. In Philips Workers Union v. Registrar of Trade Unions (1989),
(1994)IIILLJ1159CAL

12. West India Steel Company Ltd. v. Azeez (1988) 1990(60)FLR802]

13. P. Mukundan and Ors. v. Mohan Kandy Pavithran (1991)

(1992)IILLJ160KER

14. Rohtas Industries Staff Union v the State of Bihar (1962) AIR1963PAT170,

15. Simpson & Group Companies Workers & Staff Union v. Amco Batteries Ltd.
(1990) 1991(61)FLR708

16. Shahdol Pipe Works v. Zala Loghu Udyog Kamgar Sangh (2005)IILLJ355MP

17. East India Hotels Ltd. v. Oberoi International Hotel Employees Union (1994),
(1995)ILLJ1177DEL

18. Kesoram Rayon Workmen’s Union v. Registrar of Trade Unions (1966)

AIR1967CAL50

19. In D.C.M. Chemical Mazdoor Ekta Union v. Registrar of Trade Unions, Delhi
(1978)1979)81BOMLR139

20. Neyveli National Workers Union v. Additional Registrar II of Trade Unions

and Deputy Commissioner of Labour II, Chennai (1998) 1999(1)CTC301

21