Chapter 33

TRADE UNION ACT, 1926

My dear students a union according to Collins dictionary- ‘ is a workers organization

which represents its members and which aims to improve things such as their working
condition and pay’ so what would a trade union stand for any guess…yes a trade
union is of people in respect of a particular trade. We did make a reference to trade
unions in which chapter can any body tell me…yes you are right Industrial Dispute
Act 1947 good so you remember. Article 19(1) (a) and (c) of our constitution
guarantees to every citizen, freedom of speech and expression and right to form
association and unions to ventilate their views and grievances. ‘Any group of persons
whether workers or employers, can unite themselves to protect their interest,
economic or otherwise. Usually the term trade union ‘refers to association of workers
formed to protect their economic interest. But the trade unions act, 1926, is very wide
in scope and covers the trade unions of employers as well. According to its preamble,
it is an act to provide for the registration of trade unions and in certain respects to
define the law relating registered a trade unions. The act lays down a detailed
procedure for the registration and working of trade unions. The act lays down a
detailed procedure for the registration and working of trade unions. In order that the
union may fight for its legitimate rights fearlessly, certain immunities from criminal
and civil actions are granted to the members of a registered trade union and their
officials. Thus, provisions have been made to ensure a healthy trade union movement
in India. By virtue of section 1(2) the act extends to whole of India.
2. Important definitions : Section 2
i) Appropriate government
In this act, the term ‘appropriate government means in relation to trade
unions whose objects are not confined to one state, the central
government, and in relation to other trade unions, the state
government.
ii) Executive : section 2(a)
Executive means the body, by whatever name called, to which the
management of the affairs of a trade union is entrusted.
iii) Office bearer : section 2(b)

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 Office bearer in the case of a trade union includes any member of the
executive thereof, but does not include an auditor.
iv) registered office and registered trade union : section 2(d) and 2(e)
registered office means that office of a trade union which is registered
under this act as the head office thereof and a registered trade union
means a trade union registered under this act.
Registrar : section 2(f)
Registrar means
a) a registrar of trade union appointed by the appropriate
government under section 3 and includes any additional or
deputy registrar of trade union; and
b) in relation to any trade union, the registrar appointed for the
state in which the head or registered office, as the case may be,
of the trade union is situated.
vi) Trade disputes : section 2(g)
Trade dispute means any dispute between—
a) employee and workmen, or
b) Workmen and workmen, or
c) Employers and employers,
Which is connected with
i) the employment or non-employment or
ii) the terms of employment or
iii) the conditions of labour, of any person.
[since the above definition of trade dispute is almost similar to the definition
of industrial dispute under the industrial disputes act, 1947, it is advised to refer to
that act for details]
Workman means all persons employed in trade or industry whether or not in
the employment of the employer with whom the trade dispute arises.
In order that a combination of workmen should be a trade union, such
workmen must be persons employed in trade or industry : 1979-I labour law journal
448 (DB)
In a petition, the legality of registration of employees association as a trade
union was challenged on the ground that it is purely a research and development
organization

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 Without any profit motive and therefore, even if it can be regarded as an
industry within the meaning of the industrial disputes (I.D.) act it is not a trade or
industry for the purpose of the trade unions act. It was held that
there is no difference between the meaning of the word "industry" as defined in
section 2(j) of the I.D. Act and the words "trade" or industry as used in section 2(g) of
the trade unions act. Therefore, if an establishment or activity falls within the meaning
of industry as defined in the industrial disputes act, the workmen thereof are also
workmen employed in a trade or industry as specified in the definition of the words
"trade dispute" contained in section 2(g) of the trade unions act and consequently they
are entitled to form a trade union.
The words "trade" or "industry", even without the elaborate definition of the
word "industry", even without the elaborate definition of the word "industry" under
the I.D. act are themselves sufficiently wide enough to bring the petitioner society
within the definitions of trade or industry notwithstanding the fact that it has no profit
motive. The two enhancements, viz., the trade unions act and the industrial disputes
act are in pari material and it is permissible to read the definition of the word
"industry" contained in section 2(j) of the I.D. act to understand the same word used
in the trade unions act, if so read, the conclusion is inevitable that the word "trade" or
industry contained in section 2(g) of the trade unions act, should carry the same
meaning as the word "industry" defined in section 2(j) of the I.D. Act; Central
machine toll institute, Bangalore v. Asst. labour Commissioner, 1978 lab IC 1732
(Kant)
vii) Trade Union: section 2(h)
Trade union means any combination, whether temporary or permanent formed
primarily for the purpose of
a) regulating the relation: (1) between workmen and employers or (2) between
workmen and workemen, or (3) between employers and employers; OR
a) 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
a) any agreement between partners as to their own business;
b) any agreement between an employer and those employed by him as to such
employment; or

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c) any agreement in consideration of the sale of the goodwill of a business or of
instruction in any profession, trade or handicraft.
In the case of Rangaswamy v. Registrar of trade unions, AIR 1962 Mad. 231 certain
employees consisting of gardners and domestic servants .employed at Raj Bhavan,
madras formed a union with the object of using better service conditions and to
failitate collectige bargaining twith employer. The registrar refused to register the
trade union. The union tended that their services were not purely domestic services.
However, on an appeal to the court it was held that persons employed in raj
bhanvan for domestic and the other duties cannot form a trade union on the found that
workers are not employed in trade or business carried on by the employer. The
services rendered by them are purely of a personal nature. The union of such workers
would no come within the scope of the act so as to entitle it to registration there under.
Similarly, the union of civil servants engaged in the task of the sovereign and legal
functions of the government be held as trade union under the act; Tamilnadu non
gazetted officers union v. registrar of trade unions, A.I.R. 1962 Mad. 234.
Lastly the definition not only recognizes the combination of workers but any
combination of employers will also come within the scope of the term trade union,
however deciding factor will be the purpose for which this combination is formed.
Thus, a combination of employers in a jute industry, imposing restrictions on the
members in the respect of prices to be charged from the customers, is covered under
the definition of trade union radhakisan jaaikisan ginning and pressing factory warned
v. Jamnadas nursery ginning and pressing co Ltd., AIR 1940 Nag. 228.
3. Appointment of registrars : section 3
a) The appropriate government shall appoint a person to be the registrar
to trade unions for each state.
b) The appropriate government is also empowered to appoint if it thinks
fir, additional and deputy registrar. Such persons will function under
the superintendance and direction of the registrar who may define the
local limits within which each one will operate.
c) Where an additional or deputy registrar exercises and discharges the
powers and functions of a registrar in an area within which the
registereded office of a trade union is situated, the additional or deputy
registrar shall be deemed to be the registrar in relation to the trade
union for the purposes of this act.

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4. Registration of trade unions.
As is evident from the preamble itself that the act is encacted of provide for
registration of trade unions, the act lays done in a comprehensive manner the
procedure for registering a trade union. However, it should be noted that registration
of trade union is not mandatory under the act. In view of a number of immunities
granted to a registered trade union from civil and criminal proceedings, registration of
trade unions is desired.
The procedure for registration enumerated in the following Para graphics
carved out form the provisions of the trade unions act and the central trade union
regulations, 1938, which are in relation to a trade union whose objects are not
confined to one state. The procedure for registration in relation to other trade unions
can be ascertained from the provision of the trade unions act, 1926 and the regulations
made by the appropriate governments.

Procedure for registration

Mode of registration: Section 4

Any seven or more members of a trade union may apply for registration by
subscribing their names to the rules of trade union and complying with other
requirements in relation to registration under the act.
The application for registration referred to above shall be made in form A
(regulation 3 of central trade union regulations, 1938). The fact that some of the
applicants, at anu time, after the date of the application but before the registration of
the trade union have ceased to be, the members of the trade union or have given
notice in writing to he registrar dis-associating themselves from the application for
registration, shall not be deemed to have the effect of invalidating such application
provided the number of applicants, ceasing to be members or disassociating from the
application should not exceed half of the total number of persons who made the
application.

Application for registration: Section 5

Every application for registration shall be made to the register along with the
fee as prescribed under regulation 8 (Rupees five at present) and shall be
accompanied by a copy of the rules of the trade union and a statement of the
following particulars:

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 i) The names, addresses and occupations of members making the
application;
ii) The names of the trade union and the address of its head office; and
iii) The titles, names, ages addresses and occupations of the officers of the
trade union.

Where a trade union has been in existence for more than one year before the
making of an application for registration in form A, there shall be delivered to the
registrar together with the application, a general statement of the assets and liabilities
of the trade union prepared in the manner prescribed in the manner prescribed (see
schedule III to the central union ) regulations, 1938).

Rules of trade union:

According to section 6 of the trade unions act, no trade union shall be entitled
to registration unless the executive thereof is constituted and the rules thereof provide
for the matters stipulated in section 6.
A trade union cannot be registered unless its executive has been
constituted according to the law and the rules thereof provide for the
following matters:
a) the name of the trade union:
b) the whole of the objects for which the trade union has been established;
c) the whole of the purposes for which the general funds of the trade
union shall be applicable, all of which purposes shall be purposes to
which such funds are lawfully applicable under this act.
d) The maintenance of a list of the members of the trade union and
adequate facilities for the inspection thereof by the office-bearers and
members of trade union;
e) The admission of ordinary members who shall be persons actually
engaged or employed in an industry in an industry with which the trade
union is connected, and also the admission of the number of honorary
or temporary members as office bearers required under section 22 to
form the executive of the trade union;
ee) the payment of a subscription by members of the trade union which
shall not be less than twenty five paise per month per member.

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 f) the conditions under which any member shall be entitled to any benefit
assured by the rules and under which any fine or forfeiture may be
imposed on the members;
g) the manner in which the members of the executive and the other office
bearers of the trade union shall be appointed and removed;
h) the manner in which the members of the executive and other office
bearers of the trade union shall be appointed and removed.
i) The safe custody of the funds of the trade union, and 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 office
bearers and members of the trade union; and
j) The manner in which the trade union may be dissolved.
In the case of Trilok Nath Tripathi v. Allahabad Division bench, A.I.R. 1957
all 234, it was observed that section 6 requires that no registration can be allowed
unless certain conditions given in this section are fulfilled. Rules framed under the
constitution of any trade union do not get any statutory force. It is correct that
existence of such rules framed to comply with requirements of union. It is only in the
nature of contract binding on the members of union. Any breach of such rules cannot
be enforced by a writ of mandamus under Article 226 of the constitution. The remedy
of the aggrieved party is by way o suit.
Power to call further particulars : Section 7
Before granting registration, the registrar is empowered to call for further
information, if he is not satisfied with the particulars filed under section 5 or 6. He
may refuse to register the trade union if such information required by him is not
supplied to him.

Further if the name of the trade union proposed to be registered is identical or

resembles with the name of any other existing registered trade union, the registrar
shall not register the trade union unless the name has been altered. This provisions
ensures that the public or members of either trade unions are not deceived with
respect to the identity of the union.
Registration: section 8
The registrar shall register a trade union by entering in register to be
maintained in form B the particulars relating to the trade union after being satisfied

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that the trade union has complied with all the requirements in regard to registration. If
all the terms of act are complied with, it is obligatory upon the registrar to register a
union and he has no discretion in the matter: kesoram Rayon Workmens Union v.
Registrar of trade unions, 33 FJR 23 (HC).
This function of registrar to register the trade union was fully discussed in Re.
Indian steam navigation workers union, AIR 1936 Cal. 57. In this case employees of
all the inland steamer services in the province of W. Bengal decided at a meeting to
form a union in the name of "inland steam navigation workers union" An application
was filed before the registrar of trade unions for its registration. An application was
filed before the registrar of trade unions for its registration. But the registrar refused
the union on the ground that Ii) the rules and the constitution of the proposed union
for all practical purposes are identical, with an existing union, the principal officers
are common to both and therefore the present application is an attempt to have the
union which was already registered, (ii) few days before the application was filed, the
general secretary of the union addressed the government of Benngal in a letter stated
that he had been directed but the general body of Indian steam navigation workers
union formerly known as RSN & IGN. Rly. Workers union, to approach the
government and request that the notification declaring the RSN & Rly. Workers union
as unlawful association, might be withdrawn, (iii) since the old union was declared
unlawful by a notification under section 16 of criminal law amendment act, 1908, the
proposed union which is nothing but old union with a new name, and hence it also an
unlawful association.
In an appeal to Calcutta High court, it was held as follows:
1. The registrar appears to have acted on a letter written by the secretary
to the government, without giving the appellant any notice of it or
without giving them any opportunity of dealing with the statement
therein set out. Such an Opportunity ought to have been given before
the registrar considered that letter if indeed he ought to have
considered that letter at all.

2. The findings of the registrar that the present union is nothing but an
attempt to revive an old trade union, declared unlawful association is
not within the scope of section 8. The duties of the registrar were to
examine the application and look at the objects for which the union

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 was formed. If those objects were objects set out in the act, and if
those objects did not go outside the objects prescribed in the act and if
all the requirements of the act and the regulations made thereunder had
been complied with, it was his duty, in view to register the union. If at
sometime that union is deemed, by those who have the power to deal
with the matter, to be an unlawful association, this union can be
declared as unlawful association in the same way as any other body.
The register is not, at this stage entitled to go into that question. His
functions are limited to seeing that the requirements of the act have
been complied with. The registrar can do very little more than
satisfying himself that the technical requirements of the act have been
complied with. Thus it is not within the powers of registrar to consider
at all the question whether the applicants were rally another trade
union which had been banned and which was seeking the registration
under a different name.
The court sent back the cast to the registrar to consider the question whether
the requirements of the act and the regulations made thereunder, with regard to
registration, have been complied with or not. If on the face of the application, the
objects and the provisions for carrying them out are within what is allowed by the act,
the requirements as to the registration have been complied with, he should register, if
not, he should decline to register.
The registrar cannot determine as to which of the rival groups of office bearers
of a trade union is the real one. (ONGC workers association v. West Bengal 1988 lab
IC 555 cal)
ii) Certificate of registration : section 9
The registrar on registering a trade union under section 8 shall issue a
certificate of registration in form C which shall be conclusive evidence that the trade
union has been duly registered under the act.
The trade union act, 1926 being “ an act to provide for registration of trade
unions and in certain aspects to define the law relating to registered trade unions”
does not cast any obligation on the employer to maintain any register, record/books,
etc. nor does it require filing of a return of a return / notice.
iii) Cancellation of registration : section 10

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 The registrar may withdraw or cancel the certificate of registration on the
following grounds:
a) Certificate has been obtained by fraud or mistake.
b) Trade union has ceased to exist.
c) Trade union has wilfylly and after notice from the registrar
contravened any provision of the act.
d) Trade union has allowed any rule to continue in force which is
inconsistent with any provisions of the act.

e) Trade union has rescinded any rule providing for any matters,
provision for which is required by section 6.

f) Trade union has on its own, applied for its withdrawal or cancellation;
Provided that before the certificate is withdrawn or cancelled, the registrar
shall give at least two months notice in writing, specifying the grounds on which it is
proposed to take action. In absence of previous notice any proceeding for
cancellation or withdrawal of registration is illegal; Radheshyam singh v. Bata
Majdoor union 1977 lab IC 1488 (Pat.) However, no notice is required when
application has been made by trade union itself.

Further the registrar should satisfy himself that the withdrawal or

cancellation of registration has been approved by the general meeting
of the trade union or by the withdrawal or cancellation of a certificate
of registration may, within such period as may be prescribed (60 days)
from the date on which the registrar passed the order, appeal
a) Where the head office of the trade union is situated within the limits of
a presidency town to the high court, or

b) Where the head office is situated in any area, to such court, not inferior
to the court of an additional or assistant judge or a principal civil court
of original jurisdiction, as the appropriate government may appoint in
this behalf for that area.

2. The appellate court may dismiss the appeal, or pass an order directing the
registrar to register the union and to issue a certificate of registration under the
provisions of section 9 or setting aside the order for withdrawal or cancellation

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 of the certificate as the case may be, and the registrar shall comply with such
order.

3. For the purpose of an appeal under section 11 (1) an appellate court shall, so
far as may be, follow the same procedure and have the same powers as it
follows when trying a suit under the code of civil procedure, and may direct
by whom the whole or any part of the costs of the appeal shall be paid, and
such costs shall be recovered as if they had been awarded in a suit under the
said code.

4. In the event of the dismissal of an appeal by any court appointed under section
11 (1 )(b), the person aggrieved shall have a right of appeal to high court, and
the high court shall, for the purpose of such appeal, have all the powers of any
appellate court under sections 11 (2) and (3), and the provisions of those sub-
sections shall accordingly.
In an appeal by a Trade Union, whose certificate of registration was cancelled,
no other Trade Union has a right to be impleaded as a party (KESEB v. KSEBTU
(1987) 2 LN 560 Ker.)]
iv) Registered officer : Section 12
All communications and notice to a registered Trade Union may be addressed
to its registered office. Notice of any change in the address of the head office shall be
given within fourteen day of such change to the register in writing, and changed
address shall be recorded in the register referred to in section 8.
v) Incorporation of Registered Trade Unions
Ever registered Trade Union shall be a body corporate by the name under
which it is registered, and shall have perpetual succession and a common seal with
power to acquired and hold both movable and immovable property and to contract,
and shall by the said ame sue and be used.
vi) Certain Act not to apply to registered Trade Union : (Section 14)
The following acts shall not apply to any registered Trade Unions and the
registration of any such Trade Union Under such Act shall be void.
a) The Societies Registration Act, 1960
b) The Co-operative Societies Act 1912
c) The Companies Act, 1956.
5. Funds of Registered Trade Union

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 The Act provides for two types of Funds, viz. (i) General funds and (ii) Funds
for political purpose.
General Funds : Section 15.
The general funds of any registered Trade Union can be utilized only for the
following purposes:
i) The payment of salaries, allowance and expenses of office bearers of
the Trade Union.
ii) The Payment of expenses relating to administration of the Trade Union
including audit of the Accounts of its General Funds.
iii) The prosecution or defence of any legal proceeding to which the Trade
union or any member thereof is a part for securing and protecting any
rights of the Trade Union or its members. However, such rights should
arise out of the relationship of its members with the employers.
iv) The conduct of trade disputes on behalf of the Trade Union or any
other member thereof
v) The compensation of member for loss arising out of trade disputed.

vi) Allowance to members or their dependents on account of death, old,

age, sickness, accidents or unemployment of such members.

vii) The fund s can be utilized for the issue of life insurance policies or
taking liability under such policy on the lives of members or under
policies insuring members against sickness, accident or
unemployment.

viii) Funds can be utilized for purposes like educational, social or religious
benefits for members including the payment of the expenses of funeral
or religious ceremonies for deceased members, etc.

ix) For keeping of periodical published mainly for the purpose of

discussing questions affecting employers or workmen as such.

x) Funds can be utilized in furtherance of any of the objects of the trade

union and contribution to any cause intended to benefit workmen in
general. Such expenses shall not exceed 1/ 4th of the total gross
income which has accrued to general funds during a particular year and

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 the balance at the credit of credit of those funds at the commencement
of that year.

xi) Funds can be utilized, subject to any conditions contained in the

notification or order issued by appropriate Government, for any other
purpose.

In G.S. Dhara Singh v. E.K. Thomas (AIR 1988 SC 1829), SC has

decided that any amount received for and on behalf of members by
union, is liable to be refunded to the member on resignation from the
union.

Political fund of a registered trade union: Section 16

The Act, authorizes a registered Trade Union to constitute a separate

apart fund from the general fund. Such separate fund shall be
constituted from separate contributions made towards that fund by the
members. Such fund shall be used in furtherance of any of the objects
specified below for promotion of Civil and Political interests of its
members. Such objectives are:

i) the payment of any expenses incurred either directly or indirectly by a

candidate of prospective candidate for ejection, as a member of any
legislative body constituted under the constitution (or legislature of
that state in case of Jammu & Kashmir) or of any local authority in
connection with his candidature or election before or after or during
these ejection as the case may be; or

ii) holding o( nay meeting or the distribution of any literature or

document sin support of any such or prospective candidate: or

iii) for the maintenance of any person who is a member of any legislative
body constituted under the constitution (or legislature of that state in
case of State Jammu and Kashmir) or of any local authority; or
iv) for the registration of the electros or the selection of a candidate for
nay legislative body constituted under the constitution or for any local
authority; or

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 v) for the holding of political meetings on any kind or the distribution of
political literature or political documents of any kind.
No member can be compelled to contribute to this fund. For no contribution
of money towards political fund, a member cannot be excluded from the benefits of
trade Union or placed in any respect, either directly or indirectly, under any disability
or disadvantage as compared to other members. However, a non contributory cannot
claim management and control of the political funds. Further no condition can be
imposed for compulsory contribution to the political funds for admission to
membership of the Union.
6. Privileges of a Registered trade union
The Act protect the members and the office-bearer of a Registered Trade
Union from certain criminal and civil acts, provided such acts are necessary in
carrying out the lawful objectives of the trade union. These immunities may be
discussed under the following heads:
i) Immunity from criminal proceedings: Section 17
According Section 17, no office-bearer or member of a registered trade Unions
shall be liable to punish under sub-section (2) of Section 120-B of the Indian penal
code, in respect of any agreement made between the members for the purpose of
furthering any such objects of the Trade Union as is specified in Section 15, unless the
agreement to commit an offence.
Thus, immunity is granted, in respect of any agreement made between the
member for the purpose of furthering the objects of trade union, from punishment
under Section 120-B(2) of Indian penal code.
Following decided cases may be noted;
1. in R. S. Ruiker v. Emperor, A.I.R. 1935 Nag. 149, the members of the
Nagpur Textile Union went on strike to press their demands. The
president of the union made speeches on various occasion when some
moment picketer where harassed by the police, he brought his own
wife to the mill gate and poster here there with instruction to beat with
her slippers any one who interfered with her. Later, he was persecuted
on the charges of instigating, picketing and abatement of picketing by
his wife under Section 7 of the criminal law amendment act read with
section 114 of the Indian Penal Code. The accused contented that by
virtue of immunity granted form liability for criminal conspiracy, he

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 cannot be held liable. The court rejecting his contention held that there
is nothing in the Act which, apart from immunity granted from
criminal conspiracy allows immunity from any criminal offices. Indeed
any agreement to commit an offence would, under Section 17, make
them liable for criminal conspiracy. Section 7 of the criminal law
Amendment act is a piece of criminal law of the land and offences
committed, as defined in that section, is an offence which the
concluding sentence of Section 17 or the Trade Union. Act applies as
much as it would do to an agreement to commit murder.

2. in the case of National labour Relations Board v. Fansteel Metallugical

Corporation (1939) 306 U S 240, workers went on sit-down strike.
They took over and occupied tow key building of the company
resulting in stoppage of work in the organization. The management
sought the help of the police who told the workers to vacate the
buildings. On their refusal to do so, police removed them forcibly. At
this the workers became angry and indulged in violence. Later on, the
company dismissed these workers. The workers pleaded immunity
from criminal action in furtherance of their trade dispute. Held,
workers were not entitled to any immunity. Employees had right to
strike but no license to coming acts of violence or seize plant or
buildings. The fact that it is the unfair labour practice committed by the
employer which led to this violent situation, the employees cannot be
permitted to take law in their hands and resort to force instead of
peaceful remedies.

3. In another case, there was "pend –down” strike by the employees who
refused to vacate their seats when called upon to do so. Held, though
there is no right to stay within the establishment beyond officer-hours,
without permission, there is not trespass as the strikers were peaceful
unlike in the Fansteel's case. Hence, workers are not liable for the act
of trespass, etc.

4. In tynem v. Balmer's case (1966) 3 AIIER 133, workers were held

liable for obstructing the high-way, as they were coming in circular

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 movement, and immunity granted under section 17 was not available
to them.

5. Another noted case is of jay Engineering works Ltd. AIR 1968 Cal.
407. this is relates to gherao and its legal validity and protection under
Section 17 of the Trade Union Act. It was observed by Calcutta High
Court that gherao is the physical blockade of a target, either by
encirclement or focible occupation. The staff. The gherao will be
unlawful and uncstitutional if it is accompanied by wrongful restraint
and/or wrongful confinement or accompanied by assault, criminal
trespass, mischief to person property, unlawful assembly and various
other criminal offences used as a coercive measures to controller of
industry to force them to submit to the demand of the blockaders.
Thus, ghergo though not mentioned as office under I.P.C. but if it is
accompanied by confinement or other offices the mere fact that it is
does not give them special treatment or exemption.
Section 17 grants immunity to Trade Unions. But no exemption is granted
against either an agreement to commit an offence or intimidation, molestation or
violence when they amount of an offence. A peaceful strike is permitted. Workers
can assemble peacefully but if they turn violent, this right is lise. Hence, if they
commit unlawful confinement of person, criminal trespass, indulge in criminal force
or assault or intimidation, protection under Section 17 is lost.
ii) Immunity from civil Suits in certain cases : section 18
No suit or other legal proceeding shall be maintainable in any civil court
against any registered trade Union or any office-bearer or member thereof, in respect
of any act done in contemplation or furtherance of a trade dispute to which a member
of the trade union is a party on the only ground that;
a) such act induces some other person to break a contract of employment
or
b) it is in interference with the trade, business, or employment of some
other person; or
c) it is in interference with the right of some other person to dispose of
this capital or his labour as he wills:

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 Section 18(2) further provides that a registered Trade Union shall not be liable
in any suit or other legal proceeding in any Civil Court in respect of any trotious act
done in contemplation or furtherance of a trade dispute by an agent of the trade union
if it is roved that such person acted without the knowledge of or contrary to express
instructions given by the executive of the Trade union.
Depending on facts of each case, conduct or act will be protected under
Section 18
Thus, section 18 protects the trade Union and its officer bearers or members in
respect of certain specified tortuous act committed in contemplation or furtherance of
a rade dispute. The law with regard to the tort of conspiracy is now weel established.
Conspiracy as tort must arise form combination of two or more persons to do an act.
It would be actionable if the purpose of the combination is to inflict damage to
another person and there is resulting damage to that person, as distinguished from
serving the boan fide and legitimate interest of those who so combine.
Following illustrative cases will further help in understanding the extent of
immunity granted under Section 18.
1. So long as the strike does not indulge acts unlawfully and tortuous court will
not interfere with theis legitimate right of the labor: Shri Ram a Vilas service
ltd. v. Simson Group companies workers union, (1979) LLJ 28TH (Mad.)
But where documentary evidence has been placed as to the facts of violence,
assault, interference Indian Express v. T.M. Nagrajan (Eld 1988 CLW 54)
2. An association of certain ship owners was formed to regulate their activities so
as to monopolies the China Sea Carrying Trade. A rebate of 5% was offered to
the shippers who dealt with the members of the Association. When some non-
member sent their ships etc., the association reduced heavily the carrying
rates. Due to this cut-throat competitions, the non-members were forced,
obliged to carry trade at un-remunerative rates. The association also threatened
certain shipping agents if they used non-member ships. At this non-members
brought action in tort of conspiracy for damages caused by loss of cargos due
to the action of the association. It was held that since the action of the
association was to protect the genuine trade interest of their members and to
extend their and increase profits and since they had not used any unlawful
means, non-members has no right of action. Thus combining to trade and to

17
 offer discount and other trade facilities, will not amount to unlawful (mogul
steamship Co. ltd. v. Macgregor, ( 1892 A.C. 25)
3. A butcher who employed non-union labour was asked by the union not to
employ that worker which the butcher refused. He however was prepared to
pay the subscription for workers membership but trade union did not agree. In
order to pressurize the butcher, the union threatened a supplier or menut to the
butcher, not to supply meat to him or else a strike of his workers will be
called. The supplier stopped the supply to the butcher who brought action to
the tort of conspiracy against the union. Held, union had committed the tort of
conspiracy. Their motive was not the legitimate one of advancing their trade
union interests but to cause harm to butcher and non-unionist and this turned
their action into an unlawful act. A combination to advance the combines own
trade interest is lawful but merely to injure another is unlawful (quinn v.
Leathem 1901 AC 495).

5. The plaintiff X, a retail news agent was a member of a news vendors union.
The trade union policy was to prevent newcomers, if any area was sufficiently
supplied. X got his supply from W, a whole sale agent of publishing company.
A new comer started his work without union agreeing to it. He was getting his
supply from W. Union asked its members not to buy news papers form W but
from other agents of the publishing company. To safeguard their interest, the
publishing company too approached its union which threatened its agents not
to supply papers to X or else his supply would be stopped. This resulted in
stoppage to supply X, who brought action against publishers association. Held
that, union had been acting in defense of their own interest which had been
attacked by the action of the news vendors union and x has no cause of action.
Following propositions were laid down in this case:
a) a combination of two or more persons for the purpose of injuring man
in his trade is unlawful and if it results in damages to him, it is
actionable.
b) if the real purpose of combination is not to injure another but to
forward or defend the trade of combiners, not tort is committed
although damages to another ensures, provided no unlawful mean are
employed (sorrel v. smith 1925 AC 700)

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6. A union of the dock-workers demanded higher wages for its member from the
mill-owners. But mill-owners contended that they could no pay higher wages
as there was cutthroat competition from crofter who wove yarn imported from
a nearby island. At this the union asked its members not to handle such yarn
or cloth made out of it. It injured the trade of many producers of tweed who
were using imported yarn. They brought action against the union officials for
tort of conspiracy. Held, union officials were not liable because even if there
was conspiracy between the union and the mill-owners, the real purpose was
to benefit the members of the union (crafter Harris tweed co. v. vietch).
7. A dispute between the employer and employees regarding the employers claim
for wages and salaried for the strike period and employers claim for
Compensation for loss due to strike, was mutually submitted for arbitration in
the award of the arbitrators, it was held that the (a) strike are for “ulteriors
objectives”, (b) strike being illegal, it cannot be held to be furtherance of a
trade dispute; (c) workers committed the tort of conspiracy and are not
protected under the section 18 of the trade union act; (d) workers are liable to
pay compensation to the employer.
In an appeal the union against the award of the arbitrators, Patna High Court
rejected and quashed the award of the arbitrators on the following grounds:
i) the arbitrators did not going to details of “ulterior objectives” for the
strike and thus, they, misdirect in law;

ii) the arbitrators did not find whether the strike was in furtherance of
trade dispute or not; and
iii) The employer has not right of civil action for damages against the
employees participating in an illegal strike only remedy is statutory
penalty provided by section 26(1) of the industrial dispute Act,1974.
8. R was the member of the workers union which was the close shops union. He
resigned from the membership of the union .At this the union threatened the
employer to dismiss R or they would withdraw labour of their members under
threat R'sservices were terminated but got a longer notice of termination. R.
brought action for damages against the union officials for using unlawful
induce his employer to terminate his contract of employment and/or for
conspiring for have dismissed by threatening his employer .Held, union

19
 officials were guilty of unlawful intimidation (Rookes V. Barnard and other
1964 AC 1129 at p.1191). But in the case of Allen V. Flood 1898 AC, 1,
though the facts were similar it Rookes' case it was held union officials are not
liable.

ii) Enforceability of agreement: Section 19

Notwithstanding any contained in any other law for the time being in force,
agreement between the members of the registered Trade union shall not be void or
voidable merely by reason of the fact that any of the objects, of the Agreement are in
restraint of trade. However, nothing in this section shall enable any civil court to
entertain any legal proceeding instituted for the IS 'press purpose of the enforcing or
recovering damages far the breach of any agreement concerning the conditions on
which any members of a Trade union shall or shall not sell their goods, transact,
business, work, employ or be employed.

9. Office-bearers of a Trade Union

i) Disqualifications of office bearers : section 21 A

The following persons cannot be appointed as office bearer or member of the

executive:

a) a person who has not attained the age of eighteen years;

b) a person who has been convicted by a court in India of any offence

involving normal terpitude and sentenced to imprisonment, unless a
period of five years has elapsed since his release.

The scope of powers of the registrar of trade unions where a dispute arises as
to whom are validly or legally elected set of office bearers of a trade union are dealt in
the case of R. Murugesan V. Union Terrritory of Pondicherry 1976-11 Louber Law
Journal 435(MAD). Held, where a dispute arises, the registrar has to necessarily come
an conclusion of his own and as to who are the validaly any legally elected office
bearers so that he can record the same in his registers. For this purpose a limited
enquiry is invetable otherwise the registrar will be in a eviable position of having to
record two sets of office-bearers of the same trade union without having any power to
decide as to which of them he will recognize for the purpose of administration of the
act sanjeeva. Reddi V. registrar of the trade union and the others, (1969-I LLJ. 11)
AND mankind Ram Tanti v. Registrar of the trade unions (1963-I LLJ. 60)

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 It must, however, be clearly understood that when the registrar takes any such
decision he is not determining a dispute between the parties so as to bind them. The
act as not constituted the registrar as election court or Tribunal and any decision
rendered by the registrar is merely administrative in character, as ancillary to the
discharge of his duties and power under the act. Therefore, not withstanding the
decision of the registrar, the parties are at liberty to fight out their dispute and
establish their respective cases before the proper forum.
ii) Composition of Office bearers : section 22
According to Section 22, at least half of the office-bearers of registered Trade
Union should be persons actually engaged or employ in an industry with which Trade
union is connected. This provision ensures that the union activities are not dominated
by outsides. However, at the same time, the provision makes it clear that outsiders
can become an Office-bearer of a trade union. Even the appropriate government has
been empowered to exempt any trade union or class of trade union from compulsorily
having 50% of their office-bearers from within the industry to which the union
belongs.
8. Certain membership rights.
i) Rights of mioners to membership of trade unions : section 21
Any person who has attained the age of fifteen years may be a member
of a registered Trade union subject to any rules of the Trade union to
the contrary, and may, subject as aforesaid, enjoy all the rights of a
member and executive all instruments and give all a quittances
necessary to be executed or given under the rules.
ii) Rights to inspect books of Trade union : section 20
The account books of a registered Trade union and the list of members
there of shall be open to inspection by an Office-bearer or member of
the Trade union at such times as may be provided for in the rules of the
Trade union.
9. Change In the Name and Structure
i) A change of name : section 23
Any registered Trade union may with the consent of not less than two-thirds of
the total number of its member, change its name: section 23.

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 A notice in writing, signed by the secretary and seven member of the trade
union should be sent to the registrar of Trade union. The registrar shall, if he is
satisfied that the provisions of this act in respect of change of name have been
complied with, register the change of name in the register referred to in section 8.

If the proposed name is identical with that by which any other existing Trade
union has been registered or in the opinion of the registrar, so nearly resembles such
name has to be likely to deceive the public or the members of either Trade union, the
registrar shall refuse to register the change of name.

The change in the name of the registered Trade union shall not affect any
rights or obligations of the Trade union or render defective any legal proceeding by or
against the Trade union. Any legal proceeding which might have been continued or
commenced by or against it by its former name may be continued or commenced by
or against it by bits new name.
ii) Amalgamation of trade unions

Any two or more registered Trade unions may become amalgamated

together as one Trade union with or without dissolution or division of
the funds of such trade unions or either or any of them. For this votes
of at least one-half of the members of each or every such trade union
entitled to vote are recorded, and atleast 60 per cent of the votes
recorded are in our of the proposal (section24).

A notice in writing of every amalgamation, signed by the secretary and

by the seven members of the each and every Trade union which is the
party thereto, shall be sent to the registrar, and where head of the of the
amalgamated Trade union is situated in the different state, to the
registrar of such state.

The registrar of the state in which the head office of the amalgamated
Trade Union is situated shall if he is satisfied that the provision of this
Act in respect of the amalgamation have been complied with and the
Trade union formed thereby is entitled to registration under the section
6, register the change of name in the register and in the manner
provided in section and the amalgamation shall have effect from the
date of such registration (section 25).

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 However, the registrar shall certify under his signature at the foot of the
certificate on its presentation to him by the secretary that the new name has been
registered.

An amalgamation of two or more registered Trade unions shall not prejudice

any right any such unions or any right of the creditor of any them.
10. Dissolution of Trade union : section 27
In case a registered Trade union is dissolved, a notice signed by members and
the secretary of the union shall be given to the registrar with 14 days of such
dissolution. If the dissolution has been effected in accordance with the rules he shall
registar the same and it will have effect from the date of such registration.
On dissolution where the rules do not provide for distribution of the funds of
the Trade union, the registrar shall distribute the fund amongst member in such
manner as may be prescribed under the Trade union regulations, the registrar shall
divide the funds in proportion to the amounts contributed by the members by way of
subscription during their membership (regulation 11)
11. Submission of Returns : section 28
1. There shall be sent annually to the registrar, by 31st day of july in each
year, a general statement audited in the prescribed manner, of all
receipts and expenditure of every registered Trade union during the
year ending on the 31st day of December next preceding such
prescribed date, and do the assets and liabilities of the trade union
existing on such 31st day of December the statement shall be prepared
in form of “D” and shall comprise such particulars as may be
prescribed (Regulation 12).
2. Together with general statement their shall be sent to the registrar a
statement showing all changes of office bearers made by the Trade
union during the year to which the general statements refers, together
also with the copy of the rules of the trade union corrected upto the
date of the dispatch thereof to the registar.
For each set of the alterations made simultaneously.
3. A copy of every alteration made in the rules of registered Trade union
shall be sent to the regitrar within fifteen days of the making of the
alteration on receiving the copy of the alteration made in the rules of a

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 Trade Union, the registrar unless he has reasons to believe that the
alteration has not been made in the manner provided by the rules of the
Trade Union, shall be register to be maintained for this purpose and
shall notify this fact to the secretary of the trade union.
4. The registrar or any officer authorized by him by general or special
order, may at all reasonable time inspect the certificate of registration,
account books, register and other documents relating to a Trade, at the
registered office or may require their production at a place as may
specify in this behalf, but such place shall be at distance of more than
ten miles from the registered office of Trade Union’s.
The annual audit of the account of a registered trade union shall be
done by auditors and in a manner provided by regulation 13 to 17

12. Offences and Penalties

1. if default is made of the part of any registered Trade union in given any
notice or sending any statement

or other documents are required by or under any provision of this Act,

every office bearer or other person bound by the rules opt the trade
union to give or send the same, or if there is no such office bearer or
person, every member of executive of the trade union, shall be with the
fine which may extend it five rupees and in the case of continuing
default, with aqn additional fine which may extend to five rupees for
each week after the first during which the default continues. however
the aggregate fine should not exceed fifty rupees.

2. a person who willfully makes, or causes to be made, any false entry in,
or any commission from, the general statement required by section 28
or in or from any copy of rules or of alterations of rules sent to the
registrar under the section, shall be punishable with fine which may
extend to five hundred rupees

13. Power to make Regulations: Section 29

The appropriate Government is empowered to make regulations for the of

carrying into effect the provisions of the Act. In exercise of the conferred by section

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29 the central government has made Central lion Regulations, 1938 in relation to
Trade Union Whose objects are not to one state.

Under this study Regulation as contained in Central Trade Union Regulations,

1938 are referred to. However, see Regulation is framed by state Government for
respective state (Refer to section 29). Such Regulation may provided for all or any of
the following matters:

a) The manner in which Trade Union and the rule of the Trade Union
shall be registered and the fees payable on registration.

b) The transfer of registration in the case of any registered Trade Unions,

which has changed its head office from State to another.

c) The manner in which, and the qualification of person by whom, the

accounts of registered Trade Unions of any case of such Unions shall
be audited.

d) The conditions Subject to which inspection of documents kept by

registrar shall be allowed and the fees, which shall be chargeable in
respect of such inspections.
e) Any matters which is to or may be prescribed.
According to Section 30, the power to make regulation’s is subject to the
condition of the regulations being made after previous publication.
The date to be specified in accordance with section 23 (3) of the general
clauses Act, 1897, As that after which a draft of regulation proposed to be made will
taken into consideration shall not be less than three month form the date on which
draft of the proposed regulations was published in the official Gazette, and on such
publication shall have effect as if enacted in this Act.

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Salient Features Of The Act-
Object and scope of the act
Important definitions : Section 2
Appointment of registrars : section 3
Registration of trade unions.
Procedure for registration
Application for registration: Section 5
Rules of trade union:
Registration: section 8
Certificate of registration : section 9
Cancellation of registration : section 10
Registered officer : Section 12
Certain Act not to apply to registered Trade Union : (Section 14)
Political fund of a registered trade union: Section 16
Privileges of a Registered trade union
Immunity from civil Suits in certain cases : section 18
Certain membership rights.
Dissolution of Trade union : section 27
Submission of Returns : section 28
Offences and Penalties
Power to make Regulations: Section 29

Definations under this act-

Appropriate government –
appropriate government means in relation to trade unions whose objects are no
confined to one state, the central government,
Executive : section 2(a)-
Executive means the body, by whatever name called, to which the management of
the affairs of a trade union is entrusted.
Office bearer : section 2(b)
Office bearer in the case of a trade union includes any member of the executive
thereof, but does not include an auditor.
registered office and registered trade union : section 2(d) and 2(e)
registered office means that office of a trade union which is registered
Registrar :
Registrar means
A)a registrar of trade union appointed by the appropriate government under
section 3
Trade disputes : section 2(g)
Trade dispute means any dispute between—
employee and workmen, or
Workmen and workmen, or
Employers and employers,

Trade Union: section 2(h)

Trade union means any combination, whether temporary or
permanent formed primarily for the purpose of
a) regulating the relation: (1) between workmen and employers or
(2) between workmen and workmen, or (3) between employers
and employers;

Lastly the definition not only recognizes the combination of

workers but any combination of employers will also come within the
scope of the term trade union,

26
Questions For
1. Define the following terms a used in the Trade Union Act, 1926.
(a) Trade Union (b) Trade dispute, (c) Registered trade union.
2. write briefly how trade unions are registered and certificated of registration
thereof issued under the Trade Union Act, 1926. Can a minor be admitted as a
member of a trade union?
3. What are the rules regarding change of name of a trade union?
4. what are the privileges of a registered trade union?
5. Write a note on the amalgamation of trade unions.
6. What are the objects on which general funds of a trade union may be spent?
7. Briefly explain the provision relating to dissolution of a trade union under the
Trade Union act, 1926.
8. Define the cope and object of the Trade Unions Act, 1926
9. State the procedure for the registration of trade union and its dissolution.
10. Discuss the provisions of the Trade Union Act, 1929 relation to amalgamation
of trade unions. What are the effect of amalgamation of trade unions?
11. State the law on the extent of immunity enjoyed by trade unions or officers or
members thereof in the matter of civil and criminal liability.
12. When does an appeal lie from the orders of the Register of Trade Unions?
What are the power of the Appellate Court?

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