Tuesday, 11 October 2016

Effect of Registration on Trade Union under Trade Union Act, 1926

Under Section 10, incorporation of registered Trade Union results in following.-

  1. Every registered Trade Union shall be a body corporate
  2. by the name under which it is registered, and
  3. shall have perpetual succession and
  4. a common seal
  5. with power to acquire and hold both movable and immovable property and
  6. to contract, and 
  7. shall by the said name sue and be sued.

Under Section 17 of Trade Union Act, 1926.-

No office-bearer or member of a Registered Trade Union shall be liable to punishment under sub-section (2) of section 120B of the Indian Penal Code, 1860 (45 of 1860) in respect of any agreement made between the members for the purpose of furthering any such object of the Trade Union as is specified in section 15, unless the agreement is an agreement to commit an offence.

Under Section 18 a Registered Trade Union has Immunity from civil suit in certain cases.-

  1. No suit or other legal proceeding 
  2. shall be maintainable in any Civil Court 
  3. against any registered Trade Union or any office-bearer or member thereof 
  4. 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 
  5. on the ground only that such act induces some other person to break a contract of employment, or that it is in interference with the trade, business or employment of some other person or with the right of some other person to dispose of his capital or of his labour as he wills. Also 
  6. A registered Trade Union shall not be liable in any suit or other legal proceeding in any civil court in respect of any tortious act done in contemplation or furtherance of a trade dispute by an agent of the Trade Union if it is proved that such person acted without the knowledge of, or contrary to express instructions given by, the executive of the Trade Unions.

"Trade Dispute" means any dispute between employers and workmen or between workmen and workmen, or between employers and employers which is connected with the employment or non-employment, or the terms of employment or the conditions of labour, of any person, and "workmen" means all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises;

Under Section 19 Enforceability of agreements.-

Notwithstanding anything contained in any other law for the time being in force, an agreement between the members of a 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: 
Provided that nothing in this section shall enable any Civil Court to entertain any legal proceeding instituted for the express purpose of enforcing or recovering damages for 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.

 The recognition of a trade union is not regulated by any statutory provision. The trade union cannot enforce the right of recognition against the management by a writ petition. An agreement ought to have been entered into between the trade union and the management for granting recognition; Workmen of Kampli Co-op, Sugar Factory Ltd, v. Management of Kampli Co-op Sugar Factory Ltd" (1995) 1, LLJ 727 (Karn),

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