The cessation of work may take any form.

It must, however, be temporary and not for ever and

must be voluntary. No duration can be fixed for this.

Objects of Strike
Following are usually the objects behind Strike:
a) Achievement of some economic gains; or
b) Defence of mutual interests; or
c) Promotion of union objectives.

Is strike a fundamental right?

All India Bank Employees’ Association v. National Industrial Tribunal AIR 1962 SC 171.
The question whether the strike is a FR came up for consideration before the SC in this case. It was
contended that when Art 19(1)(c) guarantees the right to form association, a guarantee is also
implied that the fulfilment of every object of an association so formed is also a protected right and
every association shall effectively achieve the objects for which it was formed without any
interference by law except on the grounds set out in Article 19(4).
The Court rejecting the contention held that the right to form union guaranteed under Article 19
(1)(c) thus does not carry with it a FR in the union so formed to achieve every object for which it
was formed and therefore, there is no FR to strike.
B.R.Singh v. UOI AIR 1990 SC 1
Herein, SC observed that the necessity to form unions is obviously for voicing the demands and
grievances of the labourers and therefore, trade unions with sufficient membership strength are able
to bargain more effectively with the management. This bargaining power would be considerably
reduced if it is not permitted to demonstrate. Strike in the given situation is only a form of
demonstration and the right to strike is not absolute under our industrial jurisprudence and
restrictions have been placed upon it.

Go Slow Strike
Bharat Sugar Mills Ltd. v. Jaisingh
A committee to consider and report on the question of go slow in industries was appointed by Bihar
Central Standing Labour Advisory Board. The Committee made several recommendations
including one that go slow without at least a 7 day notice would be treated at par with strike; two
the notice would remain in force for four weeks and it would not be necessary to notify the exact
date of starting the go slow but that the conciliation proceedings must be concluded within four
weeks of the notice; three go slow due to malpractices by the management would be justified.
All these recommendations were accepted by the Govt. of Bihar by way of a resolution.
S U Motors v. Their Workmen (1990) 2 LLJ 39 (SC)
In this case, SC observed that go slow is a serious misconduct and a covert and more damaging
breach of contract of employment. It has not been recognised as a legitimate weapon. Hence, once
it is proved the guilty workmen may face a deduction from wages and even dismissal from service.
(ADD SECTION 22; SECTION 23; EFFECTS OF LEGAL STRIKE; EFFECTS OF STRIKE ON
CONTRACT OF EMPLOYMENT; WAGES ON STRIKE)
(ALL THESE ARE IN CLASS NOTES AND SECTIONS NEED TO BE EXPLAINED IN YOUR
OWN WORDS.

Trade union (tu)

Trade Union is a recognised movement against the concentration of economic power in the hands
of few members of the society and for purpose of advancement of working class in all aspects.
Historical Background of TU in India
The 1st Cotton Mill in India was established in 1851 in Bombay and the 1st Jute Mill in 1855 in
Bengal. This was the beginning of modern factory system in India. After 1851 and 1855, the
number of factories began to increase in both Bombay and Bengal. The modern factory system
brought in it its wake employment of women and children, long and excessive hours of work,
undermining of morality, lack of education, poor housing and an excessively high death rate.
The year 1875 is the landmark in the history of TU Movement. For the 1st time in India factory
workers united together for securing better work conditions in the factories. The growing
consciousness of a common cause brought the working class closer despite several hindrances.
The Secy. Of State for India was kept informed of all these evils of modern factory system and the
1st Factory Commission was appointed in Bombay in the year 1875 and the 1st Factories was passed
in 1881.
The 1881 Act proved highly inadequate and its provisions regarding protection to child labour and
absence of any regulation for women were highly disappointing. Consequently, another Factory
Commission was appointed in 1884. Mr.Lokhandey organised a Conference of Workers in Bombay
and drew up a Memorandum signed by some 5300 workers to be presented to the Factory
Commission. This was the beginning of modern Trade Union Movement in India. The
Memorandum demanded

 A weekly rest;
 Half an hour’s recess;
 Compensation for disablement;
 Payment of wages not later than 15th of the month;
 Limitation of hours of work from 6:30 AM till sun set.
The conditions, however, did not improve and therefore another representation was submitted to the
Government reiterating the demands of 1884 and it was signed by about 17,000 workers. In the
same year the First Labour Association in India, i.e. Bombay Mills-Hand Association was formed
under the Presidentship of Mr.Lokhandey. A large number of labour associations were started after
1890. For example, the KamgarHitwardhak Sabha, 1910, the Printer’s Union, Calcutta, in 1905 etc.
however, they could hardly be regarded as modern trade unions. They wanted to mitigate the evils
of modern factory system and improve the lot of workers. This period was essentially the Social
Welfare period of our early TU Movement.
The declaration of war of 1914 had very much helped in the growth of labour movement in India.
The economic situation changed which created discontentment amongst the workers which led to
class consciousness in them. The Russian revolution and the establishment of USSR had its own
favourable effort on our TU Movement.
All these factors brought a change in the moral and mental outlook of the workers. A large number
of TUs were organised after 1918. The Madras Labour Union was the first TU of modern type in
India. Within the period of 1920-1925 the number of TUs increased. During the period thelabor
movement was truly united and there was complete harmony and co-operation among all sections
of working class.
The passing of the TU Act, 1926 is an important landmark in the history of TU Movement in the
country. In addition to giving a legal status to the registered trade unions, the registration conferred
on the trade unions and their members a measure of immunity from civil suits and criminal
prosecutions. The movement as a whole gained greater confidence of the workers. Thus, the Indian
TUs Act, 1926 greatly enhanced the status of TUs in the worker’s imagination and in the public
minds.
Definition and Nature of Trade Union
The TU as commonly understood is a voluntary association of workers constituted for promoting,
advancing and protecting their interests by means of united action formed with a view to secure
maximum benefits, rights, privileges and welfare of the labour class.
Objectives of TUs
a) To secure speedy improvement of conditions of work, life and status of the workers in the
industry and society;
b) To obtain for the workers various measures of social security including adequate provision
in respect of accidents, maternity, sickness, old age and unemployment;
c) To a secure a living wage for every worker in normal employment and to bring about a
progressive improvement in his standard of life;
d) To regulate hours and other conditions of work in keeping with the requirements of the
workers in matters of health, recreation and cultural development;
e) To secure suitable legislative enactments for improving the condition.[‘

Definition of TU
The statutory definition of the term ‘TU’ in India is borrowed from the British Trade Union Acts
1871, 1875 & 1913.
The term ‘TU’ has been defined under Section 2(h) of Indian Trade Unions Act, 1926.
The definition indicates that TU is any combination or association of persons based on mutual
confidence, understanding and co-operation for safeguarding common interests. It may be any
association of workmen or employers.
The definition itself indicates statutory primary purposes of TU. As such the TU is forms primarily
for the following 2 purposes:
Firstly, for regulating the relations between:
a) Workmen and employers;
b) Workmen and workmen;
c) Employers and employers
Secondly, for imposing restrictive conditions on the conduct of any trade or business and includes
any federation of two or more trade unions.
So, basically a trade union can have 3 classes of objectives:
a) Purely economic objectives i.e. those which relate to questions concerning wages, hours of
work, working and living conditions.
b) Benefit purpose which includes dispensation of various benefits like sickness and
unemployment.
c) Social and political objectives.
The model constitution and rules of TUs cover the 3 above mentioned classes of objectives
however, the Act simply emphasises the supreme importance of the first type, viz, the purely
economic objectives but it does not debar trade unions from having other objectives.
The following factors may be taken into consideration, while determining the question whether a
particular combination of persons is TU or not:
a) The existence of employers and employees, engaged in the conduct of a trade or business.
The combination may be formed by the employers or employees.
b) The persons concerned must be engaged in industry, trade or business.
c) The activity in which they are engaged must be organised by co-operation between
employer and employees for the production/ or distribution of the goods and services
intended to satisfy human material wants and wishes.
d) The combination or association must be primarily formed for the purposes of collective
action to secure improvement in working conditions by imposing restrictive conditions on
the conduct of any trade or business for the purpose of regulating the relations between the
workmen and employers and between employers and employers and between workmen and
workmen.
 e) The members of association must be workmen or employers engaged in trade, business or
industry.
f) The combination or association of persons must not be such expressly excluded from the
application of TU Act.
The definition also has a proviso clause which provides that the Act shall not affect:
a) Any agreement between partners as to their business;
b) Any agreement between an employer and those employed by him as to such employment;
c) Any agreement in consideration of the sale of goodwill of a business or of instruction in any
profession, trade or handicraft.
Registration of TU
The TU Act introduces a voluntary system of registration of Unions i.e. it is not mandatory that
every TU should register itself.
The object of introducing a system of registration for trade unions was to encourage the
establishment of permanent and stable bodies having adequate written constitutions and regular
audited accounts.to encourage TUs to register, certain advantages were offered by the Act,
including express power to acquire and hold movable and immovable property and to bring and
defend legal proceedings in the name of TU etc.
Process of Registration
The whole process of registration is finalised by the Registrar of the TUs.
Section 3(1) of the Act not only authorises the appropriate Government to appoint the Registrar but
it places the appropriate Government under a statutory duty to appoint a person to be the Registrar
of TUs for each state.
Section 3 (2) Authorises the appropriate Government to appoint Additional and Deputy Registrars
under the direction of Registrar to exercise his functions as specified in this Act, The appropriate
Government may also by order define local limits for those Additional registrars to exercise those
powers.
It has been further provided under Section 3(3) that where an additional registrar exercises such
power as stated in 3(2), in an area within which there is a registered office of a trade union, he shall
be deemed as the Registrar in relation to that trade union for the purpose of this act
Mode of Registration
Section 4 of the Trade Union’s Act provides for the mode or procedure of the registration of a trade
union.
Section 4(1) makes it imperative on the part of the applicants seeking registrationto show that at
least 10% or 100 workmen, whichever is less, engaged in relevant industry are members of such
TU on the date of making application. If a TU fails to attract at least 10% workers engaged in the
establishment it has no right to get registered. However, it has been made clear on the date of
making application for registrationat least 7% as its members must be workmen engaged actually in
that industry with which the TU is connected.
This provision makes it clear that an application for registration of a TU must be moved at least by
7 members but it is not necessary that this min number of members must remain in fact until the TU
is finally registered.
Section 4(2) provides that an application under 4(1) will not be invalidated merely because between
application and registration of the TU, some of them have ceased to be the members of the TU, but
that number should not exceed half of the TU. e.g. if 7 persons have made an application to the
Registrar for registration of the TU and 3 of them disassociate from it, it will not invalidate the
application, but if 4 out of 7 applicants disassociate themselves then the application will become
invalid and the Registrar will not proceed further for the registration.
Persons under the age of 15 years cannot be the members of TU as it has been expressly provided
under section 21 of TU Act.

ApplicationforRegistration
As per Section 5(1) every application for registration of TU shall be made to the registrar of the
TUs and should be accompanied by a copy of rules of TU and statement of following particulars
namely:

 The names, occupations and addresses of members making the application;

 In case of TU of workmen, the names occupations and addresses and the place of work of
members of TU making the application;
 Name of the TU and the address of its head office; and
 The titles, names, ages, addresses and occupations of officers of the TU.
Further, Section 5(2) of the Act makes it compulsory to submit the general statement of assets and
liabilities of the TU prepared in such form and containing such particulars as may be prescribed,
together with the application. The object of this provision is to make known to the public and its
members the financial condition and stability of the TU.
RulesofTradeUnion
Section 6 of the TU Act provides for certain rules incompliance of which would render the
registration of TU invalid. The rules referred under this Section are relating to indoor management
of the TUs. The rules of TU determine its organisational form and this, in relation to the industrial,
economic and political conditions under which it is required to operate, determines in large
measure, its effectiveness. The members of a TU derive power and competence from the rules of
TU contained in the constitution thereof.
The rules of the TU are the basic norms on which the future of TU depends and therefore the rule
should always be followed in Union matters to avoid internal conflicts. However it has been held
that rules of a TU must not be construed literally or like a statute but should be given a reasonable
interpretation which accords what must have been intended by the authors. Thus while interpreting
the rules of the Union the intention of the framers of the rule is the guiding principle and it must be
followed for sound functioning of the union.
After an application for registration is made and a copy of rules is submitted with the application, it
is not obligatory on the part of Registrar to register the TU,if in his opinion, there is noncompliance
of rules contained in this Act. In such cases the Registrar is empowered to call for further
information under Section 7(1) of the TUs Act for the purpose of satisfying himself that any
application complies with provisions of Section 5, or that the TU is entitled to registration under
Section 6, and may refuse to register the TU until such information is supplied furthermore under
Section 7(2) if the name under which the registration of TU is proposed is identical with any
existing registered TU or according to the Registrar, so similar to it that it may deceive the public or
the members of either TU, then the Registrar can require the applicants to alter the same and shall
refuse until that has been made. In other words, it is the duty of the Registrar to ensure that the
provisions of this Act pertaining to registration have been duly complied with and if in his opinion
there is any lacuna the Registrar should take proper steps to remove it before the Registration has
been affected.
Registration
Section 8 provides that, the Registrar after he is satisfied that the TU has complied with all the
requirements of this Act regarding registration , shall register the TU by entering into a register,
which is maintained in a prescribed form, the particulars relating to TU contained in the
accompanying statement with the application.
The process of making entries in the register on the basis of application for registration by the
Registrar is known as registration of the TU concerned.
Where the Registrar does not proceed and takes no action on an application for registration
although the technical requirement contained under the various provisions of this Act have been
complied with, the aggrieved party may move to the HC and get issued a writ under Art. 226
directing the Registrar to deal with the application in a proper way and perform the statutory duty
imposed upon him under section 7 & 8 of the TU Act.
In the case ofRajanka Lime Stones Quarries Mazdoor Union v. The Registrar of TU, Govt. of
Bihar,it has been held that Section 8 imposes the statutory duty upon the Registrar to register the
TU on being satisfied that it has complied with all the requirements of this act. Where therefore, no
action is taken under section 7 or 8 on an application for registration of a TU for more than 3
months and it is nearly kept pending, there is the case for issue of writ under A.226 commanding
the registrar of TUs to perform statutory duty imposed upon them under section 7 & 8.
Certificate of Registration
The certificate is an end to the process of registration. When the TU has registered in accordance
with law by the Registrar, a certificate is issued in the prescribed form to the applicant concerned as
a proof that a particular union has been registered after due compliance of the provisions of this act.
If a TU is registered under the provisions of this act the Registrar is bound to issue registration
certificates which shall be the conclusive evidence that the TU has been duly registered and in no
case the Registrar refuse to issue such certificates.
Cancellation of Registration
As a registration certificate is issued by the Registrar of TU it may also be withdrawn or cancelled
by the Registrar by virtue of Section 10 of TU Act. According to the Section a certificate of
registration may be withdrawn or cancelled by the Registrar in one of the following two ways:
1) On application of TU: According to Section 10(a) when the members of a TU themselves
do not want their TU to remain registered TU any longer, for any reasons better known to
them, they may file an application to be verified in the prescribed manner showing their
intention that its registration be cancelled and in such an event the Registrar is empowered
to cancel the registration.
2) At the will of Registrar: It is the Registrar of TU on whose satisfaction the certificate of
registration is issued to the TU. If the Registrar is satisfied in a negative direction, then he
may withdraw or cancel the certificate of registration on any of the following grounds by
virtue of Section 10(b).
i. That the certificate has been obtained by fraud or mistake; or
ii. That the TU has ceased to exist; or
iii. That the TU has wilfully and after notice from the Registrar contravened any provision
of the TU Act; or
iv. That the TU has allowed any rule to continue in force which is inconsistent with any
such provision contained in the TU Act; or
v. That the TU concerned has rescinded any rule providing for any matter, provision for
which is required by Section 6 of TU Act, such as manner of appointment and removal
of executive and other office bearers of the TU , the manner of dissolution of the TU
etc.;
Further, by virtue of 10(c) if the Registrar is satisfied that a registered TU of workmen ceases to
have a requisite number of members then also he can withdraw or cancel the registration. This
clause also provides a proviso according to which when a certificate of registration of TU is
cancelled or withdrawn by the Registrar on any one of the aforementioned grounds not less than
two months previous notice in writing specifying the grounds on which it is proposed to withdraw
or cancel the certificate shall be given by the Registrar to the TU before the certificate is withdrawn
or cancelled.
In the case of Mukund Iron & Steel Works Ltd. v. V.G. Deshpande, Registrar of the Trade Unions,
Bombay, the question for consideration was whether the Registrar has the power to withdraw the
cancellation of the Registration. In this case the registration of the TU was cancelled on the ground
that it had contravened the provisions of Section 28 of the Act by failing to send the return. The
union sent the return and requested the restoration of registration. In view of the prayer of the union
the Registrar withdrew the cancellation order. It was held that when the Registrar cancels or
withdraws the registration of a TU it has the option to appeal or to apply for fresh registration. If the
appeal succeeds the order of cancellation or withdrawal of recognition could be held to be bad ab
initio and the TU may continue on the register as if that order has not been passed. If a fresh
registration is permitted it would operate from the date thereof. Once, the Registrar withdraws or
cancels the registration of TU he has no power to review it. He certainly has no power to withdraw
it because of subsequent events. Hence, the order of the Registrar of TUs withdrawing the
cancellation order on the ground that the union has complied with the provisions of the Act by
submitting the necessary annual returns is without jurisdiction.

[in case of question on registration discuss section 5-9]

Appeals
Section 11 of the TU Act provides that any such person aggrieved by order of the Registrar has the
right to appeal within such period as may be prescribed, in the court of competent jurisdiction
against the order of Registrar. The following orders are appealable:
a) Any refusal of the Registrar to register a TU; or
b) Withdrawal of the registration certificate; or
c) Cancellation of the registration certificate.
In such events as specified above an appeal may be filed in any one of the following courts:
i) High court: It may be filed in the HC when the head office of the TU is situated within the
limits of the presidency town.
In the case of Tamil Nadu Non Gazetted Officer’s Union, Madras v. Registrar of TUs, it has
been held that an appeal under Section 11 of the Act, by a person aggrieved by the refusal of
the Registrar to register a TU situated within the limits of the presidency town should be
filed on the original side of HC only.
ii) Labour court or Industrial Tribunal: According to provision added in 2001, Labour Courts
or Industrial Tribunals to hear appeal which is as under:
“Where the head office is situated in an area, falling within the jurisdiction of a Labour
Court or an Industrial Tribunal, to that Court or Tribunal, as the case may be;”
The provision is intended to authorise a Labour Court or an Industrial Tribunal to hear
appeal if the head office of the TU is situated in the place which falls within the jurisdiction
of Labour Court or the Industrial Tribunal, as the case may be and not otherwise.
Section 11(2) of the TU Act indicates the following powers of appellate court:
a) The appellate court after hearing the parties may dismiss the appeal if it thinks fit; or
b) If an appeal is filed against the order of refusal by the Registrar to register a TU, the
appellate court may pass an order directing the Registrar to register the union and issue
a certificate of registration under the provisions of Section 9 of TU Act; or
c) If an appeal is filed against the order of withdrawal or cancellation of Registration of
TU, the appellate court may set aside such order on merits.
Section 11(3) & 11(4) of the TU Act indicate theprocedure to be adopted in such cases by
the Appellate Court. As per Section 11(3) for purposes of an appeal under 11(1) the
appellate court would follow the same procedure and have the same powers as it has while
trying a suit under the CPC, 1908.
In the case of Mihir Kumar Guha v. Registrar of TU, it has been held that the powers of
the appellate court under Section 11(3) are analogous to the powers which are exercised by
a judge trying a suit, and these powers include the power to summon witnesses, compel
production of documents, making order for discovery and inspection, and so on.
In the event of dismissal of an appeal by any court appointed under Section 11(1)(b), the
person aggrieved shall have a right of appeal to the High Court and the procedure of
working shall be same as in Section 11 (2) and 11 (3).
Section 12
This section provides that all communications and notices to a registered TU may be addressed to
its head office and in case of any change is such address of head office the same should be notified
to the Registrar within 14 days of such change who will in turn record the changed address in the
register as per provision of Section 8.

Section 13
This section provides that every registered TU becomes a legal person by the name under which it
is registered and as such it has:
a) Right to have a common seal in its own name;
b) Right to acquire, hold and dispose of both movable and immovable property in its own
name;
 c) Right to contract in its own name;
d) Right to sue for any infringement of its rights whatsoever. Any aggrieved party may also
sue it in its name.

Rights and Liabilities of Registered Trade Unions

Section 15 & Section 16: Funds of Trade Union
No organisation can function efficiently without funds. The Trade Unions Act makes provision of
the Constitution of general as well as political funds. However, the Act puts certain restrictions on
the Trade Union in regard to utilisation of these funds.
As regarding general funds, Section 15 provides that the TUs have authority to spend general funds
only for following objects:
a) the payment of salaries, allowances and expenses to office -bearers of the Trade Union;
b) the payment of expenses for the administration of the Trade Union, including audit of the
accounts of the general funds of the Trade Union;
c) the prosecution or defence of any legal proceeding to which the Trade Union or any member
thereof is a party, when such prosecution or defence is undertaken for thepurpose of
securing or protecting any rights of the Trade Union as such or any rights arising out of the
relations of any member with his employer or with a person whom the member employs;
d) the conduct of trade disputes on behalf of the Trade Union or any member thereof;
e) the compensation of members for loss arising out of trade disputes;
f) allowances to members or their dependants on account of death, old age, sickness, accidents
or unemployment of such members;
g) the issue of, or the undertaking of liability under, policies of assurance on the lives of
members, or under policies insuring members against sickness, accident or unemployment;
h) the provision of educational, social or religious benefits for members (including the
payment of the expenses of funeral or religious ceremonies for deceased members) or for
the dependants of members;
i) the upkeep of a periodical published mainly for the purpose of discussing questions
affecting employers or workmen as such;
j) the payment, in furtherance of any of the objects on which the general funds of the Trade
Union may be spent, of contributions in general, provided that the expenditure in respect of
such contributions in any financial year shall not at any time during that year be in excess of
one-fourth of the combined total of the gross income which has up to that time accrued to
the general funds of the Trade Union during that year and of the balance at the credit of
those funds at the commencement of that year; and
k) Subject to any conditions contained in the notification, any other object notified by the
appropriate Government in the official Gazette.
It may be pointed out that the TU has authority to spend its general funds for the wellbeing of its
members but it has no authority to spend these funds on any other objects other than mentioned
above. Further the TU have the right to spend the general funds on subjects contained in Section 15
but it is under no obligation to spend money from the general funds necessarily on these or any are
not mentioned thereinof the objects. Thus it is its own discretion to spend the funds on such matters
or not, but if it plans to spend then such spending can only be on the objects enumerated in Section
15.
As mentioned above the general funds of the TU cannot be spent for any objects other than
expressly mentioned in Section 15 and the political objects are not mentioned therein. So if the
registered TU decides to carry out political objects it has authority to constitute a separate political
fund for such activities from contribution separately levied for or made to that fund. From this fund
payments may be made for the promotion of the civil and political interests of its members. Thus
the political fund is a fund constituted separately by the TU by way of separate levy on members of
the TU for the promotion of civil and political interests of the members of the TU.
Section 16(2) provides that the political funds may be applied in the furtherance of the following
objects:
 a) the payment of any expenses incurred, either directly or indirectly, by a candidate or
prospective candidate for election as a member of any legislative body constituted under the
Constitution or of any local authority, before, during, or after the election in connection with
his candidature or election; or
b) the holding of any meeting or the distribution of any literature or documents in support of
any such candidate or prospective candidate; or
c) the maintenance of any person who is a member of any legislative body constituted under
the Constitution or of any local authority; or
d) the registration of electors or the election of a candidate for any legislative body constituted
under the Constitution or for any local authority; or
e) the holding of political meetings of any kind, or the distribution of political literature or
political documents of any kind.
Thus all the necessary and proper steps may be taken by the TU for the promotion of civil and
political interests of its members. Further it may be pointed out that it is voluntary contribution
raised by the TU. The members who think it proper may contribute towards this fund and there can
be no compulsion in this regard. It has been expressly provided under 16(3) that the member who
refuses to contribute to such fund cannot be excluded from any benefits of the TU and he cannot be
placed under any disability or at any disadvantage as compared with other members of the TU who
contribute towards that fund. Also TU cannot refuse to admit any new member to the TU only on
this ground and no member can be expelled from the membership of the TU on the ground that he
has refused to contribute to the political fund.
The maintenance of separate political fund does not necessitate the keeping of a separate banking
account; it is sufficient if the accounts of the funds in the union’s books are kept separately from
those of other funds.
Difference between Section 15 and 16
The major difference is that it is not necessary that political funds may be used only for the political
purposes. This is so because there is nothing in the Act requiring this because Section 16 of the TU
Act which deals with political funds does not use the language to indicate this whereas language of
Section 15 of the Act which deals with general funds clearly and expressly states that general funds
of the TU cannot be used on any other objects than stated in section 15.
Section 17: Criminal Conspiracy in TUs & Section 18: Immunity from Civil Suits in certain
cases
The office bearers of TUs cannot perform their duties successfully, properly and efficiently in order
to carry out the mission of the TU unless certain immunities are granted to the TUs as such abs ti
their officers and members. The Act intended to legalise the TUs and to provide immunities to them
for the purpose to accomplish their lawful objectives.
Section 17 of the Act confers immunity from criminal liability to registered TUs. It confers
immunity from liability in case of criminal conspiracy under Section 120-B of the IPC committed
by an office bearer or member of registered TU. The protection provided to the members or office
bearers of a registered TU is partial in the sense that the immunity is available only in respect of
agreements made between the members for the purpose of furthering legitimate object of the TU as
provided in Section 15 of the Act. If the agreement is to do an act which is an offence, no
immunity can be claimed.
The effect of Section 17 of the Act is that an agreement or combination of two or more members of
the registered TU to do or cause to be done any act in furtherance of a Trade Dispute shall not be
punishable as a conspiracy unless such act, if committed by an individual, constitutes an offence. It
is to be noted that Section 17 extends immunity only to specified offence punishable under Section
120 B (2) of IPC. It means that any criminal conspiracy punishable under Section 120 B (1) of IPC
is not covered by the immunity nor is any criminal conspiracy by an agreement to commit an
offence.
In the case of West India Steel Co. Ltd. v. Azzez, a TU leader obstructed work in the factory for 5
hours protesting against deputation of workman to work in another section. It was held that a
worker inside the factory is bound to obey the reasonable instructions given by his superiors and
carry out the duties assigned to him. The mere fact that such worker is a TU leader does not confer
on him any immunity in this regard. A TU leader has no right in law to share managerial powers
and he cannot dictate any worker individually or to workmen generally about the manner in which
they have to do their work or discharge their duties.
In the case of Rookes v. Barnard, it has been held that if there be threats of violence this section
gives no protection.
Conclusion: members of the TUs may take appropriate action for conduct of any Trade Dispute but
they cannot agree to commit an offence for the conduct of their trade disputes. Thus they cannot
take part in illegal strikes etc., though they have right to strike but the right is not absolute, it is
subject to the provisions of Industrial Dispute Act, 1947.
Although there are restrictions are there but immunity granted under Section 17 of the Trade
Unions Act, 1926, is of significant importance for the trade unionists, and by virtue of this
provision TUs have become lawful associations.
Section 18of the TUs Act deals with the immunity from civil proceedings afforded to registered TU
and to its members or office bearers. A person liable is in Torts for deliberately bringing about a
breach of contract of employment between the employer and the employee. But a registered TU, its
members or office bearers are protected from being sued for inducing a person to break his contract
of employment or for interfering with the trade, business or employment of some other person,
provided such inducement is in contemplation or furtherance of trade dispute.
The analysis of this provision would show that no suit or other legal proceedings is maintainable in
anyCivil Court for any act against:
a) any registered TU; or
b) any office bearer; or
c) any member of the TU
provided that such act has been done in contemplation or furtherance of a trade dispute and a
member of the TU is a party to the trade dispute if the ground is only that
a) such act induces some other person to break a contract of employment; or
b) that it is interference with trade, business or employment of some other person; or
c) that it is interference with the right of some other person to dispose of his capital or his
labour as he desires.
It has been further provided in Section 18(2) that a registered TU 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 TU if it is proved that such person acted without
the knowledge of, or contrary to, express instructions given by the executive of the TU.
It was held in P.Mukundan and Others v. Mohan Kandy Pavithram, that a strike, per se, would not
be an actionable wrong. Further the office bearers and the members of a registered trade union are
immune against legal proceedings linked with strike of the workmen by virtue of provision of
Section 18 of TU Act.
In the case of Rohtas Industries Staff Union v. State of Bihar, it has been held that striking workmen
are not prevented from taking recourse to the protection of Section 18 of the TU Act, 1926 mainly
because the strike is illegal under Section 24 (1) of ID Act, 1947. It is the duty of the court to see
that the strike is undertaken in contemplation or furtherance of a trade dispute.
In the case of Conway v. Wade, it has been held that for any act to be done in furtherance of a
dispute, the dispute must be present or imminent and whether a trade dispute is actual, impending
or probable is a question of fact in each case.
It was held in Ahemdabad Textile Research Association v. A.T.I.R.A. Employees Union and
Another, that dharnas and demonstrations, though they may cause inconvenience to the
management, are permissible even inside the industrial establishment within the working hours so
long as they do not turn out to be unlawful, tortious or violent. Therefore they cannot be curbed by
orders of Civil Court and they would be covered by Section 18 of the Act.
In the case of Reserve Bank of Inida v. AshishKusum, it was held that in order to secure immunity
from civil liability under section 18 inducement or procurement of breaches of contract of
employment in furtherance of a trade dispute must be by lawful means and not by means which
would be illegal or wrongful by other provisions of law.
It may be pointed out that in order to claim immunity under Section 18 of the Act, following
requirements must be fulfilled:
a) the TU must be duly registered under the provisions of the TU Act, 1926;
b) Such act has been done in contemplation of furtherance of trade dispute;
c) The member of the TU is party to that trade dispute;
d) The claim of immunity must be made only on the ground which are expressly mentioned in
this section.
Conclusion:it may be concluded that if above conditions are fulfilled the immunity can be claimed
and no suit or other legal proceeding shall be maintainable in any Civil Court against any registered
TU as such or any office bearer or the members of the TU in respect of any act done in
contemplation or furtherance of trade dispute.
Section 19:Enforceability of Agreement
In India it is the general principle that an agreement in restraint of trade is void because it is
opposed to or in violation of public policy. Therefore all restraints on individual liberty to trade are
declared void on grounds of policy. However, this provision is effected by provisions of TU Act,
1926. According to this section an agreement, between the members of registered TU in restraint of
trade shall not be void or voidable. It means agreements, made between the members of a registered
TU not to accept employment unless certain conditions as to pay, hours of work, etc. are fulfilled,
will not void or voidable.
There is also a proviso to this rule in Section 19 itself which prevents Civil Courts from
entertaining any legal proceeding instituted for the express purpose of enforcing or recovering
damages for breach of any agreement concerning the conditions on which any members of a TU
shall or shall not sell their goods, transact business, work, employ or be employed. The term
‘express’ in the sub section is important; It means where the purpose of instituting the legal
proceeding is not expressly to recover damages for breach of agreement, it is enforceable. Further
the disability created under the Act relates to enforcement of an agreement, not to its validity.
In the case of Amalgamated Society of Carpenters v. Braithwaite it was held that it is totally
different proposition to say that a man claims to possess a right and that he seeks enforce the
obligations they create. The latter may be prevented under the statute, the former is not.
These provisions relate to registered TUs. There may be a TU not registered but lawful under the
ordinary law. Agreements made between members of unregistered lawful TUs are enforceable so
long as they conform to general law of the contract.
Section 20: Right To Inspect Books Of TU
This section provides that the account books of a registered TU and the list of members of TU shall
be open to inspection by an officer or member of the TU st such times as may be provided for in the
rules of TU.
This section enables any person interested in the funds of the TU to satisfy himself as to the
genuineness of the accounts of the TU. It is not necessary that the office bearer or any members of
the TU should personally inspect the accounts; instead he can appoint an agent for the purpose who
shall communicate the result of the inspection only to his principal and no one else.
Section 21: Right of Minors to membership of TU
Any person who has attained the age of 15 years may be a member of TU and such member shall
be subject to the rules of TUs and enjoys all rights of a member and performs functions as given
under the rules. However, a person who has attained the age of 15 years may only become a
member is not entitled to be an office bearer by virtue of disqualification as provided under Section
21 A of the TU Act, 1926.

Section 21-A: Disqualifications of office bearers of TU

The disqualifications of office bearers of a TU are twofold. Any person below the age of 18 years
being a minor cannot be an officer of a TU. To disqualify any person from being an office bearer of
a TU under 21-A (2) there are 3 requirements namely:
a) Conviction by a Court for any offence involving moral turpitude. That means if the offence
is not one involving moral turpitude there can be no disability;
b) Sentence to imprisonment. It means if the punishment is only pecuniary and not
imprisonment, then too there can be no disqualification; and
c) Lastly a period of 5 years must not have elapsed since his release. That means the disability
is not a permanent one but continues only for a period of five years after release.
Section 23: Change of Name
As per provisions of Section 23, any registered trade union may change its name provided there is
majority of 2/3rd of the total number of its members. The provisions regarding change of name is
subject to Section 25 of the TU Act.

Section 24: Amalgamation

As per provisions of Section 24, registered TUs have right to amalgamate. If the TUs amalgamate,
it is not necessary that there must be dissolution or division of funds of such TUs. But it is
necessary that the votes of at least one half of the members of each or every such TU entitled to
vote are recorded and at least 60 per cent of votes so recorded are in favour of the proposed
amalgamation.
Section 25: Rules regarding Change of Name and Amalgamation
There are certain rules to be followed in cases of change of name and amalgamation of TUs
regarding the notice to the Registrar in such events. They are contained in Section 25. Section 25(1)
requires that notice in writing of every change of name signed by the Secretary and seven members
if the TU changing its name shall be sent to the Registrar. It should be further stated in the notice
whether the consent of members was obtained by referendum or by resolution of a general meeting.
On receipt of a notice for change of name, the Registrar must satisfy himself that the provisions of
the Act in respect of change of name are complied with. 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 as to be likely to deceive the public or the members of either TU, the
Registrar shall refuse to register the change of name.
The Registrar shall, if he is satisfied that the provisions of this At in respect of change of name have
been complied with, register the change of name in the register referred to in Section 8. The change
of name shall have effect from the date of such registration.
Section 26: Effect of Change of Name and Amalgamation
Section 26(1) provides that the change in name of a registered Trade Union shall not affect any
rights or obligations of the TU. It shall also not render ineffective any legal proceeding by or
against a TU by its former name may be continued or commenced by against its new name.
Section 26 (2) provides that an amalgamation of two or more registered TUs shall not prejudice any
right of any of such TUs or any right of a creditor or any of them. An amalgamation shall have
effect only after it has been registered. But registration of amalgamation by itself is not the
conclusive proof of the validity of the amalgamation.
In the case of Booth v. Amalgamated Marine Worker’s Union it has been held that an amalgamation
may be declared invalid on the ground that the votes of 50% of the members have not been
recorded.

Section27: Dissolution of TU
This section provides that when a registered TU is dissolved, notice of the dissolution signed by 7
members and by the Secretary of the TU shall, within 14 days of dissolution, be sent to the
Registrar. If the Registrar is satisfied that the dissolution, has been effected in accordance with the
rules of the TU, the notice shall be registered. The dissolution of TU shall have effect after the
registration of the notice.
Where the dissolution of a registered TU has been registered and the rules of TU do not provide for
the dissolution of the TU, then like any other voluntary association dissolution is possible only with
the consent of all the members or by an order of the Court.
Section 27(2) provides that where it is necessary for the Registrar to distribute the funds of a TU
which has been dissolved, he shall divide the funds in proportion to the amounts contributed by the
members by way of subscription during their membership.
In the case of Cunnack v. Edwards it has been held that fines and forfeitures paid by members and
benefits and similar payments received by them in accordance with the rules will usually be not
taken into accounts.
Penalties and Procedure
Sections 31 to 33 of the Trade Unions Act, 1926 deals with penalties that can be imposed for
default in submitting returns or for supply false information or statements and also the procedure
which is to be followed by the Court while dealing with any such case.

Section 31: Failure to submit Returns

The following defaults are made punishable under Section 31 of the Act, namely:
a) Failure to give notice which is required to be given by a registered Trade Union;
b) Failure to send statements which is required to be sent by a registered Trade Union;
c) Failure to send any document which is required to be sent by a registered Trade Union.
Every office bearer or other person bound by the rules of the TU to give any information or send
any statement or document as aforesaid shall in case of default be punishable with fine which may
extend to five rupees. Where there is no bearer or person as aforesaid, then, every member of the
executive of the TU in case of default to give information or send statement or document shall be
punishable with fine which may extend to five rupees. In case of continuing default, an additional
fine extending to five rupees for each week after the first during which the default continues, may
be imposed. But in no case shall, aggregate fine exceed fifty rupees. The following information or
statements are required to be submitted by a registered TU:
a) Notice of change in the address of the head office of the TU.
b) Notice of change of name or amalgamation under Section 25 of the Act.
c) Notice of the dissolution of the TU.
d) Returns as per Section 28 of the Act.
Section 31(2) provides that any person who wilfully makes or causes to be made any false entry in,
or any omission from, the general statement, the copy of rules, or the copy of alteration of rules
which are required to be submitted to the Registrar in case of a registered TU by section 28 of the
Act, shall be punishable with fine which may extend to 500 rupees.

Section 32: Supplying false information regarding TU

Any person who, with intent to deceive, gives any member of a registered TU or to any person
intending or applying to become a member of such TU, any document purporting to be a copy of
a) Any rules of the TU; or
b) Any alterations of the rules, which he knows or has reason to believe that it is not a correct
copy of rules or alterations of the rules as are for the time being in force,
Shall be punishable with a fine which may extend to 200 rupees.

Section 33: Cognizance of Offences

Section 33 of the Act provides that only a court of a Presidency Magistrate or a Magistrate of the
first class shall try any offence under this Act. It is further provided that no court shall take any
cognizance of any offence under this Act, unless complaint filed thereof has been made by or with
the previous sanction of the Registrar, or in the case of offence under Section 32 of the Act, by the
person to whom the copy was given, within six months of the date on which the offence is alleged
to have been committed.
 Authorities under Industrial Dispute Act, 1947
Since the main purpose of codification of the ID Act, 1947 was investigation and settlement of
industrial disputes the machinery for adjudication has been made available. The authorities which
are made available under this Act for investigation and settlement of industrial disputes are:
a) Works Committee;
b) Conciliation Officers
c) Boards ofConciliation;
d) Courts of Enquiry;
e) Labour Court;
f) Industrial Tribunal;
g) National Tribunal;
h) Arbitration
These authorities are constituted under the different provisions of this Act and have powers and
functions in respect of adjudication of industrial disputes. Though the Act provides for two tier
adjudication machinery, the SC and HCs have appellate and superintending jurisdiction in labour
matters under Articles 136, 226 and 227 of Constitution of India.
Works Committees
Section 3 of ID Act, 1947 defines Works Committees. The provision of WC was originally present
since the inception of the Act and is analogous to Joint Committee of UK, USA and Russia.

Object of formation of WC
The main object of creating the WC is to develop a sense of a partnership between the employer
and his workmen. It is a body which aims to promote good-will and measures of common interest.

Composition of WC
As per provisions of Section 3 the appropriate government is empowered to require the employer to
constitute in the prescribed manner a WC consisting of representatives of employers and workmen
engaged in the industrial establishment where hundred or more workmen are employed or have
been employed on any day in the preceding 12 months. The appropriate government may issue
general or special order in this respect.
It is important to note that WC should consist of equal number of representatives of employer and
workmen. However, ID Act does not provide for any procedure following which the representatives
should be elected but the procedure defined in the Industrial Disputes (Central) Rules, 1971 is
generallyfollowed.
Once an order is made under Section 3 and is passed against an industrial establishment, then it is
obligatory on part of such establishment to constitute a WC.

Conditions to be followed before formation of WC

a) The establishment with respect to which an order is made must be an industry within the
meaning of Section 2(j) of ID Act, 1947.
b) There should be 100 or more workmen employed in the establishment on the day order is
passed or in the preceding 12 months.
c) Such workmen should be workmen within the meaning of Section 2(s) of ID Act, 1947.
d) Government making an order should be appropriate government.

Functions/Duties of WC
Following are the duties of WC:
a) To promote measures for securing and preserving amity and good relations between the
employers and workmen;
b) To achieve the above object, it is their duty to comment upon matters of common interest or
concern of employers and workmen;
 c) To endeavour to compose any material difference of opinion in respect of matters of
common interest or concern between employers and workmen.

Case Laws
In the case of Kemp and Co. Ltd v. their Workmen, it was held that the institution of the WC has
been provided in the rules framed under the ID Act in order to look after the welfare and interest of
the workmen. It was further held that even though the decision of the WC carries great weight but it
is not conclusive and can be challenged if it is not fairly constituted or the workmen are not fairly
represented on it.
In the case of M/s North Brook Jute Co. Ltd. v. Their Workmen it has been observed by the SC that
the language of Section 3(2) makes it clear that the WC was not intended to supplant or supersede
the Unions for the purpose of collective bargaining; they are not authorised to consider real or
substantial changes in the conditions of service; their task is only to smooth away frictions that
might arise between workmen and management in day-to-day work.

Conciliation Officers
Conciliation is also called mediation in many countries. It is the oldest and most widely used and
known technique for settlement of labour disputes.
The appropriate government has been empowered under Section 4 of ID Act, 1947 to appoint such
number of persons as it thinks fit to be conciliation officers. The government may appoint such
officers either for a specified area or for specified industries in specified area or for one or more
specified industries charged with the duty of mediating in and promoting the settlement of
industrial disputes. The appointment is made by notification in the Official Gazette either
permanently or for a limited period.