Trade Union Act, 1926

Nitya Nand Pandey

Assistant Professor
(Amity Law School)
Amity University Jaipur
Mo. 9415422181
Mail id. nnp.vns@gmail.com

The Trade Union Act, 1926

Total Section
Chapter
Came into force
1927

- 33
- 05
- 1st June of

Chapter- I Preliminary (S.1-2)

1. Short title, extent and
commencement
2. Definitions

Chapter II Registration of Trade

Unions (S. 3-14)
3. Appointment of Registrars.
4. Mode of Registration.
5. Application for registration.
6. Provisions to be contained in the rule of a Trade Union.
7. Power to call for further particulars and to require alteration
of name.
8. Registration.
9. Certificate of registration.
10. Cancellation of registration.
11. Appeal.
12. Registered office.
13. Incorporation of registered Trade Unions.
14. Certain Acts not to apply to registered Trade Unions.

Chapter III Rights and liabilities of

registered trade unions (S.15-28)
15. Objects on which general funds may be spent.
16. Constitution of a separate fund of political purposes.
17. Criminal conspiracy in the trade disputes.
18. Immunity from civil suit in certain cases.
19. Enforceability of agreements.
20. Right to inspect books of Trade Unions.
21. Rights to minors to membership of Trade Unions.
21A. Disqualification of office bearers of Trade Union
22. Proportion of office-bearers to be connected with the industry.
23. Change of name.
24. Amalgamation of Trade Union.
25. Notice of change of name on amalgamation.
26. Effects of change of name, and of amalgamation.
27. Dissolution.
28. Returns

Chapter IV Regulations
(S. 29-30)
29. Power to make regulations.
30. Publication of regulations.

Chapter V Penalties and procedure

(S. 31-33)

31. Failure to submit returns.

32. Supplying false information
regarding Trade Unions.
33. Cognizance of offences.

Section. 2. Definition Clause

Trade Dispute (2g)

Worker (2g)
Trade Union (2h)

Section. 2(g) "trade dispute"

(g) "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.

Trade dispute
"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.

Workmen
Workmen"
means
all
persons
employed in trade or industry, and
Whether or not in the employment of
the employer with whom the trade
dispute arises

Section. 2(h)- Trade Union

"Trade Union" means combination,
whether temporary or permanent,
formed primarily for the purpose of regulating the
relations between
workmen and employers, or
between workmen and workmen, or
between employers and employers, or
for imposing restrictive condition on the conduct of
any trade or business,
and includes any federation of two or more Trade
Unions.

Exception
Provided that this Act shall not affect
(i) any agreement between partners as to
their own business;
(ii) any agreement between an employer and
those employed by him as to such
employment; or
(iii) any agreement in consideration of the
sale of the good-will of a business or of
instruction in any profession, trade or
handicraft.

It is the object of the association

or combination that determines
whether it is a trade union or not
Example. A society of authors,
publishers, and other owners of
copyright meant to protect their
copyright in music and songs, was
held NOT to be a Trade Union by the
House of Lords.

Tamil Nadu NGO Union vs Registrar,

Trade Unions, AIR 1962, Madras HC

Tamil Nadu NGO Union, which was an

association of sub magistrates of the
judiciary, tahsildars, etc., was not a
trade union because these people
were engaged in sovereign and regal
functions of the State where were its
inalienable functions.

GTRTCS
and
Officer's
Association, Bangalore and
others
vs
Asst.
Labor
Commissioner and anothers
AIR 2002, Kar. HC
the definition of workmen for the
purpose of Trade Unions is a lot wider
than in other acts and that the
emphasis is on the purpose of the
association rather than the type of
workers and so it is a valid Trade
Union.

Chapter II
Registration of Trade
Unions
(S. 3-14)

Important provisions
3. Appointment of Registrars.
4. Mode of Registration.
5. Application for registration.
6. Provisions to be contained in the rule of a Trade Union.
7. Power to call for further particulars and to require
alteration of name.
8. Registration.
9. Certificate of registration.
10. Cancellation of registration.
11. Appeal.
12. Registered office.
13. Incorporation of registered Trade Unions.
14. Certain Acts not to apply to registered Trade Unions.

Introduction
The registration of a trade union is
not necessary.
However, upon registration, a trade
union gets several benefits including
some immunities that are not
available to an unregistered Trade
Union.

Section 13specifies that

upon registration, a trade
union gets a legal entity
status, due to which ithas perpetual succession and a
common seal.
can acquire and hold movable as well
as immovable properties.
can contract through agents.
can sue and can be sued.

Procedure of Registration

Appointment of the Registrar (S.3)

Mode of registration
Application of Registration
Contains of the registration form

Section. 3. Appointment of
Registrars.
1. The appropriate Government shall appoint a person
to be the Registrar of Trade Unions for each State.
2. The appropriate Government may appoint as many
Additional and Deputy Registrars of Trade Unions as
it thinks fit for the purpose of exercising and
discharging, under the superintendence and
direction of the Registrar, such powers and
functions of the Registrar under this Act as it may,
by order, specify and define the local limits within
which any such Additional or Deputy Registrar shall
exercise and discharge the powers and functions so
specified.

S. 3..
Subject to the provisions of any order
under sub-section (2), where an
Additional
or
Deputy
Registrar
exercises and discharges the powers
and functions of a Registrar in an
area within which the registered
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

Mode of registration (S. 4)

Section 4 says that to register a Trade
Union,an application must be sent to the
Registrar of Trade Unions appointed by an
appropriate government.
The application must be made by seven or
more persons who are engaged in the
trade or industry in connection to which the
Trade Union is to be formed.
All the applicants must subscribe their
names to the rules of the Trade Union and
comply with the provisions of this act
regarding registration.

Mode of registration (S. 4)

There must be at least 10% or 100, whichever is
less, members who are engaged or employed in
the establishment or industry to which it is
connected.
There must not be less than seven memberswho
are engaged or employed in the establishment or
industry to which it is connected.
If more that half of the persons who applied for
the registration cease to be members of the
union or expressly disassociate themselves from
the application, the application will be deemed to
be invalid.

Application of Registration
Section 5 gives the details of the application. It says
that the application should be sent to the registrar
along with the copy of the rules of the trade union and
a statement of the following particulars1) The name, occupation, and addresses of the
applicants.
2) The name of the trade union and the address of its
head office.
3) The titles, names, ages, addresses, and occupations
of the office bearers of the trade union.
4) If the trade union has been in existence for more than
1 yr, a general statement of its assets and liabilities.

Contain of the rule book

Section 6(Provisions to be contained in
the rules of a Trade Union) specifies the
provisions that should be contained in the
rule book of the trade union. A copy of this
rule book must be supplied along with the
application for registration of the trade
union. This rule book details the internal
administration of the trade union and also
determines and governs the relationship
between the trade union and its members.

Contain of the rule book.

It must contain the rules for the following matters:
1. name of the trade union.
2. the whole object of the trade union.
3. the whole purposes for which the general funds can be used.
4. the maintenance of the list of members and adequate facilities
to inspect it by the members of the trade union.
5. the membership of ordinary members who are actually engaged
or employed in an industry with which it is connected as well
asthe membership of the honorary or temporary members.
6. the appointment of members of the executive body.
7. the membership or subscription fee, which shall not be less that
25 paisa per member per month
8. the conditions under which a member can get thebenefits or
has to pay fines.
9. the safe custody of funds andprovisions for inspecting or
auditing the statements, or other documents of the trade union.
10.dissolution of the trade union.

M T Chandersenan vs
Sukumaran
AIR 1974

SC held that if a member fails to pay

subscription fee, he cannot be
considered a member of the trade
union. However, subscriptions cannot
be refused under some pretext which
results in the denial of membership.

Bokajan Cement Corporation

Employees Union
vs
Cement Corporation of India, 2004

SCheld that membership of the

union does not automatically cease
upon termination of the employment.

Power of Registrar (S.-7)

the registrar has the power
I. to ask for further information from the trade
union to satisfy himself that the trade union
complies with section 5 and is eligible to be
registered under section 6.
II. The registrar can refuse to register the trade
union until he receives the information.
III. Further, he has the power to ask to change
the name of the trade union if a union with the
same name already exists or if he feels that
the name could be deceiving or confusing to
the public or the members of the trade union.

Registration
Undersection 8, upon satisfaction of all the
requirements, the Registrar of the Trade Unions
will register the trade union. It is mandatory for
the registrar to register a trade union if the union
satisfies all the technical requirements of this act.
In the case ofRe Indian Steam Navigation
Workers Union AIR 1936 the courtheld that a
Registrar only has to see whether all the technical
requirements are being fulfilled and not whether
it could be described as unlawful.
In the case ofACC Rajanka Limestone
Quarries Worker's Union vs Registrar of
Trade Unions, AIR 1958, it was held that if the

Certificate
Undersection 9, the registrar will
issue the certificate of registration in
the prescribed form, which shall be a
conclusive evidence that the trade
union is registered under this act.

Cancellation of Registration (S.-10)

The Registrar of Trade Unions has the power to cancel the
registration of a trade union in the following conditions:
I. On the application of the trade union to be verified in the
prescribed manner.
II. If the registrar is satisfied that registration was obtained by
fraud or mistake.
III. If the trade union has ceased to exist.
IV. If the trade union willfully, upon notice of the registrar, has
contravened or allowed any rule to continue in force, which is
inconsistent with the provisions of this act.
V. If the trade union rescinds any rule providing for any matter,
provision for which is required to be made in section 6.
VI. If the registrar is satisfied that a trade union of workmen has
ceased to have the requisite number of members.

Tata Electric Companies Officer's

Guild vs Registrar of Trade
Unions, 1994, Bombay HC
In this case the courtheld that for a
registrar to cancel the registration,
willful neglect of the notice is a must.
If the trade union sends the account
statement upon notice of the
registrar, the registrar cannot cancel
the registration on the ground that
the account statement was not filed
earlier.

After the dissolution

Undersection 27, upon dissolution of a trade
union, seven or more members must send a
notification to the registrar within 14 days of
dissolution and the registrar shall register it
after verifying that the dissolution has been
done as per the provisions of this act.
Further, if the rules of the trade union do not
provide for distribution of the funds upon
dissolution, the registrar may distribute the
funds in such manner as may be prescribed.

Appeal against the decision of

Registrar (S.11)
Section 11grants a limited right to appeal the
decisions or orders passed by the registrar.
An appeal may be made To the high court, if the head office of the trade union
is located in a presidency town.
To the labour court or industrial tribunal, if the head
office of the trade union is located in its jurisdiction.
if the head office of the trade union in any other
location, to such court, not inferior to the court of an
additional or assistant judge of a principal civil court
of original jurisdiction, as the appropriate govt. may
appoint in this behalf for that area.

Other conditions for the Appeal

An appeal must be made within 60 days of the date
on which registrar passed the order against which
the appeal ismade.
In the case ofRegistrar of Trade Unions, West
Bengal vs Mihir Kumar Guha 1963, Cal, it was
settled that a trade union whose head office is in a
presidency town has only a single chance of appeal
against the decision of the registrar, which is to the
high court while a trade union whose head office is
in muffasil has two chances of appeals, first in the
local court and second in the high court.

S. 12- Registered office

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 with
fourteen days of such change to the
Registrar in writing, and the changed
address shall be recorded in the
register referred to in Section 8.

S. 13- Incorporation of
registered Trade Unions
Every 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 acquire and hold
both
movable
and
immovable
property an contract, and shall, by
the said name sues and be sued.

S. 1-. Certain Acts not to apply

to registered Trade Unions
The following Act, namely
(a) The Societies Registration At, 1863.
(b) The co-operative Societies Act, 1912.
And
(c) The Company Act shall not apply to
any registered Trade Union, had the
registration of any such Trade Union
under any such Act shall be void.

Rights and liabilities of registered

trade unions (S. 15-28)
15. Objects on which general funds may be spent.
16. Constitution of a separate fund of political purposes.
17. Criminal conspiracy in the trade disputes.
18. Immunity from civil suit in certain cases.
19. Enforceability of agreements.
20. Right to inspect books of Trade Unions.
21. Rights to minors to membership of Trade Unions.
21A. Disqualification of office bearers of Trade Union
22. Proportion of office-bearers to be connected with the industry.
23. Change of name.
24. Amalgamation of Trade Union.
25. Notice of change of name on amalgamation.
26. Effects of change of name, and of amalgamation.
27. Dissolution.
28. Returns

Rights and liabilities of registered

trade unions (S. 15-28)

Liabilitiesof a registered Trade Union

Rights and Privileges of a registered
Trade Union
Immunities available to a registered
Trade Union

Liabilitiesof a registered Trade Union

A registered trade union must follow the provisions of the Trade

Unions Act 1926. In particular, the following are some restrictions
in a registered trade union:
1. ATrade Union cannot spend the funds on anything the office
bearers want. It can spend funds only on the activities specified
inSection 15. These include:
salariesof the office bearers.
expenses required for the administration of the trade union
compensation to workers due to loss arise of any trade
dispute.
welfare activities of the workers including housing, clothing, or
any such activity.
benefits to the workers or their dependents in the case of
unemployment, disability, or death.
publishing material for creating awareness in the workers.
legal expenses required for defending or bringing a suit.
education of workers or their dependents.
expenses for medical treatment of workers.
taking insurance policies for workers.

Liabilities..
2. A trade union cannot force members to subscribe to political fund
undersection 16.
3. Undersection 20a trade union must make available all its record
books of accounts and list of membership for inspection upon
request of any member or his representative.
4. Section 21allows minors more than 15 yrs of age to be members
of a trade union. However, such minors cannot hold office.
5. Undersection 21-A, a trade union cannot appoint a person who
has been convicted of a crime involving moral turpitude and has
been imprisoned for 6 months or more within last 5 years.
6. As persection 22, at least half of the office bearers of a trade
union must be engaged or employed in an industry to which the
trade union is connected. Also, while a union has a right to remove
any office bearer, this power must be used judiciously and rules of
natural justice must be followed.
7. Undersection 28, a general statement, audited in a prescribed
manner,of all income and expenses must be sent to the registrar
every year.

Mario Raposo vs H M
Bhandarkar and others
1994
Office bearers of a trade union
invested the money from general
fund into shares of UTI. This was held
invalid because it is a speculative
investment.

Rights and Privileges of a

registered Trade Union
Undersection 15a registered trade union
has a right to establish a general fund.
Undersection 16, a registered trade union
has a right to establish a political fund.
Subscription to this fund is not necessary for
a member.
Undersection 17, 18, and 19a registered
trade union gets immunity in certain
criminal, civil, and contractual proceedings.

Immunites available to a
registered Trade Union
Section 17confers immunity from liability in the
case of criminal conspiracy under section 120-B of
IPC, committed by an office bearer or a member.
However, this immunity is partial in the sense that
it is available only with respect to the legal
agreements created by the members for the
furtherance of valid objects of a trade union as
described in section 15 of the act.
The immunity cannot be claimed for an act that is
an offence.
Registered Trade Unions have certain rights to do in
furtherance of their trade disputes such as calling
for strike, persuading members.

West India Steel Company Ltd. vs Azeez

1990 Kerala
a trade union leader obstructed work inside the
factory for 5 hrs while protesting against the
deputation of a workman to work another section.
It was held that while in a factory, the worker
must submit to the instructions given by his
superiors. A trade union leader has no immunity
against disobeying the orders. A trade union
leader or any worker does not have any right by
law to share managerial responsibilities. A trade
union can espouse the cause of workers through
legal ways but officials of a trade union cannot
direct other workers individually or in general
about how to do their work. They do not have the
right to ask a worker to stop his work or otherwise

Immunity from civil suit in c

ertain
cases.

Section 18confers immunity from

civil proceedings in certain cases to a
trade union or its office bears or
members.
In general, a person is liable in torts
for inducing another person to breach
his contract of employment or for
interfering with the trade or business
of another.

Immunity in civil matter

However, a trade union, its officers,
and its members are immune from
this liability provided that such an
inducement is in contemplation
orfurtherance of a trade dispute.
Further, the inducement should be
lawful.
There is no immunity against
violence, threats, or any other illegal
means.

P Mukundan and others vs Mohan

Kandy Pavithran 1992 Kerala
it was held that strike per se is not an
actionable wrong.
Further, it was held that the trade
union, its officers, and its members
are
immune
against
legal
proceedings linked with the strike of
workmen by the provisions of section
18.

Rohtas Industries Staff Union vs

State of Bihar AIR 1963
In this leading case it was held that
employers do not have the right to
claim damages against the employee
participating in an illegal strike and
thereby causing loss of production
and business.

Simpson & Group Companies Workers & Staff

Union vs Amco Batteries Ltd 1992 Karn

In this case it was held that physical obstruction of

movement
of
management
officials,
contractors,goods, or vehicles carrying raw
materials, is not a trade union right or a
fundamental right under art 19.
Immunity under section 18 cannot be claimed for
such activities. Right to picket is a very intangible
right and it extends only up to the right of free
movement of others. The methods of persuasion are
limited to oral and visual and do not include
physical obstruction of vehicles or persons.

Enforceability of
agreements
Section 19 - In India, an agreement in
restraint of trade is void as per section 25 of
Indian Contract Act.
However, such an agreement between
trade union members is neither void nor
voidable.
It is important to note that this right is
available only to registered trade unions.
An unregistered trade union must follow the
principles of general contract law.

Change of name
Section 23. change of name
Section 25. Notice of change of name
Section 26. Effect of change in name

Section 23. Change the

name
Any registered Trade Union may, with the
consent of not less than two-thirds of the
total number of its members and subject to
the provisions of Section 25 change its
name.
It meansi. Trade union can change the name
ii. Minimum two third majority is necessary
iii. The requirement prescribed under section
25 must be fulfilled.

S. 25- Notice to Registrar

S. 25. -(1) Notice in writing of every change of
name, signed by the Secretary and by seven
members of the Trade Union changing its
name, shall be sent to the Registrar.
(2) 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 Trade Union, the Registrar
shall refuse to register the change of name.

Notice to registrar

S. 25(3) Save as provided in subsection (2), the Registrar shall if he is

satisfied that the provisions of this
Act in respect to change of name
have been complied with, register
the change of name in the register
referred to in Section 8, and the
change of name shall have effect
from the date of such registration.

Effect of change in name

S. 26. -(1) The change in the name of a
registered Trade Union shall not effect any rights or obligation of the Trade Union or
render defective any legal proceeding by or
against the Trade Union, and 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 its former name or may be
continued or commenced by or against it by its
new name.

Procedure for
amalgamation
Section 24says that any two or more
registered trade unions may become
amalgamated together into one trade union
with or without dissolution or division of the
funds of such trade unions or either or any of
them.
Provided that votes of at least one half of the
members of each trade union are recorded
and at least 60% of the votes of each trade
union are in favor of the proposal.

Notice to registrar

The notice of such amalgamation,

signed by the secretary and seven
members of each of the trade unions,
should be sent to the registrar of the
state where the head office of the
amalgamated trade union is to be
located.

Satisfaction of Registrar
If the registrar is satisfied that i. All the provisions of this act have been
fulfilled, and
ii. The amalgamated trade union is
entitled to registration under section 6,
. he will register the new trade union
under section 8 and the amalgamation
will take effect from the date of
registration.

Effects of amalgamation -S. 26

(2)

An amalgamation of two or more

registered Trade Unions shall not
prejudice any right of any such Trade
Unions or any right of a creditor or
any of them.

Dissolution
27.(1) When a registered Trade Union is
dissolved, notice for the dissolution signed
by seven members and by the Secretary of
the Trade Union shall, within fourteen
days of the dissolution, be sent to the
Registrar and shall be registered by him if
he is satisfied the dissolution has been
effected in accordance with the rules of the
Trade Union, and the dissolution shall have
effect from the date of such regulation.

Section 27 (2)
Where the dissolution of a registered
Trade Union has been registered and
the rules of the Trade Union do not
provide for the distribution and funds
of the Trade Union on dissolution, the
Registrar shall divide the funds
amongst the member in such
manner as may be prescribed.

Returns (S. 28)

(1) Return shall be sent annually to the
Registrar, on or before such date as may bee
prescribed.
It includesi. General statement
ii. Audit report in the prescribed manner
iii. All receipts and expenditure of every
registered Trade Union, and
iv. Assets and liabilities of the Trade Union
existing on such 31stday of December.
.The statement shall be prepared in such form
and shall comprise such particulars as may be
prescribed.

S. 28..
(2) Trade Union during the year which
the general statement refers, together
also with copy of the rules of the Trade
Union corrected up to the date of the
dispatch thereof to the Registrar.
(3) A copy of every alteration made in
the rules of a registered Trade Union
shall be sent to the Registrar within
fifteen days of making of the alteration.

S. 28..
(4) For the purpose of examining the documents
referred to in subsections (1), (2) and (3), the
Registrar, or any officer authorized by him, by general
or special order may, at all reasonable times, inspect
the certificate of registration account books, registers,
and other documents relating to a Trade Union, at i. its registered office, or
ii. may require their production at such place as he may
specify in this behalf,
. But no such place shall be at a distance of more then
ten miles from the registered office of a Trade Union.

Penalties and procedure

(S.31-33)
S. 31- Failure to submit returns.
S. 32- Supplying false information
regarding
Trade Unions.
S. 33- Cognizance of offences.

Failure to submit returns (S. 31)

If the trade union is bound to send any notice, any
statement or other document, under this Act, and
such trade union makes default, and
As per the rule of trade union every office-bearer or
other person was bound to give or send such notice,
statement or document, or
if there is no such person, every member of the
executive of the Trade Union, shall be punishable withi. fine which may extend to five rupees, and
ii. in the case of a continuing default, with an additional
fine which may extend to five rupees for each week
after the first during which the default continues:

 But The aggregate fine shall not exceed

fifty rupees.
S. 31 (2). Any person who willfully makes,
or causes to be made any false entry
i. in general statement, or
ii. any omission from the general statement
required by section 28, or
iii. in or form any copy of rules, or
iv. of alterations of rules sent to the
Registrar under that Section,
. shall be punishable with fine which may
extend to five hundred rupees.

Supplying false information regarding Trade

Union
32. -Any person who, with intent to deceive gives document to any member of a registered Trade Union, or
gives document to any person purporting or applying to
become a member of such Trade Union, and
such document purporting to be a copy of the rules of the
Trade Union or of any alterations to the same,
which he knows, or has reason to believe that it is not a correct
copy of such rules or alterations, or
any person who, with the like intent gives a copy of any rules
of an unregistered Trade Union to any person on the pretence
that such rules are the rules of a registered Trade Union,
shall be punishable with fine which may extend to two hundred
rupees.

Cognizance of offence
33. -(1) No court inferior to that of a Presidency
Magistrate or a Magistrate of the first class shall
try any offence under this Act.
(2) No court shall take cognizance of any offence
under this Act, unlessi. complaint thereof has been made by, or with
the previous sanction of, the Registrar or,
ii. in the case of an offence under section 32, 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.

Thanks
Nitya Nand Pandey
Assistant Professor
(Amity Law School)
Amity University Jaipur
Mo. 9415422181
Mail id. nnp.vns@gmail.com