LL.B.

III Term
Paper – LB – 3032 - Labour Law - I

Objectives of the Course

The primary objective of this course is to draw attention of the students briefly to the
march of the industrial society from laissez faire era to the dawn of the concept of welfare
state and the need for state intervention in the area of employer-employee relationship for
achieving higher economic growth tempered with social justice; need for which is more
imperative in the present day era of globalization when both developed and developing
economies have framed new economic policies. The students need to be acquainted with the
historical perspective relating to the development of trade unions of workers in various
countries which has been more or less the same. The struggle of the workers to replace
individual bargaining by collective bargaining to achieve better economic and social progress
was intense and painful. Employers thwarted their attempt to combine by invoking the
doctrine of restraint of trade against their combinations and used doctrines of civil and
criminal conspiracies against them to expose them to economic and physical hardships. It was
in this background that State intervention became necessary to declare such combinations of
workers as lawful bodies symbolizing their aspirations, their right to organise and right to
press their demands collectively and to resort to industrial actions if their claims were not
accepted. For this purpose, they were granted immunities in a limited way against the doctrine
of restraint of trade and acts amounting to simple conspiracies, both civil and criminal. The
students need also to know about the relevance and importance of trade unions in the present
global economic scenario in achieving the object of overall economic development, better
conditions of employment and job opportunities for teeming millions.
In most countries, the state has provided legal framework which establishes general
ground rules for union management interaction and for the purposes of bringing out amicable
settlement of industrial conflicts. Additionally, provision of state service for conciliation,
mediation and arbitration with a view to facilitating the settlement of industrial dispute is
envisaged by law so that the production of goods and supply of various services to the society
are ensured, as far as possible, without any disruption, if mutual negotiations in the form of
collective bargaining fail to bring a settlement of the dispute. The other important functions of
the state has been to establish minimum standards which an employer must adopt and which
provide the base line on which collective bargaining with the employer for securing higher
standards takes place. The state has basic duty to bring equilibrium amongst the competing
and conflicting interests in the society namely, the capital, the workers and the society at
large.
The course of Labour Law - I has been designed to generate understanding amongst the
students about the objectives of the labour legislations and enable them to critically examine
the developments and changes that have taken place in the field of labour law from time to
time. The course introduces the students to the three important legislations, viz. the Trade
Unions Act, 1926, the Industrial Disputes Act, 1947 and the Industrial Employment (Standing
 ii

Orders) Act, 1946, which regulate industrial relations at the Central level in India. The
primary objectives of this course are:
1) To familiarize the students with the need for enactment of the Trade Unions Act,
1926 which declares trade unions as legitimate bodies, provides immunities to the
registered trade unions, their members and office bearers against the general law
liabilities, namely, restraint of trade and conspiracy, both civil and criminal, as long
as the primary object is to further legitimate trade union objectives in a peaceful
manner.
2) To familiarize the students with the provisions of the Industrial Disputes Act, 1947
which provides for settlement of industrial disputes through conciliation, voluntary
arbitration and compulsory adjudication and to bring home to the students the
importance of the basic concepts used in it and the social responsibilities imposed on
the employer in certain situations in tune with constitutional mandate brought about
by various amendments to the act in the post-constitutional period.
3) To familiarize the students with the need for providing uniform statutory conditions
of service in the form of certified standing orders under the Industrial Employment
(Standing Orders) Act, 1946.
4) To examine whether the present legal framework provided by the state is adequate to
meet the challenges of globalization and to keep the students abreast of the latest
developments in the present economic order and discuss critically the resultant
changes that need to be made in industrial relations law for achieving higher
economic growth tempered with social justice.

General Readings:
1. Report of the National Commission on Labour (1969)
2. Report of the Second National Commission on Labour (2002)

Prescribed Legislation: 1. The Trade Unions Act, 1926

2. The Industrial Disputes Act, 1947
3. The Industrial Employment (Standing Orders) Act, 1946
Prescribed Books:
1. G.B. Pai, Labour Law in India (2001)
2. P.L. Malik, K.D. Srivastava’s Law Relating to Trade Unions and Unfair Labour
Practices in India (4th ed., 2002, with Supplement 2003)
3. S.C. Srivastava (Rev.) Labour Law and Labour Relations : Cases and Materials (Indian
Law Institute, 2007)
4. E. M. Rao, O.P. Malhotra’s The Law of Industrial Disputes (6th ed., 2004)
5. K.D. Srivastava, Industrial Employment (Standing Orders) Act, 1946 (4th ed., 1998 with
Supplement 2003)
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PART – A : TRADE UNIONS

The primary object of trade unions is to replace individual negotiation by collective
bargaining with a view to ensure uniform and reasonable terms of employment and conditions
of labour between the management and the representatives of trade unions in the interest of
workers which would ultimately lead to lasting peace and harmony in the industry. The
fundamentals of trade unionism are: (i) Right to form association (guaranteed to workers
and/or employers as a fundamental or an ordinary right or both; (ii) Right of a trade union to
be recognized as sole bargaining agent for the workers at the plant, local or national level; (iii)
Right to collective bargaining (as a statutory obligation to bargain in good faith on voluntary
basis); (iv) Right to permissible industrial action for bringing the parties to a negotiating
table; and (v) Prevention of unfair labour practices.
The right to form associations or unions is a fundamental right under Article 19(1)(c) of
the Constitution of India. The right to form associations and unions and their registration was
recognized for conferring certain rights on trade unions. The necessity to form unions is
obviously for voicing the demands and grievances of labour. Trade unionists act as
mouthpieces of labour.
Topic 1 : General – Evolution and Growth of Trade Unions in India
Historical reasons for the formation of combinations of workers, legal impediments;
Constitutional freedom to form associations and unions – Constitution of India, Articles
19(1)(c), (4) and 33; International Labour Organisation - its influence in bringing changes in
national legislations.
1. T.K. Rangarajan v. Government of Tamil Nadu (2003) 6 SCALE 84 1
2. B.R.. Singh v. Union of India (1989) 4 SCC 710 4
Topic 2 : Trade Union – Definition, Registration and Recognition
Definitions of ‘trade union’, ‘workman’ and ‘trade dispute’ - The Trade Unions Act, 1926,
sections 2(g) and (h), 3-13, 15, 22
3. Rangaswami v. Registrar of Trade Unions, AIR 1962 Mad. 231 13
4. The Tamil Nad Non-Gazetted Government Officers’ Union, Madras
v. The Registrar of Trade Unions, AIR 1962 Mad. 234 18
5. Registrar of Trade Unions v. Government Press Employees Union
(1976) Lab 1C 280 (Mad.) 25
6. Tirumala Tirupati Devasathanam v. Commissioner of Labour
(1995) Supp.(3) SCC 653 29
7. Tirumala Tirupati Devasthanam v. Govt. of A.P.
(1995) Supp. (3) SCC 654
8. Delhi Police Non-Gazetted Karamchari Sangh v. Union of India,
AIR 1987 SC 379
9. S.A. Sawant v. State of Maharashtra, AIR 1986 SC 617
10. In Re Inland Steam Navigation Worker’s Union, AIR 1936 Cal. 59 31
11. Chairman, SBI v. All Orissa State Bank Officers Association,
AIR 2002 SC 2279
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Topic 3 : Immunities – Criminal and Civil

The Trade Unions Act, 1926, sections 17 and 18; The Indian Penal Code, sections 120-A, 120-B
12. R.S. Ruikar v. Emperor, AIR 1935 Nag. 149 35
13. Rohtas Industries Staff Union v. State of Bihar, AIR 1963 Pat. 170
(Also see Rohtas Industries v. Its Union, AIR 1976 S.C. 425) 38
14. Standard Chartered Bank v. Chartered Bank Employees Union
(1997) 68 DLT 391 45
15. Common Cause v. Union of India (1996) 1 C.C.C. 242 (NCDRC) 50

PART – B : INDUSTRIAL DISPUTES

Topic 4 : ‘Industry’ – Conceptual Analysis

The Industrial Disputes Act, 1947, section 2(j)

16. Bangalore Water Supply and Sewerage Board v. A. Rajappa,
AIR 1978 SC 548 57
17. General Manager, Telecom v. A. Srinivasa Rao (1997) 8 SCC 767 101
18. Coir Board, Ernakulam v. Indira Devi, PS (I), AIR 1998 SC 2801
19. Coir Board, Ernakulam, Kerala State v. Indira Devi,PS (II)
(2000) 1 SCC 224
20. M.G.T. of Som Vihar Apartment Owners Housing Maintenance
Society Ltd. v. Workmen, AIR 2002 SC 2530
21. State of U.P. v. Jai Bir Singh (2005) 5 SCC 1 103

Topic 5 : ‘Industrial Dispute’ v. ‘Individual Dispute’ - Contrast

The Industrial Disputes Act, 1947, sections 2(k), 2A

22. Workmen of Dimakuchi Tea Estate v. Management of Dimakuchi
Tea Estate, AIR 1958 SC 353 118
23. Bongalgaon Refinery & Petrochemicals Ltd. v. Samijuddin Ahmed,
AIR 2001 SC 3507
24. Municipal Corporation of Delhi v. Female Workers (Muster Roll)
AIR 2000 SC 1274 : (2000) 3 SCC 224 126
25. J.H. Jadhav v. Forbes Gokak Ltd. (2005) 3 SCC 202 131

Topic 6 : Concept of ‘Workman’

Distinction between contract for services and contract of service: Due control and super-
vision test; Predominant nature of duty test, The Industrial Disputes Act, 1947, section 2(s)
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26. Dharangadhra Chemical Works Ltd. v. State of Saurashtra,

AIR 1957 SC 264 134
27. Mangolore Ganesh Bidi Workers v. Union of India
(1974) 4 SCC 43 140
28. Indian Banks Association v. Workmen of Syndicate Bank,
AIR 2001 SC 946 : (2001) 3 SCC 36 163
29. Hussainbhai v. Alath Factory Tezhilali Union, AIR 1978 SC 1410 169
30. A. Sundarambal v. Government of Goa, Daman & Diu,
AIR 1988 SC 1700 171
31. H.R. Adyanthaya v. Sandoz (India) Ltd. (1994) 5 SCC 737 175
32. S.K. Maini v. M/s.Carona Sahu Co. Ltd. (1994) 3 SCC 510
33. G.B. Pant University of Agriculture & Technology, Pant Nagar,
Nanital v. State of U.P. (2000) 7 SCC 109 188
Topic 7 : ‘Strike’ & ‘Lock out’
Concepts, legality and justification – The Industrial Disputes Act, 1947, sections 2(q), 2(l),
2(n), 10(3), 10A(3A), 22-28; The Industrial Employment (Standing Orders) Act, 1946; The
Essential Services Maintenance Act, 1981
34. Management of Chandramalai Estate v. Its Workmen,
AIR 1960 SC 902 195
35. Gujarat Steel Tubes Ltd. v. Gujarat Steel Tubes Mazdoor Sabha
(1980) 2 SCC 593 : (1980) 1 LLJ 137 (SC)
36. B.R. Singh v. Union of India (1989) 4 SCC 710
37. Syndicate Bank v. K. Umesh Nayak (1994) 5 SCC 572 198
38. Essorpe Mills Ltd. v. P.O.; Labour Court (2008) 7 SCC 594 212
Topic 8 : ‘Lay off’ ‘Retrenchment’ & ‘Closure’
Analysis of the Concepts, Pre-requisites, The Industrial Disputes Act, 1947, sections 2(cc),
2(kkk), 2(oo), Chapters VA, VB; The Industrial Employment (Standing Orders) Act, 1946
39. Mohan Lal v. The Management of M/s. Bharat Electronics Ltd.,
AIR 1981 SC 1253
40. Punjab Land Development and Reclamation Corporation Ltd. v.
Presiding Officer, Labour Court (1990) 3 SCC 682 217
41. State of Rajasthan v. Rameshwar Lal Gahlot, AIR 1996 SC 1001 233
42. Uptron India Ltd. v. Shammi Bhan, AIR 1998 SC 1681 234
43. S.M. Nilajkar v. Telecom. District Manager, Karnataka
(2003) 3 SCALE 533 239
44. The Workmen of Fire Stone Tyre & Rubber Co. Pvt. Ltd. v. Fire
Stone Tyre & Rubber Co. Pvt. Ltd. (1976) 3 SCC 819 :
AIR 1976 SC 1775 245
45. Orissa Textile and Steel Ltd. v. State of Orissa, AIR 2002 SC 708
46. U.P. State Brassware Corporation Ltd. v. Uday Narain Pandey 250
(2006) 1 SCC 479
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IMPORTANT NOTE:
1. The topics and cases given above are not exhaustive. The teachers teaching the course
shall be at liberty to add new topics/cases.
2. The students are required to study the legislations as amended up-to-date and consult
the latest editions of books.
3. The question paper shall include one compulsory question. The question papers set for
the examinations held during 2010-11 and 2011-12 are printed below for guidance of the
students.
*****

LL.B. III Term Examinations, December, 2010

Note: Answer five question including Question No. 1 which is compulsory.

All questions carry equal marks.
1. Attempt briefly any four of the following
(a) Explain the powers of the Registrar under the Trade Unions Act, 1926 to
cancel registration of a Trade Union.
(b) Highlight the difference between ‘contract of service’ and ‘contract for
service’.
(c) Comment on the law on ‘Lay-off.
(d) What are the circumstances under which a ‘strike is considered not illegal’?
(e) What are the circumstances under which an ‘individual dispute’ may become
an ‘industrial dispute’?
2. Critically examine the definition of ‘Trade Union’ under the Trade Union Act, 1926.
The Cycle Rickshaw drivers of Delhi form an association in the same of ‘Delhi Cycle
Rickshaw, Drivers Union’ with the object of empowering themselves and to ensure better
bargaining position on the fares that may be charged on the passengers. Examine whether
the Union could be registered under the Trade Unions Act, 1926.
3. Explain the ‘triple test’ formulated in the Bangalore Water Supply case and examine
whether the approach and interpretation of the Supreme Court in that case is acceptable to
you or not. Substantiate your answer in the light of the development thereafter.
4. “Today, the organized labour has acquired even the power of holding the society at large,
to ransom, by withholding labour and thereby compelling the managements to give in to
their demands whether reasonable or unreasonable.” Critically examine the statement in
the light of judicial decisions and see whether a policy of ‘No Work No Pay’ is justified
or not.
5. Write short notes on the following:
(a) Immunities of trade unions under the Trade Union Act, 1926.
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(b) Distinctions between ‘Lock-out’ and ‘Closure’.

6. What is ‘Retrenchment’ under the Industrial Disputes Act, 1947? Explain the law on the
subject highlighting the judicial decisions in India, in this regard.
7. Who is a workman under Section 2(S) of the Industrial Disputes Act, 1947?
Discuss whether the following persons would fit in the definition of ‘Workman’ under the
I.D. Act, 1947. Give reasons for your answer.
(a) An agent of an insurance Company who is canvassing for people to insure on a
commission basis.
(b) A Medical Representative, drawing a salary of Rs. 10,000/- and also getting an
additional commission of 4% on the basis of the monthly sales.
8. Examine the scope of the expression ‘any person’ appearing in the definition of
‘Industrial dispute’ under the I.D. Act, 1947. Explain your views in the light of relevant
case law.

LL.B. III Term Supplementary Examinations, June-July, 2011

Note: Answer five question including Question No. 1 which is compulsory.

All questions carry equal marks.
1. Attempt briefly any four of the following
(a) Explain the objectives of Trade Unions Act 1926.
(b) Pre-requisities for lay off
(c) Distinguish between Closure and Lockout
(d) Powers of the Registrar of Trade Unions under the Trade Unions, Act, 1926.
(e) Distinguish between ‘contract of service’ and ‘contract for service’.
2. Discuss the definition of Trade Union under the Trade Unions, Act 1926. What is latest
judicial approach in interpreting this definition?
3. There are certain immunities and privileges available to the Registered Trade Unions
from liability for Criminal Conspiracy, breach of contract and tortuous liabilities. But
these are not unconditional ones. Explain the extent and conditionalities for availing these
immunities.
4. Do you think that the triple test propounded by the Constitution Bench of the Apex Court
in Banganlore water supply case in still valid of determining whether any activity is an
industry or not? Discuss it in the light of legislature and judicial development in the field.
5. What are the ingredients of ‘strike’? Discuss the law relating to ‘justifiability’, ‘legality’
and illegality’ of strikes in the light of judicial decisions.
6. Define the concept of ‘Industrial Dispute’ and explain whether the dispute between the
management of school and teacher relating to his dismissal is an Industrial Dispute?
7. Critically examine the law relating to retrenchment under the Industrial Disputes Act,
1947.
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8. Are the following ‘workman’ under the Industrial Disputes Act, 1947? Given reasons for
your answer.
(a) A Teacher is a Primary School
(b) A Sales representative in a pharmaceutical company
(c) A Pilot of an Airlines company drawing wages Rs. 2 Lacs per month
(d) A Carpenter employed in a jail
*****

LL.B. III Term Examinations, December, 2011

Note: Attempt any five questions. All questions carry equal marks.

1. All Non-Gazetted Government Officers employed under the Government of Haryana

except the Executive Officers of the Police and Prisons Department formed a Union. The
objects of the Union are beneficent and ameliorative in character, designed along the lines
of promoting the welfare of the members in multiple directions. The Union represented
by ten of its members applied to the Registrar of Trade Union for registration as a Trade
Union under the Trade Unions for registration as a Trade Union under the Trade Unions
Act, 1926. Is the Union eligible for registration as a Trade Union under the Act? Discuss.
2. Discuss the law with regard to the tort of conspiracy and the scope of the immunity
granted to registered Trade Unions, their office bearers and members under Section 18 of
the Trade Unions Act, 1926 in the light of the Judicial decisions.
3. “The words used in the definition of ‘Industry’, Section 2(i) of the Industrial Disputes
Act, 1947 are prima-facie of the widest import. Even so, it is wrong to spread the net too
wide because such a wide meaning appears to over reach the objects for which the Act
was passed.”
In the light of the above statement discuss the definition of Industry under Section
2(1) of the Act.
4. Critically examine the definition of ‘Workman’ under Section 2(s) of the I.D. Act, 1947
in the light of judicial decisions and decide whether the following are covered by the said
definition of ‘Workman’:
(a) A medical representative in a pharmaceutical company getting a salary of
` 10,000p.m.
(b) A Deposit Collector employed in a Bank.
5. The definition clause in Section 2(k) does not contain any words of qualification or
restriction in respect of “any person” still the said expression cannot be given its ordinary
meaning. Discuss the definition of ‘Industrial Dispute’ in Section 2(k) of the I.D. Act,
1947 in the light of the statement and also discuss whether the dispute of a single
 ix

workman sponsored by the union of another establishment belonging to the same industry
is an industrial dispute or not.
6. (a) “A legal strike may be unjustified and an illegal strike may be justified.” Discuss the
legal validity of this statement in the context of the law relating to strikes in India.
(b) Are workman entitled to wages for participation in legal/illegal strikes?
7. An industrialist installs a computer in his industry. There upon he terminates the services
of A, a stenographer appointed 4 months ago in probation of 1 year. He also refuses
to renew the contract of employment of B, a clerk, appointed for a fixed period of 1
year. A and B demand retrenchment compensation. Discuss the approach of the
Supreme Court for interpreting the meaning of ‘retrenchment’ in S.2(oo) of the I.D.
Act, 1947 and decide the cases of A and B.
8. Comment upon any two of the following:
(a) The power to lay-off a workman is not inherent in the definition of lay-off under S. 2
(kkk) of the I.D. Act, 1947.
(b) Power of the Registrar under Section 8 of the T.U. Act, 1926.
(c) Distinction between ‘lock-out’ and ‘closure’ under the I.D. Act, 1947.
*****

LL.B. III Term Examinations, June-July, 2012

Note: Attempt any five questions. All questions carry equal marks.

1. Examine the definition of “Trade Union” under the Trade Unions Act, 1926 with the help
of relevant case law in India.
2. Examine the position of Hospital and Educational Institutions as ‘industry’ in the light of
the decision of the Supreme Court in Bangalore Water Supply and Sewerage Board v.
Rajappa. AIR 1978 SC 548.
3. Discuss the immunity from civil conspiracy for the registered Trade Unions provided
under the Trade Unions Act, 1926.
4. What is an ‘Industrial Dispute’ under the Industrial Disputes Act, 1947?

‘X’ an employee of a Casting Factory took Extra Ordinary Leave for three years and joined a
Cement Factory, which was in the neighbourhood of the Casting Factory. However, X retained his
membership with the Casting Factory Workers’ Union, a Registered Trade Union. It was agreed by the
Cement Factory Management that after a year of service with the Cement Factory, X would be given an
increment of Rs. 2000 per month and a family quarters. After year’s service X submitted an application
to the appropriate authority of the Cement Factory for the increment and allotment of the quarters. The
Cement Factory management refused to grant the request. Aggrieved by this, X started a ‘hunger
strike’ in front of the Cement Factory. As there was no change in the attitude of the Cement Factory
 x

management eve after three days, the Casting Factory Workers’ Union started a strike may be referred
for industrial adjudication. Examine the validity of this dispute in the light of the theory of ‘espousal’
of a dispute and the expression any person found in the definition of industrial dispute. Substantiate
your answer with decided cases.
5. Critically analyse the definition of ‘workman’ under Section 2(s) of the Industrial Disputes
Act, 1947 and decide whether the following are workmen or not.
(a) Sales Representatives
(b) An Engineer employed as a Clerk in an industry
6. “...retrenchment connotes in its ordinary acceptation that the business itself is being continued
but that a portion of the staff of the labour force is discharged as surplasage.” Critically
examine this statement in the light of the definition of ‘retrenchment’ in the Industrial
Disputes Act, 1947 and judicial decisions in this regard.
7. Write brief notes on any two of the following:
(a) Pre-requisites of lay-off under the Industrial Disputes Act, 1947.
(b) Distinction between ‘Lock-out’ and ‘Closure’.
(c) Power of the Registrar under section 8 of the Trade Unions Act, 1926.
8. Critically examine the law relating to ‘Strikes’ in India. Discuss whether an ‘illegal strike’ can be
justified and the workmen would be entitled to wages during the period of ‘illegal strike’?
 xi

LL.B. III Term

Labour Law – I
[The Trade Unions Act, 1926
The Industrial Disputes Act, 1947
The Industrial Employment (Standing Orders) Act, 1946]

Cases Selected and Edited by

B.T. Kaul
P.S. Lathwal
Rajan Varghese
S.K. Gupta
O.B. Lal
O.P. Sharma
Anu
Gireesh Kumar

FACULTY OF LAW
UNIVERSITY OF DELHI, DELHI-110 007
July, 2012