UNIT 1

General – Evolution and Growth of Trade Unions in India

INTRODUCTION

Labour Law is the “Body of Laws, Administrative Rulings, & Precedents” which address
the Relationship between & among “Employers, Employees & Labour Organizations”, often
dealing with issues of Public Law. The terms Labour Laws & Employment Laws, are often
interchanged in the usage. This has led to a big confusion as to their meanings. Labour Laws
are different from Employment laws which deal only with employment contracts and
issues regarding employment and workplace discrimination & other Private Law issues.

Relationship between “Trade Unions, Employers & Employees”. In some countries (like
Canada), Employment Laws Related to Unionised workplaces are different from those
relating to particular Individuals. In most countries however, no such distinction is made.

The “Final Goal” of Labour Laws is to bring both “Employer & Employee” on the same
Level, thereby mitigating the differences between the two ever-warring groups.

Origins of Labour Laws

“Labour Laws” emerged when the Employers tried to Restrict the Powers of Worker's
Organisations & keep Labour Costs Low. The Workers began demanding better
conditions & the Right to Organise so as, to improve their Standard of Living. Employer's
costs increased due to workers demand. This led to a chaotic situation which required the
Intervention of Government. In order to put an end, the “Government” enacted many Labour
Laws in the Country.

The History of Labour Legislation in India can be traced back to the History of British
Colonialism. In the beginning it was difficult to get enough Regular Indian workers to run
“British Establishments” & hence Laws for chartering workers became necessary. This was
obviously Labour Legislation in order to protect the interests of British employers.

The “Factories Act” was first introduced in 1883 because of the pressure brought on the
British Parliament by the textile moguls of Manchester and Lancashire. Thus we received,
the First Stipulation of Eight (08) Hours of work, the abolition of Child Labour, & the
Restriction of Women in Night employment, and the introduction of “Overtime Wages” for
work beyond Eight Hours.

“India” has Various Labour Laws, such as Resolution of Industrial Disputes, Working
Conditions, Labour Compensation, Insurance, Child Labour, Equal Remuneration, etc.

Labour Policy in India

“Labour Policy in India” has been evolving in response to specific needs of the situation to
suit requirements of planned “Economic Development & Social Justice” has two-fold
Objectives, viz., Labour Policies are devised to maintain Economic Development, Social
Justice, Industrial Harmony & Welfare of Labour in the country.

Highlights of Labour Policy:-

1. Creative Measures to attract Public & Private Investment.

2. Creating New Jobs with New Social Security Schemes for workers.
3. Unified and Beneficial Management of funds of Welfare Boards.
4. Model Employee – Employer Relationships with Long Term Settlements.
5. Vital Industries & Establishments declared as “Public Utilities”.
6. Special conciliation mechanism for projects with investments of Rs. 150 crore or
more.
7. Industrial Relations committees in more sectors.
 8. Labour Law Reforms with Times. Empowered body of experts to suggest required
changes. Statutory amendments for expediting & streamlining the mechanism of
Labour Judiciary.
9. Efficient functioning of Labour Department. More labour sectors under Minimum
Wages Act.
10. Modern Medical Facilities for workers. Rehabilitation packages for displaced
workers.
11. Restructuring in functioning of Employment Exchanges with Modern Technology.
12. Revamping of Curriculum & Course content in Industrial Training.
13. Joint Cell of Labour & Industries Department to study changes in Laws & Rules.

IMPORTANT ACTS OF INDIAN LABOUR LAWS

Central Labour Acts

1. The Employees’ Compensation Act, 1923

2. The Employees’ Compensation (Amendment) Act 2017
3. The Trade Unions Act, 1926
4. The Payment of Wages Act, 1936
5. The Payment of Wages (Amendment) Act 2017
6. The Industrial Employment (Standing Orders) Act, 1946.- Notification dated
07.10.2016 (Amendment to Schedule)
7. The Industrial Disputes Act, 1947
8. The Minimum Wages Act, 1948
9. The Employees’ State Insurance Act, 1948
10. The Factories Act, 1948
11. The Plantation Labour Act, 1951
12. The Mines Act, 1952
13. The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
14. The Working Journalists and Other Newspapers Employees (Conditions of Service)
and Miscellaneous Provisions Act, 1955
15. The Working Journalists (Fixation of rates of Wages) Act, 1958
16. The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959
17. The Motor Transport Workers Act, 1961
18. The Maternity Benefit Act, 1961
19. The Maternity Benefit (Amendment) Act 2017
20. The Payment of Bonus Act, 1965
21. The Payment of Bonus (Amendment) Act 2015
22. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
23. The Contract Labour (Regulation and Abolition) Act, 1970.
24. The Payment of Gratuity Act, 1972
25. The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972
26. The Bonded Labour System (Abolition) Act, 1976
27. The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare
(Cess) Act, 1976
28. The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labor Welfare
Fund Act, 1976
THE TRADE UNIONS ACT, 1926

1.1 History of Trade Unions in India

At the beginning of the last century, a few groups were formed amongst workers in India so
as to improve their bargaining power with respect to their service conditions and wages.
These were akin to trade unions of the present day India. The earliest known of such unions
were the Printers’ Union formed in Calcutta in 1905 and the Bombay Postal Union
formed in 1907.

The trade union movement in India began after the end of First World War due to the
need for coordination of activities of individual unions. The movement, over a period of
time, systematically spread to almost all industrial centres and became an integral part of the
industrial process in India. Various trade unions were formed during such period, such as the
Madras Labour Union in 1918, the All India Trade Union Congress (“AITUC”) in 1920,
the Bengal Trade Union Federation in 1922 and the All India Railwaymen’s Federation
in 1922.

In March 1921, Shri N.M. Joshi, the then General Secretary of the AITUC, recommended
through a resolution that the Government should introduce legislation for the registration
and protection of trade unions in India. Eventually, the Trade Unions Act, 1926 (“TU
Act”) was enacted for the purpose of ensuring governance and protection of trade unions.

Today, the Bharatiya Mazdoor Sangh (“BMS”), the Indian National Trade Union
Congress (“INTUC”) and the AITUC are considered to be the largest trade unions in India.
Also, the country’s manufacturing sector in particular, is heavily unionized.

1.1.2 Definitions of Trade Union and Trade Dispute: [Section 2]

In this Act "the appropriate government" means, in relation to trade unions whose objects
are not confined to one State, the Central Government, and in relation to other trade unions,
the State Government, and], unless there is anything repugnant in the subject or context, -
(a) "executive" means the body, by whatever name called, to which the management of the
affairs of a trade union is entrusted;

(b) "[office-bearer]" in the case of a trade union, includes any member of the executive
thereof, but does not include an auditor;

(c) "prescribed" means prescribed by regulations made under this Act;

(d) "registered office" means that office of a trade union which is registered under this Act
as the head office thereof;

(e) "registered trade union" means a trade union registered under this Act;

(f) "Registrar" means :-

(i) a Registrar of Trade Unions appointed by the appropriate government under section 3, and
includes any Additional or Deputy Registrar of Trade Unions, and

(f) "Registrar" means :-

(ii) in relation to any trade union, the Registrar appointed for the state in which the head or
registered office, as the case may be, of the trade union is situated;

(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; and

Trade Union [Section. 2(h)]: Trade Union means any 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 for
imposing restrictive conditions on the conduct of any trade or business and includes any
federation of two or more Trade Unions.

Trade Union [Section. 2(h)]: 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 goodwill of a business or of instruction
in any profession trade or handicraft.

The law relating to the registration and protection of the Trade Unions is contained in the
Trade Unions Act, 1926 which came into force with effect from 1st June 1927. The Act
extends to the whole of India except the State of Jammu and Kashmir.

In common parlance, Trade Union means an association of workers in one or more

occupations. Its object is the protection and promotion of the interests of the working class.
Trade Unions have a home grown philosophy based on workers' experience and psychology.
It grows out of the workers' day-to-day experience.

[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.

(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 purposes
of this Act.
[Section 4] Mode of registration

Minimum Requirement of Registration of Trade Union (2001 amendment)

(1) Any seven or more members of a trade union may, by subscribing their names to the rules
of the trade union and by otherwise complying with the provisions of this Act with respect to
registration, apply for registration of the trade union under this Act.

Provided that no Trade Union of workmen shall be registered unless at least ten per cent. or
one hundred of the workmen, whichever is less, engaged or employed in the establishment or
industry with which it is connected are the members of such Trade Union on the date of
making of application for registration:

Provided further that no Trade Union of workmen shall be registered unless it has on the date
of making application not less than seven persons as its members, who are workmen engaged
or employed in the establishment or industry with which it is connected .

(2) Where an application has been made under sub-section (1) for the registration of a trade
union, such application shall not be deemed to have become invalid merely by reason of the
fact that, at any time after the date of the application, but before the registration of the trade
union, some of the applicants, but not exceeding half of the total number of persons who
made the application, have ceased to be members of the trade union or have given notice in
writing to the Registrar dissociating themselves from the application.

Commentary:

It is understood that any organisation to form trade union under the Trade Unions Act,
1926, it should have minimum 70 employees working in that organisation.

For the purpose of registration a minimum of seven members are necessary to form a trade
union. the reason for fixation of minimum seven members is to encourage formation of more
trade unions so that the trade union would grow.

Under the trade union act 1926, employers can register their trade unions.
Retired Employees Can Form Unions Under Trade Union Act 1926 : Madras High Court

Karur Vysya Bank Retirees' Association –vs- Deputy Commissioner of Labour

Civil Miscellaneous Appeal No.2758 of 2019

Court held that,

"the words used in Section 2(g) of the Act, 1926 are that the dispute between employers
and employees, which means that even the past employees, i.e. employees ceased to be in
employment are also entitled to be a part of Trade Union for the purpose of raising a dispute.
That being the case, the Authority was not right in refusing to register the Trade Union and
the order of rejection is incorrect."

"The word used under the Act, 1926 is "persons actually engaged or employed in an
industry with which the Trade Union is connected" and it might be including all persons
irrespective of whether they are in service or retired. When the Act itself provides for an
extended meaning / definition, the Authority concerned cannot narrow the definition to
simply reject the application, as it would definitely be against the very object of the Trade
Unions Act itself and is also violative of Article 19(1)(c) of the Constitution of India."

The Court however clarified that the retired employees would not be permitted to "join
hands" with the Association of current employees. It held that the nature of grievances faced
by either of the employees were on a different path and both could not be mingled together
for espousing the same to the industry with which they are actually connected.

REGISTRATION OF TRADE UNIONS

[Section 5] Application for Registration:-

Every application for registration of a trade union shall be made to the Registrar and shall be
accompanied by a copy of the rules of the trade union and a statement of the following
particulars, namely-
(a) the names, occupations and addresses of the members making application;

(aa) in the case of a Trade Union of workmen, the names, occupations and addresses of the
place of work of the members of the Trade Union making the application;

(b) the name of the trade union and the address of its head office; and

(c) the titles, names, ages, addresses and occupations of the [office-bearers] of the trade
union.

If Trade Union has already been existing for one year or more, for its registration the
members should submit all the details such as general statement of the assets and liabilities of
the Trade Union going to be registered by the Registrar of Trade Union.

[Section . 6] Provisions to be contained in the rules of a Trade Union (2001 amendment)

For registration of the Trade Union, provision or rules mentioned below should be followed
by the member for registration of the Trade Union according to this act.

a) The name of the Trade Union.

b) The object of the Trade Union.

c) General funds of the Trade Union by its members should be properly used for Lawful
purpose.

d) Maintenance of list of members in the Trade Union and their facilities to be provided.

e) Half of the members of the trade union must be the member who actually engaged in an
industry with which trade union is connected.

(ee) the payment of a minimum subscription by members of the Trade Union which shall not
be less than—

(i) one rupee per annum for rural workers;

(ii) three rupees per annum for workers in other unorganized sectors; and
[Section . 6] Provisions to be contained in the rules of a Trade Union (2001 amendment)

(ee) (iii) twelve rupees per annum for workers in any other case;

f) Disciplinary action against member of the Trade Union and procedures in imposition of
fines on members.

g) the manner in which the rules shall be amended, varied or rescinded;

h) the manner in which the members of the executive and the other of the Trade Union shall
be elected and removed

(hh) executive members and other office bearers should be elected for the period of
maximum 3 years..

i) Funds of the Trade Union should be safe guarded, annual audit is necessary, and account
books should be maintained for the purpose of inspection if necessary.

j) Procedure how to wind up the Trade Union.

Power to call for further particulars and to require alteration of name. [Section 7]

If Registrar is not satisfy with information provided by the members of the Trade Union
going to be registered, Registrar is having power to call its members for submitting the
additional and required information for registering the Trade Union.

If the Name of the Trade Union is already existed or similar to other Trade Unions names,
registrar is having power to order for changing of the name.

Registration [Section 8]

All the documents submitted with details and information is correct by the members of the
Trade Union going to be registered, the Registrar will register the Trade Union.
Certificate of Registration. [Section 9]

The Registrar registering a Trade Union under Section 8, shall issue a certificate of
registration in the prescribed form which shall be conclusive that the Trade Union has been
duly registered under this Act.

Minimum requirement about membership of a Trade Union. [Section 9A]

A registered Trade Union of workmen shall at all times continue to have not less than 10% or
100 of the workmen, whichever is less, subject to a minimum of seven, engaged or employed
in an establishment or industry with which it is connected, as its members.

Cancellation of registration [Section 10] (2001 amendment)

Registrar of the Trade Union can cancel the registration of the Trade Union in following
circumstances

When Trade Union registration certificate has been obtained by fraud or other illegal means.

Disobey the rules and regulation of Trade Union act.

All the provision contained in section 6 of this act not followed by the members of the Trade
Union.

When there are no minimum required numbers of members in the Trade Union.

Appeal [Section 11]

If Registrar of the Trade Union stops registration of the Trade Union or withdrawal of the
registration, members can appeal to Labour Court or an Industrial Tribunal, with in
jurisdiction.
Court may dismiss the appeal, or pass an order directing the Registrar to register the Union
and to issue a certificate of registration under the provisions of Section 9 or setting aside the
order for withdrawal.

Section 12 in The Trade Unions Act, 1926

Registered office.— All communications and notices to a registered Trade Union may be
addressed to its registered office. Notice of any change in the address of the head office shall
be given within fourteen days of such change to the Registrar in writing, and the changed
address shall be recorded in the register referred to in section 8.

Incorporation of registered Trade Unions [Section 13] —Every registered Trade Union
shall be a corporate by the name under which it is registered, and shall have perpetual
succession and a body common seal with power to acquire and hold both movable and
immovable property and to contract, and shall by the said name sue and be sued.

Certain Acts not to apply to registered Trade Unions [Section 14]—The following Acts,
namely:—

(a) The Societies Registration Act, 1860 (21 of 1860),

(b) The Co-operative Societies Act, 1912 (2 of 1912),

* * * * * Clauses (c) and (d) rep. by Act 25 of 1942, s. 2 and the First Schedule.

Subs. by Act 42 of 1960, s. 7, for clause ( e) The Companies Act, 1956 (1 of 1956),] shall not
apply to any registered Trade Union, and the registration of any such Trade Union under any
such Act shall be void.

i) LEGAL STATUS OF REGISTERED TRADE UNION

We have already discuss about this topic while reading about the same in Section 13 of The
Trade Union Act, 1926 that is, Incorporation of registered Trade Unions —Every
registered Trade Union shall be a corporate by the name under which it is registered, and
shall have perpetual succession and a body common seal with power to acquire and hold both
movable and immovable property and to contract, and shall by the said name sue and be
sued.

Now we will discuss the same in a bit details.

Registration of Trade Union is not mandatory. As the reregistered trade unions enjoy
various privileges and immunities, it is better to get the trade union registered. The
INDIAN TRADE UNIONS ACT, 1926, is the 1 st legislation in India to register, regulate
and promote trade unions to India. It was amended in 1964, by which the word
“Indian” was omitted and the Act was rechristened as “THE TRADE UNION ACT,
1926.”

CASE LAW

The High Court of Calcutta in Calcutta Port Trust Union Vs. Haldia Shore Ship and
Transport Handling Workers Co-Operative Construction Society Ltd. and Another has
held that “any Trade Union, who is not registered under the Trade Unions Act, cannot be
treated as the Trade Union under the Industrial Disputes Act, 1947”. The Court has further
held that “Section 36 which deals with the representation of parties in clear terms stipulates
that a workman is entitled to be represented in any proceeding under the Industrial Disputes
Act by any member of the executive or other office-bearer of a Registered Trade Union.” To
summarize, if the intention of the workmen forming an association is to act as a trade
union, it is necessary for them to register the trade union under the Trade Unions Act,
1926.

This is a Calcutta High court judgment and not supreme court judgement. So won't be
applicable for the entire territory of India.
BECAUSE, in the Constitution of India, Article 141 says that law declared by the Supreme
Court of INDIA shall be binding throughout the territory of India. Not law declared by the
High Courts.

RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS

A registered Trade Union has the right to maintain

(a) a general fund, and

(b) a separate fund for political purposes:

But the Unions are bound to utilize the funds only for the purposes specified in the Act.

RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS

OBJECTS ON WHICH GENERAL FUNDS MAY BE SPENT [Section. 15]

The following are the purposes for which the general funds of the Union may be spent:

Payment of salaries, allowances, etc., to the office bearers of the Union.

Payment of expenses for the administration of the Union including other expenses spent on
defending any legal proceedings by or against the Union.

Settlement of trade disputes.

Special allowances to the members (including dependents) of the Trade Union on account of
death, sickness or accidents, etc.

Compensation to members for loss arising out of trade disputes.

Providing educational, social and religious benefits to the members.

Issue of assurance policies on the lives of members and also against sickness, accidents,
unemployment, insurance, etc.

OBJECTS ON WHICH GENERAL FUNDS MAY BE SPENT [Section. 15]

The following are the purposes for which the general funds of the Union may be spent:

Providing for publication of periodicals for the use of which is intended for the members
benefit.

Any other object that may be notified by the appropriate Government in the Official Gazette.

If funds are spent for any purposes other than the above, such expenditure is treated as
unlawful and the Trade Union can be restrained by the Court for applying its funds in any
other purposes.

Benefits of registration of trade unions

A registered trade union is considered to be a body corporate which gives it a status of legal
entity which may hold and acquire the property. If can enter into contracts and can also sue
others. As we have seen already, the registered trade union is immune from certain civil,
criminal and contractual liability. The registration of trade unions is mandatory. It is only
optional. The registration of trade unions under the said act does not automatically imply that
a particular trade union has earned recognition status that has been granted by the employer
generally.

It is a matter of agreement between the employer and a trade union unless different states in
India have specific legal recognition of trade unions. Ideally, a trade union must obtain
legitimacy through registration under the TU Act and then seek recognition as a sole
bargaining agent either under the appropriate law or an employer-employee agreement.

Privileges of registered Trade Unions

The employers were given damages and the unions were made responsible for illegal
conspiracies in the case of Buckingham and Carnatic mills. The Trade Unions Act, 1926 has
made provisions for the members and office-bearers of a registered trade union from criminal
and civil conspiracies during the strikes and causing any financial loss to the employer. The
Trade Unions Act, 1926 seeks to insulate two types of protection only to a fraction of labour
force, i.e., exemption from criminal conspiracy and exemption from civil suits under section
17 & 18.

Immunities of registration of trade unions

Section 17 gives immunity from the criminal liability

Section 18 provides for immunity from the civil liability

Section 19 provides privilege to make agreements in restraint of trade.

The above-mentioned sections of the Trade Unions Act confer some special immunities to the
trade unions that have been registered under the act.

ii) Mode of Registration

Under Section 4 (1) of the Act, and Section 4 (2) of the said Act which we have discussed
earlier i.e., in slide No. 20 .

CASE LAW to discuss the Mode of Registration:

The SC in Tirumala Tirupati Devasthanam held that, “any group of employees may be
registered as a trade union under the Act for the purpose of regulating the relations between
them and their employer or between themselves.”

The Court added: “It cannot be disputed that the relationship between the appellant and the
workmen in question is that of employer and employee. The registration of the association of
 the said workmen as a trade union under the Act has nothing to do with whether the said
wings of the appellant are an industry or not.”

(iii) Powers and Duties of Registrar

The duties of the Registrar of Trade Unions in matters of registration of trade union are laid
down under Section 8 of the Act. On having being satisfied with the requirements for the
registration of the union, the Registrar shall register the trade union by entering in a register.
The letter to this effect will be issued to the Trade Union. In case of non-satisfaction of
registrar with the compliance of requirements, the refusal for registration will be issued.

No time limit for the grant or refusal of registration has been prescribed in the Trade Union
Act, 1926. However, there are legal directives issued by the Court to the Registrar of Trade
Unions to perform me statutory duty imposed upon mm under sections 7 and 8 to deal with
the application of the Trade Union according to law at an early date.

The National Commission on Labour has suggested 30 days excluding the time which the
Union takes in answering queries from the Registrar for the grant or refusal of registration by
the Registrar. The Trade Unions (Amendment) Bill, 1982 has provided for insertion of the
words “within a period of 60 days from the date of such compliance” after the words
“Register the Trade Unions” in Section 8 of the Trade Unions Act, 1926. Where, however,
Registrar refuses to grant registration to a trade union, he is under an obligation to state
reasons for refusing to grant registration.

The Societies of Registration Act, 1860, Co-operative Societies Act, 1912 and the
Companies Act, 1956 do not apply to trade unions and registration thereof under any of these
Acts is void ab initio.

(iv) Cancellation and Dissolution of Trade Union

Dissolution of Trade Union [section. 27]

 notice of dissolution signed by secretary and 7 member of the Trade Union, should be
sent to the Registrar of the Trade Union within 14 days from the date of the
dissolution of the Trade Union.

If registrar satisfies with provisions and rules followed by the members of the Trade
Union for dissolution, he will confirm the dissolution.

Funds shall be divided by the Registrar among its members if there is no rules
mention by the Trade Union in distribution of the funds.

Cancellation of Registration

Under Section 10 – “A certificate of registration of a Trade Union may be withdrawn or

cancelled by the Registrar-

on the application of the Trade Union to be verified in such manner as may be prescribed;

Cancellation of Registration

Under Section 10 – (b) if the Registrar is satisfied that the certificate has been obtained
by fraud or mistake or that the Trade Union has ceased to exist or has wilfully and after
notice from the Registrar contravened any provision of this Act or allowed any rule to
continue in force which is inconsistent with any such provision or has rescinded any rule
providing for any matter provision for which is required by section 6”
Provided that not less than two months previous notice in writing specifying the ground on
which it is proposed to withdraw or cancel the certificate shall be given by the Registrar to
the Trade Union before the certificate is withdrawn or cancelled otherwise than on the
application of the Trade Union.

CASE LAW
In the case of Solapur District Central Co-operative Bank Employees Union, Solapur, the
Registrar cancelled the registration of the Union after single show-cause notice of two
months. The Mumbai High Court held that generally, a second show-cause notice is
required to be issued. However, it further held that where the contravention is of an aforesaid
kind, one single notice of two months may be sufficient. Hence, the cancellation of
registration was valid.

v) PROCEDURE FOR CHANGE OF NAME:-

Under Section 23(3)(a) of the Trade Unions Ordinance,

the proposed union name cannot be identical with that under which any other trade union,
whether existing or not, is or has been registered on so nearly resembles such name as to be
likely to deceive the public or the members of such trade union or of any other trade union.

﹝2﹞ Under Section 23(1) of the Trade Unions Ordinance, a registered trade union may
agree to change its name by secret ballot of a majority of its voting members or a majority of
members’ representatives (where the union rules allow) present at a general meeting.

﹝3﹞ The general meeting should be held in accordance with the stipulations laid down in the
rules of the trade union, e.g. sufficient notice of meeting, sufficient quorum, the motion in
respect of change of name is conducted in the manner specified by the Trade Unions
Ordinance and the rules of the trade union, etc.

Under Section 23(2) of the Trade Unions Ordinance, application for registration of the
change of name shall be sent to the Registrar within 14 days of the change. No change of
name of a registered trade union shall take effect until the same has been registered under the
Trade Unions Ordinance.

Under Section 23 :-

The Chairman and one other officer must sign the Form 8 “Application for Registration of
Change of Name of a Registered Trade Union” personally before sending it to this Registry
with all requisite documents listed below:
Notice and agenda of the general meeting signed by seven voting members: The motion(s) in
respect of the change of name must be specifically set out in the agenda. If the agenda is not
incorporated in the notice of convening the general meeting referred to in item 4(a) of the
form, it must be submitted together with the notice. The said notice must indicate the date on
which it is issued. In case of an adjourned meeting, notices of both the general meeting and
the adjourned meeting must be submitted.

Minutes of meeting (i.e. the resolution referred to in item 4(b) of the form) signed by seven
voting members must contain the following information:

﹝i﹞ Date and time of the meeting;

﹝ii﹞ Place of the meeting;

(b)﹝iii﹞ Chairman of the meeting;

﹝iv﹞ Total number of voting members (or representatives) on the date of the meeting;

﹝v﹞ Total number of voting members (or representatives) present at the meeting;

﹝vi﹞ Full details of the resolution (concerning alterations to name) passed by members at
the meeting;

﹝vii﹞ Whether the resolution is unanimously carried, if not, the number of votes in favour
of/against the resolution and the number of abstentions.

﹝c﹞ Two copies of the text of the rules containing the names (old and new text version
listed) signed by seven voting members (i.e. referred to in item 4(c) of the form).

﹝d﹞ The original copy of the union’s certificate of registration.

vi) Amalgamation and Dissolution of Trade Union:-

[Section 24] Any 2 or more registered Trade Unions may become amalgamated together as
one Trade Union with or without dissolution or division of the funds of such Trade Unions or
either or any of them, provided that the votes of at least one-half of the members of each or
 every such Trade Union entitled to vote are recorded, and that at least 60% of the votes
recorded are in favour of the proposal.

[Section 25] Notice of change of name or amalgamation:- In case of change in the name of
the Trade Union, written notice of the change of name must be signed by secretary and 7
member of the Trade Union are required to sent to registrar of the Trade Union.

in case of an amalgamation of the Trade Union, written notice of an amalgamation must be

signed by secretary and 7 members of the Trade Union are required to sent to registrar of
the Trade Union.

Trade Union name should not match with the other Trade Union names.

If Registrar satisfies with all requirements provided by the members of Trade Union,
Registrar will change the name and the same entered in the register.

If Registrar satisfies with all requirements provided by the members of Trade Unions,
Registrar will validate amalgamation and entered in the register.

[Section 26] Effects of change of name and of amalgamation:-

(1) The change in the name of a registered Trade Union shall not a affect any rights or
obligations 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 new
name.

(2) An amalgamation of two or more registered Trade Unions shall not prejudice any right of
any of such Trade Unions or any right of a creditor of any of them.

Dissolution of Trade Union [section. 27]

 notice of dissolution signed by secretary and 7 member of the Trade Union, should be sent to
the Registrar of the Trade Union within 14 days from the date of the dissolution of the Trade
Union.

If registrar satisfies with provisions and rules followed by the members of the Trade Union
for dissolution, he will confirm the dissolution.

Funds shall be divided by the Registrar among its members if there is no rules mention by the
Trade Union in distribution of the funds.

Various Types of Dissolution

There can be various types of dissolution which are considered by the International Labour.
These are defined as below: -

Voluntary Dissolution

The situation where the decision of trade union is taken was freely taken by the respective
committee convened in a further manner for all the workers concerned. It was considered
here that this dissolution or any consequences resulted from it would not be considered as an
infringement of the Trade Union Rights.

Insufficient Membership

There is a legal provision that requires the dissolution of the Trade Union if its membership
falls below a required number of 20 or 40 which further depends on whether it’s a work
union and occupational union. Further, all the necessary conditions should be considered to
avoid any abusive interpretation of the provision i.e. the right of appeal to the court of law.

In the case where the reduction in the number of employees to the legal minimum of age of
25 years as a consequence of anti-trade union and dismissals, it was considered by the court
that in this case where the minimum number of people is due to the reason of pressure from
the leaders or any outside force then such dissolution will not be affected.
3. Administrative Authority

There can also be some cases where the dissolution of a company is affected by the virtue of
an order of an administrative authority, where there have been some serious infringements of
the freedom of the association.

Conclusion- The Trade Unions Act, 1926 has been considered as important welfare
legislation whose main focus was on providing for the provisions for registration, strict
regulations, benefits and also for the protection for these trade unions. As such legislations
envisage the welfare of workers, these are called ‘welfare legislation”. In India, agreements
between the Trade Union and employers are enforceable under Section 18 of the Industrial
Disputes Act, 1947 by filing a petition in the Labour Court or Industrial Tribunal. This has
been proved to be essential for the Trade Union Act. Further, the dissolution which has been
talked about in the latter part also has quite an impact on these laws.

Disqualifications of Office- bearers, Rights and Duties of Office- bearers and Members.

vi) 21A. Disqualifications of office-bearers of trade unions

A person shall be disqualified for being chosen as, and for being member of the executive or
any other office bearer of a registered trade union if-

he has not attained the age of eighteen years;

he has been convicted by court in India of any offence involving moral turpitude and
sentenced to imprisonment, unless a period of five years has elapsed since his release.

Any member of the executive or other office-bearer of a registered trade union who, before
the commencement of the Indian Trade Union (Amendment) Act, 1964, has been convicted
of any offence involving moral turpitude and sentenced to imprisonment, shall on the date of
such commencement cease to be such member or office-bearer unless a period of five years
has elapsed since his release before that date].
21
[(3) In its application to the State of Jammu and Kashmir, reference in sub-section (2) to
the commencement of the Indian Trade Union (Amendment) Act, 1964, shall be construed as
reference to the commencement of this Act in the said State].

Statutory Rights of Trade Union Members

Apart from the abovementioned stipulations, members of a registered trade union have the
following rights under the TUO:

Inspection of union documents

•Trade union members or their authorized agents have the right to inspect the account books
and membership register of the union at such times and in such place as specified in the
union rules. They may also apply to the Registrar of Trade Unions in writing for inspection
free of charge of any documents required by law to be filed with the Registrar that are related
to the union, such as annual statements of accounts, registered union rules and lists of union
officers.

Other Statutory Rights

Trade union members can take legal action against any officer of the union concerned for
wilfully withholding or misapplying union funds or property, and apply to the Court for an
injunction restraining the union officer from holding office or controlling trade union funds.
Besides, trade union members may appeal to the Court of First Instance of the High Court
against the Registrar of Trade Unions on such decisions as refusal to register a change of
union name or refusal to register amendments to union rules, etc.

According to the TUO, where any offence against the TUO or any regulations made
thereunder has been committed by the union, every officer of the trade union shall be guilty
of the like offence unless he proves to the satisfaction of the court that the act constituting the
offence took place without his knowledge or consent.