The Registration of Trade Unions Final Good
The Registration of Trade Unions Final Good
The Registration of Trade Unions Final Good
SUBMITTED BY-
FARHEEN HAIDER
SECTION- B
3RD YEAR, FACULTY OF LAW
TABLE OF CONTENTS
1 Introduction.
2 The Registration of trade union.
3 Appointment of registrars.
4 Mode of registration.
5 Application of registration.
6 Provisions to be contained in the rules of a trade unions.
7 Power to call for further particulars.
8 Registration.
9 Certificate of Registration
10 Minimum requirements about membership of a trade union
11 Cancellation of Registration
12 Incorporation of Registered union
13 Bibliography
INTRODUCTION
This is the really main provision of the act. Any seven or more members of the union can form
the trade union and apply to the registrar for its registration by subscribing their names to its
rules. any seven or more members of the trade union may by subscribing their names to the
rules of the trade union and by otherwise complying with the provision of the act with respect to
the 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 percent ,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 of such
registration.
Provided that further 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.
The application for registration should be accompanied by a copy of the rules of the union and a
statement containing particulars, namely: (a) the names, occupations and addresses of the
members 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 the union has been in existence for more than a year before applying for
registration, the Registrar should also be supplied a statement in the prescribed form showing
the assets and liabilities of the union. The Registrar may not register the trade union unless its
executive is constituted in accordance with the provisions of this Act; and its rules mentioned
clearly the name and objects of the union, and the purpose for which its funds are to be used.
Not more than 5000 of members (now 1/3rd or 5) of the executive committee can be outsiders.
The rules should also provide for the maintenance of a list of the membership of the union and
adequate facilities for the inspection, thereof, by the officers and members of the union;
procedure for the admission of ordinary, honorary or temporary members, rate of subscription
not being less than 25 paise per month per member; the payment of a minimum subscription by
members of the Trade Union which shall not be less than:
1. one rupee per annum for rural workers; 2. Three rupees per annum for workers in other
unorganized sectors; and 3. Twelve rupees per annum for workers in any other case.
the manner of amending, varying or rescinding rules; manner of appointing members of the
executive committee and other officers of the trade union, safe custody of funds and their
spending for the purpose specified in the Act; annual audit and inspection of account
books by the officers and members; and the manner of dissolution of the trade union, or
changing its name. The Registrar has the power to call for any further information, and also alter
the name of the union, if it is identical with that of any other registered union. He registers the
union by recording its particulars in a register and issuing a registration certificate (Sec. 4 to 9).
A registered Trade Union of workmen shall at all times continue to have not less than ten per
cent, or one hundred of the workmen, whichever is less, subject to a minimum of seven,
engaged or employed in an establishment or industry with which iris connected, as its members.
The federation of trade unions also requires registration. It was held in National Organization of
Bank Workers Federation of Trade Unions vs. Union of India and others (Bombay 4993) that
where a federation of Trade Unions is not registered, it is not a trade union under the Act. It is
not a juristic person and it is not competent to raise a demand on behalf of employees, which
can fall in the ambit of Industrial Disputes. It cannot file a writ petition.
The Trade Unions are mass organizations of workers or employers formed voluntarily for
collective bargaining of better terms and conditions of service or employment or for imposing
restrictive conditions on the conduct of any trade. Business or industry through concerted action
and for peaceful and harmonious industrial relations. The Trade Unions Act introduces a
voluntary system of registration of unions.
The object of introducing a system of registration for trade unions was to encourage the
establishment of permanent and stable bodies having adequate written constitutions and regular
audited accounts. The Act. therefore, requires that a registered Trade Union must set out in its
rules the objects for which it is established and the purposes for which its funds may be used.
Its benefit conditions, disqualifications and forfeitures must be mentioned. Provision must also
be made for appointment and removal of members of the executive and the other office-bearers
of the Trade Union, for the safe custody of the funds and annual audit of accounts. The
provision must also be made for the manner in which the Trade Union may be dissolved.
To encourage Unions to register, certain advantages were offered by the Act, including express
power to acquire and hold movable and immovable property and to bring and defend legal
proceedings in the name of the Trade Union .The Act grants immunity from civil and criminal
liability to registered Trade Unions. Furthermore, the Act confers upon a registered Trade Union
a legal personality with the power to contract in its own name. These advantages solicit the
workers to form Trade Unions and get them registered under the provisions of the Trade Unions
Act, 1926.
Appointment of Registrars
The whole process of registration is finalized by the Registrar of the Trade Unions. Section 3 (l)
of the Act not only authorizes the appropriate Government to appoint the Registrar but it places
the appropriate Government under a statutory duty to appoint a person to be the Registrar of
Trade Unions for each State. Sub-section (2) of section 3 confers further authority to appoint as
many Additional and Deputy Registrars as the appropriate Government 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.
The Additional and Deputy Registrars are appointed where the Registrar is unable to exercise
and discharge the powers and functions due to excessive work load. In such situation the
appropriate Government appoints these officers to function under the superintendence and
direction of the Registrar and demarcate local limits and also specify powers and functions
assigned to them. It has been further provided under sub-section (3) of Section 3 that subject to
the provisions of 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 Regis trar
in relation to the Trade Union for the purposes of this Act.
Mode of Registration
Section 4 of the Trade Unions Act provides for the mode or procedure of registration of a Trade
Union. It says. 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. This provision
makes it clear that an application for registration of a Trade Union must be moved at least by
seven members. But it is not necessary that this minimum number of members must remain
intact until the Trade Union is finally registered. The provision is expressly made to cover such
contingency under the provisions of Section 4 (2) of the Trade Unions Act which provides that
where an application has been made 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 needing half of the total number of persons who made the application, have ceased to
be the members of the Trade Union or have given notice in writing to me Registrar
disassociating themselves from the application.
It simply means that minimum number of applicants may become half of the total number but it
must not exceed half of the total number. For example, if seven persons have made an
application to the Registrar for registration of the Trade Union and three of them disassociate
from it, it will not invalidate the application but if four out of seven applicants disassociate
themselves then the application will become invalid and the Registrar will not proceed further for
the purpose of registration.
Any application for registration has to be made by any seven or more members of a trade union.
Mark the word members used in Section 4 of the Trade Unions Act. It means that before an
application for registration is signed by a particular person he must have been admitted to the
trade union in accordance with the rules for admission. A person becomes a member as soon
as his application is accepted and he complies with the rules as to admission. Normally, these
rules include the payment of an entrance fee and contributions. For example. There is a
provision or payment of a subscription by members of the trade union which shall not be less
than twenty-five naye paise per month per member. In such cases the person becomes a
member upon the acceptance of his entrance fee or subscription which is normally evidenced
by the receipt of a membership card.
It may be pointed out that persons under the age of thirteen years cannot be members of a
trade union. It has been expressly provided that any person who has attained the age of fifteen
years may be a member of a registered trade union subject to any rules of the Trade Union to
the contrary, and may, subject as aforesaid enjoy all the rights of a member and execute all
instruments and give all acquaintances necessary to be executed or given under the rules. 1
So far as membership is concerned any person who has attained the age of fifteen years may
become member in the trade union. However, he will be disqualified for being chosen as, and
for being, a member of the executive or any other office bearer of a registered trade union, if he
has not attained the age of eighteen years 2. Thus, an application for registration can be made
by any seven or more members of a trade union subscribing their names to the rules of the
trade union and by otherwise complying with the provisions of this Act with respect to
registration.
But the proposed amendment in the existing provisions of section 4 provides that in relation to a
trade union of workmen engaged or employed in an establishment or in a class of industry in a
local area with which the Trade Union is connected. The number of workmen engaged or
employed in such establishment or such class of industry is more than one hundred, any such
application shall be made by at least ten percent of the workmen so engaged or employed.
Provided further that in relation to a Trade Union of workmen engaged or employed in an
establishment or in a class of industry in a local area; the number of workmen so engaged or
employed immediately before the commencement of Part B of the Trade Unions and the
Industrial Disputes (Amendment) Bill 1988 is more than one hundred! The certificate of
1
Trade Union Act,1926,Section 21.
2
Trade Union Act ,1926,Section 21-A.
registration in relation to such Trade Union shall be deemed to have been cancelled after six
months from such commencement unless an application for the continuance of its registration is
made by at least ten per cent of such workmen before the said period of six months.
The new provision intends to ensure democratic spirit in the trade unions. After the proposed
amendment is enforced any seven members of the trade union shall not be competent to apply
for the registration if the number of workmen engaged in such establishment or class of industry
exceeds one hundred. Not only it will apply to persons applying for the registration of the trade
union but it will also apply to already registered trade unions for continuance of their registration
after commencement of this provision. The new provision in the form of an Explanation is
proposed to be added to sub-section (1) of section 4 of the Act. However the new provisions
shall not affect the trade unions of workman engaged in such establishment where the number
of Workmen do not exceed one hundred. In such cases even after amendment any seven
members will be fully competent to apply for registration and registration certificate of existing
trade unions shall not be deemed to have been cancelled.
Application of Registration
Every application for registration of a Trade Union shall be made to the Registrar of the Trade
Unions. Such application for registration 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 members 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 officers of the Trade Union.
Thus, according to Section 5 (l) of the Trade Unions Act, the above particulars are necessary to
be furnished to the Registrar by the newly established Trade Union but where a Trade Union
has been in existence for more than one year before the making of an application for its
registration, Section 5 (2) of the Trade Unions Act makes it imperative to submit a general
statement of the assets and liabilities of the Trade Union prepared in such form and containing
such particulars as may be prescribed, together with the application. The object of this provision
is to make it known to the public and its members, the financial condition and stability of the
Trade Union.
Provisions to be contained in the rules of a trade union
As mentioned above, every application for registration of Trade Union shall be accompanied by
a copy of the rules of, the Trade Union relating to objects, payment of subscription, procedure to
amend the rules and manner of dissolution of the Trade Unions. In the absence of such rules,
no Trade Union shall be entitled to registration. Section 6 of the Trade Unions Act expressly
provides that a Trade Union shall not be entitled to registration under this Act, unless the
Executive thereof, is constituted in accordance with the provisions of this Act, and the rules
thereof provide for the following matters, namely-
(b) The whole of the objects for which the Trade Union has been established.
(c) The whole of the purposes for which the general funds of the Trade union shall be applicable
which must be permissible under this act.
(d) The maintenance of a list of the members of the Trade Union and adequate facilities for the
inspection of such list by the office bearers and members of the Trade Union.
(e) The admission of ordinary members who shall be persons actually engaged or employed in
any industry with which the Trade Union is connected. And also the admission of the number of
honorary or temporary members as office-bearers required under Section 22 to form the
executive of the Trade Union.
(ee) the payment of a subscription by members of Trade Union which shall be not less than 25
naye paise per month per member.
(f) The conditions under which any member shall be entitled to any benefit assured by the rules
and under which any due or forfeiture may be imposed on the members.
(g) The manner in which the rules shall be amended varied on rescinded.
(h) The manner in which the members of the executive and the other office bearers of the Trade
Union shall be appointed and removed.
(i) The safe custody of the funds of the Trade Union. and annual audit. In such manner as may
be prescribed, of the accounts thereof and adequate facilities for the inspection of the account-
books by the office bearers and members of the Trade Union.
The amendment 3further seeks to insert new clauses after clause (h) in section 6 namely:
(ha) the appointment of office bearers to be made every year within such date as may be
Specified in this behalf;
(hb) the holding of meetings of the executive at such interval of not more than three months as
may be specified ;
(hc) the recording of resolutions passed by the executive or the general body in the minutes
book in such manner as may be specified.
All these provisions intend to ensure better functioning of the trade unions on the democratic
principles. It may be indicated that Section 21-A expressly provides that a person shall be
disqualified for being chosen as, and for being, a member of the executive or any other office
bearer of a registered union, if-
(ii) he has been convicted by a court in India of any offence involving moral turpitude and
sentenced to imprisonment, unless a period of five years has elapsed since his release.
It is required that not less than one-half of the total number of the office bearers of every
registered trade union must be persons actually engaged or employed in an industry with which
the trade union is connected . However, the appropriate government may, by special or general
order, declare that this provision shall not apply to any trade union or class of trade unions
specified in the order.4
3
The Trade Union and the Industrial Disputes (Amendment) Bill,1988.
4
The Trade Union Act ,1926,Section 22.
5
AIR 1975 SC 506.
Association co-exist. Further the Court had no right to rewrite the rules of a registered Trade
Union By deleting any of them.
In M. T. Chandersenan v. Sukumaran,6 it was held that if subscriptions are not paid in
accordance with the bye-laws of the Trade Union, persons who have failed to pay cannot be
considered as members of the Union. But subscriptions should not be refused under some
pretext which results in denial of membership.
It was held by the Supreme Court in Bokajan Cement Corporation Employees Union v.
Cement Corporation of India Ltd,7 that an employee would not automatically cease to be a
member of the Trade Union on termination of his employment because there was no such
provision either in Trade Union Act or in the constitution of the union.
In Indian Oxygen Ltd. v. Their Workmen8 the dispute regarding workmen of one factory
represented by their Union and Company was referred to the Tribunal. The membership of the
Union was limited to workmen of that factory. It was alleged that the Constitution of the Union
was amended so as to embrace workmen of other factories of the company and the name of the
Union was changed before reference. But the amendment was not effected according to the
provisions of the act. It was held that the award of the tribunal could not extend to workmen of
other factories.
In B.S.V. Hanumantha Rao & another v. Deputy Registrar of Trade Union and Deputy
Commissioner of Labour & others,9 the rules of Hyderabad Allwyn Workers Union were
amended to provide for making the President of the Union as election authority, empowering
him to nominate all office bearers and denying authority to the general body to remove the
President from office before expiry of his term. These amendments were registered by the
Registrar. It was held that the amendments were contrary to the letter and spirit of the Trade
Union Act. The President who is vitally interested in the conduct of elections cannot be the
person who can be entrusted with the authority to prepare the voters list, appoint Returning
Officer and conduct elections. It is a case of a person being given the authority to perpetuate
himself in office. Such a procedure amounts to constituting a person a judge in his own cause.
6
AIR1974 SC 1789.
7
( 2004) I LLJ 197 ( SC)
8
AIR 1969 SC 306.
9
(1988) I LLJ 83 (AP).
Sec. 7. Power to call for further particulars and to require alteration of name
The registration of a Trade Union will be refused by the Registrar if the name under which a
Trade Union is proposed to be registered is identical with that of any existing Trade Union or so
nearly resembles such name as to be likely to deceive the public or the members of either
Trade Union. In such a case the Registrar may require the persons applying for such
registration to change the name of the Trade Union, and it shall be registered only after such
alteration. The Registrar may also ask for further information which he thinks necessary for the
purpose of satisfying himself that the application complies with the provisions of sections 5 and
6 of the Act. On application for registration being made the Registrar may call for further
information for the purpose of satisfying himself that the application complies with the provisions
of this Act. Such information may be asked for only from the applicant and not from any other
source.10
In Tata Workers Union v. State of jharkhand and another,11 there were two rival groups of
Union. The Registrar of Trade Union by an order took a decision to supervise the election of
officer bearers to the petitioner Union. This order was challenged and the High Court held that
the Registrar could not intervene in the matter of holding election of office bearers of a
registered Trade Union.
Sec. 8. Registration
The Registrar will register the Trade Union if he is satisfied that the Trade Union has complied
with all the requirements of this Act in regard to registration. The Registrar shall register the
Trade Union by making necessary entries in the register; to be maintained in such form as may
be prescribed. The particulars relating to the Trade Union contained in the statement
accompanying the application for registration shall be entered in the register.
The workmen of an industrial establishment can form as many Unions as they like. There is
nothing in the Act that bars the formation of rival Unions or requires a Union applying for
registration to give notice to all existing unions. When a union seeks registration, all that it has to
do is to ensure that the provisions of the act, rules and regulations made under relating to the
registration of the trade union have been complied with.
10
Kondal Rao v.Registrar Trade Unions, 1952 M.L.J.
11
(2002) III LLJ 474 (Jharkhand).
It was held in IFFCO, Phulpur Karmchari Sangh v. Registrar of Trade Unions and others,12
that once the trade union is registered by the Registrar of Trade Unions under Section 8 of the
Trade Unions Act, 1926, certificate of Registration continues to hold good until it is cancelled.
The action of the Registrar of Trade Unions registering the change of names of office bearers of
a union does not amount to registration of trade union.
.
Where the Registrar takes no action on an application for more than three months, a writ under
Art. 226 can be issued commanding the Registrar to deal with the application.13 Where different
set of office bearers are filed by rival group in a Trade Union the Registrar has no power to hold
a quasi-judicial inquiry. He has no power for adjudication although he is given quasi-judicial
power in registering the Trade Union or in their cancellation. He has an administrative duty to
record changes in office bearers under Section 8 read, with Section 28. In exercising this
function the registrar can only reasonably enquire to discover whether the changes to be
recorded conform to actual facts and rules. But this power cannot convert his inquiry into quasi-
judicial proceeding in which each side has the right to lead evidence and cross -examine
witnesses. He can hold a summary inquiry for his own satisfaction.
In Chemosyn (P) Ltd. $ others v. Kerala Medical and Sales Representatives Association.
14
It was held that a Trade Union registered under the Act is not a statutory body. It is not
created by statute or incorporated in accordance with the provisions of a statute. The activities
of the Trade Union are not closely related to Governmental functions and are not of public
importance. Therefore a Trade Union is not amenable to writ jurisdiction as it is not covered by
"other authorities" in Article 12 of the Constitution.
In O.N.G.C. Workmens Association v. State of West Bengal and others,15 it was held that
the Registrar of Trade Union has no quasi-judicial authority to hold any inquiry by allowing
parties to examine witnesses and to decide the dispute as to who are the real office-bearers.
Where two rival groups claim to be office bearers of a Union the scope of inquiry is limited and
an order passed by the Registrar in this regard is administrative in nature. To decide a dispute
of this nature an inquiry maybe held by the Registrar in presence of both parties.
In fateh Solanki and others v. Rashtriya Mill Mazdoor Sangh and others,16 two rival groups
claimed to be office bearers of Union. It was held that the dispute is not a trade dispute under
12
(1992) II LLJ 239.
13
A.C.C. Rajanka Limestone Quarries Mazdoor Union v. Registrar of Trade Union ,AIR 1958 patna 470.
14
(1988) II LLJ 43 (kerala)
15
(1988) II LLJ 335 (cal.)
16
(1994) I LLJ 294 (Raj.)
Section 2 (g) and it is in the nature of a private dispute which can be adjudicated upon by the
Civil Court only and not by the Registrar under the Act. He can only make a reasonable inquiry
within the scope of Sections 8 and 28 of the Act to ascertain as to who are the elected office
bearers and to register their names .the registrar under section 28 does not discharge any
quasi- judicial functions but he discharges only administrative functions.
The registrar on registering a trade union shall issue a certificate of registration in the prescribed
form which shall be conclusive evidence that the trade union has been duly registered under
this act.
A registered Union of workmen shall at all times continue to have not less than ten per cent. Or
one hundred 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.
Power to withdraw or cancel registration of a Trade Union is given to the Registrar. The
Registrar can exercise his power in the following cases
(1) On the application of the Trade Union to be verified in the prescribed Manner.
(2) If the Registrar is satisfied that the certificate of registration has been obtained by fraud or
mistake.
(4) If the Union has willfully and after notice from the Registrar contravened any provisions of
this Act or allowed any rule to continue in force which is inconsistent with the provisions of the
Act.
(5) Where the Union has rescinded any rule providing for any matter provision for which is
required to be made by section 6.
(6) According to clause (c) of Section 10 if the Registrar' is satisfied that a registered Trade
Union of workmen ceases to have the requisite number of members, the registration can be
cancelled.
The Registrar on receiving an application from the Union for withdrawal or cancellation of
registration must before granting the prayer, satisfy himself that the withdrawal or cancellation of
registration was approved by a general meeting of the Trade Union or if it was not so approved
it had the approval of the majority of the members of the Trade Union. For this purpose he may
call for such further particulars as he thinks necessary and may also examine any officer of the
Union.
Except when the registration is withdrawn on an application by the Union itself, the Registrar
must give to the Trade Union not less than two months previous notice in writing specifying the
ground on which it is proposed to withdraw or cancel the certificate of registration. It is quite
clear from the provisions of section 10 of this Act that no such notice as aforesaid by the
Registrar to the Union is necessary, when the registration is withdrawn or cancelled on an
application by the Union itself.
It was held in Tata Electric Companies officers Guild v. Registrar of Trade Unions,17 that for
cancellation of registration of a Trade Union willful contravention of provision of the Act is
necessary. Therefore where a Trade Union did not file return due to misunderstanding of
accounting year and the return was filed soon after receipt of show cause notice from the
Registrar, the cancellation of registration on the ground of non-filing of return was held improper.
In Bombay Fire Fighters Services Union, Mumbai v. Registrar Trade Unions, Bombay.18
An appeal was filed by the Union challenging the order of Registrar cancelling its registration for
continued contravention of Section 28 of the Trade Unions Act, 1926. Setting aside the
impugned order the High Court observed that the said order was in violation of the mandatory
provisions of Section 10 of the Act. The respondent, Registrar had not addressed a previous
show cause notice in writing to the appellant union at its correct address. Therefore, the
cancellation of registration was held illegal and improper.
17
(1994) I LLJ 125 (Bom.)
18
(2003) II LLJ 1100 (Bom.)
Sec. 12. 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. The change in address shall be recorded in the
register referred to in section 8 of the Act.
(3) It can acquire and hold both movable and immovable property.
2 Dr. V.G.Goswami, Labour And Industrial Laws, 1993, Allahabad, Central Law Agency.
4 S.K.Mishra, Labour and Industrial Law of India, Faridabad, Allahabad Law Agency.
5 B.D Singh,Industrial Relations and Labour Laws,2015, New Delhi, Excel Books.
6 Dr. Avtar Singh, Introduction to Labour & Industrial Law,2002,The Publishers Editorial Board.