RELEVANCE OF RULES OF TRADE UNION IN THE LIGHT OF

JUDICIAL DECISIONS

Labour Law

Submitted by
Diwakar Chirania
SM0116018
3rd Year, 6th Semester

Faculty In-charge
Ms .Monmi Gohain,
Assistant Professor of Law

National Law University and Judicial Academy, Assam

 Content

Table of Cases………………………………………………………........................................ii
Table of Statutes............................................….......................................................................iii
Table of Abbreviations.....................................................…....................................................iii
Introduction………………………………………………………………………....................1
Aim(s)…………………………………………………………………………….....................2
Objectives (s)……………………………………………………………………......................2
Scope and Limitations…………………………………………………………........................2
Review of Literature................................................................................……….......................2
Research Questions..........................................................…......................................................3
Research Methodology....................................….......................................................................3
Rules of Trade Union...............................................................................................................4
Relevance of Rules of Trade Union........................................................................................4
Summary of Cases....................................................................................................................5
Central Trade Union Regulations, 1938...............................................................................11

Conclusion…...........................................................................................................................12
Bibliography................................................................................................................…...........v

i
Table of cases
1. Brooke Bond India Ltd. v. The Workman
2. State Bank of India Association v. State Bank of India and others
3. Bokajan Cement Corpm Employees Union v. Cement Corpn. of India
4. Hamlet v. General Municipal Boilermakers and Allied Trade Union
5. Jacques v. Amalgamated Union of Engineering Workers (Engineering Section)
6. B.S.V. Hanumantha Rao v. Deputy Registrar of Trade Unions and Dy. Commr. of
Labour
7. B C Sharma v. ML Bhalla

Table of Statues

1926- Indian Trade Unions Act

1938- The Central Trade Union Regulations

Table of Abbreviations

1. AIR All India Report

2. All. Allahabad

3. A.P. Andhra Pradesh

4. Bom. Bombay

5. Cal. Calcutta

6. Ed. Edition

7. H.P. Himachal Pradesh

8. ILR Indian Law Report

9. Kant. Karnataka

10. LR Law Report

ii
11. LT Law Times

12. M.P. Madhya Pradesh

13. Mad. Madras

14. Nag. Nagaland

15. Ori. Orissa

16. P&H Punjab and Haryana

17. p. Page Number

18. SC Supreme Court

19. SCR Supreme Court Report

20. v. Versus

iii
Abstract
Trade union is a voluntary organization of workers relating to a specific trade, industry or a
company and formed to help and protect their interests and welfare by collective action.
Trade union are the most suitable organisations for balancing and improving the relations
between the employees and the employer. 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 [Link]
rules of Trade Union are very significant regarding the trade union. This project delves into
the regulations of trade union. It also highlights the important judicial decisions.
Keywords: Trade Union, Rules, Regulations.

Introduction

In India, the first organised trade union was formed in 1918 and since then they have spread
in almost all the industrial centres of the country. The legislation regulating these trade
unions is the Indian Trade Unions Act, 1926. The Act deals with the registration of trade
unions, their rights, their liabilities and responsibilities as well as ensures that their funds are
utilised properly. It gives legal and corporate status to the registered trade unions. It also
seeks to protect them from civil or criminal prosecution so that they could carry on their
legitimate activities for the benefit of the working class. The Act is applicable not only to the
union of workers but also to the association of employers. It extends to whole of India. Also,
certain Acts, namely, the Societies Registration Act, 1860; the Co-operative Societies Act,
1912; and the Companies Act, 1956 shall not apply to any registered trade union, and that the
registration of any such trade union under any such Act shall be void.

The Act is administered by the Ministry of Labour through its Industrial Relations Division.
The Division is concerned with improving the institutional framework for dispute settlement
and amending labour laws relating to industrial relations. It works in close co-ordination with
the Central Industrial Relations Machinery (CIRM) in an effort to ensure that the country gets
a stable, dignified and efficient workforce, free from exploitation and capable of generating
higher levels of output. The CIRM, which is an attached office of the Ministry of Labour, is
also known as the Chief Labour Commissioner (Central) Organisation. The CIRM is headed
by the Chief Labour Commissioner (Central). It has been entrusted with the task of
maintaining industrial relations, enforcement of labour laws and verification of trade union
membership in central sphere. It ensures harmonious industrial relations through:-

1
 • Monitoring of industrial relations in Central Sphere;
• Intervention, mediation and conciliation in industrial disputes in order to bring about
settlement of disputes;
• Intervention in situations of threatened strikes and lockouts with a view to avert the
strikes and lockouts;
• Implementation of settlements and awards.

Through this paper, the researcher has specifically dealt with the significance of rules of trade
union and it’s importance. The researcher has also incorporated the Central Trade Unions
Regulations, 1938.

Aim(s)

The aim of this project is to study the significance of rules of Trade Union in light of judicial
decisions.

Objective (s)

The Objectives of this research paper

➢ To understand the concept of rules of trade union through different judicial

interpretation.
➢ To study the significance of rules of trade union.
➢ To study about the Central Trade Union Regulations, 1938.

Scope and Limitations

The Scope of this research paper is limited to rules of trade union under Trade Unions Act,
1926 and Central Trade Union Regulations, 1938.

Review of Literature

S.N. Mishra, LABOUR AND INDUSTRIAL LAW, Central law publications, (2016)

This book gives a good understanding on the explanation of the concepts and law relation to
the rules of trade union. It explains the technical concept relating to researcher’s topic in very
simple language and lucid manner. Apart from this, it helps to command over provisions with
section wise commentary on Trade Unions Act. This book provides a good understanding of
the relevant judicial decisions. It gives comments with explanation in order to understand the

2
significance of rules of trade union. It also provides illustration and some judicial
interpretations in order to understand of the topic.

Dr. V.G. Goswami, LABOUR AND INDUSTRIAL LAWS, Central Law Agency,
(vol.2), 9th ed 2011

This book contains the whole concept of rules of trade union in a very comprehensive and
digestive manner. It covers a wide view on the concept and topic related to significance of
trade union. It comprises of the basic understanding of the relevant provisions and a very
proper explanation of the relevant provisions. The best thing about this book is that the rules
are given in light of judicial decisions which makes it even more comprehensive.

O.P. Malhotra, THE LAW OF INDUSTRIAL DISPUTES, Lexis Nexis Publications,

(vol 1) (2004)

This book helps the author in understanding Trade Unions Act, 1926 through the case laws.
This book basically envisages the various case laws that define the different principles in
light of judicial decisions. Last but not the least it provides very important concept regarding
Central Trade Union Regulations, 1938.

Research Questions
1. Where are the rules of the trade union stated?
2. What is the significance of the Rules of Trade Union?

Research Methodology
In this paper, the researcher has adopted Doctrinal type of research. Doctrinal research is
essentially a library based study, which means that the materials needed by a researcher may
be available in libraries, archives and other data bases. Various types of books were used to
get the adequate data essential for the project. The researcher also used computer laboratory
to get important data related to this topic. Several websites found to be very useful to better
understand this topic.

Rules of Trade Union

Section 6, Trade Unions Act, 1926 provides for rules of Indoor Management of Trade Union.
Section 6 : Provisions to be contained in the rules of a Trade Union : A Trade Union cannot
be entitled to registration if it’s executive members are not constituted in accordance with it’s
rules and the rules must include:—
(a) the name of the Trade Union;

3
(b) the objectives behind the establishment of the trade union;
(c) the purposes on which the general funds of the company can be spent
(d) the complete list of the members of the Trade Union and rules of inspection by the
members and executive and the procedure of inspection
(e) ordinary members who shall be a part of the trade union shall be working with the
industry with which the trade union is connected, the honorary and temporary member form
the executive of trade union in consonance with section 22 of this act
[(ee) The members of the trade union per annum have to pay a subscription fee of—
(i) one rupee for rural workers;
(ii) three rupees for workers in other unorganised sectors; and
(iii) twelve rupees for all other workers;]
(f) the conditions imposing benefits and fines or forfeiture must be provided in the rules;
(g) the manner of amendment, variation or rescinding of rules must be provided;
(h) the manner of election of Executive and other bearers of Trade Union must be provided;
[(hh) the duration of period executive members and other office-bearers of the Trade Union
shall be elected shall not be more than three years;]
(i) the safe custody of the funds of the Trade Union, an 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; and
(j) the manner of dissolution of trade unions must be provided.
Relevance of Rules of Trade Unions
The rules referred to under Section 6 of this Act are relating to indoor management of the
Trade Unions. The rules of a Trade Union determine its organisational form and this, in
relation to the industrial, economic and political conditions under which it is required to
operate, determines, in large measure, its effectiveness. The rules are the bones and not the
body of a Union, but if they are wrongly set they distort development. Unions which have
existed through periods of rapid change in conditions under which they operated have found,
as the Amalgamated Society of Engineers found at the beginning of this century, that ill-fitted
regulations can be the source of internal conflict and external incompetence. The members of
the trade union derive powers and competence from the rules of the Trade Unions contained
in the constitution thereof.

4
Summary of Cases
In, Brooke Bond India Ltd. v. The Workman,1 Two Trade Unions of Workmen function at
appellant's factory. The State Government made a reference under the Industrial Dispute
Act, 1947 for adjudication of an Industrial Dispute between the appellant and its workmen
regarding their demands. A joint charter of Demands was later submitted by the Unions
raising certain other demands. On behalf of one of the union a negotiation committee was
formed composed of some of the office bearers of that union to participate in the
negotiations for a settlement. Ultimately a memorandum of settlement was signed. The
members of the negotiation committee of aforesaid union who happened to be office bearers
of that union signed the settlement for their union. The settlement covered the disputes
mentioned in the reference and also certain other disputes between the management and
workmen. A joint petition for passing an award in terms of the settlement was file before the
tribunal. A settlement was arrived at, not in the course of conciliation proceedings. There was
no provision in the constitution of the Union to enter into a settlement with the management.
The resolution passed by the executive committee of the Union did not support the claim that
negotiation committee was empowered to enter into a settlement without seeking ratification
from the executive committee. It was held that the office bearers who signed the agreement
were not competent to enter into a settlement with the company and as such it could not be
said that an agreement was reached between employer and workmen represented by the
Union. It is, therefore, necessary that rules of Trade Union must be made with the greatest
care and far reaching insight.
In State Bank of India Association v. State Bank of India and others,2 where appellants writ-
petitioners contended that though Mr. M.R. Awasthy had retired from the service of the
respondent Bank on attaining the age of superannuation yet he was entitled to continue as
General Secretary of the Association to represent the Association and its members in the
negotiations with the Management. This contention gave rise to the question of legality of the
election of Mr. Awasthy as General Secretary. Answering the said question against the
appellants, rejecting their contention and dismissing their appeal as well as their writ-petition
the Supreme Court held that Section 6 contemplates two essential requirements. First, the
executive of the Trade Union must be constituted in accordance with the provisions of the
Act. Unless it is so constituted, a Trade Union shall not be entitled to the registration under
the Act and secondly, the Rules of such a trade union should provide for the matters

1
1981 AIR 1660
2
1996 AIR 1685

5
enumerated in clauses (a) to (j) of Section 6. Clause (e) of Section 6 provides for admission
of honorary or temporary members (office-bearers) also in accordance with Section 22 of the
Act. That being so, the rules of trade union according to clause (e) should provide for
admission of ordinary members who shall be persons actually engaged or employed in
industry with which the Trade Union is connected and also to provide for admission of
number of honorary or temporary members as office-bearers as required by Section 22 of the
Act with a view to form the executive of the Trade Union. The number of actually employed
office-bearers should in no case be less than half of the total number of office-bearers. The
provisions of Sections 6 and 22 indicate that an ordinary or a temporary member may be an
office bearer but they nowhere provide that such a member shall also have a right to negotiate
with the management or the management would be under an obligation to negotiate with an
office bearer of the union who is no longer in the employment of the industry to which the
Trade Union is connected.
In view of Section 3 of the Industrial Disputes Act dealing with the constitution of the Works
Committee, the representatives of the workmen have to be chosen only from amongst the
workmen already engaged in the establishment and not an outsider or an ex-workman of the
establishment concerned or any other person. It would, therefore, not be correct to contend
that having regard to the provisions of Section 36 read with Section 36 of the Industrial
Disputes Act, the provisions of Section 3 of the Industrial Disputes Act, an honorary
temporary member or a private individual is entitled to represent the workmen. While
referring to the provisions of the said Act, the rules cannot be overlooked or ignored. The
provisions of Section 3 of the Trade Unions Act, 1926, have to be harmonised with relevant
provisions of the Industrial Disputes Act, 1947. In the instant case Mr. Awasthy was an
ordinary member of the Staff Association within the meaning of Rule 5 of the Staff
Association Rules. Being such an ordinary member he was elected as General Secretary of
the Staff Association. Admittedly Mr. Awasthy retired from service of the Bank on attaining
the age of superannuation on 3-1-1995. He was not elected as honorary or a temporary
member in any special meeting of the General Council or of the Central Committee, Central
Working Committee, Circle Committee or Unit Committee convened for that purpose any
time after his retirement. Consequently, in view of Rule 9 he cannot legitimately claim his
continuance as an ordinary member and General Secretary of the Union after his retirement
from the service of the Bank. Since Mr. Awasthy ceased to be an ordinary member on his
retirement and since he was not elected as honorary member at the triennial or a special
meeting of the General Council, etc. as contemplated in Rule 6; he neither remained as
6
ordinary member nor as honorary member of the Association. He, therefore, cannot claim a
right to negotiate with the management as a representative of the Union. Admittedly the
triennial election of the Staff Association Lucknow Circle became due in 1992. The triennial
meeting of the circle was, however, called on 1640-1994 in which Mr. Awashty is said to
have been elected as General Secretary 'when he was in the service of Bank. The said
triennial meeting was called much after the prescribed period of 9 months as contained in
Rule 38(a) and admittedly no approval of the Registrar of the Trade Union was obtained for
calling the said meeting on 16-10-1994. The said meeting, therefore, cannot be held to be a
valid meeting in respect of the matters transacted in the said meeting. As he is said to have
been elected as General Secretary in the said meeting of the council it cannot be said to be
valid election.
Again in terms of Rule 42, the triennial meeting of the circle General Council has to be held
within 6 months from close of the triennial term, unless precluded by law and extension of
time required approval of the Central Committee for election of office-bearers of the Circle
Committee, but no such approval of the Central Committee had been placed on record. The
election of Mr. Awasthy as General Secretary will be bad on this account also. For this reason
also, therefore, the petition as well as appeal would fail.
In Bokajan Cement Corpm Employees Union v. Cement Corpn. of India,3 where the question
for decision was whether an employee as a result of cessation of employment would loose his
right to continue as a member of Trade Union Supreme Court considered relevant provisions
of the Act and observed that a registered trade union means a trade union registered under the
Act according to Section 2 (e). The mode of registration is provided in Section 4. Every
application for registration is required to be accompanied by a copy of rules of the trade
union and a statement of the particulars as provided in Section 5 of the Act. Section 6, inter
alia, provides that a trade union shall not be entitled to registration unless rules thereof
provided for the matters enumerated in clauses (a) to (f). For present purposes, clause (e) is
relevant. 6 (e) reads as under:
“6. (e) the admission of the ordinary members who shall be persons actually engaged or
employed in an 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”.

3
(2004) 1 SCC 142

7
Section 22, inter alia, provides that not less than one-half of the total number of the office-
bearers of every registered trade union in unorganised sector shall be persons actually
engaged or employed in an industry with which the trade union is connected.
It is, thus clear that the rules of the trade union have to provide for the admission of ordinary
members who shall be persons actually engaged or employed in an industry with which the
trade union is connected and also the admission of the number of the honorary or temporary
members as office-bearers required under Section 22 to form the executive of the trade union.
The constitution of the trade union has, inter alia, to comply with Section 6 (e) 50 as to seek
registration under the Act.
Considering the provisions of the constitution of the trade union the Supreme Court observed
that the Constitution of the trade union is not required to be construed as a statute. It deserves
to be construed broadly and liberally. The Act and the Constitution of the trade union, unless
clearly stipulate otherwise, deserve to be interpreted so as to advance the interest of the trade
union and its members. The membership of the trade union is a valuable right which can be
taken away only within the clear parameters of the Act and the constitution of the trade
union. The effect of Section 6 (e) is that the rules of the trade union have, inter alia, to
provide for the admission of those who are actually engaged or employed in the industry as
ordinary members so as to entitle a trade union to seek registration under the Act. Section 6
(e) does not provide that on cessation of employment, an employee would cease to be a
member. On the aspect of cessation of membership of the trade union, the trade union can
make a provision in its constitution. It is one thing to say that the constitution of a trade union
shall provide that those actually engaged or employed would be entitled to be admitted as
members of the trade union and it is altogether a different thing to say that they would cease
to be members once they are not actually engaged or employed. The latter is not what Section
6 (e) contemplates. Likewise, clause 5 of the Constitution of the trade union concerned
provides for all workers employed by Cement Corporation. of India, directly or indirectly,
throughout to be eligible for the membership of the trade union on acceptance of the other
part of the said clause. The expression “throughout" in clause 5 only shows that all through
the said eligibility condition will continue. Again, clause 5 is not a provision for cessation but
is a provision for eligibility to become a member. As already stated, these clauses are not
required to be construed as a statute.
The Supreme Court held that there is no provision in the Act or the Constitution of the trade
union providing for automatic cessation of the membership on cessation of employment. In
view of the provisions of the trade union and in absence of any provisions providing for
8
cessation of membership as a result of cessation of employment, it cannot be held that an
employee would cease to be a member of the trade union on termination of his Employment.
The Court observed that in State Bank of India Staff Association v. State Bank of India,4
where it was held that the management is not supposed to negotiate With the retired
employee as the General Secretary of the Bank’s Staff Association since he ceased to be an
employee of the Bank after retirement.
In Hamlet v. General Municipal Boilermakers and Allied Trade Union,5 where a member of
the defendant Union unsuccessfully contested an election to the Union. He complained to the
Union about the conduct of the election and it was dismissed. So he appealed to the domestic
appellate body without success. He thus brought an action. It was held that the only duty of
the court in considering questions of appeal and internal machinery for resolving disputes in
unions is to see that the machinery provided under the rules has been properly followed
through. Since all the irregularities are electoral irregularities, the remedy lay in a complaint
to the Executive Council followed by an appeal to the General Council and they are not
matters which could find a cause of action in the court of law. Where a man has expressly
agreed by contract to accept a tribunal containing certain persons, he cannot thereafter come
bleating to the courts complaining of breach of natural justice when the contract is carried out
exactly according to its terms as he had always known if he had read the rule book, he was
bound to accept.
The rules of the trade union are the basic norms on which the future life of the trade union
depends and therefore the rules should always be followed in union matters to avoid any
internal conflicts. In Iacques v. Amalgamated Union of Engineering Workers (Engineering
Section),6 the rules of the defendant union provided, among other things, that any alteration in
the rules required 40 per cent of the affected workers voting in favour of alteration of any
rule. The Rules Revision Committee of the Union adopted a resolution doing away with the
rule requiring 40 per cent vote of affected workers for any change in the rules. Thereafter, the
Committee decided to modify certain benefits relating to unemployment and sickness. It also
imposed restrictions on entry of new members to the superannuation fund. A member of the
union challenged the changes in the rules.
It has been held that the rules of a trade union must not be construed literally or like a statute.
They must be given a reasonable interpretation which accords with what in the court’s view

4
Supranote 2
5
(1987) 1 WLR 449
6
(1986) ICR 683

9
they must have been intended to mean, bearing in mind their authorship, their purpose and
the readership to which they are addressed. The real question is whether it was implicit in
clause (14) of Rule 14 that the Rules Revision Committee could not abolish the requirement
of 40 per cent vote without the sanction of such vote. Clearly, if one is to read Rule 14
literally, there is no room for such an implication. But a reasonable interpretation which
accords what must have been intended by the authors has to be given, because, without that
implication, the requirement of a 40 per cent vote might as well be not there. The decision to
restrict entry to the superannuation fund does not affect existing members and so it is not
subject to the requirement of 40 per cent vote.
Thus while interpreting the rules of the union the intention of the framers of the rules is the
guiding principle and it must be followed for sound functioning of the Union.
In B.S.V. Hanumantha Rao v. Deputy Registrar of Trade Unions and Dy. Commr. of
Labour,7where the rules of the Hyderabad Allwyn Workers’ Union were amended inter alia
to provide for making the president of the union as an election authority, empowering him to
nominate all office-bearers of the trade union and denying authority to the general body to
remove the President from office before the expiry of the term for which he is elected. These
amendments were approved and registered by the Registrar. Some of the members of the
union filed the writ petition challenging the validity of the amendments approved by the first
respondent.
The High Court of Andhra Pradesh held that the amendments constituting the President
virtually as the election authority is clearly contrary to the letter and spirit of the Trade
Unions Act. The President who is vitally interested in the conduct of the elections cannot be
the person who can be entrusted with the authority to prepare the voters list, appoint returning
officer and conduct the elections. It is a 'clear case of a person being given the authority to
perpetuate himself in office. Such a procedure is no less objectionable than constituting a
person a Judge in his own cause. This is clearly contrary to Section 6 (h) of the Act.
In B C Sharma v. ML Bhalla8 where elections of the union were the subject matter oi the
dispute. The Supreme Court observed that indisputably, however, the elections should be
held under the supervision of a neutral person. The High Court intended to appoint a retired
Chief Justice for resolution of the dispute as regards the voters' list and holding of elections.
It did not fructify. Revision of the electoral roll is one of the main tasks before an election can
be held. The Supreme Court has been of the view that the Registrar of Trade Unions, being a

7
(1988) ILLJ 83 AP
8
(2006) 10 SCC 410

10
statutory authority, should be appointed for the aforementioned purpose. He should also be
appointed as an administrator and take over the management of the union till holding of
elections are complete. In the instant case, the appellants are continuing in office because of
the interim order passed by a Court of Law, which is per se unsustainable. The Court has
further directed that the accounts of the trade union be ' audited by a CA of repute. The
appellants are directed to hand over all documents including the books of accounts to the
Registrar, Trade Unions forthwith. Accordingly the appeal was disposed of.
Central Trade Union Regulations, 1938

Central Trade Union Regulations, 1938 are regulations that apply to Trade Unions which are
spread over more than one state. It supplements the Indian Trade Unions Act, 1926. The
certificate of registration is issued by The Registrar under Section. Also, if the registrar is
satisfied that the withdrawal was done by a general meeting of trade union, then he may grant
cancellation of registration. He can inspect the particulars himself if need be. If the
application is made by a trade union which has been previously registered by the Registrar of
any two states, the union shall submit with it’s application a certificate of registration and the
related entries. The registration fee which is payable is Rupees 5.

For an amendment to the rules, if the registrar upon receiving the application believes that it
has not been done in the manners provided in the rules shall notify the same to the Secretary
of the Trade Union. He shall also register the same in a register maintained for this purpose.
Appeals against Registrar’s order must be within 60 days of the order. In case of dissolution
of trade union, Registrar may divide the funs in proportion of contribution to the members by
way of subscription. Annual Return furnished under section 28 must be done by 31st July by
the Registrar. The annual audit of the account of any registered Trade Union shall be
conducted by an auditor authorized to audit the accounts of companies under section 144(1)
of the Indian Companies Act, 1913 or under section 3(2) of the Indian Companies
(Amendment) Act, [Link] Auditors shall get access to all the books of the Trade Union
and shall verify the annual returns with the accounts and related vouchers. The audit of
political funds should be done along with general account of Trade Union. The register of
Trade Unions shall be open to inspection after a payment of fee of eight annas.

11
 Conclusion

After having research, researcher can conclude the presence of trade unions establishes a
healthy relationship between the employer and workmen with a sense of responsibility
towards each other. Trade unions define and channelize the rights of the workers with
pressure on the employer to not deceit them. The registration of Trade Union ensures that a
trade union duly certified and recognized and thereby the provisions for same are laid down
exhaustively in the Act.

Apart from this researcher can conclude that Trade Unions Act 1926 has been amended from
time to time and the most important being the Trade Unions (Amendment) Act, 2001. This
Act has been enacted in order to bring more transparency and to provide greater support to
trade unionism in India. Some of the salient features of the Trade Unions (Amendment) Act,
2001 are:-

• No trade union of workmen shall be registered unless at least 10% or 100, whichever
is less, subject to a minimum of 7 workmen 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.
• 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 7 persons
engaged or employed in the establishment or industry with which it is connected, as
its members.
• A provision for filing an appeal before the Industrial Tribunal / Labour Court in case
of non-registration or for restoration of registration has been provided.
• All office bearers of a registered trade union, except not more than one-third of the
total number of office bearers or five, whichever is less, shall be persons actually
engaged or employed in the establishment or industry with which the trade union is
connected.
• Minimum rate of subscription by members of the trade union is fixed at one rupee per
annum for rural workers, three rupees per annum for workers in other unorganised
sectors and 12 rupees per annum in all other cases.
• The employees who have been retired or have been retrenched shall not be construed
as outsiders for the purpose of holding an office in the trade union concerned.

12
 • For the promotion of civic and political interest of its members, unions are authorized
to set up separate political funds.

Hence, trade union legislation ensures their orderly growth, reduce their multiplicity and
promote internal democracy in the industrial organisation and the economy. The trade unions
have thus acquired an important place in the economic, political and social set up of the
country.

13
Bibliography

List of Books:

Dr. V.G. Goswami, LABOUR AND INDUSTRIAL LAWS, Central Law Agency, (vol.2), 9th
ed 2011

O.P. Malhotra, THE LAW OF INDUSTRIAL DISPUTES, Lexis Nexis Publications, (vol 1)
(2004)

S.N. Mishra, LABOUR AND INDUSTRIAL LAW, Central law publications, (2016)

Statutory Reference

1926-Trade Unions Act

1938-Central Trade Union Regulations