The Trade Unions Act, 1926 grants registered trade unions a legal status that allows them to function as corporate bodies. This status comes with a specific set of rights, duties (liabilities), and protective immunities that enable office bearers to advocate for workers without the constant fear of legal reprisal.
1. Rights of a Registered Trade Union
A registered trade union is a body corporate (Section 13). Its rights include:
Perpetual Succession and Common Seal: The union continues to exist regardless of changes in membership.
Power to Acquire Property: It can hold both movable and immovable property in its own name.
Right to Contract: It can enter into legally binding agreements.
Right to Sue and be Sued: It can initiate legal proceedings or be the subject of a lawsuit in its registered name.
Right to Collect Funds: It has the right to maintain a General Fund and a Political Fund (under specific conditions) to further its objectives.
Right to Inspect Books: Office bearers and members have the right to inspect the account books and list of members.
2. Liabilities of a Registered Trade Union
With legal rights come statutory obligations:
Spend Funds on Specified Objects (Section 15): The General Fund can only be used for the purposes listed in the Act (e.g., administrative expenses, legal defense, trade disputes).
Maintenance of Accounts: The union must maintain proper books of accounts and have them audited annually.
Submission of Returns (Section 28): An annual statement of receipts and expenditures must be sent to the Registrar.
Notification of Changes: Any change in the address of the head office or the list of office bearers must be communicated to the Registrar within 14 days.
Rules of the Union: The union must strictly follow the rules submitted at the time of registration.
3. Immunities of Office Bearers and Members
To ensure that trade union activities (like strikes or protests) are not suppressed by common law or criminal statutes, the Act provides two major protections.
A. Immunity from Criminal Conspiracy (Section 17)
Under the Indian Penal Code, an agreement to do an illegal act or a legal act by illegal means is "criminal conspiracy." However, Section 17 provides a shield:
The Protection: No office bearer or member shall be liable to punishment for criminal conspiracy regarding any agreement made between members for the purpose of furthering a trade dispute.
Limitation: This immunity only applies to agreements. If an actual offense (like violence, arson, or assault) is committed, this section does not provide protection.
B. Immunity from Civil Suits (Section 18)
In common law, inducing someone to break a contract or interfering with someone’s business is a "tort" (civil wrong) that can lead to damages. Section 18 protects unions from such suits:
Inducing Breach of Contract: A union official cannot be sued for inducing a worker to break their contract of employment during a trade dispute.
Interference with Business: The union is protected against suits for interfering with the trade, business, or employment of another person.
Liability of the Union for Agent's Acts: The trade union is not liable for the tortious acts of its agents if those acts were committed without the knowledge or contrary to the express instructions of the executive of the Trade Union.
Immunities at a Glance
| Type of Liability | Relevant Section | Scope of Protection |
| Criminal | Section 17 | Protects against charges of "Criminal Conspiracy" for agreements made to further a trade dispute. |
| Civil | Section 18 | Protects against suits for "Tortious Liability" like inducing breach of contract or interfering with business. |
| Contractual | Section 19 | Ensures union agreements are valid even if they act as a "restraint of trade." |
No comments:
Post a Comment