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trade unions
Labour Law Legal Notes
Privileges and protection of registered trade union from certain acts5 min read
16th April 2020 Tushika 0 Comments privileges and protection, registered trade
union, section 2(h), trade union, Trade Union Act 1926
-Shristi Tyagi

INTRODUCTION
Trade Union means any combination, whether temporary or permanent, formed Trade
Union is defined under section 2 (h) of The trade union act 1926, 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.

Registration of Trade Union is defined under section 2 (e) of The trade union act
1926 and to be a registered trade union it must be done under this act.

PRIVILEGES AND PROTECTION

 There are certain acts that do not apply to trade unions, expressed in section 14
of the trade union. It states that acts mentioned below shall not apply to any
registered Trade Union and the registration of any such Trade Union under any of
the aforementioned Acts shall be void.

The Societies Registration Act, 1860.

The Cooperative Societies Act, 1912.
The Companies Act, 1956
The Multi-State Co-operative Societies Act, 2002
Any other co-operative society related laws in any State
Until 1926, workers union conducting a strike and causing financial loss to
management were liable for illegal conspiracies. In Buckingham and Carnatic Mills,
the unions were held liable for illegal conspiracies and employers were awarded
damages.

The trade union activities were provided immunities, from the restraint of trade
and conspiracy. so that they are enabled to carry out their legitimate trade union
activities without any fear of civil or criminal liability. It is the most
important to discharge their duties efficiently.

SECTION 17 and SECTION 18 protects trade unions from criminal and civil liability.
As per section 17, No office-bearer or member of a registered Trade Union shall be
liable to punishment under sub-section (2) of section 120B of the Indian Penal Code
which is a conspiracy, involving any agreement made between the members to carry
out trade union functions as specified in section 15 . It does not cover the scope
of an agreement that is made to commit an offense. Section 18 immunes registered
trade union, office bearer or members from any suit or other legal proceeding in
any Civil Court in respect of any act done where a member of the Trade Union is a
party and act was done in contemplation of trade dispute

Also, an agent of a registered Trade Union shall not be liable in any suit or
other legal proceeding in any Civil Court in respect of any tortious act done in
contemplation or furtherance of a trade dispute, if it is proved that such person
acted without the knowledge of, or contrary to express instructions given by, the
executive of the Trade Union.

READ ALSO: DEFINITION AND CHARACTERISTICS OF COMPANY UNDER COMPANIES ACT

trade union
CASE ANALYSIS
Whether the employers have any right of civil action for damages against the
strikers when certain workers went on an illegal and unjustified strike at the
instance of the union?

This was answered in the case of Rohtas Industries Staff Union v. the State of
Bihar. The arbitrator held that the workers who participated in an illegal and
unjustified strike were jointly and severely liable to pay damages. but when the
writ petition was filed in Patna High Court, the court quashed the award of the
arbitrator and held that employers had no right of civil action for damages against
the employees participating in an illegal strike within the meaning of section 24
of the Industrial Disputes Act, 1947.

From this decision, it is evident that section 18 grants civil immunity in case of
a strike by the members of the trade unions. On appeal, the Supreme Court affirmed
the judgment of the high court on the ground that the claim for compensation and
the award thereof in arbitration proceedings were invalid.

In Jay Engineering Works v, Stajj, the Calcutta High Court was answered the
question whether the protection under sections 17 and 18 of the Trade Unions Act
can be availed of where workers resort to gherao, and while explaining the scope
and ambit of protection observed:

A movement by gathering together of workmen either or inside premises within the

working hours is permissible until its peaceful and does not violate the provisions
of law. Members of trade unions may resort to a peaceful strike, that is to say,
cessation of work with the common object of enforcing their claims. Thus, where it
resorts to unlawful confinement of persons criminal trespass or where it becomes
violent this exemption cannot be claimed.

The question arose before the madras high court, whether the bank was entitled to
an interim injunction against its own employees? when In Indian Bank v, Federation
of Indian Bank Employees Union, the Indian Bank sought an interim injunction
against the employees union restraining them from holding meetings, demonstrations,
etc, within a 50-meter radius of the central office.

The Court held that an interim injunction can’t be issued as it would virtually
prevent the exercise of statutory rights conferred on unions to hold demonstrations
and meetings within the scope of the Trade Unions Act. The court also added that if
any act is committed, resulting in unlawful activities, and constitutes cognizable
offenses under any enactment immunity would not be available.

READ ALSO: HISTORY OF TRADE UNION MOVEMENT IN INDIA AND NEED TO FORM TRADE UNIONS
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