THE TRADE UNIONS ACT, 1926 - RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS

CHAPTER III

RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS 15. Objects on which general funds may be spent.

15. Objects on which general funds may be spent.- The general funds of a registered Trade Union shall not be spent on any other objects than the following, namely:--

(a) the payment of salaries, allowances and expenses to

l*[office-bearers] of the Trade Union;

(b) the payment of expenses for the administration of the

Trade Union, including audit of the accounts of the general funds of the Trade Union;

(c) the prosecution or defence of any legal proceeding to

which the Trade Union or any member thereof is a party, when such prosecution or defence is undertaken for the purpose of securing or protecting any rights of the Trade Union as such or any rights arising out of the relations of any member with his employer or with a person whom the member employs;

(d) the conduct of trade disputes on behalf of the Trade

Union or any member thereof;

(e) the compensation of members for loss arising out of

trade disputes;

(f) allowances to members or their dependants on account of

death, old age, sickness, accidents or unemployment of such members;

(g) the issue of, or the undertaking of liability under,

policies of assurance on the lives of members, or under policies insuring members against sickness, accident or unemployment;

(h) the provision of educational, social or religious benefits for members (including the payment of the expenses of funeral or religious ceremonies for deceased members) or for the dependants of members;

(i) the upkeep of a periodical published mainly for the purpose of discussing questions affecting employers or workmen as such;

(j) the payment, in furtherance of any of the objects on which the general funds of the Trade Union may be spent, of contributions to any cause intended to benefit workmen

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1.  Subs. by Act 38 of 1964, s. 2, for "officers "(w.e.f. 1-4-1965).

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in general, provided that the expenditure in respect of such contributions in any financial year shall not at any time during that year be in excess of one-fourth of the combined total of the gross income which has up to that time accrued to the general funds of the Trade Union during that year and of the balance at the credit of those funds at the commencement of that year; and

(k) subject to any conditions contained in the notification, any other object notified by the 1*[appropriate Government] in the official Gazette.

16. Constitution of a separate fund for political purposes.

16. Constitution of a separate fund for political purposes.-(1) A registered Trade Union may constitute a separate fund, from contributions separately levied for or made to that fund, from which payments may be made, for the promotion of the civic and political interests of its members, in furtherance of any Of the objects specified in sub-section (2).

(2) The objects referred to in sub-section (1) are:--

(a) the payment of any expenses incurred, either directly or

indirectly, by a candidate or prospective candidate for election as a member of any legislative body constituted under 2*[the Constitution] or of any local authority, before, during, or after the election in connection with his candidature or election; or

(b) the holding of any meeting or the distribution of any

literature or documents in support of any such candidate or prospective candidate; or

(c) the maintenance of any person who is a member of any

legislative body constituted under 2*[the Constitution] or of any local authority; or

(d) the registration of electors or the election of a

candidate for any legislative body constituted under 2*[the Constitution] or for any local authority; or

(e) the holding of political meetings of any kind, or the

distribution of political literature or political documents of any kind.

3*[(2A) In its application to the State of Jammu and Kashmir,
references in sub-section (2) to any legislative body constituted
under the
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1.            Subs. by the A. O. 1937, for "G. G. in C.".

2.            The words "the Government of India Act" have been successively amended by the A. O. 1937, the A. O. 1950 and Act 42 of 1960 to read as above.

3.            Ins. by Act 51 of 1970, s. 2 and Sch. (w.e.f. 1-9-1971).

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Constitution shall be construed as including references to the Legislature of that State.]

(3) No member shall be compelled to contribute to the fund constituted under sub-section (1); and a member who does not contribute to the said fund shall not be excluded from any benefits of the Trade Union, or placed in any respect either directly or indirectly under any disability or at any disadvantage as compared with other members of the Trade Union (except in relation to the control or management of the said fund) by reason of his not contributing to the said fund; and contribution to the said fund shall not be made a condition for admission to the Trade Union.

17. Criminal conspiracy in trade disputes.

17. Criminal conspiracy in trade disputes.- No 1*[office-bearer] or member of a registered Trade Union shall be liable to punishment under sub-section (2) of section 120B Indian Penal Code (45 of 1860), in respect of any agreement made between the members for the purpose of furthering any such object of the Trade Union as is specified in section 15, unless the agreement is an agreement to commit an offence.

18. Immunity from civil suit in certain cases.

18. Immunity from civil suit in certain cases.- (1) No suit or other legal proceeding shall be maintainable in any Civil Court against any registered Trade Union or any 1*[office-bearer; or member thereof in respect of any act done in contemplation or furtherance of a trade dispute to which a member of the Trade Union is a party on the ground only that such act induces some other person to break a contract of employment, or that it is in interference with the trade, business or employment of some other person or with the right of some other person to dispose of his capital or of his labour as he wills.

(2) 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 by an agent of the Trade Union 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.

19. Enforceability of agreements.

19. Enforceability of agreements.- Notwithstanding anything contained in any other law for the time being in force, an agreement between the members of a registered Trade Union shall not be void or voidable merely by reason of the fact that any of the objects of the agreement are in restraint of trade:

Provided that nothing in this section shall enable any Civil Court to entertain any legal proceeding instituted for the express

purpose of enforcing or recovering damages for the breach of any agreement concerning the

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1.  Subs. by Act 38 of 1964, s. 2 for "officer" (w.e.f. 1-4-1965).

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conditions on which any members of a Trade Union shall or shall not sell their goods, transact business, work, employ or be employed.

20. Right to inspect books of Trade Union.

20. Right to inspect books of Trade Union.- The account books of a registered Trade Union and the list of members thereof shall be open to inspection by an 1*[office-bearer] or member of the Trade Union at such times as may be provided for in the rules of the Trade Union.

21. Rights of minors to membership of Trade Unions.

21. Rights of minors to membership of Trade Unions.- 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 acquittances necessary to be executed or given under the rules.

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21A. Disqualifications of office-bearers of Trade Unions.

3*[21A. Disqualifications of office-bearers of Trade Unions.- (1) 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 Trade Union if--

(i) he has not attained the age of eighteen years,

(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.

(2) Any member of the executive or other office-bearer of a registered Trade Union who, before the commencement of the Indian Trade Unions (Amendment) Act, 1964 (38 of 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.]

4*[(3) In its application to the State of Jammu and Kashmir,

reference in sub-section (2) to the commencement of the Indian Trade Unions (Amendment) Act, 1964 (38 of 1964), shall be construed as reference to the commencement of this Act in the said State.]

22. Proportion of office-bearers to be connected with the industry.

22. Proportion of office-bearers to be connected with the industry.- Not less than one-half of the total number of the 5*[office-bearers] of every registered Trade Union shall be persons actually engaged or employed in an industry with which the Trade Union is connected:

Provided that the 6*[appropriate Government] may, by special or general order, declare that the provisions of this section shall not apply

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1.            Subs. by Act 38 of 1964, s. 2, for "officer" (w.e.f. 1-4-1965).

2.            The proviso omitted by s. 4, ibid. (w.e.f. 1-4-1965).

3.            Ins. by s. 5, ibid. (w.e.f. 1-4-1965).

4.            Ins. by Act 51 of 1970, s. 2 and Sch. (w.e.f. 1-9-1971).

5.            Subs. by Act 38 of 1964, s. 2, for "officers" (w.e.f. 1-4-1965).

6.            Subs. by the A. O. 1937, for "L. G.".

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to any Trade Union or class of Trade Unions specified in the order.

23. Change of name

23. Change of name.- Any registered Trade Union may, with the consent of not less than two-thirds of the total number of its members and subject to the provisions of section 25, change its name.

24. Amalgamation of Trade Unions.

24. Amalgamation of Trade Unions.- Any two 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-halt of the members of each or every such trade Union entitled to vote are recorded, and that at least sixty per cent. of the votes recorded are in favour of the proposal.

25. Notice of change of name or amalgamation.

25. Notice of change of name or amalgamation.- (1) Notice in writing of every change of name of every amalgamation, signed, in the case of a change of name, by the Secretary and by seven members of the Trade Union changing its name, and, in the case of an amalgamation, by the Secretary and by seven members of each and every Trade Union which

is a party thereto, shall be sent to the Registrar, and where the head office of the amalgamated Trade Union is situated in a different State, to the Registrar of such State.

(2)    If the proposed name is identical with that by which any other existing Trade Union has been registered or, in the opinion of the Registrar, so nearly resembles such name as to be likely to deceive the public or the members of either Trade Union, the Registrar shall refuse to register the change of name.

(3)    Save as provided in sub-section (2), the Registrar shall, if he is satisfied that the provisions of this Act in respect of change of name have been complied with, register the change of name in the register referred to in section 8, and the change of name shall have effect from the date of such registration.

(4)    The Registrar of the State in which the head office of the amalgamated Trade Union is situated shall, if he is satisfied that the provisions of this Act in respect of amalgamation have been complied with and that the Trade Union formed thereby is entitled to registration under section 6, register the Trade Union in the manner provided in section 8, and the amalgamation shall have effect from the date of such registration.

26. Effects of change of name and of amalgamation.

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

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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.

27. Dissolution.

27. Dissolution.- (1) When a registered Trade Union is dissolved, notice of the dissolution signed by seven members and by the Secretary of the Trade Union shall, within fourteen days of the dissolution, be sent to the Registrar, and shall be registered by him if he is satisfied that the dissolution has been effected in accordance with the rules of the Trade Union, and the dissolution shall have effect from the date of such registration.

(2) Where the dissolution of a registered Trade Union has been registered and the rules of the Trade Union do not provide for the distribution of funds of the Trade Union on dissolution, the Registrar shall divide the funds amongst the members in such manner as may be