Bombay High Court Quashes Bank Policy Barring Retired Union Office Bearers from Grievance Redressal Meetings — Violation of Trade Union Rights Under Trade Unions Act, 1926. The court held that a policy prohibiting retired elected office bearers from participating in grievance redressal committee meetings is arbitrary and infringes upon the right of union members to elect their representatives under the Trade Unions Act, 1926.

High Court: Bombay High Court In Favour of Accused
  • 450
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, All India Bank of Maharashtra Employees Federation, a recognized trade union, challenged Clause 6(d) of the Employees Grievances Redressal Policy approved by the Bank of Maharashtra's Board on 22 November 2019 and circulated on 30 November 2019. The impugned clause prohibited retired employees who were elected office bearers of the union from participating in the meetings of the grievance redressal committee, allowing only in-service office bearers. The union argued that this policy infringed upon the rights of its members to elect their representatives and was contrary to the Trade Unions Act, 1926. The petitioner relied on a Calcutta High Court judgment in UCO Bank v. All India UCO Bank Officers Federation, which held a similar policy arbitrary. The respondents, the Bank of Maharashtra and the Union of India, defended the policy on grounds that only serving employees could best represent serving employees. The court, after hearing submissions, found that the policy was inconsistent with the Trade Unions Act, 1926, and the union's constitution, which did not prohibit retired employees from being office bearers. The court held that the policy infringed upon the democratic right of union members to elect their representatives and that the management could not impose such restrictions. The court quashed Clause 6(d) and directed the bank to allow retired elected office bearers to participate in grievance redressal committee meetings.

Headnote

A) Trade Union Law - Right to Elect Office Bearers - Clause 6(d) of Grievance Redressal Policy - Trade Unions Act, 1926, Section 22 - The policy barring retired elected office bearers from participating in grievance redressal committee meetings was held arbitrary as it infringes the right of union members to elect their representatives and is inconsistent with the Act. (Paras 1-10)

B) Industrial Disputes Act - Collective Bargaining - Representation by Retired Office Bearers - Industrial Disputes Act, 1947, Section 36 - The court held that retired office bearers can represent the union in negotiations as there is no prohibition in the Act or union constitution, and the policy cannot override statutory rights. (Paras 11-20)

C) Precedent - Calcutta High Court Judgment - UCO Bank v. All India UCO Bank Officers Federation - The court relied on the Calcutta High Court's decision that a similar policy was arbitrary and infringed upon the right of members to elect office bearers. (Paras 4-10)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether Clause 6(d) of the Employees Grievances Redressal Policy of the Bank of Maharashtra, which prohibits retired employees who are elected office bearers of the recognized trade union from participating in grievance redressal committee meetings, is arbitrary and violative of the rights of the trade union under the Trade Unions Act, 1926.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The court allowed the writ petition, quashed Clause 6(d) of the Employees Grievances Redressal Policy, and directed the bank to allow retired elected office bearers to participate in grievance redressal committee meetings.

Law Points

  • Right of trade union to elect office bearers
  • freedom of association
  • collective bargaining
  • Section 22 of Trade Unions Act
  • 1926
  • Section 36 of Industrial Disputes Act
  • 1947
  • policy cannot override statutory rights
Subscribe to unlock Law Points Subscribe Now

Case Details

2024 LawText (BOM) (8) 28

Writ Petition No. 1884 of 2021

2024-08-02

Ravindra V. Ghuge, Y. G. Khobragade

2024:BHC-AUG:18334-DB

U. M. Bodshetty for Petitioner, Sudhir Talsania (Senior Advocate) with Ajay Deshpande for Respondent No.1

All India Bank of Maharashtra Employees Federation

The Bank of Maharashtra, The Union of India

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition challenging a clause in the Employees Grievances Redressal Policy of the Bank of Maharashtra that prohibits retired elected office bearers from participating in grievance redressal committee meetings.

Remedy Sought

Quashing of Clause 6(d) of the policy and direction to allow retired elected office bearers to participate in grievance redressal committee meetings.

Filing Reason

The petitioner union claimed that the impugned clause infringes upon the rights of its members to elect their representatives and is contrary to the Trade Unions Act, 1926.

Previous Decisions

The policy was approved by the Board of Directors on 22.11.2019 and circulated on 30.11.2019. No prior court decision on this specific policy.

Issues

Whether Clause 6(d) of the Employees Grievances Redressal Policy is arbitrary and violative of the rights of the trade union under the Trade Unions Act, 1926. Whether retired employees who are elected office bearers can be prohibited from participating in grievance redressal committee meetings.

Submissions/Arguments

Petitioner: The policy infringes upon the right of union members to elect their office bearers and is inconsistent with the Trade Unions Act, 1926. Relied on Calcutta High Court judgment in UCO Bank v. All India UCO Bank Officers Federation. Respondent: Only serving employees can best represent serving employees; the policy is reasonable and within the bank's discretion.

Ratio Decidendi

A policy that prohibits retired employees who are elected office bearers of a recognized trade union from participating in grievance redressal committee meetings is arbitrary and infringes upon the right of union members to elect their representatives under the Trade Unions Act, 1926. The management cannot impose restrictions that are inconsistent with the Act or the union's constitution.

Judgment Excerpts

The policy decision of the Bank is inconsistent with the provisions of the 1926 Act and this Court, therefore, holds the same to be an arbitrary one. The members of the association are the best persons to decide who shall represent them in the negotiations with the management of the Bank and such choice cannot be left to the sweet will of the management of the Bank.

Procedural History

The petitioner filed Writ Petition No. 1884 of 2021 before the Bombay High Court, Aurangabad Bench, challenging Clause 6(d) of the Employees Grievances Redressal Policy. The court heard the matter and delivered judgment on 02.08.2024.

Acts & Sections

  • Trade Unions Act, 1926: Section 22
  • Industrial Disputes Act, 1947: Section 36
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Dismisses Appeal by Second Wife Claiming Succession Certificate for Compassionate Appointment. Void Marriage Under Section 11 of Hindu Marriage Act, 1955 Bars Claim as First Wife and Children Are Sole Legal Heirs.
Related Judgement
High Court High Court of Karnataka Quashes Interim Maintenance Order in Partition Suit — Married Sisters Not Entitled to Maintenance from Brother Under CPC Section 151. Interim maintenance cannot be granted to married sisters in a partition suit when they hav...