Bombay High Court Upholds Registrar's Cancellation of Trade Union Registration for Non-Compliance with Section 28-A of Trade Unions Act, 1926. Failure to maintain proper membership register and file annual returns justified cancellation despite opportunity of hearing.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The Bombay High Court dismissed a writ petition filed by the Mumbai Taximen's Union and its Secretary challenging the order of the Deputy Registrar of Trade Unions cancelling the registration of the union under Section 28-A of the Trade Unions Act, 1926. The Deputy Registrar had issued a show cause notice to the union alleging that it had failed to maintain a proper register of members, failed to file annual returns, and violated other statutory requirements. The union was given multiple opportunities to produce records and explain, but failed to comply satisfactorily. The Deputy Registrar, after hearing the union, cancelled the registration. The union challenged this order on the ground of violation of natural justice and that the cancellation was disproportionate. The court held that the Deputy Registrar had acted within his powers and had given sufficient opportunity of hearing. The court noted that the union's membership register was not maintained in the prescribed form and lacked essential details. The court also observed that the union had not filed annual returns for several years. The court concluded that the cancellation was justified and did not warrant interference under Article 226. The petition was dismissed with no order as to costs.

Headnote

A) Trade Union Law - Cancellation of Registration - Section 28-A Trade Unions Act, 1926 - Maintenance of Membership Register - The Deputy Registrar cancelled the registration of the Mumbai Taximen's Union for failure to maintain a proper register of members as required under Section 28-A. The court held that the Registrar has power to cancel registration if the union fails to comply with statutory requirements, and the cancellation was justified as the union did not maintain a proper membership register despite repeated opportunities. (Paras 1-28)

B) Trade Union Law - Natural Justice - Opportunity of Hearing - Section 28-A Trade Unions Act, 1926 - The court found that the Deputy Registrar had given sufficient opportunity of hearing to the union before cancelling registration. The union was heard and given time to produce records, but failed to comply. The principles of natural justice were satisfied. (Paras 10-15)

C) Trade Union Law - Membership Register - Requirement of Proper Maintenance - Section 28-A Trade Unions Act, 1926 - The court held that a trade union must maintain a proper register of members showing names, addresses, and other particulars. The union's register was found to be incomplete and not in proper form, justifying cancellation. (Paras 16-20)

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Issue of Consideration

Whether the Deputy Registrar of Trade Unions was justified in cancelling the registration of the petitioner-Union under Section 28-A of the Trade Unions Act, 1926 for failure to maintain proper membership register and other statutory violations.

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Final Decision

The Bombay High Court dismissed the writ petition and upheld the order of the Deputy Registrar of Trade Unions cancelling the registration of the Mumbai Taximen's Union under Section 28-A of the Trade Unions Act, 1926. No order as to costs.

Law Points

  • Trade Union registration cancellation
  • Section 28-A Trade Unions Act 1926
  • membership register maintenance
  • natural justice
  • opportunity of hearing
  • statutory compliance
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Case Details

2013:BHC-OS:3895-DB

WRIT PETITION NO. 274 OF 2013

2013-03-25

V. M. KANADE, F.M REIS

2013:BHC-OS:3895-DB

Mr. J.P. Cama, Senior Counsel with Mr. R.S. Pai i/b Sanjay Udeshi & Co. for the Petitioners, Mr. J.S. Saluja, AGP for Respondent Nos.1 and 2/State, Mr. S.K. Talsania, Senior Counsel i/b Lokesh Zade for Respondent Nos. 3 to 7, Mr. Arshad Shaikh i/b Lokesh Zade for Respondent Nos. 8 to 12

The Mumbai Taximen's Union and Mr. Shyam Khanvilkar

State of Maharashtra, Dy. Registrar of Trade Unions, Shri Mohd Mashuq Shaikh, Shri Inamul Haq, Shri Jaishree Singh, Shri Mohd Taufique, Shri Uma Shankar Singh, Shri Javed Khan, Shri Mohd. Akram, Shri Shahensha Alam, Shri Rajesh Tiwari, Shri Harinath Dubey, Member, Industrial court, Mumbai

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Nature of Litigation

Writ petition under Article 226 of the Constitution challenging the order of Deputy Registrar of Trade Unions cancelling the registration of the petitioner-union.

Remedy Sought

Quashing of the order dated 31st October 2012 passed by the Deputy Registrar of Trade Unions cancelling the registration of the Mumbai Taximen's Union.

Filing Reason

The petitioners challenged the cancellation order on grounds of violation of natural justice and that the cancellation was disproportionate.

Previous Decisions

The Deputy Registrar of Trade Unions had issued a show cause notice and after hearing the union, passed an order cancelling the registration on 31st October 2012.

Issues

Whether the Deputy Registrar of Trade Unions was justified in cancelling the registration of the petitioner-Union under Section 28-A of the Trade Unions Act, 1926. Whether the principles of natural justice were violated in the cancellation proceedings.

Submissions/Arguments

Petitioners argued that the cancellation order was passed without giving proper opportunity of hearing and that the alleged violations were not serious enough to warrant cancellation. Respondents argued that the union had failed to maintain proper membership register and file annual returns despite repeated opportunities, and the cancellation was justified.

Ratio Decidendi

The Deputy Registrar of Trade Unions has the power under Section 28-A of the Trade Unions Act, 1926 to cancel the registration of a trade union if it fails to comply with statutory requirements, including maintenance of a proper membership register. The principles of natural justice are satisfied if the union is given an opportunity of hearing before cancellation. The cancellation was justified as the union failed to maintain a proper register despite opportunities.

Judgment Excerpts

The Deputy Registrar has power under Section 28-A to cancel registration if the union fails to comply with statutory requirements. The union was given sufficient opportunity of hearing and failed to produce proper records.

Procedural History

The Deputy Registrar of Trade Unions issued a show cause notice to the Mumbai Taximen's Union. After hearing the union, the Deputy Registrar passed an order on 31st October 2012 cancelling the registration. The union filed a writ petition under Article 226 before the Bombay High Court challenging the order. The High Court heard the matter and dismissed the petition on 25th March 2013.

Acts & Sections

  • Trade Unions Act, 1926: 28-A
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