Case Note & Summary
The petitioner, Solapur District Central Cooperative Bank Employees Union, challenged the order dated 19.07.2016 passed by the Industrial Court, Solapur, which dismissed its appeal and confirmed the order dated 23.10.2012 of the Additional Registrar, Trade Union cancelling its registration under Section 10(b) of the Trade Unions Act, 1926. The respondent No.2, another union, had filed an application on 04.08.2010 alleging various irregularities by the petitioner union, including failure to get accounts audited from an approved auditor from 2002 to 2007 (violation of Section 28), keeping cash exceeding Rs.200 by the General Secretary (violation of bye-law 26), discrepancy in membership numbers between claimed and yearly returns, collecting monthly subscription of Rs.5 instead of Rs.2 as per bye-laws, and appointing Shri B.S. More as General Secretary who was not eligible as he was an Assistant Manager/Deputy Manager. The Additional Registrar issued notices to the petitioner on 20.10.2010 and 10.11.2010, but the petitioner did not appear, leading to a show-cause notice under Section 10(b). The petitioner eventually appeared and filed a reply, but the Additional Registrar, after considering the material, cancelled the registration. The petitioner appealed to the Industrial Court, which dismissed the appeal. The High Court, in its writ jurisdiction, examined whether the Industrial Court erred in confirming the cancellation. The court noted that the petitioner had not complied with the audit requirements under Section 28 for several years, and the other irregularities were also established. The court held that the Registrar has the power to cancel registration under Section 10(b) for non-compliance with the Act and bye-laws. The court found no perversity in the Industrial Court's order and dismissed the petition, upholding the cancellation of registration.
Headnote
A) Trade Union Law - Cancellation of Registration - Section 10(b) Trade Unions Act, 1926 - Non-compliance with audit requirements under Section 28 - The petitioner union failed to get its accounts audited from an approved auditor for the years 2002 to 2007, constituting a contravention of Section 28 of the Act. The Industrial Court confirmed the cancellation of registration, holding that the Registrar has power to cancel registration for such non-compliance. (Paras 2-5) B) Trade Union Law - Membership Records - Section 28 Trade Unions Act, 1926 - Discrepancy in membership numbers - The petitioner union claimed a certain number of members but the yearly returns showed a different number, indicating failure to maintain proper records. This was a valid ground for cancellation under Section 10(b). (Paras 3-5) C) Trade Union Law - Bye-law Violations - Section 10(b) Trade Unions Act, 1926 - Collection of subscription in excess of bye-law limit - The petitioner union collected monthly subscription of Rs.5 instead of Rs.2 as per its bye-laws, and the General Secretary held cash exceeding Rs.200 in violation of bye-law 26. These irregularities justified cancellation of registration. (Paras 3-5) D) Trade Union Law - Eligibility of Office Bearers - Section 10(b) Trade Unions Act, 1926 - Appointment of ineligible person as General Secretary - The petitioner union appointed Shri B.S. More as General Secretary despite him being an Assistant Manager/Deputy Manager and not entitled to membership under the bye-laws. This was a valid ground for cancellation. (Paras 3-5)
Issue of Consideration
Whether the Industrial Court erred in dismissing the appeal against the order of the Additional Registrar cancelling the registration of the petitioner union under Section 10(b) of the Trade Unions Act, 1926 for alleged irregularities including non-audit of accounts, incorrect membership records, and violation of bye-laws
Final Decision
The High Court dismissed the writ petition, upholding the order of the Industrial Court and the cancellation of the petitioner union's registration under Section 10(b) of the Trade Unions Act, 1926.
Law Points
- Cancellation of trade union registration under Section 10(b) of Trade Unions Act
- 1926 is justified for non-compliance with audit requirements under Section 28
- failure to maintain proper membership records
- and violation of bye-laws regarding subscription and eligibility of office bearers
