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2006(6) Supreme 761
SUPREME COURT OF INDIA
(From Allahabad High Court)
S.B. Sinha and Dalveer Bhandari, JJ.
B.C. Sharma & Anr.—Appellants
versus
M.L. Bhalla & Ors.—Respondents
Civil Appeal No. 3953 of 2006
(Arising out of SLP (C) No. 6425 of 2005)
Decided on 6-9-2006
Counsel for the Parties :
For the Appellants : C.M. Nayyar, Dr. Rajiv Dhawan, Sr. Advocates, Sushant Kumar, Kirdman Singh, Vikrant Yadav, M.C. Dhingra, Advocates.
For the Respondents : S.B. Sanyal, Jaideep Gupta, Sr. Advocates, C.D. Singh, Ms. Minakshi Sarma, S. Chandra Shekhar, Advocates.
Held : The office-bearers (appellants herein) were elected on 4/5.7.2002 and are still continuing though there term came to an end on 4/5.7.2005. There is serious objection to their further continuation in the office by the respondents. The respondents have levelled serious allegations of financial irregularities and mis-management against the appellants, whereas the appellants have given justification for their continuation in the Office.(Para 8)
Keeping in view the peculiar facts and circumstances of this case, we are of the opinion that the Registrar of Trade Union, being a statutory authority, should be appointed for the aforementioned purpose. He, in our opinion, should also be appointed as an administrator and take over the management of the Union till holding of elections are complete. We do so with much reluctance. But, the reason therefor is that the appellants should not be allowed to continue to function in the manner as they are doing, i.e., despite expiry of the tenure and under the interim order passed by the learned trial court. It is difficult to understand as to why the preparation of electoral roll could not be finalised. If the office-bearers are interested in carrying out their trade union activities although, they are entitled to contest the elections but should have at least agreed to finalisation of Electoral College. The appellants having been elected for a definite term, it was their solemn duty to see that elections are held before their tenure comes to an end. We are not unmindful of the fact that the expiry of tenure by itself may not lead to the conclusion that continuation of the office-bearers in the office per se would be illegal. In the instant case, the appellants are continuing in office because of the interim order passed by a court of law, which is per se unsustainable.(Para 15)
We pass this order in order to do complete justice to the parties. It is unfortunate that elections have to be held under the supervision of an officer appointed by the court, but then there does not appear to be any other way out. Although, technically the Registrar of Trade Union cannot be said to be an authority to supervise holding of the elections under the provisions of the Trade Unions Act, but, while directing the said authority the officers who may be designated by him to supervise the holding of elections, we draw sustenance from the decision of this Court in North Eastern Railway Employees Union & Others v. IIIrd Additional District Judge, Farukhabad & Others reported in AIR 1988 SC 2117.(Para 16)
We, for the reasons stated hereinbefore, are of the opinion that the management of the Trade Union should also be taken over by the said authority. The said Registrar may carry out the said function himself or he may appoint an officer or officers not exceeding three in number for the said purpose. We further direct that the accounts of the Trade Union be audited by a Chartered Accountant of repute. The appellants are directed to handover all documents including the books of accounts to the Registrar, Trade Union forthwith. (Para 17)
We are not oblivious of the fact that the main purpose of the Trade Union is to have negotiations with the Railway Administration as regards the demands of the employees. We hope and trust that the interests of the workmen would not suffer because of this order. We would request the competent authorities of the Northern Railway Administration not to, unless exigency of the situation arises, take any decision in this behalf. In case of any exigency of the situation, however, undoubtedly the elected members and/or those elected members of the branches or otherwise authorized to negotiate with the Railway Administration, shall take part therein.(Para 20)
JUDGMENT
Dalveer Bhandari, J.—Leave granted.
2. The short controversy involved in this appeal pertains to holding of the next elections of a Trade Union called the Uttariya Railway Mazdoor Union registered under the Trade Unions Act, 1926 (hereinafter mentioned as "the Union"). Its members are drawn from the Northern Railways and it is managed by a Central Executive Committee under a duly registered Constitution. The General Body is the supreme body of the Union. According to clause 1 of the Constitution Rules and Byelaws of the Union, General Body consists of office-bearers of the Union and members of the Central Executive Committee and delegates elected in the prescribed manner as defined hereinafter. Clause 6 deals with the aims and objects of the Union. It reads as follows:
"III. Aims and Objects.
6. The aims and objects of the Union shall be:-
a) To establish an independent and free Union based on the principles of Trade Unionism which shall be free from the influences of the Government, the Employer and the Political Parties.
b)To advocate cause, and help to establish leadership of the workers in the management of their Trade Union.
c) To make the Northern Railway Employees conscious of their rights and duties by uniting and consolidating them under the Union.
d) To promote and protect the interests of the Northern Railway employees by legitimate and constitutional means.
e)To watch, defend and promote the interests, rights and privileges of the Northern Railway Employees irrespective of caste, creed, race or section in all matters relating to their employment.
f)To co-ordinate the activities of different categorical groups of Railway employees for safeguarding their legitimate interests.
g)To regulate relations and to establish mutual understanding between members and administration and to settle issues through negotiations, conciliations and/or arbitration.
h)To educate, prepare and encourage Railway employees to take increasing part in the management, administration and control of the Railway in the larger interest of the country and to enthuse National Spirit in them.
i)To support Legislative measures for the protection of Labour and to oppose the same when it is against the interest of Labour.
j) To press for reasonable hours of work, proper housing and standard of living.
k)To provide funds for the compensation of members for loss arising out of trade disputes.
l)To organize and establish separate funds for the benefit of members or their dependents in cases of sickness, accident or death, non-employment and old-age of such members and for funeral, legal and purpose, declared lawful under the Act.
m)To establish co-operative stores in the interest of Railway Employees.
n)To promote and safeguard the economic, social and civic interests of Railway employees in alliance with the rest of the working class organizations in so far as it does not violate the provisions of Trade Union Act.
o)To amalgamate, federate with or affiliate itself to any Association, Union or Society having kindred aims and objects.
p)To encourage and establish Panchayat System in the Railway Colonies for settling mutual disputes.
q)To provide legal assistance to members by raising special funds in respect of matters arising out of or incidental of their employment.
r)To secure and maintain for the Railway employees:-
i)Freedom of Association.
ii)Freedom of Assembly
iii)Freedom of Speech.
iv)Freedom of Press.
v)Right to Work.
vi)Right to Strike, and;
vii)Right of representation in the management and in the legislature.
s)To encourage and establish Night Schools; Clubs, Reading Rooms for the employees and their children and to make grant to the take share in the management and control of any institution having for its objects the education and training of Trade Unionism. Also publish periodicals and journals.
t)To raise special funds if and when necessary for any or all the objects stated above or for any legitimate objects considered conductive to the growth and expansion of
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