IN THE HIGH COURT AT CALCUTTA
T.S. Sivagnanam, Hiranmay Bhattacharyya, JJ.
Uco Bank - Appellant
Versus
All India Uco Bank Officers Federation & Ors. - Respondents
MAT No. 83 of 2019, (WPA 29480 of 2017), IA No. : CAN 1 of 2019 (Old No. CAN 728 of 2019), COT No. 26 of 2019
Decided On : 23-12-2022
Trade Union - Negotiation Rights - Trade Unions Act, 1926, Industrial Disputes Act, 1947 - Section 2(g), Section 2(h), Section 6, Section 22 - The court held that the management of the Bank had no authority to impose a restriction on the representation by the office-bearers of the Federation, and such restriction was an arbitrary exercise of power. The policy decision and all consequential actions taken pursuant thereto were set aside and quashed. The court emphasized the right of the members of the Federation to elect the office-bearers according to their choice.
Fact of the Case:
The appeal arose from a decision of the Bank to allow only serving officers who are duly elected office-bearers of the Majority Officers' Association to participate in meetings/discussions/negotiations, which was challenged by the Federation.
Finding of the Court:
The court found that the Bank's decision to restrict the participation of retired officers who are also office-bearers of the Majority Officers' Association in negotiations with the management was arbitrary and infringed upon the right of the members of the Federation to elect their office-bearers.
Issues: The main issue was whether office-bearers of the Federation, upon retirement from service, could be debarred by the management from participating in negotiations with the Bank.
Ratio Decidendi: The court emphasized the right of the members of the Federation to elect their office-bearers and held that the management had no authority to impose a restriction on their representation. The court also highlighted the provisions of the Trade Unions Act, 1926 and the Industrial Disputes Act, 1947 in reaching its decision.
Final Decision: The decision of the management to allow only serving officers to participate in negotiations was set aside and cancelled, and all consequential actions were quashed. The Cross-Objection was allowed, and the appeal was dismissed without any order as to cost.
JUDGMENT
Hiranmay Bhattacharyya, J. - This appeal is at the instance of UCO Bank and is directed against judgment and order dated December 17, 2018 passed by Learned Single Judge in WPA 29480 of 2017 whereby the Bank was directed to allow writ petitioner/respondent no. 2 or any duly elected as office-bearer of the Union but not serving in the Bank to participate in the negotiations.
2. All India UCO Bank Officers' Federation (for short 'the Federation') and its General Secretary being the respondent nos. 1 and 2 in this appeal have preferred a cross-objection being COT 26 of 2019 and have prayed for striking down the impugned policy of the Bank dated November 3, 2017 and for quashing the letter dated 3rd November, 2017 and 24th November, 2017.
3. Facts giving rise to the instant appeal are summarized hereunder as follows:
The Federation herein claims to be a registered Trade Union of which the writ petitioner no. 2/respondent no. 2 is its General Secretary. The respondent no. 2 retired from service of the Bank with effect from December 1, 2003 but, in terms of the Constitution of the Federation he is eligible to contest the election of the office-bearers of the Federation and to carry on its functions and discharge his duties for the post for which he was elected. The Bank in the meeting of the Board of Directors held on November 3, 2017 took a decision to allow only serving officers who are duly elected office-bearers of the Majority Officers' Association in the meetings/discussions/negotiations with the management of the Bank. Subsequently,Bank by a letter dated November 24, 2017 informed the Federation about the aforesaid policy decision. Since, the aforesaid decision of the Bank restricted the right of the retired officers who are also the office-bearers of the Majority Officers' Association to participate in the meetings/ discussions/ negotiations with the management of the Bank, the respondent nos. 1 and 2 herein filed WPA 29480 of 2017 seeking a writ of mandamus commanding the Bank to set aside and quash the resolution dated November 3, 2017 and the letters dated November 3rd, 2017 and November 24th, 2017.
4. Mr. Choudhury, learned Senior Counsel representing the Bank contended that a Trade Union neither has a common law right nor a statutory right to negotiate. He further submitted that since the Bank has given the right of negotiation in terms of its industrial policy, the same cannot be made the subject matter of a judicial review under Article 226 of the Constitution of India. He further submits that the Trade Unions Act, 1926 (for short 1926 Act') deals with the formation and function of a Trade Union and regulates internal affairs by such registration. The said Act does not confer any power of negotiation or bargaining with third parties in any manner. He further contended that the 1926 Act does not provide that a member of a Trade Union shall have a right to negotiate with the management or that the management would be under an obligation to negotiate with an office bearer of the union. He further contended that a retired employee cannot claim a right to negotiate with the management even if he happens to be the office bearer of the union. In support of such submission, Mr. Choudhury places reliance upon a decision of the Hon'ble Supreme Court of India in the case of State Bank of India Staff Association vs. State Bank of India reported in (1996) 4 SCC 378. He also referred to a decision of a learned Single Judge of this Court in the case of UCO Bank Employees' Association and Anr. vs. UCO Bank and Anr. reported at (2014) SCC Online Cal 5074.
5. By placing reliance upon a decision of the High Court at Rajasthan, Jodhpur in the case of All India SBBJ Employees' Coordination Committee vs. Union of India & Ors reported at 2015 SCC OnLine Raj 11826, Mr. Choudhury learned Senior Counsel, argued that amendment to Section 22 of the 1926 Act does not confer any right on the retired employee, office bearer of the Union to par
Bokajar Cement Corporation Employees' Union vs. Cement Corporation of India limited
State Bank of India Staff Association vs. State Bank of India reported in (1996) 4 SCC 378
The central legal point established in the judgment is the right of the members of a trade union to elect their office-bearers and the management's lack of authority to impose arbitrary restrictions ....
The Registrar of Trade Unions cannot impose restrictions contrary to the Trade Unions Act, allowing retired employees to serve as office bearers within stipulated limits.
The court established that retired employees cannot be arbitrarily excluded from union representation in grievance redressal processes, affirming their rights under the Trade Unions Act and Industria....
Recognized Trade Unions cannot monopolize negotiations; any Union with over 20% support must be included in collective bargaining.
The judgment established that while the classification and restriction on trade union activities were valid, the specific rule prohibiting employees from seeking membership of any registered trade un....
Point of law: Election dispute which is sought to be resolved, the Division Bench was of the view that, the election dispute in a trade union need not be interfered with by the writ Court.
Trade unions have the constitutional right to self-governance, and employer-imposed restrictions on election processes are unconstitutional.
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