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2015 Supreme(Mad) 1017
HIGH COURT OF JUDICATURE AT MADRAS
V. DHANAPALAN & G. CHOCKALINGAM, JJ.
National Textile Corporation Limited, rep. By its Senior Manager (Human Resources), Coimbatore & Others – Appellant
Versus
Coimbatore Periyar Districts Dravida Panjalai Thozhilalar Munnetra Sangam, rep. By its General Secretary S. Doraisamy, Coimbatore & Others – Respondent
W.A. No.1620 of 2011
Decided On : 23-02-2015
For the Petitioner:C.V. Vijayakumar for T.R. Rajaraman, Advocates.
For the Respondents:K. Srinivasamurthy, for M/s. Row & Reddy, Advocates.
The main legal point established in the judgment is the statutory duty of the employer to deduct subscription payable by the members of the Trade Unions who have given consent in writing, and the practice of deduction of subscription from the members, which was in vogue for several years, cannot be prohibited under any statutory rule.
Headnote:
Trade Union - Deduction of Union Subscription - Trade Unions Act, 1926, Section 6(ee); Payment of Wages Act, 1936, Section 7(2)(kkk) - The court held that the right to form Trade Unions is guaranteed as a fundamental right under Article 19(1)(c) of the Constitution of India. The payment of subscription by members to the Trade Unions is made compulsory under Section 6(ee) of the Trade Unions Act, and the employer is bound to deduct and remit the same into the account of the Trade Union under Section 7(2)(kkk) of the Payment of Wages Act. The court emphasized the statutory duty of the employer to deduct subscription payable by the members of the Trade Unions who have given consent in writing, and the practice of deduction of subscription from the members, which was in vogue for several years, cannot be prohibited under any statutory rule.
Fact of the Case:
The case involved a dispute between National Textile Corporation Limited and various trade unions regarding the deduction and remittance of membership contributions payable to the unions from the salary of willing members based on their written authorization.
Finding of the Court:
The court found that the management's refusal to deduct and remit the membership contributions to the unions was a statutory violation and contrary to law. The court emphasized the statutory duty of the employer to deduct subscription payable by the members of the Trade Unions who have given consent in writing.
Issues: The main issue was whether the management's refusal to deduct and remit the membership contributions to the unions was contrary to law and whether the practice of deduction of subscription from the members, which was in vogue for several years, could be prohibited under any statutory rule.
Ratio Decidendi: The court held that the right to form Trade Unions is guaranteed as a fundamental right under Article 19(1)(c) of the Constitution of India. The payment of subscription by members to the Trade Unions is made compulsory under Section 6(ee) of the Trade Unions Act, and the employer is bound to deduct and remit the same into the account of the Trade Union under Section 7(2)(kkk) of the Payment of Wages Act. The court emphasized the statutory duty of the employer to deduct subscription payable by the members of the Trade Unions who have given consent in writing, and the practice of deduction of subscription from the members, which was in vogue for several years, cannot be prohibited under any statutory rule.
Final Decision: The court allowed the Writ Petition, set aside the impugned order, and directed the respondents to deduct membership contribution payable to the Unions from the salary of willing members based on their written authorization and remit the same into the account of the petitioners.
V.Dhanapalan, J.
1. Heard C.V.Vijayakumar, learned counsel appearing for Mr.T.R.Rajaraman, learned counsel for the appellants and Mr.T.R.Rajaraman, learned counsel appearing for the respondents.
2. The appellants have come up with the present Writ Appeal being aggrieved by the order dated 14.06.2011 passed in W.P.No.6334 of 2011, wherein, the Writ Petition was allowed setting aside the impugned order dated 29.01.2011 passed by the respondents with a direction to the respondents to deduct membership contribution payable to the Unions from the salary of willing members based on their written authorisation and remit the same into the account of petitioners 1 and 2 from the month of June 2011.
3. Facts of the case are as under:
3.1. According to National Textile Corporation Limited (the 1st respondent in the W.P.No.6334 of 2011), which is a Government of India Undertaking, they have seven National Textile Mills in Tamilnadu, i.e. five in Coimbatore District, one in Sivagangai District and the other in Ramnad District. The said Mills were taken over by the Central Government. The employees working in the Mills, viz. Coimbatore Murugan Mills, Pankaja Mills, Sri Rangavilas Ginning, Spinning & Weaving Mills and Kaleeswarar Mills "B" Unit (hereinafter referred to as 'NTC units'), who are members of Coimbatore Periyar Districts Dravida Panjalai Thozhilalar Munnetra Sangam and Sivagangai Mavatta Marumalarchi Panjalai Thozilalar Munnetra Sangam (hereinafter referred to as 'Unions').
3.2. Till 2010, the NTC units were deducting subscription/donation from the members of the Unions who are working in these Mills based on the list given by the NTC units and remitting the same to them by way of cheque, which has been the practice for more than 25 years. On 18.12.2010, the Unions which are affiliated to the four Trade Unions viz. (i) Coimbatore District Mill Workers Union (CITU), (ii) Desia Panjalai Thozilalar Sangam (INTUC), (iii) Koval Erode Mavatta Dravida Panjalai Thozhilalar Matrum Nirvaga Uzhiyar Sangam (LPF) and (iv) Coimbatore Regional Mill Labour Union were declared as negotiating agents, as they had got more than 10% of the votes polled in all the NTC mills in Tamilnadu put together, which was contrary to the earlier practice of giving representation for negotiating to the Unions which had 10% of its members in the respective Mills/Units. This position has been contested in Contempt Petition No.156 of 2011.
3.3. Pursuant to the election, the Management of NTC units wrote a letter on 27.10.2010 to the aforesaid four Unions who have secured a minimum of 10% votes in all the Units put together to furnish the list of their members to enable the Management to deduct and remit subscription from their wages to the Unions. But, no such communication was sent to the Unions.
3.4. According to the Writ Petitioners, their Union is affiliated to Marumalarchi Labour Front (MLF) and they have not secured 10% of the total votes polled in all the NTC units in Tamilnadu. On 08.01.2011, they wrote a letter to the NTC drawing their attention to the judgment of a Hon'ble Division Bench of this Court in State Bank of India case reported in 1989 (1) LLJ 554 and requested them to deduct Union subscription/donation for the members of their Union as per their wish and remit the same to them. On 10.01.2011, the Writ Petitioners sent a list of their members together with the authorisation letters signed by the individual workers to NTC units and requested them to deduct the Union subscription. But the Management did not choose to make any such deduction. The Writ Petitioners put forth their grievance in their letter dated 28.01.2011 to the NTC. On 29.01.2011, the NTC made it clear that they will deduct subscription only for the Unions which had secured 10% or more votes out of the total votes polled in the recent election and who had been recognised by the Management. It is the contention of the Writ Petitioners that the Management recognising the Union/Uni
