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2015 Supreme(P&H) 610
PUNJAB & HARYANA HIGH COURT
Surya Kant, P.B. Bajanthri, JJ.
All Escorts Employees Union - Appellant
Versus
State of Haryana and Ors. - Respondent
LPA No. 568 of 2015 [O&M]
Decided On : 20-04-2015
For the Appellant :Sanjay Tangri, Advocate
Headnote:
Trade Union - Amendment to Rule 4 - Trade Unions Act, 1926, Sections 2(g), 2(h), 6(e), 6(g), 9A, 22 - The court discussed the proposed amendment to Rule 4 of the Trade Union's Constitution and its conformity with the Trade Unions Act, 1926. The court highlighted the provisions of the Act, emphasizing the requirement of direct connectivity between the industry and the Trade Union for membership and office bearers, and concluded that the proposed amendment would authorize the Trade Union to raise trade disputes against an establishment with which it has no connectivity, contrary to the legislative object of the Act.
Fact of the Case:
The appellant-Union sought to amend Rule 4 of its Constitution to expand its membership to include workers from a segregated industrial unit. The request was declined by respondent No. 3, and the decision was upheld by the learned Single Judge.
Finding of the Court:
The court found that the decision of respondent No. 3 declining the amendment was in conformity with the provisions of the Trade Unions Act, 1926. It concluded that the proposed amendment would run counter to the legislative object, import, and spirit of various provisions of the Act.
Issues: The main issue was the conformity of the proposed amendment to Rule 4 with the Trade Unions Act, 1926, and the authority of the Registrar/Assistant Registrar to interfere with the internal working of a Trade Union.
Ratio Decidendi: The court emphasized the requirement of direct connectivity between the industry and the Trade Union for membership and office bearers, as stipulated in the Trade Unions Act, 1926. It concluded that the proposed amendment would authorize the Trade Union to raise trade disputes against an establishment with which it has no connectivity, contrary to the legislative object of the Act.
Final Decision: The appeal was dismissed on merits, and the court found no error of law or facts in the decision of respondent No. 3 and the learned Single Judge.
1. The appellant is a registered Union called All Escorts Employees Union (for short hereinafter referred as "Union"). The Union sought the approval of amendment to Rule 4 of its Rules/Constitution before respondent No. 3, which was declined vide order dated 28.08.2002. Aggrieved by that order, the Union preferred Civil Writ Petition before this Court which has been dismissed by learned Single Judge on 07.10.2014. The aggrieved appellant-Union has thus preferred this Letter Patent Appeal.
2. The brief facts of the case are as under:--
3. The appellant-Union was constituted in the year 1968 and registered at Sr. No. 75. In the month of August, 2001 the unit manufacturing two wheeler motorcycles under the brand name of 'Yamaha' got segregated from the Escorts Group of Industries. Thus, it became a 100% subsidiary of ' Yamaha Motor Company, Japan'. In view of that segregation, the Escorts Group of Companies ceased to have any concern with the manufacturing of motorcycle and ownership or management of motorcycle manufacturing unit which is now exclusively with the ' Yamaha Motor Company, Japan' named in India as ' Yamaha Motor India Private Limited'. The Escorts Company in fact does not have any share-holding with it. The workers of the motorcycle manufacturing unit have also legally ceased to be members of the appellant-Union by virtue of the existing Rule 4 of its Constitution/Rules, for the reason that they do not have any commonness of interest with the workers of Escorts Group of Industries working in other units manufacturing various equipments relating to agricultural and railway.
4. In the aforesaid background, appellant-Union intended to amend Rule 4 of its Constitution/Rules by substituting the existing rule. It is relevant to extract the existing Rule 4 of Rules/ Constitution and so also proposed Rule 4 of Rules/Constitution, which are reproduced herein:--
"Existing Rule 4 of the Constitution/Rules of All Escorts/Employees Union (Regd. No. 75).
4. Membership- Any workman employed in Escorts Group of Industries giving in writing of his faith in the objects of the union and assuring to remain in discipline, can become a member of the union after paying the prescribed subscription. The membership would terminate automatically on leaving the group.
Proposed amendment as requested by the petitioner union, to above quoted existing Rule 4 by the All Escorts Employees Union (Regd. No. 75).
4. Membership- Any workman employed in an industry originally established by the Escorts Group of Industries giving in writing of his faith in the objects of the union and assuring to remain in discipline, can become a member of the union after paying the prescribed subscription. The membership shall terminate on lawful retirement or on resignation.
Explanation - The membership shall not be affected due to change of name of the industry established by the Escorts Group of Industries or transfer of management."
5. Respondent No. 3 declined to permit the Union to amend the Rule for the reason that the proposed amendment was exceeding statutory limits and if allowed that would amount to amending the Trade Unions Act, 1926. The extract of the decision of respondent No. 3 is reproduced herein:--
"If the industrial unit(s) manufacturing a particular kind of items, say agriculture items, happen to be segregated from the Escorts Group of Industries then the workers working in such unit (s) would automatically cease to continue as members of the present union under the existing Rule 4. However under the proposed amending Rule 4 read with explanation appended thereto, such workers may continue to remain members of the union despite the fact that after such segregation they cannot have any commonness of interests with other workers of the Escorts Group of Industries. Such segregation has in fact taken place. By the time of submission of present request by the union on 25.06.2001 the Escorts Group of Industries used to manufacture two wheeler motor
