Right to Sell a Property by a Trade Union
Trade Union Property Rights - Trade unions registered under the Trade Unions Act, 1926, have the legal capacity to own and dispose of property. Courts have upheld that unions can buy, sell, and encumber property purchased with members' contributions, provided such actions are in accordance with their rules and require members' approval when necessary. For example, courts have emphasized that unions can sell property without violating members' rights if done transparently and with proper authority (Sources: GANGA SAHAI VS BHARAT BHAN - Allahabad, P. S. MURALEEDHARAN VS REGISTRAR OF TRADE UNIONS - Kerala, K K LALU vs THE REGISTRAR OF TRADE UNIONS, THIRUVANANTHAPURAM - Kerala).
Authority to Sell and Member Consent - The union's amended bye-laws often specify procedures for property disposal, including requiring members' consent. Courts have upheld these provisions, emphasizing that property sales must align with the union's rules and members' interests. In one case, the court validated the union's authority to sell property based on its bye-laws, provided proper consultation occurs (Sources: K K LALU vs THE REGISTRAR OF TRADE UNIONS, THIRUVANANTHAPURAM - Kerala, P. S. MURALEEDHARAN VS REGISTRAR OF TRADE UNIONS - Kerala).
Legal Limitations and Procedural Requirements - The sale of union property must adhere to legal and procedural standards, including obtaining necessary approvals from governing bodies or members. Arbitrary or unauthorized disposals can be challenged in courts. The courts have also recognized that unions cannot unilaterally dispose of property purchased with members' contributions without following due process (Sources: P. S. MURALEEDHARAN VS REGISTRAR OF TRADE UNIONS - Kerala, K K LALU vs THE REGISTRAR OF TRADE UNIONS, THIRUVANANTHAPURAM - Kerala).
Trade Union's Right to Engage in Trade and Sale of Land - While trade unions have the right to own and dispose of property, their capacity to buy and sell land is often limited by statutory regulations and rules. For example, under the Societies Registration Act, 1860, unions can buy and sell land up to one acre for union purposes. The state retains the authority over trade in minerals and natural resources, not the unions (Sources: GANGA SAHAI VS BHARAT BHAN - Allahabad, Manoj Kumar VS State of Bihar - Patna, Bihar State Mineral Development Corporation VS State Of Bihar - Patna).
Restrictions and Public Interest - Courts have recognized that restrictions on a union's property rights may be justified if they serve the public interest or adhere to statutory provisions, such as government approval for land disposal or mineral rights regulation (Sources: T. B. Manoharan VS Government of India, Represented By Ministry of Oil & Natural Gas - Kerala, KHADI BOARD EMPLOYEES ASSOCIATION(CITU vs KERALA KHADI AND VILLAGE INDUSTRIES BOARD Advocate -SRI TOM K THOMAS, SC KERALA KHADI & VILLAGE INDUSTRIES B - Kerala, Manoj Kumar VS State of Bihar - Patna).
Analysis and Conclusion:
Trade unions possess the legal capacity to own, buy, and sell property, including land, under statutory frameworks and their internal rules. However, such transactions must follow proper procedures, including member approval and compliance with relevant laws. Courts generally support union rights to dispose of property but emphasize transparency and adherence to rules to prevent arbitrary actions. The union’s authority to sell property is thus contingent upon legal compliance, proper authorization, and safeguarding members' interests.
References:
- GANGA SAHAI VS BHARAT BHAN - Allahabad, Manoj Kumar VS State of Bihar - Patna, T. B. Manoharan VS Government of India, Represented By Ministry of Oil & Natural Gas - Kerala, MANOHARAN.T.B. vs GOVT.OF INDIA - Kerala, Bihar State Mineral Development Corporation VS State Of Bihar - Patna, P. S. MURALEEDHARAN VS REGISTRAR OF TRADE UNIONS - Kerala, K K LALU vs THE REGISTRAR OF TRADE UNIONS, THIRUVANANTHAPURAM - Kerala, KHADI BOARD EMPLOYEES ASSOCIATION(CITU vs KERALA KHADI AND VILLAGE INDUSTRIES BOARD Advocate -SRI TOM K THOMAS, SC KERALA KHADI & VILLAGE INDUSTRIES B - Kerala, SANDVIK INTELLECTUAL PROPERTY AB vs BHANWAR LAL DHABHAI AND ORS. - Delhi
through trustees, can sue and be sued, and any person having a claim against it must look to its property and not that of its members ... Decidendi: The court reasoned that a society registered under the Societies Registration Act, 1860, has a separate name, can hold property ... Such union can buy and sell land not exceeding one acre, and personal estate without limit of amount, for the use and benefit of such trade union and the members thereof. ... the rules of the union#H....
The State has the inherent or paramount right to carry on trade in minerals, including the right to win minerals itself and deal ... Whether the State has the inherent or paramount right to carry on trade in minerals, including the right to win minerals itself and ... Rule 4 of the Bihar Minor Mineral Concession Rules, 1972, does not abrogate the State's right to carry on trade in minerals. ... In terms of Article 299 of the Constitution of India the....
trust to mine and collect sea shell do not give exclusive rights and thus termination of such rights' don't amounts to violation of right ... Union of India (AIR 1959 Punjab 510), it was a licence to work in mines of Government property. ... The right to work in a mine upon another's land does not exist before the licence or lease is granted to him and cannot be treated as a right analogous to the fundamental right of a citizen to trade and buy and sell#HL_E....
Finding of the Court: The court found that the petitioners did not possess a legal right to unconditionally mine seashells ... Union of India WA.2865/07 & 238/08 21 (AIR 1959 Punjab 510), it was a licence to work in mines of Government property. ... The right to work in a mine upon another's land does not exist before the licence or lease is granted to him and cannot be treated as a right analogous to the fundamental right of a citizen to trade and buy and #HL_START....
TO MINING LEASE - EXECUTIVE POWER OF THE STATE - ENTITLEMENT TO CARRY ON TRADE IN MINERALS - ENTITLEMENT TO WIN MINERALS AND SELL ... Whether the State has the right to carry on trade in minerals, that is to say, the right to do mining operation and deal in minerals ... for lease and in that case it would be entitled to preference under Rule 12 but if the Government decides to win the minerals and sell ... In terms of Article 298 of the constitution of India the executive power of the ....
Trade Union - Property Disposal - Trade Unions Act, 1926 - [Trade Union, Property Disposal, Trade Unions Act, 1926] - The court ... to the sale of the Union's property, claiming it was purchased using their contributions. ... to sell its properties. ... encumbering the plaint schedule property, or taking any decision affecting the right of the members of the plaintiff Association....
Issues: Whether the trade union had the authority to sell its property without consulting former employees who claim continued ... Ratio Decidendi: The court determined that the amended bye-laws of the trade union permitted property sales and established ... union regarding the sale of property and upheld the amended bye-laws allowing such action, emphasizing members' consent is necessary ... respondent union fro....
Property - Employees Union Rights - Kerala Khadi and Village Industries Board Act - Section 9(1) - The Court upheld the Board's ... right to dispose of property under specific provisions, emphasizing the necessity of government approval to prevent arbitrary actions ... Issues: Whether the Employees Union has the right to question the Khadi Board's decision to release land for public interest ... Rule 9(1) of the Rules stipulates that the Board may, if it is satisfied that any immovabl....
Whether the restriction imposed on the petitioners' right to carry on their trade was reasonable and in the public interest? (a) the supply, sale and use of stamps and stamped papers; (b) the persons by whom alone such sale is to be conducted, (c) the duties and remuneration of such persons, (d) the manner of ascertaining the market value of immovable property ... Sub-section (2) of Section 74, as excerpted supra, envisages that rules may, inter alia, regulate: supply, sale and use of stamps and stamped papers; persons by whom alone s....
(A) Trade Marks Act, 1999 - Sections 29 and 30 - Infringement and passing off - Plaintiff sought permanent injunction against Defendants ... (Paras 2, 27, 29) ... ... (B) Trade Marks - Well-Known Marks - The issue of ... Urfee Roomi, the learned Counsel for the Plaintiff submitted that the Plaintiff, Sandvik Intellectual Property AB, is an intellectual property holding Company that is organised and existing under the laws of Sweden. ... The Plaintiff apprehended that Defendant No. 1 was attempting to determine the comp....
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