DR.

SHAKUNTALA MISRA NATIONAL

REHABILITATION UNIVERSITY, LUCKNOW

FACULTY OF LAW

PROJECT- ON

MEANING AND CONCEPT OF BUSINESS ENVIRONMENT

SUBMITTED TO

Dr. VIJETA DUA TONDAN

FACULTY OF LAW

D.S.M.N.R.U

SUBMITTED BY

PREETI SINGH

B.COM L.L.B (HONS)

(IX SEMESTER)
DISQUALIFICATION OF OFFICE BEARERS

The following persons are not eligible to be appointed as office bearers or members of the
executive of a registered trade union:

1. Not attained the age of 18 years

2. Has been convicted of an offence involving moral turpitude and sentenced to
imprisonment, unless a period of 5 years has elapsed since his release.

Section 21A(2) gives retrospective effect to the application of the aforesaid clause.

RIGHTS AND DUTIES OF OFFICE BEARERS

1. An office-bearer or member shall be entitled to inspect: A) the account books; and B)

list of members at such time as may be provided for in the rules of the trade union.
2. A member has right to execute all instruments and give all acquaintance necessary to
be executed or given under the rules.

RIGHTS AND PRIVILEDGES OF A REGISTERED TRADE UNION

1. As per section 13, upon registration, a trade union becomes a legal entity and as a
consequence, it gets perpetual succession and a corporate seal, it can acquire and hold
movable and immovable property, contract through agents, and can sue and get sued.
2. Under section 15 a registered trade union has a right to establish a general fund.
3. Under section 16, a registered trade union has a right to establish a political fund.
Subscription to this fund is not necessary for a member.
4. Under section 17, 18, and 19 a registered trade union gets immunity in certain
criminal, civil, and contractual proceedings.
5. Under section 24, trade unions have the right to amalgamate.
6. Under section 28-F, the executive of a registered trade union has a right to negotiate
with the employer the matters of employment or non-employment or the terms of
employment or the condition of labor of all or any of the members of the trade union
and the employer shall receive and send replies to letters and grant interviews to such
body regarding such matters. It further provides that the executive is entitled to post
notices of the trade union meant for its members at any premises where they are
employed and that the employer shall provide reasonable facilities for that.

GENERAL AND POLITICAL FUNDS OF TRADE UNIONS

1. GENRAL FUND: PURPOSES FOR WHICH IT MAY BE SPENT

(section 15)

a) Payment of salaries, allowances and expenses to office bearers.

 b) Payment of expenses for the administration of the trade union, including audit of
the accounts of general funds.
c) For prosecution or defence of any legal proceeding, where the union or any
member is a party and such proceeding is undertaken for the purpose of securing
or protecting any rights of the trade union or any rights arising out of the relations
.
d) Conduct of trade disputes on behalf of the union or any member thereof.
e) For compensation to members for loss arising out of trade disputes.
f) Allowance to members or their dependents on account of death, old age, sickness,
accidents or unemployment.
g) Issue of or the undertaking of liability under policies of assurance on the lives of
the members, or under policies insuring members against sickness, accident or
unemployment.
h) The provision of educational, social or religious benefits for the members or for
the dependents of the members.
i) The upkeep of a periodical published.
j) Payment for contribution to any cause intended to benefit workmen in general.
k) Any other object notified by the appropriate government in the official gazette.

2. POLITICAL FUND
(Section 16)

a) Payment of any expense incurred, either directly or indirectly, by a candidate or

prospective candidate for election as a member of any legislative body or of any
local body, before, during or after the election in connection with his candidature
or election.
b) Holding of any meeting or the distribution of any literature or documents in
support of any such candidate or prospective candidate.
c) Maintenance of any person who is a member of any legislative body or any local
authority.
d) Registration of electors or the selection of a candidate for any legislative or local
authority.
e) Holding of political meetings of any kind and for distribution of political literature
or political documents of any kind.

CIVIL AND CRIMINAL IMMUNITIES OF REGISTERED TRADE UNION

Immunities available to a registered Trade Union

1. Section 17 confers immunity from liability in the case of criminal conspiracy under
section 120-B of IPC, committed by an office bearer or a member. However, this
immunity is partial in the sense that it is available only with respect to the legal
 agreements created by the members for the furtherance of valid objects of a trade
union as described in section 15 of the act. The immunity cannot be claimed for an act
that is an offence. Registered Trade Unions have certain rights to do in furtherance of
their trade disputes such as calling for strike, persuading members.

2. In the case of West India Steel Company Ltd. vs Azeez 1990 Kerala, a trade union
leader obstructed work inside the factory for 5 hrs while protesting against the
deputation of a workman to work another section. It was held that while in a factory,
the worker must submit to the instructions given by his superiors. A trade union
leader has no immunity against disobeying the orders. A trade union leader or any
worker does not have any right by law to share managerial responsibilities. A trade
union can espouse the cause of workers through legal ways but officials of a trade
union cannot direct other workers individually or in general about how to do their
work. They do not have the right to ask a worker to stop his work or otherwise
obstruct the work of the establishment. An employer may deal with a person causing
obstruction in work effectively.

3. Section 18 confers immunity from civil proceedings in certain cases to a trade union
or its office bears or members. In general, a person is liable in torts for inducing
another person to breach his contract of employment or for interfering with the trade
or business of another. However, a trade union, its officers, and its members are
immune from this liability provided that such an inducement is in contemplation
or furtherance of a trade dispute. Further, the inducement should be lawful. There is
no immunity against violence, threats, or any other illegal means.

4. In the case of P Mukundan and others vs Mohan Kandy Pavithran 1992 Kerala, it was
held that strike per se is not an actionable wrong. Further, it was held that the trade
union, its officers, and its members are immune against legal proceedings linked with
the strike of workmen by the provisions of section 18.
In the leading case of Rohtas Industries Staff Union vs State of Bihar AIR 1963, it
was held that employers do not have the right to claim damages against the employee
participating in an illegal strike and thereby causing loss of production and business.
In the case of Simpson & Group Companies Workers & Staff Union vs Amco
Batteries Ltd 1992 Karn., it was held that physical obstruction of movement of
management officials, contractors, goods, or vehicles carrying raw materials, is not a
trade union right or a fundamental right under art 19. Immunity under section 18
cannot be claimed for such activities. Right to picket is a very intangible right and it
extends only up to the right of free movement of others. The methods of persuasion
are limited to oral and visual and do not include physical obstruction of vehicles or
persons.

5. Section 19 Enforceability of agreements - In India, an agreement in restraint of trade

is void as per section 25 of Indian Contract Act. However, such an agreement between
trade union members is neither void nor voidable. It is important to note that this right
 is available only to registered trade unions. An unregistered trade union must follow
the principles of general contract la

CASE LAWS

Food Corporation of India Worker's Union Vs. Umesh Kumar Gupta (25.10.2002 - DELHI) -
Court Judgment