R.G.D'SOUZA Vs. POONA EMPLOYEES UNION & ANR.
Supreme Court of India (Division Bench (DB)- Two Judge)
Appeal (Civil), 10129 of 2010, Judgment Date: Nov 18, 2014
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 10129 OF 2010
R.G.D’SOUZA ………APPELLANT
Vs.
POONA EMPLOYEES UNION & ANR. ………RESPONDENTS
J U D G M E N T
V.GOPALA GOWDA, J.
The appellant has filed this appeal questioning the correctness of the
Judgment and order dated 25.2.2009 passed in W.P. No.4048 of 2008 by the
Division Bench of High Court of Judicature at Bombay affirming the order of
Industrial Court, Pune dated 11.04.2008 whereby the Industrial Court set
aside the order of Additional Registrar, cancelling the Registration
Certificate of the Poona Employees Union-the respondent No.1 (hereinafter
referred to as the Trade Union), urging various facts and legal
contentions.
The factual matrix and the rival legal contentions are briefly stated
hereunder with a view to find out as to whether the impugned Judgment and
order warrants interference by this Court under its appellate jurisdiction.
The appellant was the Union President of the Trade Union when the
application for the Registration of it was submitted. Due to internal
clashes, he was expelled from the Trade Union. There were some disputes
between the Trade Union and another Union namely, Bhartiya Kamgar Sena
(“BKS” for short) pending before the Industrial Court. The appellant
claimed that he was an active member in the Labour movement and an
interested party and therefore, filed an application under Section 10 of
the Trade Unions Act, 1926 (for short “the Act”) before the Additional
Registrar of Trade Unions seeking cancellation of the Certificate of
Registration of the Trade Union on the ground that the same was obtained by
fraud, mistake or misrepresentation.
The ground taken for cancellation of the registration of the Trade Union
was non-filing of the necessary documents as per the Rules and Regulation
and obtained Registration Certificate by mistake and fraud which was
accepted by the Additional Registrar of the Trade Unions. The Additional
Registrar of Trade Unions by his order dated 12.2.2008 cancelled the
registration of the Trade Union.
3. Being aggrieved by the said order, the Trade Union filed an appeal under
Section 11 of the Act before the Industrial Court, Pune, the Appellate
Authority. After hearing both the parties, the Industrial Court, Pune
passed an order on 11.4.2008, by recording its reasons, set aside the order
passed by the Additional Registrar of Trade Unions.
4. Being aggrieved by the order passed by the Industrial Court, the
appellant preferred writ petition No. 4048 of 2008 before the High Court of
Bombay under Article 226 of the Constitution of India urging various
grounds, inter alia contending that the order passed by the Industrial
Court is vitiated both on the grounds of erroneous finding and error in
law. The High Court came out with the following two issues involved in the
petition:
Whether the appellant had locus standi to invoke the proceedings under
Section 10 of the Trade Unions Act, 1926?
Whether the Registration Certificate obtained by fraud or mistake by the
first respondent-Trade Union and so liable to be cancelled?
5. The High Court rejected the submissions made on behalf of the appellant
and held that the appellant had no locus to apply for cancellation of the
Certificate of Registration of the Trade Union and that the view taken by
the Industrial Court on the same is legal and valid.
6. Mr. C. U. Singh, the learned senior counsel on behalf of the appellant
has argued that the Industrial Court completely mixed up the issues while
answering the questions of law raised before it. It is urged by him that at
the time of applying for the registration, the Trade Union did not follow
the provisions under Sections 4 and 6 of the Act. The Trade Union ought to
have specifically mentioned the name/names of any establishment or nature
of any industry/industries in which the persons employed were to be united
or combined. In the absence of mentioning the name of industry and non-
inclusion of the same in the schedule in the application in the prescribed
form is a gross mistake on the part of the Trade Union. Our attention was
also drawn to the application submitted by the Trade Union before the
Registrar of Trade Unions for its registration. Further, the learned senior
counsel urged on the point of requirement of specific mention of the object
or purpose in the application for registration by the Trade Union by
relying upon Indian Express Newspapers (Bom) Employees Union v. K.M. Desai
& Ors.[1] and Maharashtra Engg. Plastic & General Kamgar v. Chamundi
Petroleum & Ors.[2] in support of his case.
7. It is also contented by the learned senior counsel that the registration
was obtained by mistake or fraud by the Trade Union and the same was not
examined by either the Industrial Court or the High Court.
8. He further contended that the details of the office bearers of the Trade
Union were not given in the Schedule-I of the list of officers as per the
prescribed Form ‘A’, relevant column 5, under Section 5(1)(c) of the
Central Trade Union Regulations, 1938. In support of the said legal
contention he has placed reliance upon the decision of this Court in Forbes
Forbes Campbell & Co. Ltd. v. Engineering Mazdoor Sabha[3], wherein with
regard to recognition of a Trade Union this Court held that filing in the
form by furnishing details is mandatory, and that form and rule must be
read in tandem. It was contended that the said decision with all fours is
applicable in justification of cancellation of Registration Certificate.
9. It was further contended by the learned senior counsel for the appellant
that the High Court has erred in law in interpreting the phrase ‘mistake’
occurred under Section 10(b) of the Act stating that the legislative wisdom
which excludes an act of mistake the power of review can be exercised by
the Registrar of Trade Unions and the order of cancellation of its
Certificate of Registration can be made, but the High Court has erroneously
held that registration cannot be cancelled by the Registrar in exercise of
the power by him under Section 10 of the Act.
10. Further, the learned senior counsel placing strong reliance upon
Section 4 of the Act, pointed out that the Amendment in view of the first
proviso to Section 4 of the Act, which mandates that no Trade Union of
workmen shall be registered unless at least ten percent or one hundred of
the workmen whichever is less, engaged or employed in the establishment or
industry with which it is connected are the members of such Trade Union, on
the date of making of application for registration. The second proviso
states that no Trade Union of workmen shall be registered unless it has on
the date of making application not less than seven persons as its members,
who are the workmen engaged or employed in the establishment or industry
with which it is connected. Such requirement under Section 4 and its
proviso is a statutory legal requirement for either registered Trade Union
or continues as a registered Trade Union even after the amendment to the
Act by bringing an Amendment to its constitution is the legal requirement
in accordance with the aforesaid provisos. Therefore, he contends that non-
compliance of the said legal requirement by the Trade Union even after the
amendment to the Act has invited the cancellation of its registration. This
cancellation was done in the instant case by the Registrar of Trade Unions
at the instance of the appellant. Since the same was not considered by the
High Court, the impugned judgment and order is liable to be set aside.
11. On the other hand, Mr. Colin Gonsalves, the learned senior counsel on
behalf of Trade Union, sought to justify the impugned Judgment and order
passed by the High Court by affirming the Judgment of the Industrial Court
by placing strong reliance upon the fact that the Trade Union has been
actively working for the welfare of labourers since 1986. Cancellation of
the Registration Certificate by the Registrar of Trade Unions at the
instance of the appellant is totally impermissible under Section 10 of the
Act. As per Section 10(a) of the Act, the Registrar of Trade Unions can
take cognizance of the cancellation on application by a Trade Union and not
that of an individual. It was contended that the appellant had no locus
standi under Section 10(a) of the Act to challenge the Registration
Certificate issued by the Additional Registrar of Trade Unions. It is also
urged by him that as per Section 10(a) of the Act the mistake ought to be
on the part of the applicant and could not be on the part of the
Registering Authority in support of the said contention and legal position,
the learned senior counsel has relied upon the judgment of Karnataka High
Court in the case of Registrar, Trade Unions, Mysore v. M. Mariswamy[4],
wherein the Court held as under:-
“Index Note: (A) Trade Unions Act (1926), Section 10(b)- Withdrawal or
cancellation of registration on ground of ‘mistake must have been on the
part of the applicant Union and not on the part of the Registrar himself-
withdrawal or cancellation cannot be made for the mistake of the Registrar
himself.”
12. On the point of disclosure of the object, the learned senior counsel
placed reliance on B.P.L. Group of Companies Karmikara Sangha v.
Commissioner of Labour[5] in support of the submission made as stated
above.
13. Learned senior counsel appearing on behalf of the Trade Union further
justified the impugned judgment on three grounds. The authorisation and
approval of the registration of the Trade Union was made by the Registrar
of Trade Unions. In the absence of prohibition or prevention under the
Statute from being a general Trade Union, non-furnishing the name of the
industry or industries under Schedule III in the relevant column Sl. No. 5
of the application form it is specifically mentioned “any” industry means
“all”, the object of registration of the Trade Union further fortifies the
stand taken by the Trade Union that it is a general Trade Union, where it
is empowered to have enrolment of workmen from all the industries which are
situated within the Pune District. Non-furnishing the name of the
industries in respect of which the Trade Union has been registered does not
vitiate its registration in law. Therefore, non-furnishing the names of
industries in the Schedule III portion to the application in the prescribed
form is only superfluous and making a big issue in this regard for
justification for the cancellation of Certificate of Registration of the
Trade Union is wholly untenable in law. Non-furnishing of the names of
industries in Schedule III to the application due to inadvertence cannot be
attributed as fraud or mistake on the part of the Trade Union to get its
registration with the Registrar of Trade Unions and cancellation of the
same is not permissible in law. It is not the form, but the substance of
the matter and substantial compliance of the details that are furnished in
the prescribed form ‘A’ by the Trade Union that matters, this has been done
in the case on hand by the Trade Union and therefore, the impugned Judgment
& order passed by the High Court is legal and valid. Further, in response
to the reliance placed upon the two judgments namely, Indian Express
Newspapers (Bom) Employees Union (supra) and Chamundi Petroleum Case
(supra) by senior counsel for the appellants, the learned senior counsel
for the Trade Union submitted that they are distinguishable from the
present case on hand. In the Indian Express Newspapers case (supra), the
constitution of the respondent-Trade Union which consisted of both
journalists and non-journalists working in the respondent-company (Indian
Express) only mentioned the objects of the union in Schedule ‘A’ as
“printing press” and did not bear an entry of the newspaper establishment
or a newspaper industry. It was held in that case that the Constitution of
the respondent-Trade Union did not permit it to enrol journalists and non-
journalists employed by the respondent-Company and that a newspaper
industry cannot be equated with the “printing press” industry as
publication of newspaper and periodical involves many more functions. In
the case of Chamundi Petroleum (supra) the constitution of the Trade Union
did not say that it is in relation to workmen of working in petrol pumps.
Therefore, the reliance placed upon the aforesaid two judgments by the
senior counsel on behalf of the appellant to justify the order of
cancellation of the Registration of the Trade Union are wholly untenable in
law as these cases do not apply to the facts and circumstances of the case
on hand as both the cases are distinguishable.
14. We have heard both the learned senior counsels for the parties. After
examining the correctness of the legal contentions, we are in respectful
agreement with the concurrent finding and reasons recorded by the High
Court as well as the Industrial Court for the following reasons.
15. As per Section 10 of the Act, the Certificate of Registration of a
Trade Union may be withdrawn or cancelled by the Registrar of Trade Union
either on application of a Trade Union inviting the attention of the
Registrar of Trade Unions or the Registrar may suo moto take cognizance
under the said section. There is no mention in the said provision about
cancellation of Registration of Trade Union on application by any other
person. The said section permits the Authority to cancel the registration
of the trade union if, it is obtained by fraud or mistake, but does not
permit the Authority to cancel the certificate of registration if, the same
is granted by mistake due to incorrect assessment or non-application of
mind or mechanical act on the part of the Authority.
16. Even for the sake of argument, it is accepted by us that the mistake is
on the part of the Trade Union and in the opinion of the Registrar of Trade
Unions in exercise of his powers under Section 10 of the Act cancels the
Certification of Registration of the Trade Union, then it must be preceded
by an enquiry, followed by show cause notice, disclosing grounds for
initiating action so that the same can be answered by the noticee Union
effectively. This was not done in the present case on hand and the same has
been rightly held by the High Court. Further Rule 8(2) of the Bombay Trade
Union Regulations 1927 clearly states that:-
“2) The Registrar on receiving an application for withdrawal or
cancellation of registration shall, before granting the application, verify
himself that the application was approved in general meeting of the Trade
Union if it was not so approved, that it has the approval of the majority
members of the Trade Union. For this purpose, the Registrar may call for
such further particulars as he may deem necessary and may examine any
officer of the Union.”
The above said rule was not fully complied with by the Registrar of
Trade Unions and the appellant has not submitted any approval granted by a
general body meeting or by majority of the Trade Union for the withdrawal
or cancellation of the registration of the Trade Union. The act of fraud or
mistake cannot be attributed to the Trade Union since the information
provided by the Trade Union for registering itself is not by fraud or
mistake as mandated under Section 10 of the Act.
17. With respect to the provisions of Sections 4, 5, and 6 of the Act &
Rules, which provide for furnishing the details in the application to be
submitted for registration of the Trade Union. The above said provisions of
the sections clearly state that they must be complied with for the applying-
Union to be entitled for registration. However, it is essential to note
that the 1st proviso of Section 4; clause (aa), (b) and (c) of Section 5
and clause (ee) & (hh) of Section 6 were inserted to the Act only by the
Amendment Act of 31 of 2001, w.e.f. 09.01.2002, whereas the Trade Union was
registered in the year 1986 when part of the above said provisions were not
present. Therefore, in the present case on hand, although it was necessary
for the Trade Union to comply with and provide all the necessary details
under the above said provisions that were relevant at the time of
registration, the Registrar either by mistake or due to incorrect
assessment or non-application of mind may have issued a Certificate of
Registration to the Trade Union. This official act by the Registrar of
Trade Unions cannot be nullified by him under Section 10 of the Act, but
can only be rectified by the appellate authority or writ court as rightly
opined by the High Court in the impugned judgment.
18. In our considered view, the High Court has correctly held that the word
“any” in the application form and the Rules of the Trade Union under
Section 6 of the Act can be considered as “all”. The High Court has rightly
held that the word “any” could mean that the object the Trade Union was to
operate in all types of industries in Pune District. The necessity of
specifying or disclosing the nature of industry/industries in which the
Trade Union intends to operate and functions came only when the Section 2
of the amendment Act of 31 of 2001 (w.e.f. 9.1.2002) was inserted in the
Trade Unions Act, 1926, whereas the Trade Union was registered in the year
1986. The requirement of workmen engaged in an establishment or industry
with which it is connected to be members of the Trade Union came only after
Section 4 was amended and the provisos were incorporated which came into
force w.e.f. 09.01.2002, which is much after the registration of the Trade
Union. The first part of the proviso mandated that a Trade Union must have
at least ten percent or one hundred workmen engaged or employed in an
establishment or industry who are members of such Trade Union on the date
of making the application for registration. The second part of the proviso
mandated that a Trade Union on the date of making application for
registration must have not less than seven persons as its members who are
engaged or employed in the establishment or industry with which it is
connected. This requirement was not needed at the time of registration of
the Trade Union as the above said amendment to the Act came after the
registration of the same. From the facts and circumstances of the case on
hand, the Trade Union has neither suppressed nor supplied any information
by fraud or mistake in order to obtain the Certificate of Registration.
Therefore, discrepancy in providing details in the prescribed Form ‘A’
being a product of the above Amendment Act cannot invalidate or is not a
valid ground to cancel the Certificate of Registration of the Trade Union
and the decision of this Court in the case of Forbes Forbes Campbell
(supra) as relied on by the learned senior counsel for the appellant is not
relevant in the case on hand.
19. In the light of the above discussion and reasons assigned by us, we are
of the considered view that the High Court has rightly affirmed the
decision of the Industrial Court, wherein it has rightly set aside the
cancellation of Certificate of Registration of the Trade Union holding that
it is not legal or valid. We find no valid or cogent reasons to interfere
with the same in exercise of this Court’s Appellate Jurisdiction. The
appeal is dismissed. No costs.
……………………………………………………………J.
[V. GOPALA GOWDA]
……………………………………………………………J.
[C. NAGAPPAN]
New Delhi,
November 18, 2014
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[1] 1995 I CLR 677
[2] 2007 1 CLR 810
[3] (1979) 1 SCC 14
[4] 1974 LAB I.C. 695
[5] 2001 91 L.L.N. 599
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