Labour Law

SHUBADA COACHING CENTER HUBBALLI labour law 2ND SEM BY:RAGHAVENDRA SALI PH.NO.
8867328228 1
LABOUR LAW
Unit 1
10M
1. Define Trade Union under the Trade Unions Act, 1926. What are the powers of the Registrar
under the Trade Unions Act, 1926?
2. "The general funds of a Trade Union shall not be used for political purposes. A registered Trade
Union may constitute a separate fund for political purposes." Discuss.
3. Trade Union Enjoys immunities under civil and criminal law. Discuss.
4. Discuss the provisions relating to registration of Trade Union.
5. Define Trade Union. Examine the immunities available to registered Trade Unions.
6. Explain the general and political funds and their collection under the Trade Unions Act, 1926.
7. What is Trade Union? Explain its objects.
8. What are the advantages of Registration of a Trade Union?
9. Discuss the provisions relating to registration of a Trade Union.
10. Discuss the provisions of Trade Unions Act, 1926 relating to cancellation of registration of
Trade Unions.
11. Explain factors responsible for departure of old theory master and servant.
12. Define Trade Union. Examine the immunities available to Registered Trade Unions.
13. Explain the provisions relating to registration of a Trade Union.
14. Discuss the provisions of Trade Unions Act, 1926 relating to cancellation of Trade Unions.
15. Explain Collective Bargaining and types, methods of collective bargaining. How the settlements
done?
16. Discuss the provisions of Trade Union Act, 1926 relating to registration and cancellation or
Trade Union.
17. Explain the procedure to be followed to register a Trade Union under the Trade Unions Act,
1926.
18. Explain the general and political funds and their collection under the Trade Unions Act, 1926.
19. What is Trade Unionism? Explain the growth of Trade Unionism.
20. Explain the immunities of registered trade unions.
SHUBADA COACHING CENTER HUBBALLI labour law 2ND SEM BY:RAGHAVENDRA SALI PH.NO.8867328228 2
6M
1. The Registrar of Trade Unions cancels a certificate of registration for the reason that it was
obtained by fraud. The Trade Union wants to challenge the cancellation. Advise the Trade union
2. Write a short note on : Disqualification of office bearers of the Executive Committee of a Trade
Union.
3. Write short notes on : a) An I.L.O. conventions relating to Trade Unions b) General Fund of
Trade Union.
4. Withdrawal and cancellation of registration of Trade Union.
5. Change of name and Amalgamation of Trade Unions.
6. Short note on : a) Amalgamation of Trade Unions. b) Cancellation of Registration.
7. Collective bargaining.
8. Change of name and Amalgamation of Trade Unions.
9. Due to internal misunderstanding between Trade Union members, they wants to withdraw and
cancel the Trade Union Registration, can they do so ? Advice.
10. I.L.O. Conventions relating to Trade Unions.
11. Write short note on Trade Union Fund.
12. Trade Unions and relevant constitutional provisions.
13. A Trade Union decided to change the name and wants to amalgamate with another Trade Union.
Is it possible? Advise.
14. Growth of Trade Unionism in India and U.K.
15. Change of name and amalgamation of Trade Union.
16. Cancellation of certificate of registration of a Trade Union.
17. Write short note on any one: a) Definition of trade union. B) Withdrawal and cancellation of
registration of trade union.
Unit 1
I.The Nature of Master and Servant Relationship
A servant is one who works for another individual, known as the master, with or without pay.
The master and servant relationship only arises when the tasks are performed by the servant under
the direction and control of the master and are subject to the master's knowledge and consent.
Advocate S. R. Samant observed that: “The words master and servant are suggestive of the ideas of
domination and submission hidden behind them. According to the settled law of master and servant,
the master holds authority over the servant and the servant owes obeyance to the master. In other
words, the servant is under the control and bound to obey the orders of the master. The master is the
superior of the servant and the servant is the inferior of the master. The so-called equality of persons
before the law is conspicuous by absence in the master and servant relation. The masters economic
and social might determine his legal rights. The strong is never wrong and the weak must ever be
meek is the maxim of the master and servant law. The master and the servant are truly the ruler and
the ruled”.
In recent times of democratic order and social justice, however, the words master and servant
have almost fallen out of use and new ones like manager and worker or employer and employee
have taken their place. No doubt, this is in conformity with the great social revolution, sometimes
styled as the “New Industrial Revolution” or the “Second Industrial Revolution” that is taking place
in the field of industrial relations. This transformation of words master and servant is certainly
significant in that the new words no more smell at least in theory of the ideas of domination and
submission, unlike their predecessors. Taken at their dictionary meaning, these new words are truly
descriptive of the functions rather than the relations of the master and the servant.
But though outwardly, the new words possess dignity and respect, it is quite evident after a little
reflection that the transformation of the words is more apparent than real as regards the actual facts.
They are certainly changed in point of form, but they remain more or less the same in substance.
There is no improvement in the relationship between the employer and the employee formerly
known as the master and the servant which ought to have followed the improvement in their
nomenclature. The transformation is incomplete giving rise to a problem known as the human
relations problem.
The cherished objectives of harmonious and amicable relations between the employer and the
workmen could not in these circumstances be achieved within the framework of the then prevailing
juristic thought, legal principles or legal traditions; (it called for altogether new approach, based on
new legal thought and philosophy so that new legal traditions could come up so as to pave the way
for social justice and for an equitable distribution of profits and benefits accruing from the industry
between the industrialist and the workers), which alone could afford real protection to the workers
against harmful effects to the health, safety and morality rather than mere compliance with the
contract of employment.
Thus, the need for Industrial Jurisprudence was imminent and imperative; it was a sociological
necessity so that the dominance of the laissez faire based as it was upon the so called natural rights
of the individual could bid a goodbye.
II.Development of Trade Union Laws in India(TRADE UNIONISM)

 INTRODUCTION:
Trade Union is an organization of workers that helps them to achieve common goals such as
better working conditions. The establishment of trade unions began to reduce the exploitation of
workers by the employers. The trade unions Act was passed to give validity and regulate the
functions of the Trade union.
 DEFINITION Sec 2(h):

“Trade Union” means any combination, whether temporary or permanent, formed primarily for
the purpose of regulating the relations between workmen and employers or between workmen
and workmen, or between employers and employers, or for imposing restrictive conditions on
the conduct of any trade or business, and includes any federation of two or more Trade Unions.
Acco. to Sec. 2(h) of the Trade Unions Act, 1926, ‘TU’ means any combination whether
temporary or permanent, formed primarily for the purpose of regulating the relations between
workmen and employers or between workmen and workmen or between employers and
employers, or for imposing restrictive conditions on the conduct of any trade or business, and
includes any federation of two or more trade unions. Provided that the TU Act, 1926 does not
affect,
1. Any agreement between partners as to their own business
2. Any agreement between an employer and those employed by him as to such employment; or
3. Any agreement in consideration of sale of the goodwill of business or of instruction in any
profession, trade or handicraft.
It is an organization of workers that have banded together to achieve common goals such as
better working conditions.
 In Britian from 1360 onwards, number of statutes were enacted prohibiting combinations
formed with an object of altering wages and conditions. Combination Act,1800 was enacted with
the object of crushing worker’s trade unions. Trade union Act, 1871 was passed. The object was
to provide a system of voluntary registration for trade union. Thus in England, illegality of trade
union movement became legality.
 In India: reached India along with industrialization. In India, the factory system started with the
establishment of first cotton mill in 1851in Bombay and first Jute Mill in 1855 in Bengal.
 The first phase- 1850 & 1900. The first strike took place in Express Mills at Nagpur in 1877.
These labor Associations were not TU in the strict sense of the term. The second phase between
1900 & 1947.This is characterized as organized TUs and political movements. Third phase
showed the greater participation of TU movement in sharing the powers and responsibilities. The
first National Federation of Trade Unions was established in 1920 in India.ie. All India Trade
Unions Congress (AITUC)
 Art. 19 (1)(c) provides that all citizens shall have the right to form associations or unions. After
the independence democratic sprit is gradually developed among the Indian citizens & the
workmen in industry are not an exception to it. It was in the year 1920 that the High Court of
Madras in a suit filed against the officials of Madras Textile Labour Union by Binny & Co.
Granted an injunction restraining the union officials to induce certain workers to break their
contracts of employment by refusing to return to work. The leaders of the trade union found
themselves liable for prosecution & imprisonment.
A resolution was moved in the central legislative assembly seeking some measures by the govt
protection of Trade Union. The employers were so much opposed to any such legislation
measure being adopted that the passing of the Indian Trade Union Act could only be possible in
1926. The contribution of the capital & the labour in any industry is equally important.
Therefore, the prosperity of an industry depends upon the co-operation of its two components
the Capital & the Labour which are inevitable. The original Trade Union Act of 1926 made
provisions in respect of, conditions governing the registration of the trade unions, obligations
imposed upon the registration of the trade union, rights & privileges of the registered trade
unions etc.
 CONCLUSION: The presence of trade unions establishes a healthy relationship between the
employer and workmen with a sense of responsibility towards each other. Trade unions define
and channelize the rights of the workers with pressure on the employer to not deceit them.
III. ILO Conventions relating to trade Unions and Constitutional Provision

International Labour Organisation (ILO) is the most important organisation in the world level and it
has been working for the benefit of the workers throughout the world. It was established in the year
1919. It is a tripartiate body consisting of representatives of the Government, Employer, workers. It
functions in a democratic way by taking interest for the protection of working class throughout the
world.
It is also working at the international level as a ‘saviour of workers’ ‘protector of poor’ and it is a
beacon light for the change of social justice and social security. The I.L.O examines each and every
problem of the workers pertaining to each member country and discusses thoroughly in the
tripartiate body of all the countries. The I.L.O passes many Conventions and Recommendations on
different subjects like Social Security, Basic Human Rights, Welfare Measures and Collective
Bargaining. On the basis of Conventions and Recommendations of I.L.O. every country
incorporates its recommendations and suggestions in its respective laws.
The idea of protecting the interest of the labour against the exploitation of capitalists owes its origin
to the philanthropic ideology of early thinkers and philosophers, and famous among them is “Robert
Owen” who being himself an employer took interest in regulating hazardous working conditions of
the workers and also in human conditions under which the workers were being crushed underneath
the giant wheels of production.
Aims of the International Labour Organisation:

The principle aim of the I.L.O is the welfare of labour as reaffirmed by the Philadelphia Conference
of 1944 under the Philadelphia Declaration, on which the I.L.O. is based
1. Labour is not a commodity;
2. Freedom of expression and of association are essential to sustained progress;
3. Poverty anywhere constitutes danger to prosperity everywhere; and
4. The war against want requires to be carried on with unrelenting vigour within each nation, and by
continuous and concerted international effort in which the representatives of workers and
employers, employing equal status with those of governments, join with them in free discussion and
democratic decision with a view to the promotion of the common welfare.
International Labour Standards on Freedom of Association:

The principle of freedom of association is at the core of the ILO's values: it is enshrined in the ILO
Constitution (1919), the ILO Declaration of Philadelphia (1944), and the ILO Declaration on
Fundamental Principles and Rights at Work (1998). It is also a right proclaimed in the Universal
Declaration of Human Rights (1948). The right to organize and form employers' and workers'
organizations is the prerequisite for sound collective bargaining and social dialogue. Nevertheless,
there continue to be challenges in applying these principles: in some countries certain categories of
workers (for example public servants, seafarers, workers in export processing zones) are denied the
right of association, workers' and employers' organizations are illegally suspended or interfered
with, and in some extreme cases trade unionists are arrested or killed. ILO standards, in conjunction
with the work of the Committee on Freedom of Association and other supervisory mechanisms,
pave the way for resolving these difficulties and ensuring that this fundamental human right is
respected the world over.
1. Freedom of Association and Protection of the Right to Organize Convention, 1948: This
Convention provides that workers and employers shall have the right to establish and join
organizations of their own choosing without previous authorization. The public authorities are to
refrain from any interference which would restrict the right to form organization or impede its
lawful exercise. These organizations shall not be liable to be dissolved or suspended by

administrative authority. It also provides protection against act of anti-union discrimination in
respect of their employment. This convention has been ratified by Albania, Argentina, Austria,
Belgium, Brazil, Byelorussia, Cuba, Denmark, Dominican Republic, Finland and France. Federal
Republic of Germany and India have not ratified this particular convention. As regards the Trade
Unions Act, 1926, it limits the number of outsiders in the executive of a trade union. Further there is
restriction on outsiders in the federations of Government servants who cannot affiliate themselves
with any central federations of workers. Also, the Government in public interest can forego any
association or trade union and detain or arrest a trade union leader under the Essential Services Act,
1967, the Preventive Detention Act, 1950, the Maintenance of Internal Security Act, 1971 Likewise
the Code of discipline in industry, although non-legal and non statutory, one regulates the
organization of constitution of India itself, while guaranteeing freedom in public interest and public
good. These laws and practice on trade unions do not conform to the requirements of the
convention.
2. Right to Organize and Collective Bargaining Convention, 1949

This fundamental convention provides that workers shall enjoy adequate protection against acts
of anti-union discrimination, including requirements that a worker not join a union or relinquish
trade union membership for employment, or dismissal of a worker because of union membership or
participation in union activities. Workers' and employers' organizations shall enjoy adequate
protection against any acts of interference by each other, in particular the establishment of workers'
organizations under the domination of employers or employers' organizations, or the support of
workers' organizations by financial or other means, with the object of placing such organizations
under the control of employers or employers' organizations. The convention also enshrines the right
to collective bargaining.
3. Workers' Representatives Convention, 1971

Workers' representatives in an undertaking shall enjoy effective protection against any act
prejudicial to them, including dismissal, based on their status or activities as a workers'
representative or on union membership or participation in union activities, in so far as they act in
conformity with existing laws or collective agreements or other jointly agreed arrangements.
Facilities in the undertaking shall be afforded to workers' representatives as may be appropriate in
order to enable them to carry out their functions promptly and efficiently.
4. Rural Workers' Organizations Convention, 1975

All categories of rural workers, whether they are wage earners or self-employed, shall have the
right to establish and, subject only to the rules of the organization concerned, to join organizations,
of their own choosing without previous authorization. The principles of freedom of association shall
be fully respected; rural workers' organizations shall be independent and voluntary in character and
shall remain free from all interference, coercion or repression. National policy shall facilitate the
establishment and growth, on a voluntary basis, of strong and independent organizations of rural
workers as an effective means of ensuring the participation of these workers in economic and social
development.
Freedom of Association and Constitution of India:

Article 19(1)(c) of the Constitution of India, 1950 which envisages fundamental right to freedom of
speech and expression also guarantees the country’s citizens the right “to form associations or
unions” including trade unions. The right guaranteed in Article 19(1) (c) also includes the right to
join an association or union. This right carries with it the right of the State to impose reasonable
restrictions. Furthermore, it has been established that the right to form associations or unions does
not in any manner encompass the guarantee that a trade union so formed shall be enabled to engage
in collective bargaining or achieve the purpose for which it was formed. The right to recognition of
the trade union by the employer was not brought within the purview of the right under Article 19(1)
(c) and thus, such recognition denied by the employer will not be considered as a violation of
Article 19(1)(c). The various freedoms that are recognized under the fundamental right, Article
19(1)(c), are
1. The right of the members of the union to meet,
2. The right of the members to move from place to place,
3. The right to discuss their problems and propagate their views, and
4. The right of the members to hold property.
IV. Impact of industrial Revolution in India upon Labour sector or

industrial jurisprudence on Labour Welfare Legislations:
 INTRODUCTION:
Industrialisation is the modern trend in almost all developing countries now a days, as industry
plays an important role in shaping the economic structure of a society. Industrialisation has a great
influence in the labour sector. Industrialisation paved way for establishment of a lot of industries so
that the competition between the employers increased. It led to the need for more production and
profit which led to the exploitation of employees.
 DEFINITION:
Industrialization is the process of transforming the economy of a nation or region from a focus on
agriculture to a reliance on manufacturing.
 Impact of industrial jurisprudence on Labour Welfare Legislations

The industrial revolution in the 19th century made sweeping changes in the western world.
As a result of the introduction of the factory system production became concentrated in few selected
places, resulting in the increase of the labour population at all such places. The village workers
migrated to the industrial towns because of the difficulties of finding adequate livelihood in their
native places. This resulted in disappearance of the popular village handicraft system because they
could not compete with the machine made goods. The goods produced on the large scale with the
help of the machines in the industries were cheaper than the goods produced by handicraft method.
But the development of the industry in India brought with it great evils inasmuch as it changed
the status of a craftsmen into wage earner. Therefore the craftsmen had to migrate from village to
industrial cities in search of employment in the factories. The factory system had some inherent
evils to which the factory workers were exposed in the beginning. These may be divided into two
heads, like Economic & the Social. The artisan who in the handicraft system had the psychological
satisfaction of producing the goods himself. But in the factory system, he became only a tender of
the machine. He had to produce the goods with the help of the tools & the raw materials supplied by
his employer in the workshop of the employer.
In the factory system, Different categories of workmen produced different parts of the same goods.
Thus the goods came in the final shape by the composite labour of many categories of workers .The
workmen did not get full satisfaction of creation.
 psychologically - this indirectly arrested his mental development & creative tents.
 The wages paid to the factory workers were inadequate to meet the barest needs in the new
environment which was different from their rural life.
 The employment of factory workers was not secure in the beginning they had to suffer from
periodic unemployment & under- employment as a consequence of over production of or
trade circle. A worker could be discharged by his employer at any time without assigning at
any reason. Factories were sick not only due to economic evil but also due to social evil ,
overcrowding of cities with insanitary slums , & acute housing shortage because of large
scale migration of village population to industrial towns has its natural effect on the health ,
morality & social of the worker . Work in the factories was very hazardous & difficult with
long hours of duty, no rest & no facility for recreation. Machines were taken care by the
factory owners who had little regards for the safety of the employees.
 Workers were exposed to serious accidents because the machines were not properly
screened. Accidents were considered as normal risk incidental to employment in a factory &
the workers who were unfortunate victims of the accident lost his employment & did not
have any right to claim compensation
 The wages paid to the workers were very low. Wages were the only source of income of the
workers, they found it extremely difficult to live with the wages so earned by them.
Therefore they had to find ways & means to supplement their earnings. Consequently their
wives & children started to seek employment. The factory owners began to take advantage of
the situation & employed them in large numbers at extremely low wages without any regards
to their physical conditions. The workers found it very difficult to adjust with these
conditions. These evils of the industrialization & lack of adjustment & harmonious
relationship b/w the employer & the labour created problems in the industry, which is called
as labour problems. It also created the gap between capital and labour. The laws then
prevailing were only reflecting the laissesz-fare ideal, indirectly helping the employer at the
cost of the working class. The freedom of contract theory was fully exploited by this
entrepreneur class and the courts and legal systems supported them in the west.
To eradicate all these problems, the British Parliament was forced to evolve a number of legislations
designed to curb the progress of the freedom of contract theory. The State began to assume more
responsibility in the well-being of the workers. Trade unionism was finally recognized and
collective bargaining was evolved as an effective weapon. India never witnessed an industrial
revolution. For protecting British manufacturers and the English economy, the British government
was particular to see that India is not a part in the track of industrialization. The spirit of
nationalism, the independence movement, the no-cooperation movement etc. compelled the imperial
regime to soften their attitude to Indian industries and some labour laws enacted to protect Indian
labour class. The industrial legislation in the real sense began to take shape only after independence.
V. Trade Union and its objects:

 INTRODUCTION
Trade Union is an organization of workers that helps them to achieve common goals such as better
working conditions. The establishment of trade unions began to reduce the exploitation of workers
by the employers. The trade unions Act was passed to give validity and regulate the functions of the
Trade union.
 DEFINITION Sec 2(h): “Trade Union” means any combination, whether temporary or
permanent, formed primarily for the purpose of regulating the relations between workmen and
employers or between workmen and workmen, or between employers and employers, or for
imposing restrictive conditions on the conduct of any trade or business, and includes any
federation of two or more Trade Unions.
 OBJECTIVES OF TRADE UNION

Their primary function is to protect and promote the interests of primary function is to protect the
interests of workers against discrimination and unfair trade practices. These are the main objectives
of Trade Unions to achieve the following:
1. Representation Trade union represent individual workers when they have problems at work. If an
employee feels he is being unfairly treated, he can ask the union representative to help resolve the
difficulty with the manager or employer. Unions also offer their members legal representation.
2. Negotiation Negotiation is where union representatives discuss the issue affecting people working
in the organization with management. There may be a difference of opinion between management
and union members. Trade union negotiate with the employers to find a solution to these
differences.
3. Wages & Salaries The subject which drew the significant attention of the trade unions is Wage &
Salaries. Of course, this item may be related to policy matters. However, differences may arise in
the process of their implementation. In the case of the unorganized sector, the trade unions play a
crucial role in bargaining the pay scale.
4. Working Conditions Trade union in , to safeguard the health of workers, demands the
management provide basic facilities such as lighting and ventilation, sanitation, restrooms, and
safety equipment. Also, while discharging hazardous duties, drinking, refreshment, minimum
working hours, leave & rest, holidays with pay, job satisfaction, social security benefits & other
welfare measures.
5. Discipline Trade union human resource management not only conducts negotiations concerning
items. It is concerned that employers will improve the working conditions. But also protects the
workers from the clutches of management’s unilateral acts and disciplinary policies.
6. Voice in decisions affecting workers The economic security of the employees is determined not
only by the level of wages & duration of the employment. But also by the management’s personnel
policies which include the selection of employees for layoffs, retrenchment, promotion, and transfer.
These policies directly affect workers. The evaluation criteria for such divisions may not be fair. So,
the intervention of unions in such decision-making is a way through which workers can have their
say in the decision-making to safeguard their interests.
7. Member Services During the last few years, trade union in human resource management have
increased the range of services they offer their members.
These include:
A.) Education & training Most unions run training courses for their members on employment sights,
health & safety, and other issues. Some unions also help members who have left school with little
Education by offering courses on basic skills & courses leading to professional qualifications.
B.) Legal Assistance As well as offering legal advice on employment issues, some unions help with
personal matters like housing, wills, and debt.
C.) Financial Discounts People can get discounts on mortgages, insurance, and loans from the
unions.
D.) Welfare Benefits One of the earliest functions of trade unions was to look after members who
hit hard times. Some of the older associations offer financial help to their members when they are
sick or unemployed.
CONCLUSION: The presence of trade unions establishes a healthy relationship between the
employer and workmen with a sense of responsibility towards each other. Trade unions define and
channelize the rights of the workers with pressure on the employer to not deceit them.
VI. REGISTER AND CANCELLATION TRADE UNION:

i) REGISTER OF TRADE UNION
 Introduction: Trade Union is an organization of workers that helps them to achieve common
goals such as better working conditions. The establishment of trade unions began to reduce the
exploitation of workers by the employers. The trade unions Act was passed to give validity and
regulate the functions of the Trade union.
 TRADE UNION: s.2(h) of the Trade Unions Act, 1926 defines trade union as - Trade Union
means any combination whether temporary or permanent formed primarily for the purpose of
regulating the relations between workmen and employers or between workmen and workmen or
between employers and employers or for imposing restrictive conditions on the conduct of any
trade or business and includes any federation of two or more trade unions.
 REGISTRATION OF TRADE UNION:

A trade union may be registered or unregistered. Under the Act registration of a Trade
Union is not mandatory and unregistered unions or associations would not in anyway be illegal.
A registered trade union means a trade union registered under the Trade Unions Act, 1926.
According to s.14, registration of a trade union under the Societies Registration Act, the Co-
operative Societies Act, the Companies Act is void. A registered Trade Union will be entitled to
various benefits, protections and immunities envisaged under the Act.
 Appointment of Registrar(Sec 3)
-The appropriate Government shall appoint a person to be the Registrar of Trade Unions for each
State.
- The appropriate Government may appoint as many Additional and Deputy Registrars of Trade
Unions as it thinks fit ,under the superintendence and direction of the Registrar.
 MODE OF REGISTRATION(s4):
According to s.4 of the Act at least 7 persons are required to form a Trade Union by
subscribing their names to the rules of Trade Union and by otherwise complying with the provisions
of the Act with respect to registration.
However, no Trade Union of workmen shall be registered unless at least 10% or 100 of
the workmen whichever is less engaged or employed in the establishment or industry with which it
is connected are members of such Trade Union on the date of making application for registration.
Under the Act, both employers and workers can get themselves registered.
Caselaw: TTD vs. Commissioner of Labour

In this case, the Hon'ble SC held that any group of employees may be registered as a Trade Union
under the Act for the purpose of regulating the relations between them and their employer or
between themselves.
 APPLICATION FOR REGISTRATION(s5):

According to s.5 of the Act, an application for registration should be made to the
Registrar and it must be accompanied by:
(1) a copy of the rules of the Trade Union
(2) a statement of the following particulars:
a) Names, occupations and addresses of members making the application and in the case of a
Trade Union of workmen the names, occupations and addresses of the place of work of the
members of the Trade Union
b) The name of the Trade Union and address of the HO
c) The titles, names, ages, addresses and occupations of the officers of the Trade Union.
Where a Trade Union has been in existence for a year prior to making the application its application
should be accompanied by a general statement of assets and liabilities and in a case of a Trade
Union whose objects are not confined to 1 State it must be in Form A.
Moreover, every application must be accompanies by a copy of rules. Such rules must comply
with the items mentioned u/s.6 of the Act.
 Sec 6: Rules of Trade Union

the rules provide for the following1. The name of the trade union;
2. The whole of the objects for which the trade union has been established;
3. The whole of the purposes for which the general funds of the trade union shall be applicable;
4. The maintenance of a list of the members of the trade union;
5. The admission of ordinary members who shall be persons actually engaged or employed in an
industry with which the trade union is connected;
6. The conditions under which any member shall be entitled to any benefit assured by the rules and
under which any fine or forfeiture may be imposed on the members;
7. The manner in which the rules shall be amended, varied or rescinded;
8. The manner in which the members of the executive and the other office bearers of the Trade
Union shall be elected and removed;
9. The safe custody of the funds of the trade union, an annual audit, in such manner, as may be
prescribed, of the accounts thereof, and adequate facilities for the inspection of the account books
by the office bearers and members of the trade union, and;
10. The manner in which the trade union may be dissolved.
Case: M.T. Chandrasenan v. Sukumaran

If subscriptions fees is not paid, then the membership will be cancelled. But if TU refused to receive
the fees, then they cannot cancel the membership.
Case: Bokajan Cement Corpn. Employees Union v. Cement Corpn of India Ltd.-
On termination of his employment, employee would not cease to be a member.
The Registrar of Trade Union on receipt of the application with the rules of the Trade Union verifies
and undertakes a thorough scrutiny for compliance with the provisions of ss.5 and 6 of the Act and
he is further empowered u/s.7.
 Sec7: Power to call for further particulars and to require alteration of name
(1) The Registrar may call for further information for the purpose of satisfying himself that any
application complies with the provisions of section 5, or that the Trade Union is entitled to
registration under section 6, and may refuse to register the Trade Union until such information is
supplied.
2) If the name under which the Trade Union is proposed to be registered is identical with that by
which any other existing Trade Union has been registered or, in the opinion of the Registrar, so
nearly resembles such name as to be likely to deceive the public or the members of either Trade
Union, the Registrar shall require the persons applying for registration to alter the name of the Trade
Union stated in the application, and shall refuse to register the Union until such alteration has been
made.
Trade Union is in compliance with all the requirements registers the Trade Union u/s.8 of the Act by
entering in a register the particulars relating to the Trade Union.
On registering the Trade Union u/s.8 of the Act, the Registrar issues a Certificate of
Registration in the prescribed form which acts as conclusive evidence that the Trade Union has been
duly registered.
Case:Tata Workers union v. State of Jharkhand
The Registrar took a decision himself to regulate the election process. The court held that the
Registrar doesn’t have power to regulate election process
 Sec 8: Registration
According to section 8 of the Act, if the registrar thinks that the trade union has complied with all
the provisions of the Act, it shall register the Trade Union by entering in a register all the particulars
in accordance with the provisions of the Act.
Case:ONGC Workmen Association v. State of West Bengal Court

held that the Registrar has no power to examine, He only has the power to inquiry.
 Sec 9: Certificate of Registration

The registrar shall issue a certificate of registration to the trade union after registration under section
8 which shall be conclusive proof that a trade union has been duly registered.
ii) CANCELLATION OF REGISTRATION OF TRADE UNION

s.10 of the Act deals with this aspect. Certificate of Registration may be withdrawn or cancelled
either on application by Trade Union or Registrar may take suo motu cognizance of the application
for cancellation.
A Certificate of Registration of a Trade Union may be withdrawn or cancelled by the
Registrar under any of the following circumstances:
a) An application is made by the Trade Union itself to this effect and the application is verified in
such manner as prescribed by the rules or regulations. The Registrar on receiving such an
application must before granting the application satisfy himself that the withdrawal or cancellation
of registration was approved by a general meeting of the Trade Union. If it was not so approved, the
Registrar must see that it has the approval of the majority of the members of the Trade Union. For
this purpose, he may call for such further particulars as he may deem necessary and may examine
any officer or member of the Union. He may also take other necessary steps to come to a correct
decision as to whether the application for cancellation or withdrawal of the Certificate of
Registration should be granted or not.
b) The Registrar may suo motu / sua sponte cancel or withdraw the certification of registration of a
Trade Union on any of the following grounds:
i) The certificate has been obtained by fraud or mistake
ii) The Trade Union has ceased to exist
iii) It has wilfully contravened any provision of the Act even after notice from the Registrar
iv)It allowed any rule to continue in force which is inconsistent with any provisions of the Act
v) It had rescinded any rule providing for any material provision which was required by Section 6
vi)The Registrar is satisfied that the registered Trade Union of workmen ceases to have the requisite
number of members
In any event, the Registrar cannot withdraw or cancel the certificate unless a previous notice in
writing for not less than two months is served to the Trade Union. The said notice must specify the
grounds on which it is proposed to withdraw or cancel the certificate.
Caselaw: Bombay Fire Fighters Services Union, Mumbai vs. Registrar Trade Unions, Bombay
In this case, an appeal was filed by the Union challenging the order of the Registrar cancelling
its registration for continued contravention of Section 28 of the Act. The Hon’ble High Court of
Bombay held that the cancellation of registration was illegal and improper by observing that the said
order was in violation of the mandatory provisions of Section 10 of the Act as the Registrar had not
addressed a show cause notice in writing to the appellant Union at its correct address.
Case:Tata electric companies v. Registrar of TU

The TU didn’t file its audits. Then the Registrar cancelled their Registration. The court held that,
Before cancelling the registration, the Registrar should give proper time and notice. So the
cancellation is invalid.
 WITHDRAWAL OF REGISTRATION OF TRADE UNION:

Section 28-G deals with aspect. Where the recognition of a Trade Union has been directed under
Section 28-E, the Registrar or the employer may apply in writing to the Labour Court for
withdrawal of the recognition on any of the following grounds:
i) that the executive or the members of the Trade Union have committed any unfair practice set
out in Section 28-J within three months prior to the date of the application
ii) that the Trade Union has failed to submit any return referred to in Section 28-I
iii) that the Trade Union has ceased to be representative of the workmen referred to in Section
28-D(2).
On receipt of such an application, the Labour Court shall unless it thinks fit dismiss the
application summarily or serve notice on the Trade Union to show cause as to why its
recognition should not be withdrawn. And, if after giving the Trade Union a reasonable
opportunity to show cause the Labour Court is satisfied that the Trade Union is no longer fit to
be recognized it shall make an order declaring that the recognition has been withdrawn and
forward a copy of the order to the appropriate government which shall notify it in the official
gazette.
 Conclusion:
The presence of trade unions establishes a healthy relationship between the employer and workmen
with a sense of responsibility towards each other. Trade unions define and channelize the rights of
the
workers with pressure on the employer to not deceit them. Section 28-G deals with aspect. Where
the recognition of a Trade Union has been directed under Section 28-E, the Registrar or the
employer may apply in writing to the Labour Court for withdrawal of the recognition
VI. RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS:

 INTRODUCTION:
Trade Union is an organization of workers that helps them to achieve common goals such as better working
conditions. The establishment of trade unions began to reduce the exploitation of workers by the employers.
The trade unions Act was passed to give validity and regulate the functions of the Trade union.
 DEFINITION Sec 2(h):

“Trade Union” means any combination, whether temporary or permanent, formed primarily for the purpose
of regulating the relations between workmen and employers or between workmen and workmen, or between
employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and
includes any federation of two or more Trade Unions.
 RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS Sec 15:
Objects on which general funds may be spent. The general funds of a registered Trade Union shall not be
spent on any other objects than the following, namely:
a) the payment of salaries, allowances and expenses to 3 [office-bearers] of the Trade Union;
b) the payment of expenses for the administration of the Trade Union, including audit of the accounts of the
general funds of the Trade Union;
c) the prosecution or defence of any legal proceeding to which the Trade Union or any member thereof is a
party, when such prosecution or defence is undertaken for the purpose of securing or protecting any rights of
the Trade Union as such or any rights arising out of the relations of any member with his employer or with a
person whom the member employs;
d) the conduct of trade disputes on behalf of the Trade Union or a any member thereof:
e) the compensation of members for loss arising out of trade disputes;
f) allowances to members or their dependant on account of death, old age, sickness, accidents or
unemployment of such members;
g) the issue of, or the undertaking of liability under, policies of assurance on the lives of members, or under
policies insuring members against sickness, accident or unemployment;
h) the provision of educational, social or religious benefits for members (including the payment of the
expenses of funeral or religious ceremonies for deceased members) or for the dependants of members;
i) the upkeep of a periodical published mainly for the purpose of discussing questions affecting employers or
workmen as such;
j) the payment, in furtherance of any of the objects on which the general funds of the Trade Union may be
spent, of contributions to any cause intended to benefit workmen in general, provided that the expenditure in
respect of such contributions in any financial year shall not at any time during that year be in excess of one-
fourth of the combined total of the gross income which has up to that time accrued to the general funds of
the Trade Union during that year and of the balance at the credit of those funds at the commencement of that
year; and
k) subject to any conditions contained in the notification, any other object notified by the 1 [appropriate
Government] in the Official Gazette.
Sec 16: Constitution of a separate fund for political purposes.

(1) A registered Trade Union may constitute a separate fund, from contributions separately levied for or
made to that fund, from which payments may be made, for the promotion of the civic and political interests
of its members, in furtherance of any of the objects specified in sub -section
(2) objects –
(a) the payment of any expenses incurred, either directly or indirectly, by a candidate or prospective
candidate for election as a member of any legislative body constituted under or of any local authority,
before, during, or after the election in connection with his candidature or election; or
(b) the holding of any meeting or the distribution of any literature or documents in support of any such
candidate or prospective candidate; or
(c) the maintenance of any person who is a member of any legislative body constituted under or of any local
authority; or
(d) the registration of electors or the selection of a candidate for any legislative body constituted under or for
any local authority; or
(e) the holding of political meetings of any kind, or the distribution of political literature or political
documents of any kind.
(3) No member shall be compelled to contribute to the political fund and a member who does not contribute
to the said fund shall not be excluded from any benefits of the Trade Union, or placed in any respect either
directly or indirectly under any disability or at any disadvantage as compared with other members of the
Trade Union (except in relation to the control or management of the said fund) by reason of his not
contributing to the said fund; and contribution to the said fund shall not be made a condition for Admission
to the Trade Union.
Mario Raposo v. H.M.Bhandarkar& Others
The office bearers of the trade union purchased shares of UTI in their individual names out of the union
general fund-purchase of shares is a speculative activity.-Sec.15 does not allow.
Sec.17: Immunity from Criminal conspiracy in Trade Disputes

Immunity is a favour granted by law contrary to the general rule. Sec 17 confers immunity from liability in
cases of criminal conspiracy u/sec 120-B, of IPC committed by the office bearers or members of a registered
TU. The protection provided to members or office bearers of the registered trade union is partial in the sense
that the immunity is available only in respect of agreements made b/w the members for the purpose of
furthering any legitimate object of the Trade Union as given under sec 15 of the Act.
If an agreement is an agreement to do an act which is an offence no immunity can be claimed. The effect of
sec 17 is that, an agreement or combination of two or more members of the registered trade union to do or
cause to be done any act in furtherance of the trade dispute shall not be punishable as a conspiracy unless
such an act if committed by the individual constitutes an offence. Registered trade unions have certain rights
to do in furtherance of their trade disputes, such as to declare strikes & for that purpose to pursue their
members to abstain from their work.
Sec 18: Immunity from civil suits

Section 18 of the Trade Unions Act deals with the immunity from the civil proceedings to the trade union or
any office bearer or members thereof. It is given in respect of any act done in contemplation or furtherance
of trade dispute to which a member of the trade union is a party on the ground only that
*such act includes some other persons to break the contract of employment,
*or that it is an interference with the trade, business or employment of some other person
*or interference with the right of some other person to dispose of his capital or his labour. Trade union shall
not be liable in any suit or other legal proceeding in any civil court in respect of any tortuous act done in
contemplation or furtherance of a trade dispute by an agent of the trade union if it is proved that such person
acted without the knowledge of or contrary to express instruction given by the executive of the trade union.
There shall be no immunity if threaten, violence, or other illegal means are employed.
Sec 18(2): An agent cannot claim immunity from liability unless and until the TU instructs him to do that
act.
West Indies Steel Company Ltd V/S Azeez, in this case a trade union leader obstructed work in the factory
for five hours protesting against deputation of workmen to work in another section. It was held that a worker
inside the factory is bound to obey the reasonable instructions given by his superiors & carry out the duties
assigned by him. The mere fact that such worker is the leader of the trade union does not confer on him any
immunity in this regard.
Ram Singh & others V/S M/s Ashok Iron Foundation & others. The suit for perpetual injunction
restraining the workmen from indulging in unfair labour practices is deemed as one of the civil nature &
hence cognizable u/sec9 of CPC. therefore were the court has barred the workmen from holding meeting
dharna & interfering in the rights of the company such restrain does not curtail the rights of the trade union
activities of the workers . This Act cannot be construed as unjust & the workmen are at liberty to carry on
legitimate union actives peacefully.
P.Mukundan & others V/S Mohan Kanady Pavithram , in this case it was stated that a strike per se
would not be an actionable wrong. Further the office bearers & the members of the registered trade union
are immune against the legal proceeding linked with strike of the workmen by the provision of sec 18 of the
act.
Sec19: Enforceability of agreements.

An agreement between the members of a registered Trade Union shall not be void or voidable merely by
reason of the fact that any of the objects of the agreement are in restraint of trade.
Sec20: Right to inspect books of Trade Union.

The account books of a registered Trade Union and the list of members thereof shall be open to inspection
by an office-bearer or member of the Trade Union at such times as may be provided for in the rules of the
Trade Union.
Sec21: Rights of minors to membership of Trade Unions

Any person who has attained the age of fifteen years may be a member of a registered Trade Union and,
enjoy all the rights of a member and execute all instruments and necessary to be executed or given under the
rules.
Sec 21A. Disqualifications of office-bearers of Trade Unions

(1) A person shall be disqualified for being chosen as, and for being, a member of the executive or any other
office-bearer of a registered Trade Union if –
(i) he has not attained the age of eighteen years,
(ii) he has been convicted by a Court in India of any offence involving moral turpitude and sentenced to
imprisonment, unless a period of five years has elapsed since his release.
Sec 22. Proportion of office-bearers to be connected with the industry

Not less than one-half of the total number of the office-bearers of every registered Trade Union shall be
persons actually engaged or employed in an industry with which the Trade Union is connected
Sec 23. Change of name

Any registered Trade Union may, with the consent of not less than two-thirds of the total number of its
members and subject to the provisions of section 25, change its name.
 Amalgamation of Trade Unions

Sec 24. Amalgamation of Trade Unions
Any two or more registered Trade Unions may become amalgamated together as one Trade Union with or
without dissolution or division of the funds of such Trade Unions or either or any of them, provided that the
votes of at least one-half of the members of each or every such trade Union entitled to vote are recorded, and
that at least sixty per cent of the votes recorded are in favour of the proposal.
Sec 25. Notice of change of name or amalgamation

(1) Notice in writing of every change of name or of every amalgamation, signed, - by the Secretary and by
seven members of each and every Trade Union which is a party thereto, shall be sent to the Registrar, and
where the head office of the amalgamated Trade Union is situated in a different State, to the Registrar of
such State.
(2) If the proposed name is identical with that by which any other existing Trade Union has been registered
or, in the opinion of the Registrar, so nearly resembles such name as to be likely to deceive the public or the
members of either Trade Union, the Registrar shall refuse to register the change of name.
(3) the Registrar shall, if he is satisfied that the provisions of this Act in respect of change of name have
been complied with, register the change of name in the register referred to in section 8, and the change of
name shall have effect from the date of such registration.
(4) The Registrar of the State in which the head office of the amalgamated Trade Union is situated shall, if
he is satisfied that the provisions of this Act in respect of amalgamation have been complied with and that
the Trade Union formed thereby is entitled to registration under section 6, register the Trade Union in the
manner provided in section 8, and the amalgamation shall have effect from the date of such registration.
Sec 26. Effects of change of name and of amalgamation

(1) The change in the name of a registered Trade Union shall not a affect any rights or obligations of the
Trade Union or render defective any legal proceeding by or against the Trade Union, and any legal
proceeding which might have been continued or commenced by or against it by its former name may be
continued or commenced by or against it by its new name.
Sec 27. Dissolution

(1) When a registered Trade Union is dissolved, notice of the dissolution signed by seven members and by
the Secretary of the Trade Union shall, within fourteen days of the dissolution, be sent to the Registrar, and
shall be registered by him if he is satisfied that the dissolution has been effected in accordance with the rules
of the Trade Union, and the dissolution shall have effect from the date of such registration.
(2) Where the dissolution of a registered Trade Union has been registered and the rules of the Trade Union
do not provide for the distribution of funds of the Trade Union on dissolution, the Registrar shall divide the
funds amongst the members.
Sec 28. Returns

(1) There shall be sent annually to the Registrar, on or before such date as may be prescribed, a general
statement, audited in the prescribed manner, of all receipts and expenditure of every registered Trade Union
(2) Together with the general statement there shall be sent to the Registrar a statement showing all changes
of office-bearers made by the Trade Union during the year to which the general statement refers, together
also with a copy of the rules of the Trade Union corrected up to the date of the despatch thereof to the
Registrar. (3) A copy of every alteration made in the rules of a registered Trade Union shall be sent to the
Registrar within fifteen days of the making of the alteration.
CONCLUSION The presence of trade unions establishes a healthy relationship between the employer and
workmen with a sense of responsibility towards each other. Trade unions define and channelize the rights of
the workers with pressure on the employer to not deceit them.
VI. Trade Union Fund:

 INTRODUCTION:
Trade Union is an organization of workers that helps them to achieve common goals such as better
working conditions. The establishment of trade unions began to reduce the exploitation of workers
by the employers. The trade unions Act was passed to give validity and regulate the functions of the
Trade union.
 DEFINITION Sec 2(h): “Trade Union” means any combination, whether temporary or
permanent, formed primarily for the purpose of regulating the relations between workmen and
employers or between workmen and workmen, or between employers and employers, or for
imposing restrictive conditions on the conduct of any trade or business, and includes any
federation of two or more Trade Unions.
 Sec.15: deals with the objects on which general funds may be spent. The general funds of a
registered trade unions shall not be spent on any objects other than the following:
i. The payment of salaries, allowances and expenses to the office-bearers of the trade union.
ii. The payment of expenses for the administration of the trade union, including the audit of the
accounts of the general funds of the trade union.
iii. The prosecution or defence in any legal proceeding to which the trade union or any member
thereof is a party, when such prosecution or defence is undertaken for the purpose of securing or
protecting any rights of the trade union.
iv. The conduct of trade disputes on behalf of the trade union or any member thereof.
v. The compensation of members for loss arising out of trade disputes.
vi. The allowances to members or their dependents on account of death, old age, sickness, accident
or unemployment of such members.
vii. The issue of or the undertaking of liability under policies of assurance on the live of members,
or under policies insuring members against sickness, accident, or unemployment.
viii. The provision of educational, social or religious benefits for members or for the dependents of
members.
ix. The upkeep of a periodical published mainly for the purpose of discussing questions affecting
employers or workmen as such.
x. The payment of contributions to any cause intended to benefit workmen in general. The
expenditure on such contributions in any financial year shall not at any time during that year be in
excess of 1/4th of the combined total of the gross income which has up to that time accrued to the
general funds and of the balance at the credit of these funds of the trade union during that year.
xi. Subject to any conditions, any other object notified by the appropriate government in the official
gazette.
Case:MARIO RAPOSO V. H.M BHANDARKAR AND OTHERS (1994) II LLJ (BOM) 680:
V.C.O Bank Employees Union purchased shares of U.T.I in Individual names of few members of
union. Section 15 does not allow to use union funds for speculative activity.
 Sec 16: Political Fund Section 16 deals with political fund.

A registered trade union may constitute a separate fund for political purpose from which payments
may be made for the promotion of the civic and political interests of its members. This fund may
utilised only in furtherance of the following objects:
i. Holding of any meeting or distribution of any literature or document in support of any candidate
for election as a member of legislative body constituted under the constitution or of any local
authority.
ii. For maintenance of any person who is a member of any legislative body constituted under the
constitution.
iii. For convening of political meeting of any kind or distribution of political literature or documents
of any kind.
iv. The registration of electors for selection of a candidate for legislative body. The funds collected
for political purposes shall not be clubbed with the general fund. No workman is compelled to
contribute in this fund and the non-payment in this fund cannot be made a condition for admission
to the Trade Union.
 The conditions for the creation of political fund are:

i. The fund can be created only from contributions separately levied for or made to that fund.
ii. Members must not be compelled to contribute to the fund.
iii. A member who does not contribute to the said fund must not be excluded from any benefits of
the trade union, or placed under any disability or disadvantage, directly or indirectly, as compared
with other members of the trade union, except in relation to the control or management of the
political fund.
iv. Contribution to the political fund must not be made a condition for admission to the trade union.
 CONCLUSION: The presence of trade unions establishes a healthy relationship between the
employer and workmen with a sense of responsibility towards each other. Trade unions define
and channelize the rights of the workers with pressure on the employer to not deceit them.
VII. COLLECTIVE BARGAINING:

 Introduction:
The term collective bargaining refers to the process of negotiation that takes place between workers
or labourers and their employers on the terms of their contracts. In most instances, the labourers are
represented by a trade or labour union. This is usually done in order to achieve certain demands and
rights of the labourers, namely those pertaining to working hours, salaries, working conditions, etc.
This form of industrial dispute resolution has been revolutionary for labour relations in the Indian
industries, both private and public. This is because conflicts in the area of commerce and business
are inevitable and it is not practical to resolve all such disputes through courts. Hence, collective
bargaining has become a suitable alternative to adjudicate industrial disputes.
 COLLECTIVE BARGAINING:
An individual is free to bargain for himself and safeguard his own interest. If an
individual workman seeks employment, he stands in a weaker position before his master who
having command over wealth stands in a better position to dictate his own terms and the individual
has to accept the offer without any reserves for he has to earn something to feed his family
However, the position becomes different if a bargain is made by a body or association
of workmen as they can negotiate and settle their terms with the employer in a better way and secure
better wages, better terms of employment and greater security.
 METHODS/FORMS OF COLLECTIVE BARGAINING:

Forms of Collective Bargaining
Collective bargaining can take different forms depending on the aims and approaches of
different parties.
• Distributive bargaining. In this form of bargaining, it is seen as a zero-sum game with limited
resources to be distributed according to the strength of different parties. For example, if a firm’s
profit increases by £10 million, the union may feel that workers wages should increase by £8
million.
• Productivity bargaining. In this situation, workers and firms may find a way to increase wages
and profits. For example, introducing higher wages in return for new working conditions which
increase productivity and hence profits. In this form of bargaining, there is more of a common
goal and less of an adversarial approach.
• Concessionary bargaining. In this situation, workers may give up pay, in return for job security.
For example, if the firm sees a slump in demand, workers may accept a temporary wage cut as a
way to reduce a firm’s costs and keep their job.
• Composite bargaining. Where a mixture of issues related to workers is raised in negotiations.

Not just pay but also working conditions and wider political issues such as the impact on the
environment, discrimination and
Methods of collective Bargaining

Collective Bargaining Involves:
i. Negotiations
ii. Drafting
iii. Administration
iv. Interpretation of documents written by employers, employees and the union representatives
v. Organizational Trade Unions with open mind.
Forms of Collective Bargaining:

• The working of collective bargaining assumes various forms.
• In the first place, bargaining may be between the single employer and the single union, this is
known as single plant bargaining. This form prevails in the United States as well as in India.
• Secondly, the bargaining may be between a single firm having several plants and workers
employed in all those plants. -multiple plants bargaining.
• Thirdly, instead of a separate union bargaining with separate employer, all the unions
belonging to the same industry bargain through their federation with the employer’s federation
of that industry-This is known as multiple employer bargaining.
Effective collective bargaining requires the following prerequisites:

i. Existence of a strong representative trade union in the industry that believes in constitutional
means for settling the disputes.
ii. Existence of a fact-finding approach and willingness to use new methods and tools for the
solution of industrial problems.
iii. The negotiation should be based on facts and figures and both the parties should adopt
constructive approach.
iv. Existence of strong and enlightened management which can integrate the different parties,
i.e., employees, owners, consumers and society or Government.
v. Agreement on basic objectives of the organisation between the employer and the employees
and on mutual rights and liabilities should be there.
vi. In order that collective bargaining functions properly, unfair labour practices must be avoided
by both the parties.
vii. Proper records for the problem should be maintained.
viii. Collective bargaining should be best conducted at plant level. It means if there are more
than one plant of the firm, the local management should be delegated proper authority to
negotiate with the local trade union.
ix. There must be change in the attitude of employers and employees. They should realise that
differences can be resolved peacefully on negotiating table without the assistance of third party.
x. No party should take rigid attitude. They should enter into negotiation with a view to reaching
an agreement.
xi. When agreement is reached after negotiations, it must be in writing incorporating all term of
the contract.
xii. The institution of collective bargaining represents a fair and democratic attempt at resolving
mutual disputes
 Features of Collective Bargaining

a. It is a group action
b. It is a continuous process
c. It is a bipartite process
d. It is a process
e. It is flexible and mobile
f. It is industrial democracy at work
g. It is dynamic
h. It is complimentary
i. It is an art
 Means of collective bargaining

a) Negotiation,
The negotiations begin with the submission of the charter of demands. Generally, it is the union
that formally presents proposals for changes in the existing labour agreements in the initial
meeting. Then, the management gets the opportunity to present counter-proposals. This keeps
going on until they can form an agreement. When it becomes impossible for them to reach an
agreement, a third party may be appointed as a mediator or an arbitrator.
b) Mediation,
Early in the collective agreement process, the mediator meets with both parties together and
helps them get to the interests that underly any positions they may put forward. Each party is
encouraged to work with the other to meet as many needs as possible. The mediator then works
with both parties together throughout the negotiations to achieve an agreement that benefits both
parties.
c) Conciliation
The conciliation process begins when the conciliation officer receives a notice of strike. There
are two alternatives that can be taken in this step. As per Section 4 of the Act, during the
cooling-off period, the state government may appoint a conciliation officer for investigating,
mediating and promoting settlement. As per Section 5 of the Act, the second alternative is that
the state government may appoint a Board of Conciliation and it shall be composed of a
chairman and either two or four members. Strikes are not organised during the process of
conciliation as per Sections 22 and 23 of the Act. Section 20 of the Act provides that this step
ends with a settlement or a reference to an industrial tribunal or labour court, and sometimes no
settlement is arrived at.
d) Arbitration
In case of failure of the conciliation process, the parties could go for either a voluntary or
compulsory arbitration, and the recommendations of the arbitrator may be binding on the parties.
Section 7A of the Act provides for a labour court or industrial tribunal within a state to
adjudicate such disputes. Section 7B of the Act provides for the constitution of national tribunals
to resolve disputes involving questions of national interest. The employer and the employees
may refer the case by a written agreement to a labour court, industrial tribunal or national
tribunal for adjudication or arbitration.
 Settlement of collective Bargaining

In India, there are mainly three types of collective bargaining agreements, which are listed
below: 1. Bipartite or voluntary agreement
Bipartite agreements are those agreements or settlements formed in voluntary negotiations in the
process of collective bargaining. As per Section 18 of the Industrial Disputes Act, such
agreements are binding on the parties involved.
2. Settlement
A settlement commonly refers to an agreement of tripartite character as a third party is involved
in arriving at it. This is the agreement that is arrived at by the employer and the employees with
the help of a conciliation officer. If during the process of conciliation, the conciliation officer
feels that there is a possibility of reaching a settlement, he withdraws it himself. After that, the
parties examine the terms of the agreement and report back to the officer within a specified
period.
3. Consent award
When a dispute is pending before a compulsory adjudicatory authority, the parties can still
negotiate between themselves. The agreement that is formed as a result of such a negotiation
shall also be incorporated into the authority’s award and it gains a binding force.
 Theories of Collective Bargaining

1. The Marketing Concept and the Agreement as a Contract:
• According to this theory, employees sell their individual labour only on terms collectively
determined on the basis of contract which has been made through the process of collective
bargaining.
2. The Governmental Concept and the Agreement as Law:

• The Governmental Concept views collective bargaining as a constitutional system in industry.
It is a political relationship.
• The union shares sovereignty with management over the workers and, as their representative,
uses that power in their interests.
• The application of the agreement is governed by a weighing of the relation of the provisions of
the agreement to the needs and ethics of the particular case.
3. The Industrial Relations (Managerial) Concept as Jointly Decided Directives:

• The industrial relations concept views collective bargaining as a system of industrial
governance. It is a functional relationship. The union representative gets a hand in the
managerial role.
• Discussions take place in good faith and agreements are arrived at. The union joins with
company officials in reaching decisions on matters in which both have vital interests.
• Thus, union representatives and the management meet each other to arrive at a mutual
agreement which they cannot do alone.
 CONCLUSION:
To conclude, collective bargaining agreement is an essential step arrived at by the employer and
the employees involved in the process of collective bargaining. This is the first resort that
employers and unions go to for resolving disputes. It is formed as a result of a successful
negotiation of voluntary nature. This helps in resolving disputes without the help of the courts or
tribunals and makes the task of negotiating with employers simpler and more efficient.
Unit 2
10M
1. Define the term "industry" as given in the Industrial Disputes Act, 1947. Explain the concept of
industry with the help of decided cases.
2. Explain how arbitration helps in solving industrial disputes. What are the differences between
arbitration and adjudication?
3. Define and explain the term "Industry" with the help of decided cases.
4. Discuss how Labour courts, Industrial Tribunal and National Tribunal adjudicate the Industrial
dispute referred to by the government.
5. Define 'Industry' and whether Hospital, University are industries ? Discuss.
6. Discuss the authorities under Industrial Dispute Act, 1947.
7. Define "Industry" with the help of decided cases.
8. Explain the provisions relating to reference of an industrial dispute.
10. Explain the term 'Industry' under the Industrial Disputes Act, 1947.
11. Define 'Industry' and whether Hospital, University are Industries ? Discuss
12. Describe how Labour Court, Industrial Tribunal and National Tribunal adjudicate the industrial
disputes referred by the Government.
13. Discuss the authorities under Industrial Dispute Act, 1947.
14. Explain the term "Industry" under the Industrial Dispute Act.
15. Discuss the definition of Industry along with help of decided cases.
16. Define "Award". Explain the Law relating to commencement and enforceability of an award.
18. Define "industrial dispute". When does an individual dispute become an industrial dispute?
Explain with the help of decided cases.
19. What is industry? Explain with reference to decided cases.
20. Explain the law relating to voluntary arbitration under the Industrial Dispute Act, 1947.
6M
1. Write short notes on : a) Workman R b) Settlement
2. Write a note on "Workman".
3. Write a note on "Appropriate Government".
4. Write a short note on; a) Award R b) Write a short note on Individual Dispute.
5. Labour court.
6. Award.
7. Procedure followed u/s 10-A Industrial Dispute Act, 1947.
8. Domestic enquiry.
9. Write short note on Appropriate Government.
10. Distinguish workman from independent contractor.
11. Write short notes on Individual Dispute Vs Industrial Disputes.
12. Powers and functions of conciliation board under Industrial Dispute Act, 1947.
13. a ) Works Committee. b) Award.
14. Write short note on any one. A) Award and settlement. B) Government's power of reference u/s
10.
I. DEFINE THE TERM INDUSTRY UNDER INDUSTRIAL DISPUTES

ACT, 1947 WITH THE HELP OF DECIDED CASES.
 Introduction:
The concept of social justice is integrally related and reflected in the industrial laws of our
country. As proclaimed in the preamble of the Constitution and given context by the Directive
Principles, the industrial jurisprudence of the country is founded on the basic idea of
socioeconomic equality and its aim is to assist the removal of socioeconomic disparities and
inequalities. The laws particularly the industrial law of the country revolve on this basis
philosophy of the Constitution.
 INDUSTRY:
S.2(j) of The Industrial Disputes Act, 1947 defines industry as - “industry” means
any business, trade, undertaking, manufacture or calling of employers and includes any calling,
service, employment, handicraft, or industrial occupation or avocation of workmen.
An industry exists only when there is relationship between employers and
employees, the former is engaged in business, trade, undertaking, manufacture or calling of
employers and the latter is engaged in the calling, service, employment, handicraft or industrial
occupation and avocation.
 Judiciary Interpretation of term industry by DECIDED CASES:
1) Is Hospital an Industry:
Caselaw: State of Bombay vs. Hospital Mazdoor Sabha(1960)
In this case, the Hospital Mazdoor Sabha was a registered Trade Union of the
employees of hospitals in the State of Bombay. The services of two of its members were
terminated by way of retrenchment by the Government and the Union claimed their
reinstatement through a writ petition. It was urged by the State that the writ application was
misconceived because hospitals did not constitute an industry. The group of hospitals were run
by the State for giving medical relief to citizens and imparting medical education. The Hon’ble
Supreme Court rejected the contention of the State and held the group of hospitals to be industry.
Caselaw: The Management of Safdarjung Hospital, Delhi vs. Kuldip Singh Sethi (1967)
In this case, the Respondent, a lower division clerk in the hospital had filed a petition
u/s.33C(2) of the Industrial Disputes Act, 1947 for computation of salary, etc., due to him in the
pay scale of store keepers and the Tribunal following the decision of the Hon'ble Supreme Court
in the case of State of Bombay vs. Hospital Mazdoor Sabha held that the Hospital is an industry
and awarded him Rs.914/-. However, the Hon'ble Supreme Court observed that the hospital had
not embarked on an economic activity which can be said to be analogous to trade or business,
that there was no evidence that it was more than a place where persons could get treatment, that
the hospital was run as a department of Government and therefore it cannot be said to be an
industry and set aside the order of the Tribunal.
Caselaw: Dhanrajgiri Hospital vs. Workmen( )

In this case, the main activity of the hospital was imparting of training in nursing and the beds in
the hospital were meant for their practical training. The five Judges’ Bench of the Hon'ble
Supreme Court by observing that since the hospital was not rendering any material service by
bringing in any element of trade or business in its activity held that it was not carrying on any
economic activity in the nature of trade or business and ruled that Dhanrajgiri Hospital was not
an industry.
2) Is Municipal Corporation an Industry:
Caselaw: D N Banerji vs. P R Mukherjee (Budge Budge Municipality case) ( )

In this case, the head clerk and a sanitary inspector of the Budge Budge
Municipality were dismissed on certain charges of negligence, insubordination and indiscipline
by the municipality and its validity was referred by the State of West Bengal to the Industrial
Tribunal for adjudication which directed the reinstatement of those persons. Against this order,
the municipality filed a writ petition under Articles 226 and 227 of the Constitution before the
Calcutta High Court but the same was dismissed. Being aggrieved by this, the municipality filed
an appeal before the Hon'ble Supreme Court. The Hon'ble Supreme Court rejected the
contention of the municipality that it was not an industry after looking into the first part and
latter part of the definition and observed that the definition was apparently intended to include
within its scope what might not strictly be called a trade or business venture.
Caselaw: Abdul khan vs municipal council octroi dept (1970 )

In this case a dispute between worker and workmen in octori dept(tax collecting dept) regarding
compensation
Court held municipal is not industry.
Caselaw: Workmen of fire brigade vs K I Gosain (1970 )

Held: fire brigade not only a service but also an undertaking so fire brigade is an industry
3) Is legal firm is an industry:
Case law: NSU employee n Industrial tribunal (1962)

Held: nota industry because the capital invested is in form of intellectual skill and educational
skill.
4) Is Educational Institution an Industry:
Case law: University of Delhi vs. Ram Nath

In this case, the Respondent was employed as a driver by University College for women
as was another person. The University found that running the buses for transporting the girl
students had resulted in loss and terminated the services of the drivers. They challenged this
before the Industrial Tribunal on the ground that they were workmen and termination amounted
to retrenchment and also demanded payment of retrenchment compensation under S.25-F of the
Act and the Tribunal decided in favour of the drivers. The University challenged the award by
contending that the activity carried on by the University was not an industry.
The Hon'ble Supreme Court held that the work of imparting education is more a mission and a
vocation than profession or trade or business and therefore University is not an industry.
5) Is club is an Industry:
Case law: Cricket club of India vs. Bombay labour union(1969)

The Hon'ble Supreme Court held that the main activity is promotion of game is not
carrying any trade or business no profit moto so club is not a industry.
But, this above all case has been overruled by the Hon'ble Supreme Court in Bangalore Water
Supply and Sewerage Board vs. Rajappa and in view of the triple test laid down even a
University would be an industry although such of its employees who are not workmen within the
meaning of Section 2(s) of the Industrial Disputes Act, 1947 may not get the desired benefits to
which a workman in an industry may be entitled to.
 Guidelines for Determination whether an enterprise is an Industry:

Caselaw: Bangalore Water Supply and Sewerage Board vs. Rajappa
In this case, the Board took disciplinary action against its workmen and imposed fines on
them. When the workmen sought relief under the provisions of Industrial Disputes Act, the
Board contended that it being a service institution rendering service to public and not carrying
on any business with profit motive provisions of Industrial Disputes Act, 1947 will not apply.
There being several judgments expressing divergent opinions, the subject matter was referred to
a larger Bench consisting of seven Judges.
The seven Judges’ Bench exhaustively considered the scope of the term industry and laid down
guidelines for determining whether an enterprise is an industry or not and it is called the Triple
Test and is as follows: Where there is –
(i) Systematic activity
(ii) Organised by co-operation between employer and employee (the direct and substantial
element in chimerical) (iii) For the production and/or distribution of goods and services
calculated to satisfy human wants and wishes
Further following point emphasized.

o Industry does not include spiritual or religious but inclusive or material things or services
geared to celestial bliss, i.e., making, on a large scale, Prasad or food), prima facie, there
is an “industry” in that enterprise.
 Conclusion:
The term industry came before the Hon’ble Supreme Court for interpretation for the first
time in D N Banerji vs. P R Mukherjee.
Finally, in Bangalore Water Supply and Sewerage Board vs. A. Rajappa, the Court laid down
the Triple Test and overruled the decisions of the Court in the cases of The Management of
Safdarjung Hospital, Delhi vs. Kuldip Singh Sethi, Dhanrajgiri Hospital vs. Workmen, and
University of Delhi vs. Ram Nath and other rulings whose ratio ran counter to the principles
enunciated in the case and rehabilitated State of Bombay vs. Hospital Mazdoor Sabha. It is pertinent
to note that even though S. 2(j) was amended in 1982, almost 38 years have elapsed since the
amendment came on the statute book and it has not been enforced till date. Due to this, cases arising
under the old definition have to be decided on the basis of conclusion set out in the judgment by
Hon’ble Justice V. R. Krishna Iyer in the case of Bangalore Water Supply and Sewerage Board vs.
A. Rajappa.
II.Workmen Sec2(s):
Workmen. Any person employed in any industry to do any manual, unskilled, technical,
operational, clerical, or Supervisory work for hire or reward whether terms of employment is
expressed or implied which includes any person who is dismissed, discharged or retrenched in
connection with the dispute.
 Workmen does not include:

i. who is subject to Airforce Act 1950, Army Act 1950 and Navy Act, 1957.
ii. Employed in Police service or as an officer of a prison.
iii. Employed under Managerial Administrative Capacity. Eg: Principal of school
iv. Employed in Supervisory capacity and salary exceeds 10,000
Case:Divisional Manager New India Assurance Co. V. A Shankaralingam

Sweeper worked for 1 year on contract basis with monthly salary. After the contract, worker asked
the employer to make his job permanent. But he was terminated. The Lower court and High court
held that contract workers are not recognised as Workmen. But the Supreme Court held that contract
Workmen can be considered as Workmen. Because, salary was given by Company and work was
also told by the Company.
Case: Punjab National Bank v. Gulam Dastagir

Manager appointed a driver and salary was given by him. He got terminated. The court held that he
cannot be considered as the workmen of the bank. Because he was appointed and salaried by the
Manager and not by the bank.
Case:Indian Overseas Bank v Workmen whether Jewel appraiser be considered workmen. They
cannot be considered as workmen of bank. Because Monthly Salary was given and there was no
daily work. He was not appointed by the Management. The payment was only on basis of the
application came for jewel loan.
 Others who are not included under workmen

• Medical Representatives
• Lawyers
• Legal Advisors: Because they are not employees of them. They come and seek help of legal
Advisor • Physical Education Directors
• Badli Workmen – If he works for more than one year, then he becomes full time worker.
III. INDUSTRIAL DISPUTE:

 Introduction:
Industrial Disputes Act, 1947 is the Act that regulates the labour laws as it concerns all the
workmen or all the people employed on the Indian mainland. It came into force on 1 April 1947.
The capitalists or the employer and the workers always had a difference of opinion and thus, it leads
to lots of conflicts among and within both of these groups. So, these issues were brought to the
attention of the government and so they decided to pass this Act. This Act was formed with the
main objective of bringing peace and harmony to industrial disputes between parties and solving
their issues in a peaceful manner.
 INDUSTRIAL DISPUTE:
s.2(k) of the IDA, 1947 deals with this aspect. It says - industrial dispute means any
dispute or difference between employers and employers or between employers and workmen or
between workmen and workmen which is connected with the employment or nonemployment or the
terms of employment or with conditions of labour of any person..
 The definition can be divided into 4 parts:-
1. Factum of ID:
Demands give rise to industrial disputes. It is implicit in the demand that it should be
made to the employer or employee. A written demand directly on the management is not in all
cases a necessary condition as it can be made even through a conciliation officer. The expression
dispute or difference connotes a real and substantial difference having some element of
persistency and continuity till resolved and likely if not adjusted to endanger the industrial peace
of the undertaking or the community.
2. Parties to the ID:

In order to fall within the definition of an ID, the dispute must be between
i) Employers or
ii) Employers and workmen or
iii) Workmen and workmen
The disputes between employers and employers may arise in respect of wage matters in an area
where labour is scarce or in disputes of similar character. The words workmen and workmen
include disputes between them either directly or through their trade unions. Such a dispute may
be demarcation dispute, inter-union dispute, etc. Further, trade unions as such are not mentioned
in the definition of ID because they act on behalf of the workmen and therefore when a Trade
Union raises a dispute the workmen are deemed to be party to the dispute.
3. Subject Matter of ID:

Generally speaking, the expressions used in the section are of wide amplitude and have been put
in juxtaposition to make the definition thoroughly comprehensive. Thus, the phrase conditions of
labour is wide enough to include terms of employment as well as matter connected with
unemployment. Similarly, the expression terms of employment includes certain matters relating
to employment or non-employment.
The concept of employment involves 3 ingredients of employer, employee and the contract of
employment. The concept of non-employment is the opposite of employment and would mean
disputes of workmen which arise out of service or existing fact of unemployment or a

contemplated unemployment.
4. Origin of the dispute:

It has been held that the words any person for the purpose of raising a dispute does not to include
a person who was offered appointment but could not join because of failure to accept his joining
report, the existence of employer-employee relationship is necessary.
Caselaw: Assam Chah Karamchari Sanghavs. Dimakuchi Tea Estate

In this case, where a person appointed by the tea estate as an assistant medical officer on
3 months probation was terminated after probation by the management after paying him 1
month’s salary in lieu of notice. The Hon'ble SC held by its majority judgment that the medical
officer was not a workman because he could not be held to have any community of interest with
the other members of the union to justify the ID being raised in regard to his unemployment.
 WHEN INDIVIDUAL DISPUTE BECOMES AN INDUSTRIAL DISPUTE:

The use of plural namely workmen in the definition of ID is very relevant. A dispute between the
employer and individual workman cannot per se be an ID. It is only an individual dispute outside
the purview of the ID Act. s.2A of the Act deals with this aspect.
Caselaw: Newspapers Ltd. vs. Industrial Tribunal, UP
In this case, the Newspapers company dismissed an employee. The UP Working

Journalists Union with which the employee had no connection took up his case. They referred
the dispute to the Tribunal which ordered his reinstatement. The matter reached the Apex Court
finally where the Newspapers contended that the reference to the Tribunal is bad because the
subject matter of the dispute referred was an individual dispute and not an ID.
The Hon'ble SC observed that preponderance of judicial opinion is clearly in favour of

the view that an individual dispute may become an ID if it is taken up by a Trade Union or a
number of workmen.
The remidies for an indual dispute to full within the definition of id act:
1. If the induvial dispute is sponsored by trade union
2. If no trade union it must sponsored by majority of work men
3. Sec 2(A) must be complied
Section 2-A provides that “where any employer discharges, dismisses, retrenches or otherwise
terminated the services of any individual workman, any dispute or difference between that
workman and his employer connected with, or arising out of such discharge, dismissal,
retrenchment or termination shall be deemed to be an industrial dispute, notwithstanding that no
other workman nor any union of workmen, is a party to the dispute.”
 Conclusion:
Still if employer has other problem other than SEC2(A) no remedies is still debatable topic
IV. Authority Act:

 Introduction: Industrial Disputes Act, 1947 is the Act that regulates the labour laws as it
concerns all the workmen or all the people employed on the Indian mainland. It came into force
on 1 April 1947. Main objective of Industrial Disputes Act is investment and settlement of
disputes and in order to fulfil this objective authorities are created. Adjudication of Industrial
Dispute is kept outside the scope of Municipal Courts.
Sec.2(a): Appropriate Government

when the industry is owned, established, controlled, and/or funded by the central government,
then the appropriate government would be the central government, and if the previously
mentioned things are done by the state government, then the appropriate government would be
the state government. Authority means the power or right to give orders, make decisions, and
enforce obedience or the right to act in a specified way, delegated from one person or
organization to another.
 Modes of Dispute Settlement- 3 Tier System

I. Non-Adjudicatory/ Conciliation
II. Adjudication
III. Arbitration
I. Non-Adjudicatory/ Conciliation
They settle disputes even before it’s adjudicated by Labour Court or Tribunal. They all aim at
amicable settlement of disputes.
1. Works Committee: -
s.3 The institution of Works Committee was introduced in 1947 under the IA, 1947 to
solve problems arising in day-to-day working of the establishment and to ascertain grievances of the
workmen with a view to promote measures for securing and preserving amity and good relations
and create a sense of partnership or comradeship between employers and workmen
The Act empowers the appropriate Government to require an employer having 100 or
more workmen employed on any day in the preceding 12 months to constitute a Works Committee
which shall consist of representatives of employers and workmen engaged in the establishment.
Case: North Brook Jute Co. Ltd. Vs. Their workmen

Introduction of rationalization scheme was consented by Works Committee. It was held that
settlement which was arrived at the presence of Works Committee is not final. Works Committee do
not represent workman but represents it’s committee. They are not conclusive and hence can be
challenged. Therefore, Tribunal can adjudicate the matter.
2. Conciliation Authorities:
Section 4 of the Industrial disputes act 1947 talks about the provisions of the conciliation
officer. it states that the appropriate government i.e. the central government, state government or the
local authority will appoint such number of persons to be the conciliation officer as it thinks fit.it is
the duty of the conciliation officer to mediate and promote the settlement of industrial dispute. The
conciliation officer can be appointed either permanently or for some point of time.
Board of Conciliation(Sec 5)
 The board of conciliation are constituted under section 5 by the appropriate government.
 The board of conciliation s constituted in order to promote the settlement of industrial

dispute.
 The board appointed consists of the chairman and two or four other members. under the
board the chairman is the independent person and the other persons appointed in equal
numbers which represents the parties in disputes and the person who represents the party
shall be appointed by the party . the party needs to appoint such representatives within the
time prescribed and if the party fails to appoint the representatives within the time then the
appropriate government can appoint the person to be the representative of the party.
Section 12: Duties of Conciliation Officers

 Conciliation Proceedings and settlement: i.e investigation of report without delay and to
induce the parties to the dispute come to an end in amicable settlement
 Power of Government to make a reference: if dispute settled then send report along with
memorandumof settlement if not send report of reason and recommendation.
 Submission of report by Conciliation Officer: submitting report within 14 days
II. Adjudication
1. Courts of Inquiry: - s.6 The Court means a Court of Inquiry under the IDA, 1947.
s.6 of the Act deals with this aspect. It lays down that the appropriate Government may as
occasion arises by notification in the Official Gazette constitute a Court of Inquiry. The object with
which the Court is set-up is to enquire into any matter appearing to be connected with or relevant to
an ID. The Court is composed of 1 independent person or of such number of independent persons as
the appropriate Government may think fit. If the Court consists of 2 or more members, 1 of them
must be appointed as a Chairman. The quorum necessary to constitute a sitting of a Court will be 1
where the number of members is not more than 2, it will be 2 where the number is more than 2 but
less than 5 and it will be 3 where the number of members is 5 or more
2. Section 7: Labor Court

 The proper Government may, by warning in the official journal, add to at least one
industrial councils for the settling of industrial disputes and identifying with any issue,
regardless of whether indicated in the subsequent calendar or the 3rd schedule.
 A court should comprise of just a single individual designated by the appropriate
government.
 An individual will not be equipped for arrangement as the directing official of a council
except if he is, or has been a judge of the high court or has been a vice president labour
commissioner (central) or joint chief of the state work office, having a degree in law.
3.Section 7-A: Tribunals

section 7A deals with the provision of constitution of the one or more tribunal for the adjudication
of dispute relating to the aspects as mentioned in schedule second or third. tribunal to consist of one
person who shall be appointed by appropriate government.
The qualifications of the presiding officer of the tribunal are as follows:-

a) he is, or has been, a Judge of a High Court;
b) he has, for a period of not less than three years, been a District Judge or an Additional District
Judge;
c) he is or has been a Deputy Chief Labor Commissioner (Central) or Joint Commissioner of the
State Labor Department,, having a degree in law and at least seven years' experience in the labor
department including three years of experience as Conciliation Officer:
d) he is an officer of Indian Legal Service in Grade III with three years' experience in the grade.
the appropriate government to appoint two persons as assessors to advise the tribunal.
4.National Tribunal:
section 7B deals with the national tribunal which is appointed by the central government constitute
one or more national tribunal for the adjudication of industrial disputes which in the opinion of the
central government involves questions of national importance or are of such a nature that industrial
establishments situated in more than one state are likely to be interested in or affected by such
disputes. the national tribunal shall be consisted of one person only to be appointed by the central
government. in order to be appointed as the presiding officer of a national tribunal he should be or
has been a judge of a high court. the central government can also appoint two persons as assessors
to advise the national tribunal in the proceeding before it.
7. Voluntary Arbitration: - s.10A s.10A of the IDA, 1947 deals with this aspect. Voluntary
arbitration is one of the effective modes of settlement of an ID, it supplements collective bargaining.
When the negotiation fails, arbitration may prove to be a satisfactory and most enlightened method
of resolving an ID. It has been found that in many arbitration cases in which the parties start out by
being angry at each other they end up being less so. The winning party is satisfied and the losing
party is likely to feel aggrieved not at the other party but at the arbitrator. Further, informal
arbitration offers an opportunity to dissipate hard feeling which the ID may have aroused.
s.10A(1) of the Act authorizes the parties to make reference to the voluntary arbitrator. But, before
the reference may be made to the arbitrator, the following 4 conditions must be satisfied:
(i) The ID must exist or be apprehended:
(ii) The agreement must be in writing:
(iii) Time for making the agreement:
(iv) The name of arbitrator/arbitrators must be specified:
This kind of arbitration may be regarded as a statutory arbitration and is not governed by the
Arbitration and Conciliation Act, 1996.
Caselaw: Engineering Mazdoor Sabha vs. Hind Cycles Ltd.

In this case, a Justice of the Hon'ble SC has introduced the concept of statutory arbitrator in a loose
sense in India by holding that the arbitrator u/s.10A is clothed with certain powers; his procedure is
regulated by certain rules and the award pronounced by him is given by statutory provisions a
certain validity and a binding character for a specified period.
8. Adjudication System/Machinery: The final stage in the settlement of IDs is where the parties
are unable to settle either through bipartite negotiations or through the good offices of the
conciliation machinery or through voluntary arbitration is compulsory arbitration which envisages
governmental reference to statutory bodies such as labour court, industrial tribunal or national
tribunal.
Disputes are generally referred to adjudication on the recommendation of the conciliation officer
who had dealt with them earlier. However, the appropriate Government has discretion either to
accept or not to accept his recommendation and accordingly to refer or not refer the case for
adjudication
III. Arbitration:
Conclusion: Despite a lot of loopholes in the system, the interference of the Supreme Court and the
High Courts have indeed been helpful in regulating the statute governing the industrial dispute.
Settlement disputes under the Industrial Dispute Act, 1947 is indeed a way in which the chaos
associated with industry can be removed. As India slowly develops with the introduction of several
industries, it has become necessary to ensure the proper functioning of the industries in order to help
develop the country economically.
V. THE RULES REGARDING AWARD AND SETTLEMENT &
DISTINGUISH BETWEEN THEM.
1) AWARD
 INTRODUCTION The Industrial Dispute Act, 1947 which extends to the whole of India came
into operation on the first day of April 1947. As per Preamble of the said Act, it is enacted to
make a provision for the investigation and settlement of the dispute and certain other purposes
such as recovery of money from the employer in terms of Settlement or Award by making an
application to the appropriate government. The purpose and aim of the Industrial Disputes Act
1947 is to minimise the conflict between labour and management and to ensure, as far as
possible, Economic and Social Justice. The act has made comprehensive provisions both for this
settlement of disputes and prevention of disputes in certain Industries.
1.Definition of Award
 The term award is defined in s.2(b) of the Act which was amended by Act 36 of 1956. It means
an interim or a final determination of any industrial dispute or of any question relating thereto by
a quasi-judicial authority such as Labour Court, Industrial Tribunal or National Industrial
Tribunal. Further, it includes an award made u/s.10A of the Act.
 Ingredients of Award
To constitute Award under Section 2(b) of the Industrial Dispute Act, 1947 the following
ingredients are to be satisfied
a. An Award is an interim or final determination of an industrial dispute.
b. It is an Interim or final determination of any question relating to such dispute.
c. Such interim or final determination is made by any Labour Court, Industrial Tribunal or
National Industrial Tribunal.
d. Award of Arbitrators under section 10A is an award.
2) SETTLEMENT –
DEFINITION: Ordinarily, settlement means an agreement composing differences. But, this word
is used in a wider sense in the IDA, 1947 as amended by Act 36 of 1956 and Act 35 of 1965. s.2(p)
defines settlement as - a settlement arrived at in the course of conciliation proceeding and includes a
written agreement between the employer and workmen arrived at otherwise than in the course of
conciliation proceeding where such agreement has been signed by the parties thereto in such manner
as may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the
appropriate Government and the Conciliation Officer
 RULES REGARDING AWARD: Following are the rules as regards an award:

1) First, the award must be made within the scope of reference. In other words, the award must
not go beyond the terms of reference.
2) Secondly, the award must cover the whole field of the reference otherwise a patently wrong
award will be set aside.
3) Thirdly, the award must be based upon relevant materials produced before the tribunal and not
merely upon an earlier award between different parties
4) Fourthly, an award may be based on a concluded agreement between the parties to the dispute
as an award which has been made based on a conditional offer which has been not accepted by
the workmen is a nullity
5) Fifthly, the language of the award should be plain, unambiguous and as far as possible
temperate and dignified
6) Sixthly, there must be a determination of an ID or any question relating thereto by the
appropriate authority However, where the Industrial Tribunal allows parties to withdraw before
any such determination, there is no award.
Caselaw: Management Hotel Imperial, New Delhi vs. Hotel Workers Union In this case, the
Hon'ble SC has held that an interim relief granted to the workmen by a Tribunal in the exercise
of its power u/s.10(5) of the Act is not an award.
 RULES REGARDING SETTLEMENT: Following are the rules as regards a settlement:

1) In the case of settlement arrived at in the Courts of conciliation proceeding,
a) it is the duty of the Conciliation Officer to take steps immediately if he apprehends an ID
b) it is the duty of the Conciliation Officer to to see that the settlement which in his opinion is
the right settlement is amicably arrived at between the parties.
2) In the case of settlement by a written agreement between the parties otherwise than in the
course of conciliation proceeding, it should fulfill the following conditions:
(i) first, the written agreement must be arrived at amicably i.e., the consent of the parties to the
agreement must have been accorded freely and voluntarily without any fear or favour
(ii) secondly, the agreement must be signed by the parties to the dispute in the prescribed manner
i.e., for the employer, the agreement must be signed by the employer himself or by his
authorised agent and in the case of an employer of an incorporated company or other body
corporate by his agent, manager or other principal officer of the corporation And, for the
workmen, the agreement must be signed by any officer of a Trade Union of the workmen or by 5
representatives of the workmen held for the purpose and in the case of s.2A of the Act it must be
signed by the workman concerned.
(iii) thirdly, the copies of the agreement must be sent to an officer authorised in this behalf by
the appropriate Government and the Conciliation Officer immediately.
Caselaw: Birla Cotton Spinning and Weaving Mills, Ltd. Vs. The Workmen
In this case, it has been held that where the award directed the party to work out a scheme of
standardisation and the scheme was subsequently agreed upon between the management and
workmen without approval of the Tribunal such an agreement was neither an award nor was it a
settlement within the meaning of s.2(b) or s.2(p) of the IDA, 1947.
 On whom Awards and Settlements are binding

According to Section 18 of the Industrial Disputes Act, 1947 Awards and Settlements are
binding on the following persons - A settlement arrived at by agreement between the employer
and workman otherwise than in the course of conciliation proceeding shall be binding on the
parties to the agreement. Subject to the provisions of sub-section (3), an arbitration award which
has become enforceable shall be binding on the parties to the agreement who referred the dispute
to arbitration.
A settlement arrived at in the course of conciliation proceedings and an award of a Labour

Court, Tribunal or National Tribunal shall be binding on All parties to the industrial dispute; All
other parties summoned to appear in the proceedings as parties to the dispute, unless the Board,
arbitrator Labour Court, Tribunal or National Tribunal, as the case may be, records the opinion
that they were so summoned without proper cause; Where a party referred to in clause (a) or
clause (b) is an employer, his heirs, successors or assigns in respect of the establishment to
which the dispute relates; All persons who were employed in the establishment or part of the
establishment on the date of the dispute and all persons who subsequently become employed in
that establishment or part
 Period of operation of Awards and Settlement

Section 19 of the Industrial Disputes Act 1947 provides for the period of operation of
Award and Settlement. A settlement shall come into operation on such date as is agreed upon by
the parties to the dispute, and if no date is agreed upon, on the date on which the memorandum
of the settlement is signed by the parties to the dispute.
Such settlement shall be binding for such period as is agreed upon by the parties, and if no
such period is agreed upon, for a period of six months from the date on which the memorandum
of settlement is signed by the parties to the dispute, and shall continue to be binding on the
parties after the expiry of the period aforesaid, until the expiry of two months from the date on
which a notice in writing of an intention to terminate the settlement is given by one of the parties
to the other party or parties to the settlement.
An award shall, subject to the provisions of this section, remain in operation for a period of
one year from the date on which the award becomes enforceable under section 17A. Provided
that the appropriate Government may reduce the said period and fix such period as it thinks fit:
Provided further that the appropriate Government may, before the expiry of the said period,
extend the period of operation by any period not exceeding one year at a time as it thinks fit so,
however, that the total period of operation of an award does not exceed three years from the date
on which it came into operation.
Where the appropriate Government, whether of its own motion or on the application of any
party bound by the award, considers that since the award was made, there has been a material
change in the circumstances on which it was based, the appropriate Government may refer the
award or a part of it to a Labour Court, if the award was that of a Labour Court or to a Tribunal,
if the award was that of a Tribunal or of a National Tribunal, for decision whether the period of
operation should not, by reason of such change, be shortened and the decision of Labour Court
or the Tribunal, as the case may be on such reference shall be final.
A settlement is an agreement reached among the parties to a workers' compensation claim.
This includes you, your employer and the workers' compensation insurer (unless your employer
is self-insured). This is a type of contract, and it may bar you from seeking further compensation
for your injury. An award, on the other hand, is granted to you by the workers' compensation
court. This may include medical benefits or other types of workers' compensation awards based
on the specifics of your injury. For example, a judge can order - or an insurance company can
admit for - temporary and permanent disability benefits. This isn't a settlement. You don't have
to sign away any rights to get these benefits. If you need help determining whether you received
an award or a settlement, we can help. We can review your situation and help you understand
your legal options. We can also advise you before you accept an award or settlement. At every
stage of your case, we will work to ensure that you receive the full and fair benefits you need
under Colorado's workers' comp laws.
According to Section2 (p) of the Industrial Dispute Act, 1947 Settlement means a settlement
arrived at in the course of conciliation proceeding and includes a written agreement between the
employer and workmen arrived at otherwise than in the course of conciliation proceeding where
such agreement has been signed by the parties thereto in such manner as may be prescribed and
a copy thereof has been sent to an officer authorized in this behalf by the appropriate
Government and the conciliation officer.
 DISTINCTION BETWEEN AWARD AND SETTLEMENT:

Following are the differences between an award and a settlement:
Seria Award Settlement
l No.
1 A quasi-judicial machinery is set in A voluntary process of the parties to the
motion dispute is predominant
2 Decision of an independent body is not Amicability of the parties to the dispute is
influenced by the parties to the dispute the primary consideration
3 This is of a judicious nature This is a purely non-judicious agreement
4 Scope and effect are dealt u/ss.16, 17, Scope and effect are dealt u/ss.18, 19 of the
17A, 18, 19 of the Act act
Unit 3
10M
1. Define "strike" as given in the Industrial Disputes Act, 1947. What are the restrictions on
declaration of a strike?
2. Define "standing orders" as given in the Industrial Employment (Standing Orders) Act. Explain
the procedure of certification of standing orders.
3. What is Lay-off? Explain the circumstances in which the lay-off can be made. When workmen
are not entitled to lay-off compensation?
4. Define 'Retrenchment'. When the retrenchment shall be treated as valid?
5. Define lay-off. When the lay-off shall be treated as valid? What are its effects?
6. Define Strike. Explain the provisions relating to prohibition of strike.
7. Define retrenchment. Discuss the conditions precedent to retrenchment of workmen.
8. Define strike and lockout and when they will become illegal?
9. Discuss the provisions relating to Lay-off under Industrial Disputes Act, 1947.
10. Define strike. What are the various kinds of strikes mentioned in the Industrial Disputes Act,
1947?
11. Define strike and what are the provisions relating prohibition of strike.
12. Explain the provisions relating to closure under Industrial Dispute Act, 1947.
13. Explain the provisions relating to regulations of strikes under Industrial Disputes Act with the
help of decided cases.
14. Define lay-off. When the lay-off shall be treated as valid? What are its effects?
15. Define Strike. Explain provisions relating to prohibition of strike.
16. Explain lay-off and its provisions relating to lay-off with decided cases.
17. Define strike. What are the various kinds of strikes mentioned in the Industrial Disputes Act,
1947?
18. Define "retrenchment". Explain with decided cases the provisions of Chapter V A with reference
to retrenchment.
19. Define strike and lockout. Explain with reference to decided cases.
20. What is retrenchment? Explain the provisions relating to regulation of retrenchment.
6M
1. Write short notes on : a) Industrial disputes. (b) Notice of change under Section 9-A.
2. 'Ajay' a workman who is laid-off by his employer at Mysore, refuse to accept an alternative
employment in another establishment belonging to the same employer situated in Bangalore. 'Ajay'
desires to claim lay-off compensation. Decide.
3. The workers of a registered trade Union declared illegal strike. Due to illegal strike employer
sustained the loss. Employer filed a suit against the Trade Union for the recovery of compensation.
Will he succeed?
4. Write a short note on; a) Retrenchment. b) Collective bargaining.
5. Write a note on; a) when workmen are not entitled to compensation. b) lay-off.
6. GMR Co. workmen after reporting to duties without the permission of employer leave the place
of working to attend the funeral ceremony of ex-employee. The employer treats this act of workmen
as illegal strike. Decide.
7. Kumar and Co. Ltd. directed its workmen not to report for work for 15 days due to water scarcity
in the industry, the workmen claimed lay-off compensation. Kumar and Co. Ltd. refused to pay.
Decide.
8. Ramya and Co. is public utility service Industry called for strike during pendency of conciliation
proceedings workmen pleaded that strike was provoked by employer, decide.
9. A workman was terminated by employer for misconduct. Being workman he raised a dispute
under I.D. Act, 1947 as-it amounts retrenchment. Decide by giving reason.
10. Write short notes on illegal lockout.
11. Write short note on closure of an industry.
12. R. M. T. Co. workmen after reporting to duties without the permission of employer leave the
place of working to attend the funeral ceremony Ex-employee. The employer treats this act of
workmen as illegal strike. Decide.
13. In an Industry there was continuous unrest to works leading to strike and lock outs. The
employer closed down the industry. Does this amount to closure. Decide with reasons.
14. Mohan and Co. Ltd. directed its workmen not to report for work for 15 days due to water
scarcity in the industry. The workmen claimed lay off compensation. Mohan and Co. Ltd. refused to
pay. Decide.
15. The certifying officer certified and sent to the employer the standing orders for his industry
without sending a copy to the concerned Trade Union. The Trade Union challenges the standing
orders as invalid because they were not consulted. Decide.
16. Write short note on any one: a) Lay-off. b) Notice of change u/s 9A.
I. THE PROVISIONS RELATED TO STRIKE AND LOCKOUT &

DISTINGUISH BETWEEN THEM.
 Introduction:
Strike and lockouts are democratic weapons used by workmen and employers respectively to
ventilate their grievances and safeguard their interest. The strike is a weapon available to
employees for enforcing their individual demands while the lockout is a weapon available to the
employer to persuade workmen by the coercive process to accept his point of view.
 Definition and ingredients of strike and lockout:
Definition of STRIKE:
s.2(q) deals with this aspect. It defines strike as - strike means a cessation of work by a body of
persons employed in any industry acting in combination or a concerted refusal or a refusal under
a common understanding of any number of persons who are or have been so employed to
continue to work or to accept employment.
Ingredients of a Strike:
Following are the ingredients of a Strike:
i) Existence of a set of employees and employer maintaining their employment relationships
during the period of strikes or lock-outs
ii) The existence of a dispute, but not always as in the case of a sympathy strike or a
jurisdictional strike, the settlement of which becomes the object, cause or motive of a strike or a
lock-out
iii) Cessation of work by the employees for achieving the object or cause or propelled by the
motive stated above.
Case: Ram Swarup v. Rex
It has been observed that mere absence from work does not amount to taking part in a strike within
the meaning of the ID Act,1947--There should be some concert between him and other persons that
they would not continue.
Case:Chemical&Fibres of Ind Ltd. V.D.G.Bhair

Strike is a weapon of the workmen to be resorted to by them, asserting their bargaining power and
for tacking of their collective demands upon an unwilling employer. It is to be used as a last resort.
Case: Indian Humpe pipe Co Ltd v. Rashtraya Indian Humpe pipe Mazdoor Sangh,
It was held that staying away from work under a common understanding as a protest to the
introduction of card system for marking attendance for the workmen amounts to strike.
Case:In National Textile Works Ltd v. Shree Meenakshi Mills,

The court held that the refusal of workers to resume work on account of sudden death of the worker
acting in concert would amount to strike.
 Definition of LOCK-OUT:
s.2(l) deals with this aspect. It defines lock-out as - lock-out means the temporary closing of a
place of employment or the suspension of work or the refusal by an employer to continue to
employ any number of persons employed by him.
Ingredients of a Lock-out:
Following are the ingredients of a lock-out:
i) Temporary cessation of work or withholding of work in some form

ii) The element of a demand for which the factory is locked out
iii) The intention to re-open or take the workers back if they accept the demands
Case:In Jaya Bharath Textiles Works v. State of Madras, it was held that a permanent
discontinuance of business is not a lock-out because a lock-out is a temporary closure of a place
of business.
Case:In Presidency Jute Mills co.Ltd. v. Employee’s Union – it has been observed that Lock-
Out can be described as the antethesis of a strike. A lock-out is a weapon available to the
employer to persuade by coercive process the employees to see his point of view and to accept
his demands.
 Types/kinds of strike:
1. General strike 2. Token strike 3. Go-slow strike
4. Work-to –rule strike 5. Quick or lightning strike 6. Sympathetic strike
7. Hunger strike 8. Gherao
1) General strike:
• A general strike is one , where the workmen join together for common cause and stay away
from work, depriving the employer of their labour needed to run his factory. It is legal strike.
• The workers of an establishment first give their ‘strike notice’ to the employer for which they
want to go on strike.
• On failing the talks, they launch strike with effect from the date which they fixed in the strike
notice.
• Generally, all the trade unions participate in general strike to achieve their demand. It is for a
longer period.
2) Token strike
Token strike is for a day or a few hours or for a short duration because its main object is to draw
the attention of the employer by demonstrating the solidarity and co-operation of the employees.
Stay-in/sit-down/tools-down/pen-down strike
• It is a form of strike where the workmen report to their duties, occupy the premises but do not
work.
• The employer is not allowed to carry on his business.
• Factory workers staying inside the premises and refusing to work will be known as stay in or
sit down strike.
• When they refuse to work with their tools it is known as tool – down strike. If it is clerical
workers it is known as pen down strike.
Caselaw: Mysore Machinery Manufacturers v. State
It was held that where dismissed workmen were staying on premises and refused
to leave the place, it was not stay-in strike but an offence of criminal tress-pass
3.Go-slow strike
• In a ‘go slow’ strike, the workmen do not stay away from work, they do come to their work ,
but with slow speed in order to lower down the production and thereby cause loss to the
employer.
Case:Bharat Sugar Mills Ltd. V. Jain Singh,
it has been observed that while delaying production and there-by reducing the output the
workmen claim to have employed and thus to be entitled to be full wages. Apart from this go
slow is likely to be much more harmful than total cessation of work by strike. While during a
strike much of the machinery can be fully turned off, during the go-slow the machinery is kept
going at a reduced speed which is often extremely damaging to the machinery parts. It is
considered as a serious type of misconduct.
4.Work –to rule strike

• The employees in case of ‘work to rule ‘strictly adhere to the rules while performing their
duties which ordinarily they do not observe. Thus, strict observance of rules results to less
production or turn out of the work and also causes inconvenience to the public and to the
employer.
• It is not a strike in the strict sense because there is no stoppage of work at all.
5.Quick or Lightning strike

• The characteristic of this type of strike is that the strikers strike without giving notice. This is
sudden when a problem arises and bargain afterwards. In India such strikes are legal except in
cases of Public Utility Services
6.Sympathetic Strike
• Sympathetic strike is one in which workmen, not directly concerned with the dispute, go on
strike to demonstrate their sympathy towards the striking workmen as a sense of togetherness.
Such strike is unjustifiable interference on the rights of the employers and, therefore, unlawful.
So sympathetic strike will not come within the definition of strike.
Case: In Kambalingan v. Indian Metal & Metallurgical Corporation,

there was no animosity on the part of the workmen against their employer and since the essential
element of mens rea is absent, the sympathetic strike cannot be regarded as strike within the
meaning of sec. 2(q) and management can take disciplinary action against such workman.
7.Hunger strike
In hunger strike a group of workmen resort to fasting on or near the place of work or the
residence of the employer with a view to coerce the employer to accept their demands.
8.Gherao
• It is a special type of strike. It means encircled or covered surrounded.
• In this form of strike, the workers encircle the employer and his managerial staff.
• The object is to compel the employers to accept the demands of the employees by threats and
coercive methods.
• It is accompanied by wrongful restraint and wrongful confinement, assault, criminal trespass
etc; • Gherao seems to be peaceful but in practice it is violence.
Case:Sri Ramachandra Spinning Mills v. State of Madras –

where such a dispute or difference is not there between the employer and workmen as a cause of
strike. It cannot be treated as strike.
 Sec.22-Prohibition of strike in PUS-(legal strike):

It states that no person employed in a public utility service shall go on strike in breach of
contract
• Without giving to the employer notice of strike, as hereinafter provided, within six weeks
before striking; or
• Within fourteen days of giving such notice; or

• Before the expiry of the date of strike specified in any such notice as aforesaid; or
• During the pendency of any conciliation proceedings before a conciliation officer and seven
days after the conclusion of such proceedings.
• It is important to note that generally, 14 days is the consideration period in which employer can
consider their employee demands.
• It must be noted that above regulations for strike are applicable for employees who work for
public utility service in Industry.
• It is mandatory to give employer notice with or without strike date.
• In case date of strike is not mentioned in the notice, then such notice will be valid for six weeks
only from the date of notice. If the employees do not go on strike within the 6 weeks, then it is
necessary to give fresh notice of strike by the employee if they are willing to go on strike.
• In case the date of strike is mentioned in the notice then employees cannot go on strike before
the expiry of 14 days from the date of the notice.
• Employee cannot go on strike during the pendency of any conciliation proceedings before a
conciliation officer and seven days after the conclusion of such proceedings
 Section 23 – General prohibition of strikes and lock-outs:

• it is applicable for public utility services and non-public utility services.
• during the pendency of conciliation proceedings before a Board and seven days after the
conclusion of such proceedings;
• (b) during the pendency of proceedings before a Labour Court, Tribunal or National Tribunal
and two months after the conclusion of such proceedings;
• (b) during the pendency of arbitration proceedings before an arbitrator and two months after
the conclusion of such proceedings, where a notification has been issued under sub-section (3A)
of section 10A; or
• (c) during any period in which a settlement or award is in operation, in respect of any of the
matters covered by the settlement or award.
 Sec.24-Illegal strike and Lockout

A strike or a lock-out shall be illegal if—
• It is commenced or declared in contravention of section 22 or section 23; or
• (ii) It is continued in contravention of an order made under sub-section (3) of section 10 or sub-
section (4A) of section 10A.
• (2) Where a strike or lock-out in pursuance of an industrial dispute has already commenced and is
in existence at the time of the reference of the dispute to a Board, an arbitrator, a Labour Court,
Tribunal or National Tribunal, the continuance of such strike or lock-out shall not be deemed to be
illegal, provided that such strike or lock-out was not at its commencement in contravention of the
provisions of this Act or the continuance thereof was not prohibited under sub-section (3) of section
10 or sub-section (4A) of section 10A.
• (3) A lock-out declared in consequence of an illegal strike or a strike declared in consequence of
an illegal lock-out shall not be deemed to be illegal.
• Section 24 differentiates between a legal strike and an illegal strike. It states that legal strikes are
those strikes in which procedures for going on strikes as laid down in section 22 or section 23 are
followed. However, illegal strikes will not be in conformity with sections 22 or 23.
Case:In Madhura Coals Ltd.v. Inspector of Factories,

Madurai the workmen went on strike without serving a notice under sec.22. The SC held that they
were not entitled to wages because they have themselves brought about a situation by going on
strike without giving a notice where by the management was deprived of their right to take work
from them.
Case:ANZ Grindlays Bank v. S.N. Khatri and Others

The Bombay HC held that once the strike is held to be illegal, the question of justifiability does not
arise and the employees in PUS are not entitled to seek wages for the strike period unless they prove
that the strike was legal and justified.
 Prohibition in PUS Sec. 22(2)

• No person employed in a public utility service shall go on Lockout in breach of contract-
(a) without giving to the employer notice of Lockout, as hereinafter provided, within six weeks
before lockout; or
(b) within fourteen days of giving such notice; or
(c) before the expiry of the date of lockout specified in any such notice as aforesaid; or
(d) during the pendency of any conciliation proceedings before a conciliation officer and seven
days after the conclusion of such proceedings.
 General prohibition of strikes and lock- outs.- No workman who is employed in any industrial
establishment shall go on strike in breach of contract and no employer of any such workman
shall declare a lock- out—
(a) during the pendency of conciliation proceedings before a Board and seven days after the
conclusion of such proceedings;
(b) during the pendency of proceedings before a Labour Court, Tribunal or National Tribunal] and
two months after the conclusion of such proceedings;
(bb) during the pendency of arbitration proceedings before an arbitrator and two months after the
conclusion of such proceedings, where a notification has been issued under sub- section (3A) of
section 10A.
(c) during any period in which a settlement or award is in operation, in respect of any of the matters
covered by the settlement or award.
• A lock-out declared in consequence of an illegal strike or a strike declared in consequence of an
illegal lock-out shall not be deemed to be illegal.
• Penalty for illegal strikes and lock-outs. Section 26. Penalty for illegal strikes and lock-outs
(1) Any workman who commences, continues or otherwise acts in furtherance of, a strike which is
illegal under this Act, shall be punishable with imprisonment for a term which may extend to one
month, or with fine which may extend to fifty rupees, or with both.
(2) Any employer who commences, continues, or otherwise acts in furtherance of a lock-out which
is illegal under this Act, shall be punishable with imprisonment for a term which may extend to one
month, or with fine which may extend to one thousand rupees, or with both.
 Illegal lockout-sec.24
• If it is commenced or declared in contravention of sec.22 or sec.23 or
• It is continued in contravention of an order made under 10(3) or sec.10-A
• Where strike or lock out is in existence at the time of reference of the dispute to a Board, an
arbitrator, LC, Tribunals, the continuance of strike or lock out shall not be deemed to be illegal.
Case:Krishna Sugar Mills v. State of U.P
the mill was closed for two days consequent to the illegal assault of officers by some workmen. It
has been held by the Tribunal that the closure was lock out which was illegal and unjustified and so
workers are entitled to wages during that period
Case:In premier Automobile Ltd v. G.R Sapre,
it was held that the main object of notice of 14 days before lock-out or strike is to avoid possible
dislocation to the employers & their workmen & give some grading time to adjust. Notice of strike
is not necessary where there is already a lock-out in existence. Notice may be given by the trade
union or representatives of workmen elected to do so, the strike must e commenced within that
period. Sec 22 (2) the employers of a public utility services shall not commence a lock – out unless
the following conditions are satisfied;
1. A notice of lock –out should be given to the employees in advance.
2. The notice should be given at least 14 days before the lock –out.
3. The lock- out shall not commence before the expiry of the date specified in the notice.
4. The lock –out shall not be commenced during the pendency of any conciliation proceeding before
a conciliation officer & seven days after the conclusion of such proceedings.
Notice of lock-out shall not be necessary if there is already in existence a strike in public utility
services. If the employer receives a strike notice he shall within 5 days report to the appropriate govt
or to such authority as the govt may prescribe.
Case: Minerals Miners Union v. Kuderamukh Iron ore Co Ltd

In this case it was held that the provision of sec 22 are mandatory & the date on which the workmen
proposed to go on strike should be specified in the Notice , if meanwhile the date of strike specified
in the notice of strike expires. Workmen have to give a fresh notice & all other statuary
consequences following out of the said notice would follow.
Case:Buchimgham & Carnatic Co Ltd v. Ram Swaroop,

It was held that concerted stoppage of work or refusal to work by a body of workmen without due
notice to the employer in a public utility service amounts to an illegal strike.
Difference between SECTION 22 and SECTION 23

Sl. SECTION 22 SECTION 23
No.
1 Applies only to public utility services only applies to both public and non-public utility
services
2 2 Strike and lock-out during pendency of Strike and lock-out during pendency of
conciliation proceedings before the conciliation proceedings before the
Conciliation Officer is prohibited Conciliation Officer is not prohibited
3 3 Notice of strike/lock-out is necessary Notice of strike/lock-out not necessary
Difference between Strike and lockout

Sl. No. Strike lockout
1 Cessation of work by body of Temporary closing of place of employment by
workmen employer
2 Weapon of workers Weapon of employer
3 Workers first start strike Often declared in answer to strike or threat of
strike
4 Generally economic factors Both economic and non-economic
5 Different types Only one type
 CONCLUSION
Basically, strikes and lock-outs are just methods resorted to by the workers and employers with an
aim of settling their disputes, when they fail to settle them via peaceful negotiation. Lock-Out is not
Usually adopted by the management, rather it is usually announced when the workforce continue
their strike, so as to prevent direct conflict between them.
II. lay-off and what are the provisions relating to lay-off compensation.
 Introduction:
Layoff and retrenchment are talked about in the Industrial Disputes Act of 1947. Layoff refers to
the removal of employees by the employer for reasons other than the employee’s fault. A layoff
is temporary in nature as it indicates the incapability of an employer to continue the employment
of the workers for a short period. Retrenchment refers to a situation where the employer removes
his employees to increase profits and decrease losses. Even in retrenchment, there is no fault of
the employee that results in the termination of the employment. Through this article let us
analyse the terms layoff and retrenchment put forth under the Industrial Dispute Act, 1947 in
detail.
 DEFINITION Sec.2(kkk) Lay-off

It means the failure, refusal or inability of an employer on account of shortage of coal, power or raw
materials or the accumulation of stocks or the breakdown of machinery or natural calamity or for
any other connected reason to give employment to a workman whose name is borne on the muster
rolls of his industrial establishment and who has not been retrenched. The period during which a
workman is temporarily discharged. Employer-employee relationship suspended and employees
continues to be on the muster rolls of the employer employer’s inability on account of economic
reasons to give employment to the workman. The workmen are laid off for reasons beyond the
control of the employer.
 Classification of lay -off

• lay-off for the full day-he presents himself for work at the establishment at the time appointed for
the purpose during normal working hrs. on any day.
• Lay-off for the half day-asked by the employer to present himself for the employment during the
second half of the shift for the day.
• Lay-off more than a day-not given work for more than one day
• Workmen FT&R Co. FTR &Co.
• The respondents were a tyre manufacturing company at Bombay having its distribution office at
Delhi. As a result of strike there was short supply of tyres to the distribution office. It was held that
the workmen were laid off without any authority of law or the power of the management under the
contract of service.
The Bombay HC in the year 1959 in Central India Spinning, Weaving & Manufacturing Co. Ltd
Nagpur v. State Industrial Court, in this case the Bombay HC held that the key to the definition is to
be found in the words “the failure , refusal or inability to of the employer”. These words make it
clear that the unemployment has to be on the account of the cause which is independent of any
action or inaction on the part of the workers themselves
 Continuous service
• workmen are entitled for compensation only if they have been in continuous service. Defined
under section 25B of the Act, a workman is said to be in continuous service if he provides
uninterrupted service,
• which includes interrupted service due to sickness, accident, strikes which are not illegal, lock out
or cessation of work not due to the fault of the workman.
• In other words, the duration when the workman is out of the office on account of illness is not
excluded while computing continuous service.
• The service is construed as continuous for a period of 1 year if the workman works in the previous
year for:
• 190 days- below the ground in a mine.
• 240 days- in any other job.
• The service is construed as continuous for a period of 6 months if the workman works in the
preceding 6 months for: • 95 days- below the ground in a mine.
• 120 days- in any other job.
Case:Sur Enamel & Stamping Works Ltd v. Their Workmen,

The Supreme Court held that before a workman can be considered to have completed “one year of
continuous service” in an industry, it must be shown that he was employed for a period of at least
twelve (12) calendar months and during those twelve (12) calendar months he had worked at least
two hundred and forty (240) days.
 Sec.25A-Application of Sec.25C-25E
• To industrial establishments in which less than 50 workmen on an average per working day has
been employed in the preceding calendar month and
• To industrial establishments which are of a seasonal character or in which wok is performed only
intermittently
 Lay-off Compensation-25C
• Laying-off workmen results in depriving them of the opportunity to work and earn wages.
Therefore, it becomes the duty of the employer to provide compensation to the workmen if their
case falls within the scope of the Section 25C of the Act. However, no compensation can be
awarded in advance of actual lay-off on grounds of social justice.
• This particular section states that any workman:
(a) whose name is borne on the muster-rolls of an industrial establishment and,
(b) who has completed at least one (1) year of continuous service under the employer, shall be paid
compensation for the period during which he was laid-off,
• which shall be equal to fifty (50) percent of the total of the basic wages and dearness allowance
that should be payable to him had such workman not been so laid-off.
• If during the one (1) year period of continuous service, the workman is laid-off for more than forty
five (45) days, no further compensation will be paid if there is an agreement in that respect between
the workman and the employer. Upon the expiry of this period, the employer can retrench the
workman and the compensation then paid would exclude the amount already paid during the forty-
five (45) day period of layoff.
 Prohibition of Lay-off (25M)

• Section 25M in Chapter 5B-that prior approval from the “appropriate government” is required to
lay-off a workman when the industrial establishment, has more than hundred (100) workmen
employed on an average per working day for the preceding twelve (12) months.-
• Exception: due to shortage of power or to natural calamity and in the case of a mine, such layoff
is due also to fire, flood, excess of inflammable gas or explosion.
• The appropriate government has the final authority to decide whether the establishment is in fact
seasonal or not and such decision shall be final. It also provides stringent penalties for contravention
of the provisions13 of Chapter 5B along with providing compensation to the workman for any
“illegal” lay-off.
 25E-when not entitled to compensation

• he refuses to accept any alternate employment offered by the employer in the same establishment,
or in any other establishment of the same employer, provided such establishment is within a five (5)
miles radius from the previous establishment.
• Further, such alternate employment should not call for any special skill or experience and the
employer must pay at least the same wages as were previously paid to the workman.
• (b) he does not present himself for work at the establishment at the appointed time during normal
working hours at least once a day;
• (c) such lay-off is due to a strike or slowing-down of production by workmen in another part of the
establishment.
• The burden of proof is on the employer to show that the workman is disentitled to claim
compensation because his case falls under the purview of Section 25E.
• An application for permission shall be filed by the employer in the prescribed format
• The appropriate govt. after making such enquiry and after giving a reasonable opportunity of being
heard and considering adequacy and other relevant factors grant or refuse to grant permission.
• If the order not communicated within 60days, the permission applied for shall be deemed to have
been granted on the expiration of 60days.
• An order granting or refusing to grant permission shall be final and binding on all the parties and
shall remain force for one yr.
• The app. Govt may either by its own motion or on the application made by the employer review its
order granting or refusing to grant permission, refer the matter to be referred to a Tribunal.
• Where no application for permission is made, or permission has been refused –such lay –off shall
be illegal-workmen entitled to all the benefits.
 Alternative employment- no lay off

• A workmen shall not be deemed to be laid-off by an employer if such employer offers any
alternative employment- (which in the opinion of the employer does not call for any special skill or
previous experience and can be done by the workmen) in the same establishment from which he has
been laid off or in any other establishment belonging to the same employer,
• Situate in the same village or town,
• Or situate within such distance from the establishment to which he belongs-transfer will not cause
hardships to the workmen.
• 25M –no workmen, other than a badly or casual workmen, shall be laid off without obtaining a
prior permission from the government.
• In case of natural calamity within 30 days permission has to be obtained for lay off.
• Penalty-25Q
• Any employer who contravenes sec. 25M shall be punishable-one month, or with fine which may
extend to 1000 rupees or with both
CONCLUSION:
Any company doing business banks upon various aspects for the purpose of its operation, gaining
profits and reducing losses. It is also required to look after its employees well enough so that they
work efficiently for the development of such a company. However, in order to survive in the
market, these companies are required to take accurate and expeditious decisions. Terminating the
employees or workers by means of lay-offs or retrenchment may be beneficial to the company as
both methods follow certain protocols to make sure that the employees or workers are not subjected
to unfair conditions.
II. Provisions relating to “Retrenchment” under the

industrial Disputes Act, 1947:
 Introduction:
When the business of industry, firm or any organization falls low owing to a change like labourers
the business, retrenchment becomes a permanent means of decreasing surplus employees. It is the
process of retrenchment of employees and workers as a result of economic and commercial
conditions, rather than a disagreement between the company and the employee. The method entails
a consultative process as well as government approval.
 DEFINITION:
Section 2 (oo) of the Industrial Disputes Act, 1947 defines Retrenchment as
The termination by the employer of the service of a workman for any reason whatsoever, otherwise
than as a punishment inflicted by way of disciplinary action, but does not include –
(a) Voluntary retirement of the workman, or
(b) Retirement of the workman on reaching the age of superannuation - if the contract of
employment between the employer and the workman concerned contains a stipulation in that behalf;
or
b) termination of the service of the workman as a result of the non-removal of the contract of
employment between the employer and the workman concerned on its expiry or of such contract
being terminated under a stipulation in that behalf contained therein; or`
(c) Termination of the service of a workman on the ground of continued ill-health;
Case:State of Punjab v. Jagir SinghIt

has been held by the SC that when the services of workman are terminated on the ground of
misconduct question off payment of a retrenchment compensation would not arise.
 CONDITIONS:
➢ the person claiming protection of this Section should be a workman within the meaning of
Sec.2(s) of the Act.
➢ He should be a citizen of India
➢ The Industrial establishment employing such workman should be an industry within the meaning
of Sec.2(j) of the Act.
➢ The workman should belong to a particular category of workmen in that industrial establishment
and
➢ There should be no agreement between the employer and the workman contrary to the procedure
of "Last come First go".
The procedure of first come last go or last come first go denoted under Sec.25(G) should normally
be adhered to. The only requirement is that in case of departure from this procedure the employer
should record reasons for the departure.
 Sec 25-G:
➢ Where any workmen in any industrial establishment who is a citizen of India is to be retrenched
and he belongs to a particular category of a workmen in that establishment, in the absence of any
agreement between the employer and workman in this behalf, employer shall ordinarily retrench the
workman who was the last person to be employed in that category, unless for the reasons to be
recorded, the employer retrenches any other workman.
➢ The above Section states about the rule of Last Come First Go - the Act permits an employer to
affect retrenchment of workman in his industrial establishment but there are certain condition
precedent which he has to comply while affecting such retrenchment.
➢ The doctrine of last come first go has to be borne in mind with respect to different categories of
workmen working in an industrial establishment and not to the whole of the industrial
establishment.
➢ There is, a clear distinction between a class or category and grade. The class or category is a
group in which posts of particular description are included and the grade as referred exclusively to
scales of pay.
➢ The category means a class or trade such as turner, motor-mechanic, electrician, driver etc.
 Departure from the Rule

➢ In case an employer wants to depart from this rule, he is bound to record valid and sufficient
reasons for the same.
➢ On justifiable grounds
➢ Object is to ensure industrial peace and to secure an equitable treatment to the employees.
➢ It is a flexible rule and extra ordinary situation may justify variation.
➢ It must be proved by the employer
Case:Workmen v. Jorhant Tea Co.Ltd

departure from last from first go rule is permissible on valid and justifiable grounds. Burden is on
the management to prove the existence of such grounds.
Case:Swadesamithram Ltd.v.Workmen
deviation from the rule without valid reason will lead to the inference that management’s action is
without bonafide.
 Sec 25-H: Re-Employment of retrenched workmen

➢ Retrenched workmen must be given an opportunity of re-employment.
➢ Imposes a statutory obligation on the employer to give preference to a retrenched workman.
➢ Workman should have been retrenched prior to the re-employment.
➢ He should offer himself for re-employment otherwise he will forfeit the right
➢ It is based on consideration of fair play and justice.
➢ only preferential treatment in employment and not reinstatement with back wages.
 Sec 25-F: Conditions precedent to retrenchment of workmen

➢ Sec 25F is applicable to industrial establishment where less than 50 employees have been
engaged on an average per working day in the preceding calendar months and also applicable for
industries which are of seasonal nature:
➢ No workman employed in any industry who has been in continuous service for not less than one
year under an employer shall be retrenched by that employer until-
(a) the workman has been given one month’s notice in writing indicating the reasons for
retrenchment and the period of notice has expired, or the workman has been paid in lieu of such
notice, wages for the period of the notice;
(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent
to fifteen days’ average pay [for every completed year of continuous service] or any part thereof in
excess of six months; and
(c) notice in the prescribed manner is served on the appropriate government.
 Sec 25-N: Procedure for valid retrenchment

➢ Sec 25N is applicable to industrial establishment where more than 100 employees have been
engaged on an average per working day in the preceding calendar months
(1) No workman, who has been in continuous service for not less than one year under an employer
shall be retrenched by that employer until,
(a) the workman has been given three months’ notice in writing indicating the reasons for
retrenchment and the period of notice has expired, or the workman has been paid in lieu of such
notice, wages for the period of the notice; and
(b) the prior permission of the appropriate government or such authority as may be specified by that
government by notification in the Official gazette
(2) An application for permission for retrenchment shall be made by the employer in the prescribed
manner stating clearly the reasons for the intended retrenchment and a copy shall be served on the
workmen concerned in the prescribed manner.
➢ Order of the appropriate government shall be binding and shall remain in force for 1year
➢ The appropriate government review its order and refer the matter to the Tribunal for adjudication
➢ When it is referred to Tribunal it passes an order within 30 days.
➢ Where no application for permission is made such retrenchment shall be illegal- workmen
entitled to all the benefits.
➢ Every work-men entitled to compensation - which shall be equivalent to 15 days average pay for
every completed years of continuous service
Case:In L. Krishna and Others v. The Divisional Personal Officer, Southern Rly and Another,
The Court held that the termination of services by an employer under Standing Orders or under
service conditions governing employees is retrenchment within the meaning of the Act and requires
compliance with Sec 25-F.
Case:In Workmen v. Jorhunt Tea co. Ltd-

departure from the last come first go rule is permissible on valid and justifiable grounds. Burden is
on the management to prove the existence of such grounds.
 CONCLUSION: The provisions of retrenchment have been made in compliance with the basic
constitutional rights of the citizens. The labour laws when challenged have been justified by the
Supreme Court that they are constitutionally valid and the Parliament has made laws keeping in
mind the principles of social welfare and economic justice for all. The industry has been given a
due emphasis and that the development of the industry is correlated to labour contentment. So in
order to make the country a welfare state, a socialist pattern of society must be maintained.
Employers use the retrenchment method to reduce the number of employees in their respective
sectors if they are experiencing problems. The other major techniques that can be adopted for
downsizing lay-off, closure, and voluntary retirement.
IV.PROVISION FOR CLOSURE OF STABLISHMENT /

UNDERTAKING
 Introduction: Industrial Disputes Act, 1947 is the Act that regulates the labour laws as it
concerns all the workmen or all the people employed on the Indian mainland. It came into force
on 1 April 1947. The capitalists or the employer and the workers always had a difference of
opinion and thus, it leads to lots of conflicts among and within both of these groups. So, these
issues were brought to the attention of the government and so they decided to pass this Act. This
Act was formed with the main objective of bringing peace and harmony to industrial disputes
between parties and solving their issues in a peaceful manner.
 DEFINITION Closure-Sec.2(cc)
• Closure means the permanent closing down of a place of employment or part thereof.
• The transfer of an undertaking from one owner to another is a case of mere change of
ownership.
• These procedures do not apply to an undertaking set up for the construction of buildings,
bridges, roads, canals, dams or for other construction work.
 Procedure of closure
• 60 days’ notice to be given showing intention to close down any undertaking (sec. 25FFA) It is
not applicable to:
a. An undertaking in which –less than 50 workmen are employed or
• Less than 50 workmen were employed on an average per working day in the preceding 12
months.
b. an undertaking set up for the construction of buildings, bridges, roads, canals, dams or for
other construction work or project.
 Penalty for closure without notice

Sec. 30A of the ID Act, 1947 –any employer who closes down any undertaking without
complying with the provisions of sec. 25FFA shall be punishable with imprisonment for a term
which may extend to 6 months, or with fine-5000 rupees
 Compensation to workmen in cases of closing down of undertakings. Sec.25FFF

• Every workman who has been in continuous service for not less than one year in that undertaking
immediately before such closure shall entitled for notice and compensation in accordance with the
provisions of sec.25F as if the workman had been retrenched.
• Where the undertaking is closed down on account of unavoidable circumstances beyond the
control of the employer- the compensation to be paid to the workman shall not exceed his average
pay for 3 months.
• An undertaking closed down due to
• Financial difficulties
• Accumulation of stocks
• The expiry of the period of the lease or licence granted to it
• In case where the undertaking engaged in mining operations is closed down due to the exhaustion
of the minerals in the area
• Shall not be deemed to be closed down on account of unavoidable circumstances.
• In case of mining operations—no workmen shall be entitled to any notice or compensation if
• The employer provides the workman alternative employment from the date of closure with same
remuneration on same terms and conditions.
• The service of the workman has not been interrupted by alternative employment
• Employer is otherwise as per the terms of employment legally liable to pay the workman,
compensation on the basis of his service.
 Procedure for closure-Sec.25(O)
1. Employer shall, apply in the prescribed manner for prior permission 90 days before the date on
which closure become effective to the app. govt. stating the reason for the closure –copy shall be
served to the workman.
2. appropriate govt. may looking in to the genuineness after complying with procedure grant or
refuse to grant permission and copy of such order shall send to the workman.
3. If the app.govt. does not communicate the granting or refusing to grant permission to the
employer within 60 days – permission applied for shall be deemed to have been granted on the
expiration of 60 days.
• An order granting or refusing to grant permission shall be final and binding and remain in force for
one year.
• The appr. Govt. may review its order or refer the matter to Tribunal-
• Tribunal shall pass an award within 30 days.
• If denied permission-closure will be illegal.
• The appropriate govt. may owing to the exceptional circumstances –direct need not comply with
subsection 1
Case:Lal Mohammed v. Indian Railway construction

for the closure of one unit, it is not necessary that the entire industry or business of other units be
closed.
 Penalty for illegal closure 25-R

If not complying with the provisions-6 months -/ 5000 rupees or both Employer who violates refusal
of closure –one year/ 5000 or with both.
Case:Hindalco Industries Ltd v Union of India and Others,

it was held that even though the closure of an undertaking was not a planned and voluntary closure
by the company Section 25-O of the Industrial Disputes Act, 1947 would be applicable. It was also
pointed out that even if an undertaking is closed for reasons beyond its control Section 25-o would
be applicable and the conditions imposed in the order of the government granting permission for the
closure were valid and binding on the appellant company.
 CONCLUSION : Thus, this was the Industrial Disputes Act which was passed by the
government of India in 1947. This Act ensures peace and harmony among all the industrial
establishments, and if any conflict arises, the provisions in the Industrial Disputes Act helps in
solving the issue in a systematic manner in which all the parties are satisfied and every decision
made is fair and just.
II. THE PROCEDURE FOR THE CERTIFICATION OF STANDING ORDERS. AND

THE POWER AND FUNCTIONS OF CERTIFYING OFFICER
 CERTIFYING OFFICER:
s.2(c) of the Industrial Employment (Standing Orders) Act, 1946 deals with this aspect. Certifying
Officer means a Labour Commissioner or a Regional Labour Commissioner and includes any other
officer appointed by the appropriate Government by notification in the Official Gazette to perform
all or any of the functions of a Certifying Officer under the Act.
 STANDING ORDERS:
s.2(g) of the Industrial Employment (Standing Orders) Act, 1946 deals with this aspect. Standing
orders means rules relating to matters set out in the Schedule to the Act.
 PROCEDURE FOR CERTIFICATION OF DRAFT STANDING ORDERS:

Draft standing orders contain those rules and conditions that are proposed to be adopted by the
employer for adoption in his industrial establishment which shall provide for every such matter as
set out in the Schedule to the Act and where model standing orders have been prescribed for an
industrial establishment provisions shall be made in the draft standing orders as far as practicable in
conformity with such model.
s.3(1) of the Act lays down a statutory obligation on the employer to submit to the Certifying
Officer within 6 months from the date of application of the Act to his industrial establishment 5
copies of the draft standing orders to the Certifying Officer for certification.
s.5 of the Industrial Employment (Standing Orders) Act, 1946 deals with procedure for certification
of standing orders: 1) As soon as the Certifying Officer receives an application for certification of
standing orders, he shall take any of the following steps:
(i) Where there is a Trade Union of the workmen, a copy of the draft standing orders will be
forwarded to the Trade Union together with a notice in Form II
(ii) Where there is no such Trade Union, he must cause a meeting of the workmen to be called so
as to elect 3 representatives to whom he must forward a copy of the draft standing orders together
with a notice in Form II. If the workmen desire to file any objections to the draft standing orders,
they may do so within 15 days from the date of receipt of the notice to the Certifying Officer.
2) The Certifying Officer then under the statutory obligation must give to the employer and the
Trade Union of such other representative of workmen an opportunity of being heard before any
modification of or addition to the draft standing orders is decided and he shall make an order in
writing accordingly.
Caselaw: Glaxo Laboratories (I) Ltd. Vs. Presiding Officer, Labour Court, Meerut
In this case, the Hon'ble SC has held that the power to prescribe conditions of service is not
unilateral but the workmen have the right to object and to be heard and that the Certifying Officer
cannot decide anything on this vital issue arbitrarily.
3) The Certifying Officer must certify the draft standing orders after making the necessary
modifications of or additions to it under s.5(2) of the Act and then within 7 days send copies of the
certified standing orders authenticated in the prescribed manner and of his order under s.5(2) to the
employer and to the Trade Union or other prescribed representative of the workmen.
An appeal can be preferred against the order of the certifying officer passed u/s.5(2) of the Act
and not against the certified standing orders as such. An appeal can be preferred within 30 days
from the date on which the copies of the certified standing orders and the order of modification or
addition are sent to the parties u/s.5(3) of the Act.
Where the rules of procedure do not prescribe any limitation for the removal of defects, these
can be done at any time after preferring the appeal in time.
Caselaw: Barauni Refinery Pragatisheel Shramik Parishad vs. IOC Ltd.

In this case, the Hon'ble SC has held that during the operation of settlement it is not open to
workmen to demand a change in a clause of the certified standing orders.
 POWERS AND FUNCTIONS OF CERTIFYING OFFICER:

s.11 of the Industrial Employment (Standing Orders) Act, 1946 deals with this aspect. A
Certifying Officer has the following powers:
1) The Certifying Officer has all the powers of a Civil Court for the purposes of receiving evidence,
administering oaths, enforcing the attendance of witnesses and compelling the discovery and
production of documents. Every such authority is also deemed to be a Civil Court within the
meaning of ss.345 and 346 of Cr.P.C., 1973.
2) The Certifying Officer or his successor-in-office at any time has the power to correct any clerical
or arithmetical mistakes in any order passed or arising therein from any accidental slip or omission.
Caselaw: Associated Industries vs. B.B. Singh

In this case, the Hon'ble SC has observed that the fact that u/s.11 of the Act the Certifying Officer
and the Appellate Authority have all powers of a Civil Court for certain specified purpose will not
convert them to a Court nor the fact that the matter was agitated in a WP before the HC will not
make the proceeding before Labour Court a civil proceeding in a Court.
Unit 4
10M
1. What are the circumstances under which an employer need not pay compensation to a workman
under the Workmen Compensation Act, 1923?
2. Discuss the various benefits available to employees under the Employees’ State Insurance Act,
1948.
3. Discuss the liability of the employer to pay compensation under the Employee's Compensation
Act, 1923.
4. Examine the different kinds of benefits available under Employees State Insurance Act, 1948.
5. Explain the doctrine of Notional extension theory with the help of decided cases.
6. Discuss the composition, powers and duties of the ESI corporation under the Employee State
Insurance Corporation Act, 1948.
7. Discuss the liability of the employer to pay compensation under the Employee's Compensation
Act.
8. Explain the different kinds of benefits available under Employees State Insurance Act, 1948.
9. Discuss the constitution, power and function of Employees Insurance Courts under ESI Act,
1948.
10. Explain employer's liability under the Employee's Compensation Act, 1923 for personal injuries.
11. State the procedure of employees Insurance Claims under Employees State Insurance Act, 1948.
12. Explain the various authorities provided under E.S.I. Act, 1948.
13. Discuss the procedure for claiming compensation under Employees Compensation Act.
14. Mention the various purposes on which the Employees State Insurance Funds may be spent.
15. Discuss the Constitution, Power and Functions of employees Insurance Courts under ESI Act,
1948.
16. Examine the different kinds of benefits available under Employees State Insurance Act, 1948.
17. Explain the circumstances under which an employer is liable to pay compensation under the
Employees Compensation Act, 1923.
18. Discuss the composition, powers and duties of the ESI Corporation under the Employees State
Insurance Corporation Act, 1948.
19. Explain employer's liability under the Employees' Compensation Act, 1923 for personal injuries.
20. Explain various benefits available under the Employees State Insurance Act, 1948.
6M
1. Write short notes on: a) Notional extension the bry of the employer's premises. b) Dependants
and total disablement under ESI Act.
2. Write a note on a) "Medical Benefit Council". b) Partial and Total disablement under Employee's
Compensation Act, 1923.
3. Write a short note on; a) Partial disablement and total disablement. b) Write a short note on
Medical Benefit council.
4. Write short note on; a) disablement . b) contributions .
5. Benefits under ESI Act, 1948.
6. Partial disablement and total disablement.
7. Partial and total disablements under Employee's Compensation Act, 1923.
8. Employees State Insurance Courts.
9. Write short note on the salient features of Employees Compensation Act, 1923.
10. Employees State Insurance Court.
11. Medical Benefit Council role undet Employees State Insurance Act.
12. Procedure for claiming compensation under Employees Compensation Act, 1923.
13. Raja was working as an electrician in David and Co. Ltd. David and Co. Ltd. is a Subscriber to
the ESI Corporation. Raja comes into contact with a live wire and dies. His widow Rani claims
compensation under the Employees Compensation Act, 1923. David and Co. refuses to pay. What is
the remedy available to Rani?
14. Benefits available under ESI Act, 1948.
15. Write short note on any one: a) Partial disablement and total disablement. b) ESI Courts.
Unit 5
10M
1. "The object of the Payment of Wages Act, 1936 is to ensure that wages are paid in time and that there
are no unauthorised deductions made by the employer." Elaborate.
2. What are the provisions of the Factories Act, 1948 that deal with health and welfare of the workers?
3.
4
6M
PROPERTY LAW
I Immovable Property and notice:
 Introduction: Property is one of the fundamental elements of socio-economic life of an
individual. The word property has gradually been given a wider meaning. Property law is
therefore an important branch of civil law. The Transfer of Property Act, 1882 deals with the
transfer of inter vivos means transfer by act of parties which takes place between two living
persons for eg: The gift or sale is a transfer of property by act of parties because both transferor
and transferee both must be living persons on the date of transfer.
In section 3 of the Transfer of Property Act, there are seven definitions of the terms given
 Definition of Immovable Property

 Section 3 of Transfer of Property Act defines “Immovable Property” does not include standing
timber, growing crops or grass. Taking a reference from this definition, movable property
includes standing timber, growing crops and grass.
 Section 3(26) of the General Clauses Act 1897, “immovable property” shall include land,
benefits to arise out of land and things attached to the earth, or permanently fastened to anything
attached to the earth”
 Section 2(6) of The Registration Act,1908 defines “Immovable Property” as under: “Immovable
Property includes land, building, hereditary allowances, rights to ways, lights, ferries, fisheries
or any other benefit to arise out of land, and things attached to the earth or permanently fastened
to anything which is attached to the earth but not standing timber, growing crops nor grass.
 Section 3 of the Transfer of Property Act defines ‘things attached to Earth’ as Things with
Earthly Roots:
 This category contains all trees, shrubs, and similar plants, with the exception of standing wood,
growing crops, and grasses.
 Meaning of Immovable Property

Joining all the above definitions, immovable property can be summed as :-
Immovable Property includes:
1.Land,
2.Benefits to arise out of land,
3things attached to the earth, i.e.,
i. Things embedded to the earth,
ii. Things attached to what is so embedded in the earth,
iii. Things rooted in the earth except:
a. Standing timber
b. growing crops
c. growing grass.
1.Land :
land means surface of the earth. It includes everything upon the surface of the land, under the
surface of land and also above the surface of the land. Anything upon the land, so long as it is not
removed from there, shall be part of the land. For example: Soil, mud deposited on the surface of
the earth would be immovable property. The water collected in a pit or accumulated in the pond or
lake is also immovable property because the water is part and parcel of the surface of the earth.
Water flowing in the river gives the impression that it is moveable but its water always remains on
the surface of the earth. Everything under the surface of land is also the part of the land and is
included in the expression immovable property eg., Sub-soil, minerals, coal or gold mines and the
underground streams of water are immovable properties because they flow under the land.
2. Benefits to arise out of Land:
Besides land, the benefit which a person gets from land, is also an immovable property.
One way get the benefit from the land under some right. Beneficial interest in a property is called
beneficial right or interest of that property, Thus any right which is exercised over the land or any
other immovable property and by the exercise of which a person gets certain profit or gain would be
his intangible immovable property. For example land is used in wider sense it means and includes
everything upon its surface and everything beneath the land. Therefore the right of a tenant to live in
the house of his landlord is an immovable property of the tenant, in the same way right of fishery,
right to catch fish in the pond or lake is an immovable property.
3. Things attached to the earth. The things attached to the earth means
i. Things embedded in the earth: Things embedded in the earth Things which are fixed firmly in
the earth and became part of the land are things embedded in the earth. For eg., houses, buildings ,
wall, electricity polls are immovable property because they are things embedded in the earth. Walls
and polls are not fixtures or not just placed on the surface of the land but they are dug deep and
thereafter the whole structure is fixed permanently. Where are things which placed on the surface of
the earth without any intention to make them part of the land the things may not be immovable
property. For eg., road roller or heavy stone which placed on the land may go two to three feet deep
depending upon the weight, therefore such things are not called as immovable property.
ii. Thing attached what so embedded in the earth : Where a thing is attached to something which
is embedded in the earth for its permanent beneficial enjoyment, the thing so attached would also
become immovable property. For eg., doors, windows and walls of permanent enjoyment of that
house. The things which are attached without any intention making then to be part of the house
would not be immovable property eg., electric bulb, window screen etc.
iii. Thing rooted in the earth: Trees, plants or shrubs which are grown on land are rooted in the
earth with help of their roots, they keep themselves fixed in the earth and become the part of the
land. Until it is cut down, therefore a general rule in respect of all the trees, plants, herbs and shrubs
is that they are immovable properties, however there is an exception to this general rule
a. Standing timber: Standing timber is a moveable property provided its woods are generally used
for timber purposes i.e.making for house hold furnitures.
b. Growing crops.: growing crops and growing grass are also movable property although the crops
say wheat and barley are nothing but collection of plants which are rooted in the earth but every
crop
c. Growing grass: growing crops and growing grass are also movable property although the crops
say wheat and barley are nothing but collection of plants which are rooted in the earth but every
crop
 Doctrine of Notice:
The literal meaning of term ‘notice’ is knowledge. The doctrine of notice in
reference to Transfer of Property Act, 1882 is used to adjudicate the disputes regarding
rights and claims of the parties, who are involved in unconscionable transaction.
 For example, A father makes a will in the favour of his son and imposes a condition that
he will pay Rs. 5,000/- per month to his mother for her maintenance and till he makes an
alternative arrangement of an equivalent amount for her, he should not sell the property.
 A notice is an information letter that can be expressed or implied for the communication related
to the transfer of properties as per section 3 of the Transfer of Property Act.
 Kinds of Notice:
Notice is of three kinds:
1. Actual notice
2. Constructive or Implied notice
3. Notice to agent or imputed notice
1.Actual notice:
It means actual knowledge. A person is said to have actual notice/express notice of a
fact if he actually knows it. To consider it as binding, one will have to look at the fact that whether
that notice is definite and information given about the thing, in respect of which the notice is issued,
is correct. It must be definite information given to or attained in the course of negotiations by person
interested in the property. A person is not bound to attend vague rumors.
Here a general claim would not be enough to affect the status of a purchaser with
notice of a deed of which he does not appear to have knowledge. If a person knows that another has
claim or interest in the property for which he is negotiating, he is bound to inquire that what is the
interest of that another person, and if he omits to do so, he will be bound to particulars of extent of
such interest.
Also it is important that the notice should have been given in same transaction. A
person is not bound by notice given in a previous transaction which he may have forgotten.
2.Constructive or Implied notice:

It means ‘knowledge imputed by the Court on a person’. It is a notice which treats a person
who ought to have known a fact, as if he actually knows it. A person has constructive notice of all
the facts of which he would have acquired actual notice had he made those inquiries which he ought
reasonably to have made. In other words, a person may claim that he did not know a fact, but if the
circumstances surrounding him are such, that as a reasonable prudent person, he ought to have
known a fact, he will be deemed to know it.
Constructive notice can be applied by the Court in following cases:
(a) Willful abstention from search which one ought to make
b) Gross Negligence:
Negligence means carelessness or omission to do such act which a man of ordinary
prudence would do. Doctrine of constructive notice applies when a person, but his gross negligence
would have known the fact. Mere negligence is not penalised. It should be high degree of neglect.
In Hudston v. Vincy, (1921) 1 Ch 98, Eve J. said, “Gross negligence does not mean mere
carelessness, but means carelessness of so aggravated a nature as to indicate a attitude of mental
indifference to obvious risk.”
(c) Registration as notice:

• If an instrument is required to be registered, then it amounts to notice. In case a document
does not require to be registered, its registration does not amount to notice.
3.Notice to agent or imputed notice:

a) Notice should obtained by agent
b) As a agent
c) During agency
d) In course of agency
e) In matter material to agency business.
Conclusion:
Section 3 of the Transfer of Property Act talks about the interpretations of the various
terms and definitions which will be used for a better understanding as per section 3 of the Transfer
of Property Act. There are several words and terms which have been defined in it. All these matters
of properties should be taken by a legal consultancy service.
II.THE GENERAL RULE IS THAT PROPERTY OF ANY KIND MAY BE TRANSFERRED.

EXPLAIN THE STATEMENT WITH EXCEPTIONS.(section 6)
A: GENERAL RULE OF TRANSFERABILITY OF PROPERTY / WHAT MAY BE
TRANSFERRED: The word property includes properties of all description. It includes
movable, immovable, tangible and intangible properties. A property is a bundle of rights.
When a property is transferred, the rights along with the property are transferred too.
However, an arrangement may be made by which some of the rights may be transferred but
not all. The transferability of property is the general rule and non-transferability is an
exception. Transferability of property is based on the maxim alienatio rei prae fertur juri
accrescendi which means to say that alienation is favoured by the law rather than
accumulation. The general policy of law is to promote free alienation and circulation of
property rather than accumulation of it.
EXCEPTIONS / WHAT PROPERTY CANNOT BE TRANSFERRED: S. 6 of TP Act,
1882 says that property of any kind may be transferred excepting the exceptions given in the
Act or by any other law for the time being in force.
The section consists of exceptions in clauses (a) to (i). It is a list of cases wherein a property
is not transferable and they are as follows:
(a) Spes Successionis (b) Right of re-entry (c) Easement (d) Restricted interest (dd) Right to
future maintenance (e) Right to sue (f) Public office (g) Stipends and pensions (h) Nature of
interest, etc (i) Untransferable interests
III. DEFINE TRANSFER OF PROPERTY. STATE WHETHER PARTITION,

SURRENDER, COMPROMISE AND GIFT AMOUNTS TO TRANSFER UNDER THE
ACT(section 5).
 INTRODUCTION: The right of ownership of property whether movable or immovable
consists of a bundle of four rights which are the right to transfer, the right to possess, the
right of use & enjoyment and the right to destroy. The Transfer of Property Act, 1882 is a
codification of the manner in which an owner of property may exercise his right of
ownership of property. All transfers dealt with under the Act are the transfer of some
combination of some or all the rights of ownership of immovable property.
 TRANSFER OF PROPERTY:
s.5 of the Transfer of Property Act,1882 deals with transfer of property. According to the
section, transfer of property means an act by which a living person conveys the property in
present or in future to one or more other living persons or to himself or to himself and one or
more other living persons and the living person includes a company or association or body of
individuals whether incorporated or not.
Family law - II
I. THE IFFERENT OURCES OF MUSLIM AW:

I) Introduction: Islam means peace by submission and obedience to the Will and Commandments
of God Allah and those who accept Islam are called Muslims.
There are two ways in which a person can be regarded a Muslim.
1. Muslim by Birth – a. Believes in one God and b. Prophet-hood of Muhammad
2. Muslim by Conversion – a. Converts by profession of Islam. b. Converts by formal ceremony
II) MUSLIM LAW:

Islamic law is a branch of Muslim theology giving practical expression to the faith
which lays down how a Muslim should conduct in accordance with his religion both towards God
and towards other men. It is based on man’s duties or obligations rather than on his rights. It is a
religious law applicable to a person who is a Muslim either by birth or by proselytization.
According to Prophet Mohammad, the Muslim law is commandment of God Allah and the
sovereign in Muslim States and it is a Muslim’s duty to follow it literally.
III) SOURCES OF MUSLIM LAW:

The Islamic law is referred to as “Sharia”. Islam has given the most comprehensive legal
system to mankind. Islam has its own personal, civil, criminal, evidence and international law.
There are 3 types of sources under Muslim law, they are:-
The Muslim Law has been derived from various primary as well as secondary sources and can be
classified into 2 main categories:
1. Primary Sources
2. Secondary Sources
IV. Primary Sources:

Primary sources may be classified into 4 sub-categories:
(i) Quran
(ii) Sunna or Ahadis
(iii) Ijma
(iv) Qiyas
(i) Quran: The word Quran is derived from the Arabic word Qurra and signifies the reading or that
which ought to be read. It is the original or primary source of Islamic law. It is the name of the Holy
Book of Muslims containing the direct revelations from God through the Prophet. It is believed that
Quran is of divine origin and was revealed to Prophet Mohammad for the benefit of mankind. The
1st revelation/wahi came to the Prophet in 609 A.D. with the word Iqra meaning recite. Collections
of all revelations are called The Recital/Al Quran. Each and Messenger in Arabic language in a
semi-poetic manner. These were conveyed to the society by the Prophet thorough his preaching.
The communications were in scattered form and were not systematically revealed. After the
Prophet’s death, the revealed verses were collected, consolidated and systematically written under
the authority of Osman, the 3rd Caliph.
 Salient Features of Quran:-

1. Quran is of divine origin: It is believed in Islam that the words and the verses of this holy book
are made by Allah and not by any human being and the Prophet simply uttered these words on
behalf of God. Since Quran is compilation of the words of God, its words and authority are
unchangeable.
2. Quran is in the form of verses: Each verse in the Quran is called Ayat. There are 6,237 verses in
Quran which are contained in 114 Chapters divided into 30 parts. Each chapter of Quran is called
Sura and is arranged subject-wise and has specific titles. The 1st Sura of Quran is Surat-ul-Fatiha
which is an introduction to the Holy Book and consists of verses in the praise of Almighty Allah.
Before consolidation, Quran originally consisted of 6,666 Ayats.
3. Quran is a mixture of religion, law and morality: Religion, law and morality are at some places
mixed in such a manner that it is difficult to separate them. The law making Ayats numbering about
200 are scattered in different chapters and they may be regarded as the fundamental source of
Muslim law. Of these 200 verses, only 80 verses deal with personal law. Some of the verses have
removed objectionable and evil customs like child infanticide, unlimited polygamy, gambling, etc.
Thus, only basic principles of Muslim law are given in Quran.
The major portion of the text deals with theological and moral reflections. It distinguishes good
from falsehood. Because of the above mentioned facts, Quran is the primary and supreme source of
law.
(ii) Sunnat or Ahadees:

 Ahadees is what was said by Prophet and Sunnat is his practice and actions. Matters which
formed the subject of manifest revelation by hints from Jibriel or by inspiration or of internal
revelation are known as Ahadees i.e., precepts or traditions.
 According to the Prophet, traditions are the injunctions of Allah. The literal meaning of the
term Sunna is a patch, a procedure, a way of action. It denotes some type of practice or
precedent. So, the Sunna means the traditions of the Prophet. Many of these are recorded in
the volumes of Hadith literature. Whatever the Prophet said or did without reference to God
is treated as his traditions and is the 2nd source of Muslim law as it is believed that even his
own sayings derived inspiration from Allah. Even his silence to a question put before him
was taken as authoritative and became a precedent.that matter. If this narration was found to
be reliable, it became Sunna. Companions of the Prophet, Successors of the Companions and
Successors of the Successors were recognized as Narrators with Ali being the most important
person recording the Ahadees in black and white.
 Some of the important collection of traditions called digests or musannf are contained in
writings of Abu-ibn-Zuhri, Musnad of Ahmed-ibn-Hanbal, in Muwatta, etc. Tradition as a
source of Muslim law consists of –
a) Sunnat-ul-Qaul which means the utterances or the sayings of the Prophet
b) Sunnat-ul-Fail which includes the doings of the Prophet i.e., his behaviour and
c) Sunnat-ul-Taqris which is the silence of the Prophet in answer to a question which was
put before him for his decision which amounted to implied consent/approval of a rule of law.
(iii) Ijma:
 With the death of the Prophet the original law-making process ended. So, those questions which
could not be solved either by the principles of the Quran or the Sunna were decided by Jurists
with the introduction of the institution of Ijma.
 Ijma means the agreement of Muslim Jurists of a particular age on a particular question of law.
In other words, it is the consensus of Jurists opinion. It is termed as a movable element in law as
it is flexible and not rigid like Quran and Sunnat. The jurists/Mujtahids were persons having
knowledge of law.
 This source of Muslim law has played a very important role in the subsequent development of
Muslim law because through Ijma it was possible to lay down new principles in accordance with
the changing needs of the Islamic society.
 Once a valid Ijma is constituted, it is regarded equal to the Quranic verse and is equally binding
on the people provided it is not contrary to the Quran or the Sunna. The Prophet Muhammad had
once said that his community would never agree on an error.
 Authority of Ijma depended upon the merit of the participator in its formation.
 Types of Ijma: From the point of view of authority and importance, there are 3 kinds of Ijma and
they are –
a) Ijma of the Companions:
o The concurrent opinions of the Companions of the Prophet was taken to be the most
valuable and reliable as they were presumed to be the best persons to act as jurists and
such an Ijmas could not be overruled or modified by an subsequent Ijma.
b) Ijma of the Jurists :

 In the absence of opinions of the Companions of the Prophet, this type of Ijma
c) Ijma of the People or masses Sometimes,

 the general agreement/opinion of a great majority of Muslims was also accepted as law.
This type of Ijma was of little value because of 2 reasons - it was not possible to have
concurrent opinion and every Muslim was not a learned scholar. This could be overruled
or modified by an subsequent Ijma.

(iv) Qiyas (Analogical Deduction):
 The Qiyas is a process of deduction which helps in discovering the law and not to establish a
new law. Its main function is to extend the law of the text to cases which do not fall within the
purview of the text.
 The word Qiyas has been derived from the Hebruic term hiaqish and from an Arabic root which
denotes beat together. In the Arabic language, Qiyas means measurement, accord and equality.
 If there was any problem before the society on which the texts i.e., Quran, Sunnat and Ijma were
silent, then Qiyas was applied to get the law. It was a method of comparing the problem of
society with a similar problem for which solution was given in the texts i.e., analogical
comparison. The Prophet himself approved the use of reason for exercising private judgment
subject to the dictates of the Quran and the guidance of the Sunnat.
 Compared with other three primary sources of Islamic law, the Qiyas is of much lesser
significance.
 Sunni uses Qiyas as the fourth source whereas Shia uses aql/intellect.
V. Secondary Sources:
Secondary sources are those sources which are developments on the foundations laid down by the
primary sources. Secondary sources is classified into 3 sub-categories:
(i) Equity, Justice and Good conscience
(ii) Judicial Decision
(iii) Legislation
(iv) Custom
(i) Equity, Justice and Good conscience (Istihsan, Istislah, Istildlal):

 It is a doctrine of the Hanafis which was reduced to a definite rule by Imam Abu Hanifa, the
founder of the Hanafi School. But, the other schools of Sunni law opposed this doctrine.
 Istislah:
o It is also something similar to the English Doctrine of Equity, Justice and Good
Conscience and is similar to istihsan but is based on the conception of public good or
common welfare. Hence, the principle of istislah consists in prohibiting an act which
may cause injury to the public interest.
o This doctrine was introduced by Imam Malik, the founder of Maliki School.
 Istidlal: This Doctrine is also similar to the English Doctrine of Equity, Justice and Good
Conscience. The word istidlal means inference of one thing from the other and is distinct
from the Qiyas.
(ii) Judicial Decision (Precedent): Under the principle of precedent, the subordinate court is bound
to follow the law laid down by the superior court i.e., a judicial decision of SC is binding on all HCs
and lower courts and similarly HC’s decision is binding on subordinate courts and the superior
court’s decision become a source of law for the courts subordinate to them on the point decided.
Caselaw: Begum Subanu vs. A.M. Abdul Gafoor

In this case, the Hon’ble Supreme Court held that despite the fact that a Muslim husband has legal
right to contract second marriage, if the first wife lives separately only on the ground of husband’s
second marriage she would still be entitled to get maintenance from husband.
 Fatawas:
o A fatwa is an Islamic religious ruling on a matter of Islamic law and is issued by a
recognized religious authority in Islam such as Judges and Scholars/Muftis who base
their rulings on knowledge and wisdom. A fatwa pronounced by a Mufti had great
authority but the Kazi/Magistrate was not bound by it. A fatwa is not necessarily
binding on the faithful.
o Though not binding in nature, the fatwas have played an important role in the
development of Islamic law and in enriching the legal rules because the Mufti while
searching out the law for a given case used to consult the Quran, the Sunna, the Ijma
and then gave his ruling as to the law applicable to a given case. It may be noted that
the Doctrine of Precedent has taken the form of fatwa nowadays.
o The famous collections of Fatwas are Fatwa-i-Alamgiri compiled in 17th Century
A.D. in Aurangzeb’s time, Fatwa-Abdul-Hayya and Imdad-ul-Fatawa.
(iii) Legislation:
 It is generally believed in Islam that Allah alone is the supreme Legislator and no other
agency or body on earth has authority to make laws. This belief is so deep-rooted that even
today any legislative modification may be treated as an encroachment upon the traditional
Islamic law. However, some important enactments on
 Muslim personal law are given below:
1. The Mussalman Waqf Validation Act, 1913
2. The Child Marriage Restraint Act, 1929
3. The Muslim Personal Law (Shariat) Application Act, 1937
4. The Dissolution of Muslim Marriage Act, 1939
5. The Muslim Women (Protection of Rights on Divorce) Act, 1986
Apart from the above enactments, there are also enactments which regulate the law of pre-
emption and the law of Waqfs. The Family Court Act, 1984 is also applicable to Muslims
which only regulates the procedure.
(iv) Custom (Urf):

 Customs are also known as urf or ta-amul or adat have the force of Ijma though it does not
command any spiritual authority like Ijma. A transaction approved by custom is legally
operative even if it is in violation of a rule of law derived from the Qiyas/analogical
deductions. They form the midway between primary and secondary source of Islamic law
and is regarded as an important source of Muslim law.
 Before Islam, the Arabs were governed by customary laws and when Islam came into
existence customs found to be evil and bad were totally abolished by the Prophet and were
declared un-Islamic. But, there were certain pre-Islamic customs like dower, talaq, etc.,
which were found to be good and tolerable and continued because the Prophet sanctioned
them by his silent approval.
VI) Sources under Shia Law:

Shia law recognizes the following sources of law – Quran, Traditions which have come from the
Prophet’s family, Ijma which were confirmed by Imams and Aql/intellect/reason. Besides these
sources, sayings and doings i.e., conduct of Imams are also recognized by the Shias.
IV)Conclusion: Muslim law is an integral element of Indian laws and must be understood and
implemented in the similar manner as any other law in the country. Despite the fact that most of it is
uncodified, Muslim personal law has the same legal significance in India as other religions’ codified
personal laws, such as the Hindu Marriage Act of 1955 and the Christian Marriage Act of 1872.
The Hon’ble Supreme Court of India has taken into account that women’s rights are not being
neglected or discriminated against on any grounds by delivering progressive judgments. This has
developed in contribution to Muslim law to have a newer perspective with the landmark cases.
Adding more to this, the judgments have set up a platform of a level playing field and thus, leading
to the formation of an egalitarian society.
II. DOWER OR MAHR:

I) Introduction: Before the advent of Islam a marriage was generally contracted by purchasing the
girl from the guardian . A man who wanted to marry would approach the guardian and pay him
some money or property to him and use to him, and use to take the girl with him as his wife, the girl
was called 'Sadhiqa', called as female friend .Such marriages was almost the sale of a girl by
guardian, the money of compensation given by the husband to the guardian was the compensation
of the girl or the price of the girl known as 'Maher.
This type of marriage was called Bal Marriage. The other type of marriage was called as
Beena Marriage .
II) DEFINITIONS:
 According to Wilson, dower is a consideration for the surrender of person by the wife. It is
the technical Anglo-Mohammedan term for its equivalent Mahr in Arabia.
 According to Abdur Rahim, Mahr is that sum of money or property which a Muslim wife is
entitled to get from her husband on marriage as a token of respect towards herself.
 Dower is a sum of money or property which becomes payable by the husband to the wife as
an effect of marriage. In Surah Al-Nisa, Verse 4, the Quran says: “And give the women
(on marriage) their dower as a free gift”
III) OBJECT OF DOWER:

1. To impose an obligation on the husband as a mark of respect of the wife.
2. To place a check on the use of divorce on the part of the husband.
3. To provide for her subsistence after the dissolution of her marriage, so that she may not
become helpless after the death of the husband or termination of marriage by divorce.
IV) Mahr amount :
 Differes from one sect to another, Maher can be fixed either in cash or in kind.
 SUNNI
1) Hanafi School:- 10 Dirhams - Persian (silver coin of 2.97 gms)
2) Maliki School:- 3 Dirhams
3) Shafi School:- No minimum fixed
 SHIA: No minimum fixed
 Those Muslim men who are not capacitated to pay dower to his wife. In such cases Prophet
has directed them to teach Quran to his wife in lieu of dower. At present they is no limit the
maximum amount of dower.
V) Types of Dower :
Dower can be classified into two categories
1. Specific dower or Mahr -i-Musamma
2. Customary dower or Mhr-i- Masil
1.Specific dower:
 When the amount of the dower is specific in marriage it is called as specific dower.
Dower may be paid or settled by the parties to the marriage either before the marriage
or at the time of marriage or even before the marriage.
 If a marriage of a minor or a lunatic boy is contracted by a guardian, such guardian
can fix the amount of dower .Such dower fixed by the guardian is binding on the
minor boy he cannot on attaining the age of puberty take the plea that he was not a
party to it .
 The husband may settle any amount he likes by way of dower upon his wife, though it
may leave nothing to his heirs after the payment of the amount.
 Specific dower may be divided into 2,

i.Prompt and ii. differed dower .
i.Prompt dower :
 It is payable immediately after marriage on demand.
 According to Amer Ali a wife can refuse to enter into the conjugical Domicile of
the husband until the payment of the prompt dower .In such case the husband is
bound to maintain his wife although she is residing apart from him .
 Prompt dower does not become deferred after consummation of marriage and the
wife has the absolute right to sue for recovery of prompt dower even after
consummation .
 It is only on the payment dower that the husband becomes entitled to enforce the
conjugal rights .
 Rights of restitution arises only after the dower is payed.
ii. Deferred dower:

 This type of dower is payed only on the dissolution of marriage either on death or
divorce .
2. Customary dower or proper dower :
 When the amount of dower is not fixed in the marriage contract or even if the marriage
has
been contracted on the condition that she should not claim any dower , the wife is entitled to
proper dower .
 Determinitation of proper dower : Proper dower is regulated with references to the
following factors .
i. Personal qualification of wife, her age, beauty, fortune, understanding and virtue .
ii. Social position of her father's family .
iii. Dower given to her female paternal relations .
iv. Economic conditions of her husband , and
v. Circumstances of time .
VI. Increase or decrease of dower :

 The Husband may at any time increase the Dower. Likewise, the wife may remit
the Dower wholly or partly.
 The remission of the Mahr by wife is called as Hibatul Mahr or Hiba-I-Mahr.
when a wife was being ignored by husband and thought that only way to win him
back was to waive Mahr, her remission of Mahr was considered without her
consent and was not binding on her.( Shah Bano v. Iftikhar Mohammad 1956
Karachi HC)
VII. Confirmation of dower:
 Hanafi's believe that a wife is entitled for dower –
i. on consummation
ii. on valid retirement
iii. on death of a party
VIII.Remedies of a Muslim woman to recover dower
The right to dower is an inherent right of every Muslim wife. But, unless this right is effectively
enforced, it is of no use to her. Under Muslim law, following means of enforcement of the right to
dower are available to a wife (or widow):
1. Refusal of Conjugal Rights : Before consummation of the marriage, the wife is entitled to deny
cohabitation to the husband till he gives her Prompt Dower on demand. It is to be noted that under
Muslim law a husband has right to cohabit with his wife and she cannot refuse the same without any
reasonable excuse. But non-payment of Prompt Dower before consummation is a lawful
justification for the wife to refuse cohabitation. A Muslim-wife can refuse to live with her husband
and refuse to him the sexual intercourse so long as the Prompt Dower is not paid to her.
In case of Nasra Begam v. Rizwan Ali AIR 1980
Held: right to dower comes into existence before cohabitation and Prompt Dower may be demanded
even before the cohabitation. where the consummation has taken place even once, the wife’s right to
refuse consummation is lost
2. Widows Right of Retention or right to retain her deceased husband property:

 After the death of husband the most effective method of enforcement of dower is the exercise of
right of retention. A widow, whose dower remains unpaid, has a right to retain the properties of
the husband till her dower debt is satisfied.
 Right to retention doesn't include right to transfer that property. In Maina Bibi v. Vakil Ahmad
(1924)52 IA 145 - In 1902
 Effects of Right of retention :
a. Widow is liable to render full account of acquired property
b. She is not having right of alienation
c. No bar to file a suit for recovery of dower possession
 Right of retention is lost when –
i. from the income of said property, dower is satisfied

ii. wife voluntary handovers the property
iii. when wife alienates property together with possession to alienee, other heirs get
immediate right of possession to property.
3. Dower as a debt-
 Dower is a debt but not a secured debt, only a thing is that wife became first among other
creditors. Wife/divorcee /widow can recover dower from husband or from his estate when he is
dead. In case of her death, her hiers can also inherit the right to recover that dower.
 Period of limitation to recover dower is –
1. 3 years from dissolution of marriage or death of husband
2. in case of right of retention, till the amount is satisfied.
 Suit for recovery of dower amount is maintainable under Sec.3 of the Muslim Women
(Protection on Divorce)Act, 1986 before the Magistrate.
IX)Conclusion: The concept of mahr in Islamic law is beneficial for the woman. It ensures
financial security so that she is not left helpless after the death of the husband or after the
termination of the marriage. It also places a check on the capricious use of divorce by the
husband. It is also believed that the mahr is a pivotal custom in the marriages of Muslims.
III. "MARRIAGE UNDER MOHAMMEDAN LAW IS A

CIVIL CONTRACT"CRITICALLY EXAMINE THE
STATEMENT.:
I) Introduction:
 After the advent of Prophet Mohammed, the old social structure of Arabian civilisation vanished
and it gave birth to a new series of ideas and conceptions. The marriage among Muslims is
considered as a contract which makes it distinct from Hindu marriage. Owing to this contract,
the woman can enjoy absolute ownership over her individual rights and also can proceed against
her husband in law courts, if necessary.
 The Arabic word nikah literally means the union of the sexes and in law this term means
‘marriage’.[2] It means to unite, and it cannot be affected except by the pillar ruku emanating
from ahl, one who is competent to contract and with reference to mahl, fit subject to marriage. It
is thus defined as Sunnat Muwakiddah.
II) Object of A MUSLIM MARRIAGE contract

 Under the Muslim law marriage is a civil contract for legislation of the intercourse and for
legitimization of the children .
 According to Hedaya ,marriage implies a particular contract used for the purpose of legalising
of the children .It may be legally stated that in the eyes of law a Muslim marriage is a civil
contract
 The object of the marriage -contract is, firstly to provide legal validity to the relationship of
husband and wife, secondly to legalise the children .
 Without valid contract of marriage the relation of man and a women is unlawful , marriage also
legalise also the children born out of the marriage, children born out of such union are legitimate
children.
III) Legally Muslim marriage is a contract:

 Although the elements of contract are also found in the Hindu marriage yet Hindu marriage
is a sacrament in nature , because it involves some religious ceremonies .
 Justice Mahmood defined Muslim Marriages as a civil contract because no religious
formalities are necessary to complete Muslim Marriage .
 But this may be considered only the legal aspects of Muslim Marriage .Beside Muslim
marriage being a civil contract, the marriage in Islam is also a socio and religious institution .
 Legally, a Muslim marriage is considered as a contract because the elements which constitute
a marriage and the manner in which it is completed is almost similar to that of civil contract.
 The contractual nature of Muslim Marriage could be well understood by the following
facts
1. Like contract the parties to the marriage must also be competent .
2. As in contract the marriage is not competent without offer, acceptance, consideration, and
free consent of the parties of their guardians .
3. Like a civil contract, the terms of marriage contract within legal limits , may be settled by
the parties themselves .
4. Just as there are rules for regulating the rights and duties of the parties upon the breach of a
contract.
 Therefore the concept of Muslim Marriage is same as that of a civil contract .But only on the
bases of the essential elements of a contract it is not correct to conclude that Muslim
marriages are purely civil contract in the eyes of law . In its form or appearance it may look
as a pure contract but it is not so in its essence.
IV) A Muslim Marriage is valid if it is recognised by the courts as lawful.

 Following conditions must be fulfilled in a valid contract ;
1. The parties to the marriage i.e. husband and wife, must be competent .
2. The consent of the parties, or their guardians , must be of free consent .
3. The required formalities are duly completed, and
4. There must not be any prohibition or implement in contracting the marriage .
 At the time of marriage, both the parties i.e. the boy and the girl must be competent to get
into the terms of contract of marriage . The parties are competent, if they have attained the
age of puberty, of sound mind and both the parties should be Muslims .
V)Conclusion: In the ultimate analysis it can be said that the marriage is Islam is neither purely a
civil contract nor as a sacrament. It is devoid of none but the blending of the two. The transition
from the sacramental indissolubility of marriage to the treatment of marriage, as a civil institution, is
a modern idea. It is a logical development of Anglo Muslim law. Marriage is nothing more or less
than the voluntary union of one man and one woman. The definitions that profound the idea of
marriage as a contract only represents one aspect of Muslim marriage. They ignore its ethical
importance and its religious value. They fail to realise the close and intimate relation between
religion and law in Muslim faith.

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SHUBADA COACHING CENTER HUBBALLI labour law 2ND SEM BY:RAGHAVENDRA SALI PH.NO.

II.Development of Trade Union Laws in India(TRADE UNIONISM)

 DEFINITION Sec 2(h):

III. ILO Conventions relating to trade Unions and Constitutional Provision

Aims of the International Labour Organisation:

International Labour Standards on Freedom of Association:

lawful exercise. These organizations shall not be liable to be dissolved or suspended by

2. Right to Organize and Collective Bargaining Convention, 1949

3. Workers' Representatives Convention, 1971

4. Rural Workers' Organizations Convention, 1975

Freedom of Association and Constitution of India:

IV. Impact of industrial Revolution in India upon Labour sector or

 Impact of industrial jurisprudence on Labour Welfare Legislations

V. Trade Union and its objects:

 OBJECTIVES OF TRADE UNION

VI. REGISTER AND CANCELLATION TRADE UNION:

 REGISTRATION OF TRADE UNION:

Caselaw: TTD vs. Commissioner of Labour

 APPLICATION FOR REGISTRATION(s5):

 Sec 6: Rules of Trade Union

Case: M.T. Chandrasenan v. Sukumaran

Case:ONGC Workmen Association v. State of West Bengal Court

 Sec 9: Certificate of Registration

ii) CANCELLATION OF REGISTRATION OF TRADE UNION

Case:Tata electric companies v. Registrar of TU

 WITHDRAWAL OF REGISTRATION OF TRADE UNION:

VI. RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS:

 DEFINITION Sec 2(h):

 RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS Sec 15:

Sec 16: Constitution of a separate fund for political purposes.

Sec.17: Immunity from Criminal conspiracy in Trade Disputes

Sec 18: Immunity from civil suits

Sec19: Enforceability of agreements.

Sec20: Right to inspect books of Trade Union.

Sec21: Rights of minors to membership of Trade Unions

Sec 21A. Disqualifications of office-bearers of Trade Unions

Sec 22. Proportion of office-bearers to be connected with the industry

Sec 23. Change of name

 Amalgamation of Trade Unions

Sec 25. Notice of change of name or amalgamation

Sec 26. Effects of change of name and of amalgamation

Sec 27. Dissolution

Sec 28. Returns

VI. Trade Union Fund:

v. The compensation of members for loss arising out of trade disputes.

 Sec 16: Political Fund Section 16 deals with political fund.

 The conditions for the creation of political fund are:

ii. Members must not be compelled to contribute to the fund.

VII. COLLECTIVE BARGAINING:

 METHODS/FORMS OF COLLECTIVE BARGAINING:

• Composite bargaining. Where a mixture of issues related to workers is raised in negotiations.

Methods of collective Bargaining

Forms of Collective Bargaining:

Effective collective bargaining requires the following prerequisites:

 Features of Collective Bargaining

 Means of collective bargaining

 Settlement of collective Bargaining

 Theories of Collective Bargaining

2. The Governmental Concept and the Agreement as Law: