INTRODUCTION The Act deals with the registration of trade unions, their rights, their

liabilities and responsibilities as well as ensures that their funds are utilised properly. It gives legal and corporate status to the registered trade unions. It also seeks to protect them from civil or criminal prosecution so that they could carry on their legitimate activities for union of workers but also to the association of employers. It extends the benefit of the working class. The Act is applicable not only to the to whole of India. Also, certain Acts, namely, the Societies Registration Act, 1860; the Co-operative Societies Act, 1912; and the Companies Act, 1956 shall not apply to any registered trade union, and that the registration of any such trade union under any such Act shall be void. The Act is

its Industrial Relations Division. The Division is concerned with improving the institutional framework for dispute settlement and co-ordination with the Central Industrial Relations amending labour laws relating to industrial relations. It works in close (CIRM) in an effort to ensure that the country gets a stable, dignified and efficient workforce, free from exploitation and capable of generating higher levels of output. The CIRM, which is an attached Machinery

administered

by

the Ministry

of

Labour through

office of the Ministry of Labour, is also known as the Chief Labour Commissioner (Central) [CLC(C)] Organisation. The CIRM is headed by the Chief Labour Commissioner (Central). It has been entrusted with the task of maintaining industrial relations, enforcement of labour laws and verification of trade union membership in central sphere. Appropriate Government' means, in relation to Trade Unions whose objects are not confined to one State, the Central Government, and there is anything repugnant in the subject or context,-" Executive" means the body, by whatever name called, to which in relation to other Trade Unions, the State Government, and, unless

the management of the affairs of a Trade Union is entrusted;

" office- bearer", in the case of a Trade Union, includes any member of the executive thereof, but does not include an auditor; " prescribed" means prescribed by regulations made under this Act; " registered office" means that office of a Trade Union which is

registered under this Act as the head office thereof;

" registered Trade Union" means a Trade Union registered under this Act; " Registrar" means-(i)a Registrar of Trade Unions appointed by the appropriate Government under Unions; and (ii) in relation to any Trade Union, the Registrar appointed for the the Trade Union is situated; section 3, and includes any Additional or Deputy Registrar of Trade

State in which the head or registered office, as the case may be, of " Trade dispute" means any dispute between employers and

workmen or between workmen and workmen, or between employers and employers which is connected with the employment or nonemployment, or the terms of employment or the conditions of labour, of any person, and" workmen" means all persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises; " 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 this Act shall not affect-includes any federation of two or more Trade Unions: Provided that (i) any agreement between partners as to their own business;

(ii) any agreement between an employer and those employed by him as to such employment; or (iii) any agreement in consideration of the sale of the good- will of a business or of instruction in any profession, trade or handicraft. REGISTRATION OF TRADE UNIONS Appointment of RegistrarsRegistrar of Trade

The appropriate Government shall appoint a person to be the Unions for each State. The appropriate Government may appoint as many Additional and Deputy

registrars of Trade Unions as it thinks fit for the purpose of exercising and discharging, under the superintendence and direction of the Registrar, such powers specify and define shall exercise and functions of the Registrar under this Act as it may, by order, the local limits within which any such Additional or Deputy Registrar and discharge the powers and functions so specified. Subject to the provisions of any order under sub- section (2), where an Additional or Deputy Registrar exercises and discharges the registered office of a Trade Union is situated, the Additional or the Trade Union for the purposes of this Act. Mode of registration Any seven or more members of a Trade Union may, by subscribing powers and functions of a Registrar in an area within which the Deputy Registrar shall be deemed to be the Registrar in relation to

their names to the rules of the Trade Union and by otherwise

complying with the provisions of this Act with respect to registration, apply for registration of the Trade Union under this Act. Where an application has been made under sub- section (1) for the registration of a Trade Union, such application shall not be deemed after the date of the application, but before the registration of the to have become invalid merely by reason of the fact that, at any time Trade Union, some of the applicants, but not exceeding half of the be members of the Trade Union or have given notice in writing to the Registrar dissociating themselves from the application.

total number of persons who made the application, have ceased to

Application for registration the Registrar, and

Every application for registration of a Trade Union shall be made to shall be accompanied by a copy of the rules of the Trade Union and following particulars, namely:-the names, occupations and addresses of the members making the

a statement of the

application;

the name of the Trade Union and the address of its head office; and the titles, names, ages, addresses and occupations of the 1[ officebearers] of the Trade Union.

Where a Trade Union has been in existence for more than one year before the making of an application for its registration, there shall be delivered to the Registrar, together with the application, a general such form and containing such particulars as may be prescribed. statement of the assets and liabilities of the Trade Union prepared in

Provisions to be contained in the rules of a Trade Union

A Trade Union shall not be entitled to registration under this Act, unless the executive thereof is constituted in accordance with the matters, namely:-provisions of this Act, and the rules thereof provide for the following (a) the name of the Trade Union;

(b) the whole of the objects for which the Trade Union has been established; (c) the whole of the purposes for which the general funds of the Trade Union shall be applicable, all of which purposes shall be purposes to which such funds are lawfully applicable under this Act; (d) the maintenance of a list of the members of the Trade Union and adequate facilities for the inspection thereof by the office- bearers and members of the Trade Union;

(e) the admission of ordinary members who shall be persons actually engaged or employed in an industry with which the Trade Union is connected, and also the admission of the number of honorary or temporary members as office- bearers required under section 22 to

form the executive of the Trade Union; the payment of a subscription by members of the Trade Union which shall be not less than twentyfive naye paise per month per member; (f) 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; rescinded; (g) the manner in which the rules shall be amended, varied or (h) the manner in which the members of the executive and the other office- bearers of the Trade Union shall be appointed and

removed; 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 (j) the manner in which the Trade Union may be dissolved. books by the office- bearers and members of the Trade Union; and

Power to call for further particulars and to require alteration of name 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.

If the name under which a 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 until such alteration has been made.

Union stated in the application, and shall refuse to register the Union

The Registrar, on being satisfied that the Trade Union has complied with all the requirements of this Act in regard to registration, shall in such form as may be prescribed, the particulars relating to the Trade Union contained in the statement accompanying the application for registration. Certificate of registration register the Trade Union by entering in a register, to be maintained

Registration

The Registrar, on registering a Trade Union under section 8, shall issue a certificate of registration in the prescribed form which shall be conclusive evidence that the Trade Union has been duly registered under this Act. Cancellation of registration

A certificate of registration of a Trade Union may be withdrawn or cancelled by the Registrar-(a) on the application of the Trade Union to be verified in such manner as may be prescribed, or (b) if the Registrar is satisfied that the certificate has been obtained by fraud or mistake, or that the Trade Union has ceased to exist or

has wilfully and after notice from the Registrar contravened any provision of this Act or allowed any rule to continue in force which is inconsistent with any such provision, or has rescinded any rule providing for any matter provision for which is required by section 6: Provided that not less than two months' previous notice in writing the certificate shall be given by the Registrar to the Trade Union application of the Trade Union. Appeal (1) Any person aggrieved by any refusal of the Registrar to register a Trade Union or by the withdrawal or cancellation of a certificate of registration may, within such period as may be prescribed, appeal,-(a) where the head office of the Trade Union is situated within the limits of a Presidency- town , to the High Court, or (b) where the head office is situated in any other area, to such Court, not inferior to the Court of an additional or assistant Judge of a principal Civil Court of original jurisdiction, as the 3[ appropriate Government] may appoint in this behalf for that area. specifying the ground on which it is proposed to withdraw or cancel before the certificate is withdrawn or cancelled otherwise than on the

(2) The appellate Court may dismiss the appeal, or pass an order directing the Registrar to register the Union and to issue a certificate of registration under the provisions of section 9 or setting aside the order for withdrawal or cancellation of the certificate, as the case may be, and the Registrar shall comply with such order.

(3) For the purpose of an appeal under sub- section (1) an appellate Court shall, so far as may be, follow the same procedure and have the same powers as it follows and has when trying a suit under the Code of Civil Procedure, 1908 (5 of 1908 ), and may direct by whom the whole or any part of the costs of the appeal shall be paid, and under the said Code. such costs shall be recovered as if they had been awarded in a suit

(4) In the event of the dismissal of an appeal by any Court appointed under clause (b) of sub- section (1), the person aggrieved shall have a right of appeal to the High Court, and the High Court shall, for the purpose of such appeal, have all the powers of an appellate Court under sub- sections (2) and (3), and the provisions of those subsections shall apply accordingly.] Registered office

All communications Union may be addressed to its registered office. Notice of any change in the address of the head office shall be given within fourteen days of such change to the Registrar in writing, and section 8. the changed address shall be recorded in the register referred to in

Incorporation of registered Trade Unions Every registered Trade Union shall be a body corporate by the name a common seal with power to acquire and hold both movable and and be sued. Certain Acts not to apply to registered Trade Unions under which it is registered, and shall have perpetual succession and immovable property and to contract, and shall by the said name sue

The following Acts, namely:

(a) The Societies Registration Act, 1860,

(b) The Co- operative Societies Act, 1912 , (c) The Companies Act, 1956 shall not apply to any registered any such Act shall be void. RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS Trade Union, and the registration of any such Trade Union under

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:-bearers of the Trade Union; (a) the payment of salaries, allowances and expenses to office (b) the payment of expenses for the administration of the Trade Trade Union;

Union, including audit of the accounts of the general funds of the (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; any member thereof; disputes;

(d) the conduct of trade disputes on behalf of the Trade Union or (e) the compensation of members for loss arising out of trade (f) allowances to members or their dependants 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; the upkeep of a periodical published mainly for the such; purpose of discussing questions affecting employers or workmen as (j) the payment, in furtherance of any of the objects on which the any cause intended to benefit workmen

general funds of the Trade Union may be spent, of contributions to 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 appropriate Government in the official Gazette. 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).

(2) The objects referred to in sub- section (1) are:-(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 the Constitution 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 authority; or

legislative body constituted under 2[ the Constitution] or of any local (d) the registration of electors or the election of a candidate for any legislative body constituted under 2[ the Constitution] 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. (2A) In its application to the State of Jammu and Kashmir, references in sub- section (2) to any legislative body constituted the Legislature of that State. (3) No member shall be compelled to contribute to the fund under the Constitution shall be construed as including references to

constituted under sub- section (1); 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 condition for admission to the Trade Union. Criminal conspiracy in trade disputes

the said fund; and contribution to the said fund shall not be made a

No office- bearer or member of a registered Trade Union shall be liable to punishment under sub- section (2) of section 120B Indian Penal Code (45 of 1860 ), in respect of any agreement made between the members for the purpose of furthering any such object

of the Trade Union as is specified in section 15, unless the agreement is an agreement to commit an offence. Immunity from civil suit in certain cases

(1) No suit or other legal proceeding shall be maintainable in any Civil Court against any registered Trade Union or any office- bearer; or member thereof in respect of any act done in contemplation or is a party on the ground only that such act induces some other furtherance of a trade dispute to which a member of the Trade Union person to break a contract of employment, or that it is in interference the right of some other person to dispose of his capital or of his labour as he wills.

with the trade, business or employment of some other person or with

(2) A registered Trade Union shall not be liable in any suit or other legal proceeding in any Civil Court in respect of any tortious 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 instructions given by, the executive of the Trade Union. Enforceability of agreements

Notwithstanding anything contained in any other law for the time being in force, 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: Provided that nothing in this section shall enable any Civil Court to enforcing or recovering damages for the breach of any agreement entertain any legal proceeding instituted for the express purpose of concerning the conditions on which any members of a Trade Union be employed.

shall or shall not sell their goods, transact business, work, employ or 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 1[ office- bearer] or member of the Trade Union at such times as may be provided for in the rules of the Trade Union. 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 subject to any rules of the Trade Union to the contrary, and may, subject as aforesaid, enjoy all the rights of a member and execute all instruments and give all Disqualifications of office- bearers of Trade Unions acquittances necessary to be executed or given under the rules. 2[

(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.

(2) Any member of the executive or other office- bearer of a registered Trade Union who, before the commencement of the Indian Trade Unions (Amendment) Act, 1964,has been convicted of any offence involving moral turpitude and sentenced to imprisonment,

shall on the date of such commencement cease to be such member or office- bearer unless a period of five years has elapsed since his release before that date.

(3) In its application to the State of Jammu and Kashmir, reference in sub- section (2) to the commencement of the Indian Trade Unions (Amendment) Act, 1964 , shall be construed as reference to the commencement of this Act in the said State. 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: Provided that the appropriate Government may, by special or apply general order, declare that the provisions of this section shall not to any Trade Union or class of Trade Unions specified in the order. 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

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- halt 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.

Notice of change of name or amalgamation (1) Notice in writing of every change of name of every amalgamation, signed, in the case of a change of name, by the Secretary and by seven members of the Trade Union changing its seven members of each and every Trade Union which is a party name, and, in the case of an amalgamation, by the Secretary and by 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) Save as provided in sub- section (2), the Registrar shall, if he is satisfied that the provisions of this Act in respect of change of name referred to in section 8, and the change of name shall have effect from the date of such registration. have been complied with, register the change of name in the register

(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.

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 any legal proceeding which might have been continued or commenced by or against it by its new name. defective any legal proceeding by or against the Trade Union, and commenced by or against it by its former name may be continued or

(2) An amalgamation of two or more registered Trade Unions shall not prejudice any right of any of such Trade Unions or any right of a creditor of any of them. Dissolution

(1) When a registered Trade Union is dissolved, notice of the dissolution signed by seven members and by the Secretary of the the Registrar, and shall be registered by him if he is satisfied that Trade Union shall, within fourteen days of the dissolution, be sent to 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 in such manner as may be prescribed. 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 during the year ending on the 31st day of December next preceding such prescribed date, and of the assets and liabilities of the Trade Union existing on such 31st day of

December. The statement shall be prepared in such form and shall comprise such particulars as may be prescribed. (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. (4) For the purpose of examining the documents referred to in subsections (1), (2) and (3), the Registrar, or any officer authorised by the certificate of registration, account books, registers, and other require their production at such place as he may specify in this miles from the registered office of a Trade Union. REGULATIONS him, by general or special order, may at all reasonable times inspect documents, relating to a Trade Union, at its registered office or may behalf, but no such place shall be at a distance of more than ten

Poser to make regulations (1) The appropriate Government may make regulations for the purpose of carrying into effect the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-(a) the manner in which Trade Unions and the rules of Trade Unions shall be registered and the fees payable on registration; (b) the transfer of registration in the case of any registered Trade

Union which has changed its head office from one State to another; (c) the manner in which, and the qualifications of persons by whom, the accounts of registered Trade Unions or of any class of such Unions shall be audited;

(d) the conditions subject to which inspection of documents kept by Registrars shall be allowed and the fees which shall be chargeable in respect of such inspections; and (e) any matter which is to be or may be prescribed.

Publication of regulations

(1) The power to make regulations conferred by section 29 is subject to the condition of the regulations being made after previous publication.

(2) The date to be specified in accordance with clause (3) of section 23 of the General Clauses Act, 1897 , as that after which a draft of regulations proposed to be made will be taken into consideration shall not be less than three months from the date on which the draft of the proposed regulations was published for general information.

(3) Regulations so made shall be published in the Official Gazette, and on such publication shall have effect as if enacted in this Act. PENALTIES AND PROCEDURE Failure to submit returns (1) If default is made on the part of any registered Trade Union in giving any notice or sending any statement or other document as or other person bound by the rules of the Trade Union to give or required by or under any provision of this Act, every office- bearer send the same, or, if there is no such office- bearer or person every member of the executive of the Trade Union, shall be punishable, with fine which may extend to five rupees and, in the case of a

continuing default, with an additional fine which may extend to five rupees for each week after the first during which the default rupees. (2) Any person who willfully makes, or causes to be made, any false entry in, or any omission from, the general statement required by section 28, or in or from any copy of rules or of alterations of rules which may extend to five hundred rupees. Supplying false information regarding Trade Unions continues: Provided that the aggregate fine shall not exceed fifty

sent to the Registrar under that section, shall be punishable with fine

Any person who, with intent to deceive, gives to any member of a registered Trade Union or to any person intending or applying to become a member of such Trade Union any document purporting to be a copy of the rules of the Trade Union or of any alterations to the same which he knows, or has reason to believe, is not a correct copy of such rules or alterations as are for the time being in force, or any person who, with the like intent, gives a copy of any rules of an unregistered Trade Union to any person on the pretence that such with fine which may extend to two hundred rupees. rules are the rules of a registered Trade Union, shall be punishable

Cognizance of offences (1) No Court inferior to that of a Presidency Magistrate or a

Magistrate of the first class shall try any offence under this Act. (2) No Court shall take cognizance of any offence under this Act, unless complaint thereof has been made by, or with the previous sanction of, the Registrar or, in the case of an offence under section 32, by the person to whom the copy was given, within six months of the date on which the offence is alleged to have been committed.

CASE STUDYPappammal Annachatram vs

The Labour Court, Madurai .

Equivalent citations: AIR 1965 Mad 253, 1965 (10) FLR 120, (1964) ILLJ 493 Mad Bench: S R Iyer, Ramakrishnan Pappammal Annachatram vs The Labour Court, Madurai And Ors. on 14/11/1963 JUDGMENT Ramakrishnan, J. (1) This appeal, filed under the Letters Patent, is directed against he judgment of Veeraswami, J., in Writ Petn. No. 1222 of 1959, which was the issue of a writ under Art. 226 of the Constitution, quashing the order, Madurai, in Industrial Dispute No. 49 of 1959. The prior facts necessary for he consideration of this appeal can be set down briefly. filed by Pappammal Annachatram by its trustee T.K. Subramania Pillai for dated 17th October 1959 passed by the presiding officer, Labour Court,

(2) A lady by name Pappammal endowed certain lands as well s a Chatram, several years ago. For the express object of feeding poor desantries (pilgrims from distant places). Subsequently, the charge was The establishment of the Chatram is a small one and consists of three clerks and three cooks. Respondent 3 in the writ petition, one M. extended to give free boarding and lodging for about 225 poor students.

Sivaswami, who was one of these clerks, was dismissed by the trustees

on certain charges of misfeasance ad misconduct. Thereafter, the Tiruchirapalli Hotel Workers' Union, which admittedly included none of the employees under the Pappammal Annachatram except the aforesaid Sivaswami, took on itself the duty of sponsoring he case of Sivaswami, and thereafter he State Government of Madras refereed the question of the dismissal of Sivaswami to the Labour Court, Madurai for adjudication treating it as an industrial dispute.

Before the Labour Court, Madurai, the trustees of the Chatram raised a specific plea that the Labour Court had no jurisdiction to entertain the claim, and that here was no industrial dispute within the meaning of the jurisdiction to decide the dispute, and held hat the dismissal of Sivaswami Industrial disputes Act of 1947. The Labour Court held that it had was illegal, and directed that he should be restored to his employment and paid a portion no of the back-wages due to him. Against the above order, the trustee filed the writ petition before this Court, for a writ of certiorari. (3) Three points were raised before the learned Judge, in support of the petition. They were: (1) the Chatram is not an industry, and the dispute in question is not an industrial dispute, as defined in the Industrial Disputes Act, 1947 (referred to hereinafter in this judgment as the Act):

(2) in any event, the dispute is an individual dispute, and not a collective dispute; and

(3) the labour Court was in error in holding that the order of discharge was violative of the principles of natural justice.

(4) Veeraswami, J. upheld the decision of the Labour Court, and

overruled the third point. In regard to the second point, though the view of the admitted facts the objection had force, the learned Judge was not prepared to take the objection into account, because the Labour Court had no opportunity to deal with it. So far as the first point is concerned,

elaborate arguments were advanced before the learned Judge, and in his view, the activity conducted by Pappammal Annachatram, was an industry as defined in S. 2(j) of the Act, he dismissed the writ petition. The trustee has filed this appeal under the Letters Patent. (5) So far as the second point is concerned, as stated already, there was a distinct plea by the trustee before the Labour Court, a that he dispute in this case was not an industrial dispute within the meaning of the Act, and that the Labour Court had no jurisdiction to entertain. In view of the definition of "industrial dispute" in S. 2(k) of the Act, and several decisions of the Supreme Court as well as of his Court, explaining he scope of this that an individual dispute between a workman and his employer is outside definition which it is not necessary to recapitulate here, it would be clear the definition. To bring the dispute within the scope of the definition, it is necessary that it should be supported by an appreciable number of

workmen employed under the same employer, but employer has supported the dispute, and it is taken up by an outside body, namely, the Tiruchirappalli Hotel Workers' Union, it will not fall within the scope of the

definition. This view has been expressed by the Supreme Court in the well-known case of Bombay Union of Journalists v. The 'Hindu', Bombay, .

From this point of view, there is clearly in this case no industrial dispute as defined in S. 2(k) of the Act, and therefore, the matter is outside the jurisdiction of he Labour Croat for adjudication. However, on the short ground that he Labour Court had no opportunity to deal with this ground, the learned Judge declined to go into it. What we find in his case is that

he relevant plea about want of jurisdiction was in fact raised by the trustee, before the Labour court, but he failed to urge there, the particular argument now referred to, in support of that plea. This argument involves an application of law to admitted facts. In our view, as along as the relates only to the failure to put forward a relevant argument in support of it, there will be no bar to prevent the party from urging that argument in support of the plea, before the High Court wherein he has sought the remedy by way of writ. No further investigation into the facts is involved, because the facts are apparent from the record itself and have not been early decision of this Court in O. A. O. K. Lakshmanan Chettiar v. Commr. of Corporation of Madras ILR 50 Mad 130 : (AIR 1927 Mad 130), where it was remarked :

requisite plea has been raised in the Lower Court, and the omission

"..................the test that they lay down is whether the applicant armed Lower Court has elected to argue the cause on its merits before that Court. If, so, he has submitted himself to a jurisdiction which he cannot be allowed afterwards to seek to repudiate." (6) That decision relate to proceedings for the issue of a writ of certiorari before this Court. Applying the same principle to this case it would appear before it, it was open to him to support the contention in the High Court in

with a point either of law or of fact which would oust the jurisdiction of the

that since the appellant had challenged the jurisdiction of the lower Court certiorari proceedings, by a ground of law applicable to the admitted faces, even though he had not relied on that ground before the Lower Therefore, the appellant is entitled to succeed on this ground of want of falling outside the scope of the definition in S. 2(k) of the Act. (7) On the first point, elaborate arguments were addressed before us to whether the activity of Pappammal Chatram, is an industry as defined in S. 2(j) of the Act. That definition reads thus: Court. From this point of view, the appeal requires to be allowed. jurisdiction of the Labour Court, as the dispute it rally an individual dispute

" 'industry' means any business, trade, undertaking manufacture or calling industrial occupation or avocations of workmen."

of employees and includes and calling service, employment, handicraft, or

No doubt, the language of this definitions very wide, and will extend to a

larger variety of activities than what is commonly understood by the terms "trade" or "business". In Banerjee v. Mukherjee, the Supreme Court observed :

It is obvious that the limited concept of what an industry meant in early

times must now yield place to an enormously wider concept so as to take in various and varied forms of industry, so that dispute arising in connection with them might be settle quickly without much dislocation and disorganisation of the needs of society and in a manner more adapted to conciliation and settlement than a determination of the respective rights conflicts between capital and labour have now to be determined more status than of contract, without such an approach, the numerous problems that now arise for solution in the shape of industrial disputes cannot be tackles satisfactorily and this why every civilized Government for the effective settlement of disputes." has thought of the machinery of conciliation officers, boards and tribunals and liabilities according to strict legal procedure and principles. The format the stand point of status than of contract, without such an point of

The next land mark is furnished by the decision of the Supreme Court in the Supreme Court and other Courts in India prior to the decision had

State of Bombay v. Hospital Mazdoor Sabha, . The views laid down by been taken into account, and the Supreme Court again stressed the need to take a wide concept of the term "trade" and "business" for the definition

of industry, in view of the progressive socio-economic thought under modern conditions. In that particular case, there was a group of hospitals, two employees wee terminated by the head of the institutions, and the took p the case, and made it into an industrial dispute, which came up for adjudication before the labour court. On the facts of the case, the managed by the State Government of Bombay, wherein the services of Hospital Mazdoor Sabha or union of the employees of the institutions,

Supreme Court recognized that if an hospital is run by a private citizen for profit, it would be an undertaking very much like "trade" or "business" in their conventional sense. But it did not make any difference, whether a hospital is run by the Government and the profit motive was absent, because:

"It is the character of the activity which decides the questions to whether the activity in question attracts the provisions of S. 2(j); who conducts the material difference." activity and whether it is conducted for profit or not, do not make a

They followed with approval the view of Isaacs, J., who wrote a dissenting judgment in a case from Australia, Federated Sate School Teachers' Association of Australia, v. State of Victoria, (1929) 41 CLR 569 that he

question must always be activity in question. The Supreme Court laid down certain working principles for defining the particular form of activity, defined in S. 2(j) of the Act. They are: which will constitute it an "undertaking" and make it an industry, as

(1) The activity should be systematically or habitually undertaken for the

production distribution of goods or for the rendering of material services to the community at large or a part of such community, with the help of employees;

(2) The activity will generally involve the co-operation of the employer and the employees; such co-operation will be lacking where the employer supplies his special skill like that of a solicitor or attorney; therefore his Union of Commercial Employees v. Industrial Tribunal, Bombay, : (3) its object is the satisfaction of material human needs: (4) the activity must be organized or arranged in manner in which trade or business is generally organized or arranged; with reference to the remarks of the Supreme Court already extracted this organisation or arrangement should be very much like the organisation of trade or business in the conventional sense; (5) the activity should be casual nor must it be for oneself nor for pleasure; and (6) no quid pro quo is necessary, and the activity might be actuated by philanthropic or charitable motives. (8) The Supreme Court expressly left open the question whether an educational activity will be an industry, but this question specifically came

work was held not to an industry within the meaning of the Act in National

up for consideration in a subsequent decision in University of Delhi v. Ram Nath, . There was a concession in that case that the teachers employed by educational institutions were not workmen under S. 2(s) of the Act. From this, it followed that one of the tests, namely, co-operation between the employer on the one hand and the workmen (as defined in the Act) on the other, would be lacking where an educational activity was educational activity was not an industry. They observed: "Indeed, from a rational point of view, it would be regarded as inappropriate it describe education even as a profession. Education in its true aspect is more a mission and a vocation rather than a profession or words under the Act. That is why we think it would be unreasonable to trade or business, however wide my be the denotation of the two latter hold that educational institutions are employers within the meaning of S. 2(g), or that the work of teaching carried on by them is an industry under S. 2(j) because, essentially, the creation of a well-educated, healthy is the sole aim of education, cannot at all be compared or assimilated with what may be described as an industrial process." young generation imbued with a rational progressive outlook on life which concerned. But on a larger ground also, the Supreme Court decided that

The Supreme Court also laid stress on the fact that what was relevant, and not subsidiary activate like those of the clerks and so on. This

was the principal activity of the institution namely, imparting education

decision was followed by the Calcutta High Court in B. S. E. Society v. Supreme Court in

West Bengal College Employees' Association, . But this decision of the

was not available for reference when Veeraswami J., pronounced the judgment now under appeal. (9) So far as this Court is concerned, the test given by the Supreme Court, of co-operation between the employer and he workmen for the production of the goods involved in the activity, was applied to exempt the Governor of Madras), Guindy, from the definition of industry in the Act, by work engaged by the employees of Raj Bhavan (residence of the one of us, in a case reported in Rangaswami v. Registrar of Trade business is generally organised or arranged." The facts in that case were that a number of persons who were employed in the Raj Bhavan at Guindy in various capacities, such as, household staff, peons, chauffeurs, gardens, etc. formed a union and they wanted recognition of the union under the Trade Unions Act. It was observed that significance than for the purpose of recognizing a trade union of workmen under the Trade Unions Act. It was held that the activity of the employees of the Raj Bhavan would not satisfy even the wider test of an "industry" under the Industrial Disputes Act, and much less so for the purpose of the Trade Unions Act. the definition of "industry" under S. 2(j) of the Act, was of wider

Unions, . In that case reference was made manner in which trade or

In another case of his Court, also decided by one of us, i.e., Madras Pinjarapole v. Labour Court, Madras, the question which arose was, material date were affording shelter for all unserviceable animals including dry cows till the end of their lives, was engaged in an "industry" within the meaning of S. 2(j) of he Act Stress was laid on the fact that the Madras Pinjarapole was also carrying on sale of milk and manure. It was decided out whether it is an industry, that the subsidiary activities above referred to will not affect the question and that from this pint of view, the Pinjarapole did not constitute an industry. Secondly, it was held that the firstly, that the principal activity was the one to be considered for finding whether the Madras Pinjarapole, whose main objects and activities on the

Madras Pinjarapole was designed to serve the needs of animals, that it had nothing to do with human needs, and that this circumstance also would made it not an industry. That case came up in

Anantanarayanan and Venkatadri, JJ. who, however, were not inclined to treat the date available in the case as complete so far as the other

appeal

before

Bench

consisting

of

activities (like selling surplus milk, cowdung, etc.) above referred to were concerned, and they remanded the case to the labour court for recording additional evidence to enable a decision to be arrived at. At the time when the above Bench decision was given the learned Judges did not have the advantage of the decision of the Supreme Court in in which stress was laid on the principal for

guidance, the learned Judges also expressed a doubt, as to whether the

test of satisfying the needs of animals could be properly applied to the case on hand. However, it is not necessary for the purpose of the present animals and the needs of men. (10) In the light of the principles, extracted in the earlier paragraphs above, and in the light of the admitted facts, of this case, we have got to Act would apply. (11) Pappammal appears to have been a prima Hindu Lady. Desantries, as ordinary understood, are Hindu pilgrims from a distance parts of the country undertaking a pilgrimage. We do not have the original deed of endowment. But it is common ground that she made the endowment for consider whether Pappammal Annachatram is in industry, to which the case to go into this debatable issue of the conflict between the needs of

giving annadanam or gift of food to desantries, and provided a Chatram or building for the purpose. In 1922, the Sub-court framed a scheme for the endowment. Subsequently, the Board of supervision and the trustees spent the funds in manner so as to include free boarding and lodging for three clerks. (12) The first point to note is the Hindus have got a firm faith in the law of karma and in a cycle or successive births, till the soul attains salvation or complete liberation from this cycle. The sastras have ordained various forms of dharma or gifts for charity, to attain this spiritual benefit, It is for 225 poor students and employed a staff consisting of three cooks and

the latter purpose, that such charities are performed so as to be continued even after the death of the donor, for the good of his soul. In such charities, the main purpose is the spiritual satisfaction of the founder. The benefit conferred by such charities, in the sense of satisfying cannot be equated to an organized form of poor relief to supply widely-felt a material human want, is often of a casual or occasional character, and material needs of human beings. We can recall in this connection or for feeding a specific number of people on the sradha day of and

endowments for deeding a specific number of Brahmans on Dwadasi day, ancestor. In such acts greater stress is laid on the religious merit which the gift confers on the donor, than on the aspect of the material wants of the donee it goes to fulfil.

In making an endowment for giving food to desantries Pappammal no should be helped with supply of food, while going on their pilgrimage. But

doubt, had the view that pilgrims hailing from other parts of the country the fact that subsequently it was found necessary to divert a substantial portion of the endowment for the purpose of giving free lodging and food to desantries was not felt to be a widespread human want. It is possible between and that therefore the main object of the charity, which the to 225 poor students, would also show that the requirement of giving food that desantries so called, who visited the chatram, were few and far trustees felt it was necessarily to fulfil was not so much the food requirements of the desantries, as the spiritual need of providing salvation to the donor's soul, by continuing the gift in a suitable manner. Further,

we do not know what proportion of the funds is diverted to the work of feeding the poor students and boarding them, and whether any amount is still spent on feeding desantries. It might be that with the passage of time, helping poor and deserving students had become the principal activity of the chatram, and feeding desantries had receded to the background. If at the present time the work of providing help by way of boarding and lodging to students studying in educational institutions has become the principal activity, we can regard that activity also, as one subserving the cause of education, to attain the objective of mens sana in corpore sano. It is as necessary to provide students with good food and lodging as with education. From this point of the chatram, and though the trustees of the chatram are not the educational authorities, the concerned activity can be viewed as an adjunct of education, rather than an activity partaking the nature of a trade or business. (13) In the tests laid down by the several decisions of the Supreme Court, already extracted, one important item is that the activity must be organised or arranged in a manner in which trade or business is generally organised or arranged. In some of the decisions of the Supreme Court they had to deal with a municipality in a chain of hospitals, which were view, the principles laid down in will be attracted as regards this activity of

organized as a trade or business, in and finally a University of vast dimensions in

. There is absolutely nothing to show that the activity in this chatram, which involves the simple task of cooking and serving food and which required no more than the service of three cooks, could be equated to organisation as a business or trade.

The three clerks probably had a great deal to do with the general

supervision of the lodging and boarding arrangements of the hostel, which had a large strength of 225 students. In this connection one can think of persons on particular days. He could have engaged regularly extra cooks for the purpose. But his activity will not be a business or trade. If he decides, instead of feeding people in his house to feed them in a a well-to-do and pious Hindu deciding to feed a specific number of

separate building set apart for the purpose, and makes the cooks work there, instead of in his house, that would not make it an industry or a business. No doubt, the activity of preparing and serving food is involved in a catering business, but it is well known that cooking and serving food from only one part of its activity, whose overall scope makes it one of the recognised business activities sometimes with large scale organisation. the case of the annadana chatram in the instant case.

But by no stretch of imagination can such a type of activity be inferred in

(14) The learned Judge himself clearly felt the result of treating the

annadana chatram as an industry would be a surprising one, but it would appear that in his view, such a result was incapable bearing in mind the law on the subject. But with the due respect, on account of the reasons enumerated above, we hold that Pappammal Annachatram is not an industry.

(15) The appeal is allowed. The writ petition is also allowed and the order appeal. (16) Appeal allowed.

of the Labour Court is quashed. The appellant will get his costs in this