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All you need to know about the registration of Traders Union

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Procedure for registration of a Traders Union Under Section, the registrar is appointed for the process of registration of the Traders Union.

Also, the appropriate government is authorised to appoint additional and deputy registrars for a particular state, where the registrar of a Traders Union is unable to discharge the powers and functions. Within a local limit, he may exercise the power and functions as Registrar as prescribed for this purpose.

Mode of registration

Section 4(1) of the Act, talks about the registration of Traders Unions. Which says that for the purpose of registration of the Traders Union, there should be a minimum of seven members. The reason behind the fixation of a minimum of seven members is to encourage the formation of more and more Traders Unions.

In order to summarize, Section-7 talks about the two conditions required to fulfil the registration of a Traders Union. These conditions are:-

Requirement of seven or more members as signatories.

Provided that there are 100 or 10% whichever is less are employed in the industry.

Section 4(2) of the Act mentions that any application made under Section (1) regarding the registration of a Traders Union cannot be termed as invalid merely on the reason that some of the applicants not exceeding half of the total number of persons have:

Either ceased to be the members of Traders Union before the registration of the Traders Union; or

Has given written notice in writing to the Registrar mentioning their dissociation.

Tirumala Tirupati Devasthanam (1993)

In this case, the Court held that for the purpose of regulating the relations between the workmen and the employers, any group of employees may be registered as a Traders Union under the Act.

Application for registration

According to the Section-5, the application shall be made to the registrar for the registration of Traders Union and it should be followed with the copy of the rules of the Traders Union and the following particulars:

The name, occupation and address of the members who all are making the application;

The name of the Traders Union and the address of its head office; and

The titles, names, ages, addresses and occupations of the office-bearers of the Traders Union.

If a Traders Union already exists for more than a year, then a copy of the assets and liabilities of the Traders Union should be submitted along with the application for registration.

Provisions to be contained in the rules of a Traders Union

As per Section-6 of the Act, a Traders Union shall not be entitled to register under the act, if the provisions and rules mentioned under the Act are not duly complied. The rules are as following:-

The name of the Traders Union;

The object for which the Traders Union has been established;

The whole of the purposes for which the general funds of the Traders Union shall be applicable;

The maintenance of a list of the members of the Traders Union;

The admission of ordinary members (a person engaged or employed in the industry) with which the Traders Union is connected;

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:

The manner in which the rules shall be amended, varied or rescinded;

The manner in which the members of the executive and the other office-bearers of the Traders Union shall be elected and removed;

The manner in which the Traders Union may be dissolved.

Power to call

As per Section 7, the registrar may call members of the application to acquire further information to check whether the application is complete as per the provision of Section 5, or the Traders Union is enabling for registration under Section 6, and if all such information is incomplete, the registrar may refuse to register the Traders Union.

The registrar has the power to call the person applying for registration to alter the name of the Traders Union, if the name of the Traders Union proposed by the person applying for registration is identical to the name of the existing registered Traders Union or if the registrar finds it bit similar, which tends to fool the public or the members of either Traders Union. If such alteration doesn't take place, the registrar shall refuse to register the union.

Registration

Section 8 of the Act mentions that if the Registrar is satisfied that the Traders Union has complied with all the requirements of the Act in regard to the registration, then he shall register the Traders Union.

North Central Railway Employees Sangh and Others (2017)

In this case, the Court held that in order to check whether the registration is given rightly or not, the same can be examined only by the competent statutory authority established under the Traders Unions Act. The other authorities like the police have no role in this.

Inland Seam Navigation Workers' Union (1968)

An application was made by the workers' union to the registrar for registration. But the application was declared unlawful by the registrar by stating the reason that the objects mentioned are for all practical purposes.

Held- The Court said that the duties of the registrar include examining the application, looking at the objects for which the union is formed. If the objects for registration falls as per the Act and all the requirements and regulations made are complied as per the act, then it is the duty of the registrar to register the union.

ONGC Workmen's Association (1988)

In this case, the Court made it clear that the registrar is not deemed to be a quasi-judicial authority. He is not entitled to decide any disputed question of fActor law. The Registrar has no authority to ask parties to lead evidence or to cross-examine any witness.

Therefore, it can be said that under Section-8, the authority given to the registrar is limited in nature.

Certificate of registration

As per Section 9, the registrar shall issue a certificate of registration, after registering a Traders Union under Section 8. The Traders Union can produce the certificate as evidence that it has been rightly registered under this Act.

Appeal (Section-11)

If any person doesn't agree with the decisions of the registrar related to:-

Refusal to register the union,

Withdrawal or cancellation of a certificate of registration.

May appeal within the prescribed time, in following-

The head office of a Traders Union which is situated within the restrictions of a presidency town to the High Court,

The head office of a Traders Union which is situated, within the jurisdiction of a Labour Court or an Industrial Tribunal, to that court or tribunal as the case may be;

The head office of a Traders Union which is situated in any area to such court, not subordinate to the court of an additional or assistant judge of a principal Civil Court of original jurisdiction as the appropriate government may appoint.

Accordingly, the court may either refuse the appeal or pass an order governing the registrar to take a suitable course of action.

Compulsory/voluntary registration

As per the Act, the registration of a Traders Union is not compulsory but is just voluntary in nature.

It is believed that compulsory registration would prove burdensome and expensive and therefore, it is voluntary in nature.

On the other hand, it is argued that the registration should be made compulsory for the Traders Unions so that they could be governed by the provisions and rules laid down in the Actin a similar manner.

Time period for registration of a Traders Union

In the Traders Unions Act,1926, no time period has been mentioned for the approval or refusal of registration. It is a statutory duty of the registrar to register the Traders Union if all the requirements of registration are fulfilled duly. But in case, if any provision is not fulfilled then there is no time limit for the grant or refuse the registration.

Facts- The petitioner sent an application for registration of Union on 31st July 1957 to the registrar of Traders Unions Government of Bihar, Patna, under a registered postal cover with acknowledgement due. The Registrar of Traders Union received the application on the 3rd of August, 1957. For a long time, there was no action taken by the Registrar of Traders Unions.

Petitioner sent many reminders to the Registrar to speed up the process of registration and on 23rd September, a telegraphic reminder was sent by the petitioner, but there was no response to it.

No action was taken for over 3 months, therefore the Union filed a writ petition before the Patna High Court. It requested that the Registrar of Traders Unions should be governed to register or refuse to register the Union as his statutory duty.

Judgement– It was held by the High Court of Patna that, if the Registrar is satisfied that application of registration is fulfilled with all the requirements of the Act, then as per Section 8 it is his statutory duty to register a Traders Union. The court authorized the registrar to deal with the application of the Traders Union according to the law as soon as possible.

Cancellation of registration

As per Section 10 of the Act, the registration of the Traders Union can be cancelled if the certificate of registration is withdrawn or cancelled by the registrar-

On the application of the Traders Union.

If the registrar is satisfied that the certificate of registration is obtained by mistake or fraud.

The Traders Union has ceased to exist.

The Traders Union has wilfully contravened the provisions of the act even after the notice from the registrar.

Legal status of a registered Traders Union

Traders Union which is registered shall be a body corporate ( means a separate legal entity of Traders Union) under the name it has been registered.

Traders Unions have perpetual succession which means the existence of the union or the continuation regardless of any death, change in membership etc. and a common seal.

It also has the power to obtain and hold movable and immovable property and can be a party to contract,

It can sue and be sued by the name which is registered.

No civil suit or legal proceeding can proceed against a Traders Union, related to any Actdone in pursuit of a trade dispute in a certain situation.

Benefits of registration of Traders Unions

A registered Traders Union acquires the status of a separate legal entity, which means that it can enter into contracts and can also sue others.

Privileges of registered Traders Unions

The Traders Unions Act, 1926 has made provisions under Sections 17 & 18. Section 17 provides an exemption from punishment of criminal conspiracy:

Imprisonment for not more than six months.

Fine or both.

to the members or office-bearers of a registered Traders Union, related to any agreement made between the members with the purpose of facilitating objects of a Traders Union.

Section 18 provides immunity from civil proceedings:-

To the registered Traders Union,

Any members or office bearers.

Related to any Actdone in pursuit of a trade dispute to which a member of the trade is a party on the basis that such Acts Provokes some other person:

To breach a contract of employment,

To interfere in trade, business, employment or some other person,

Interference with the right of some other person to destroy his capital or of his labour.

Immunities of registration of Traders Unions

Section 17 provides immunity from the criminal liability.

Section 18 provides immunity from civil liability.

Section 19 gives the privilege to make agreements in restraint of trade.

Difference between registration and recognition of Traders Unions

The main difference between registration and recognition of Traders Unions is that registration is done by the registrar and recognition is done by management as a collective bargaining agent.

None of them is mandatory under the Traders Union Act. Registered Traders Unions have certain inherent benefits with it. Whereas recognition of Traders Union has no inherent right and once they are recognised, it leads to conferred certain rights upon them.

National Labour Commission Reports on registration of Traders Unions

In view of the Traders Unions Act, 1926 the National Labour Commission has proposed various recommendations in the year 1969 –

The registration of Traders Unions which is voluntary should be made compulsory.

Some time limit should be prescribed for the Registrar to decide on the issue of registration.

Effective measures must be taken for cancellation if the conditions mentioned in the Act are not complied with by the unions.

After the above-mentioned recommendations, various enactments were passed.

After this, a Second National Labour Commission was established and consequently, a second report was submitted in the year 2002.

In this report, the commission recommended the eligibility condition i.e. requirement of 10 per cent membership shall not apply in the case of unions in the unorganised sector.

Conclusion

The existence of a Traders Union creates a healthy working relationship between the employer and the employees.

It is because of Traders Unions that the workers feel that their rights are duly protected and can anytime create pressure on the employers if they feel that employers are overpowering them unnecessarily.

Apart from this the registration of Traders Unions under the Traders Union Act, 1926 helped the Traders Unions to gain recognition and certification. The detailed provisions of the Act talk about the procedure, advantages of registering Traders Unions and various immunities available to the union leaders from civil and criminal laws for the activities of a registered Traders Union.

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[{:section_type=>"rich_text", :content=>"Procedure for registration of a <a href=\"https://tradersunion.com/\">Traders Union</a> Under Section, the registrar is appointed for the process of registration of the Traders Union.\nAlso, the appropriate government is authorised to appoint additional and deputy registrars for a particular state, where the registrar of a Traders Union is unable to discharge the powers and functions. Within a local limit, he may exercise the power and functions as Registrar as prescribed for this purpose.\n<h2>Mode of registration</h2>\nSection 4(1) of the Act, talks about the registration of Traders Unions. Which says that for the purpose of registration of the Traders Union, there should be a minimum of seven members. The reason behind the fixation of a minimum of seven members is to encourage the formation of more and more Traders Unions.\nIn order to summarize, Section-7 talks about the two conditions required to fulfil the registration of a Traders Union. These conditions are:-\n<h2>Requirement of seven or more members as signatories.</h2>\nProvided that there are 100 or 10% whichever is less are employed in the industry.\nSection 4(2) of the Act mentions that any application made under Section (1) regarding the registration of a Traders Union cannot be termed as invalid merely on the reason that some of the applicants not exceeding half of the total number of persons have:&nbsp;\nEither ceased to be the members of Traders Union before the registration of the Traders Union; or\nHas given written notice in writing to the Registrar mentioning their dissociation.\nTirumala Tirupati Devasthanam (1993)\nIn this case, the Court held that for the purpose of regulating the relations between the workmen and the employers, any group of employees may be registered as a Traders Union under the Act.\n<h2>Application for registration</h2>\nAccording to the Section-5, the application shall be made to the registrar for the registration of Traders Union and it should be followed with the copy of the rules of the Traders Union and the following particulars:\nThe name, occupation and address of the members who all are making the application;\nThe name of the Traders Union and the address of its head office; and\nThe titles, names, ages, addresses and occupations of the office-bearers of the Traders Union.\nIf a Traders Union already exists for more than a year, then a copy of the assets and liabilities of the Traders Union should be submitted along with the application for registration.\n<h2>Provisions to be contained in the rules of a Traders Union</h2>\n&nbsp;\nAs per Section-6 of the Act, a Traders Union shall not be entitled to register under the act, if the provisions and rules mentioned under the Act are not duly complied. The rules are as following:-\nThe name of the Traders Union;\nThe object for which the Traders Union has been established;\nThe whole of the purposes for which the general funds of the Traders Union shall be applicable;\nThe maintenance of a list of the members of the Traders Union;\nThe admission of ordinary members (a person engaged or employed in the industry) with which the Traders Union is connected;\nThe conditions under which any member shall be entitled to any benefit assured by the rules.&nbsp;\nAnd under which any fine or forfeiture may be imposed on the members:\nThe manner in which the rules shall be amended, varied or rescinded;\nThe manner in which the members of the executive and the other office-bearers of the Traders Union shall be elected and removed;\nThe manner in which the Traders Union may be dissolved.\n<h2>Power to call</h2>\nAs per Section 7, the registrar may call members of the application to acquire further information to check whether the application is complete as per the provision of Section 5, or the Traders Union is enabling for registration under Section 6, and if all such information is incomplete, the registrar may refuse to register the Traders Union.\nThe registrar has the power to call the person applying for registration to alter the name of the Traders Union, if the name of the Traders Union proposed by the person applying for registration is identical to the name of the existing registered Traders Union or if the registrar finds it bit similar, which tends to fool the public or the members of either Traders Union. If such alteration doesn't take place, the registrar shall refuse to register the union.\nRegistration\nSection 8 of the Act mentions that if the Registrar is satisfied that the Traders Union has complied with all the requirements of the Act in regard to the registration, then he shall register the Traders Union.\nNorth Central Railway Employees Sangh and Others (2017)\nIn this case, the Court held that in order to check whether the registration is given rightly or not, the same can be examined only by the competent statutory authority established under the Traders Unions Act. The other authorities like the police have no role in this.\nInland Seam Navigation Workers' Union (1968)\nAn application was made by the workers' union to the registrar for registration. But the application was declared unlawful by the registrar by stating the reason that the objects mentioned are for all practical purposes.\nHeld- The Court said that the duties of the registrar include examining the application, looking at the objects for which the union is formed. If the objects for registration falls as per the Act and all the requirements and regulations made are complied as per the act, then it is the duty of the registrar to register the union.\n<h2>ONGC Workmen's Association (1988)</h2>\nIn this case, the Court made it clear that the registrar is not deemed to be a quasi-judicial authority. He is not entitled to decide any disputed question of fActor law. The Registrar has no authority to ask parties to lead evidence or to cross-examine any witness.\nTherefore, it can be said that under Section-8, the authority given to the registrar is limited in nature.\n<h2>Certificate of registration</h2>\nAs per Section 9, the registrar shall issue a certificate of registration, after registering a Traders Union under Section 8. The Traders Union can produce the certificate as evidence that it has been rightly registered under this Act.\nAppeal (Section-11)\nIf any person doesn't agree with the decisions of the registrar related to:-\nRefusal to register the union,&nbsp;\nWithdrawal or cancellation of a certificate of registration.\nMay appeal within the prescribed time, in following-\nThe head office of a Traders Union which is situated within the restrictions of a presidency town to the High Court,\nThe head office of a Traders Union which is situated, within the jurisdiction of a Labour Court or an Industrial Tribunal, to that court or tribunal as the case may be;\nThe head office of a Traders Union which is situated in any area to such court, not subordinate to the court of an additional or assistant judge of a principal Civil Court of original jurisdiction as the appropriate government may appoint.\nAccordingly, the court may either refuse the appeal or pass an order governing the registrar to take a suitable course of action.\n<h2>Compulsory/voluntary registration</h2>\nAs per the Act, the registration of a Traders Union is not compulsory but is just voluntary in nature.\nIt is believed that compulsory registration would prove burdensome and expensive and therefore, it is voluntary in nature.\nOn the other hand, it is argued that the registration should be made compulsory for the Traders Unions so that they could be governed by the provisions and rules laid down in the Actin a similar manner.\n&nbsp;\n<h2>Time period for registration of a Traders Union</h2>\nIn the Traders Unions Act,1926, no time period has been mentioned for the approval or refusal of registration. It is a statutory duty of the registrar to register the Traders Union if all the requirements of registration are fulfilled duly. But in case, if any provision is not fulfilled then there is no time limit for the grant or refuse the registration.\nFacts- The petitioner sent an application for registration of Union on 31st July 1957 to the registrar of Traders Unions Government of Bihar, Patna, under a registered postal cover with acknowledgement due. The Registrar of Traders Union received the application on the 3rd of August, 1957. For a long time, there was no action taken by the Registrar of Traders Unions.&nbsp;\nPetitioner sent many reminders to the Registrar to speed up the process of registration and on 23rd September, a telegraphic reminder was sent by the petitioner, but there was no response to it.\nNo action was taken for over 3 months, therefore the Union filed a writ petition before the Patna High Court. It requested that the Registrar of Traders Unions should be governed to register or refuse to register the Union as his statutory duty.&nbsp;\nJudgement– It was held by the High Court of Patna that, if the Registrar is satisfied that application of registration is fulfilled with all the requirements of the Act, then as per Section 8 it is his statutory duty to register a Traders Union. The court authorized the registrar to deal with the application of the Traders Union according to the law as soon as possible.\n<h2>Cancellation of registration</h2>\nAs per Section 10 of the Act, the registration of the Traders Union can be cancelled if the certificate of registration is withdrawn or cancelled by the registrar-\nOn the application of the Traders Union.\nIf the registrar is satisfied that the certificate of registration is obtained by mistake or fraud.\nOR\nThe Traders Union has ceased to exist.\nOR\nThe Traders Union has wilfully contravened the provisions of the act even after the notice from the registrar.\n<h2>Legal status of a registered Traders Union</h2>\nTraders Union which is registered shall be a body corporate ( means a separate legal entity of Traders Union) under the name it has been registered.&nbsp;\nTraders Unions have perpetual succession which means the existence of the union or the continuation regardless of any death, change in membership etc. and a common seal.\nIt also has the power to obtain and hold movable and immovable property and can be a party to contract,&nbsp;\nIt can sue and be sued by the name which is registered.\nNo civil suit or legal proceeding can proceed against a Traders Union, related to any Actdone in pursuit of a trade dispute in a certain situation.\n<h2>Benefits of registration of Traders Unions</h2>\nA registered Traders Union acquires the status of a separate legal entity, which means that it can enter into contracts and can also sue others.\n<h2>Privileges of registered Traders Unions</h2>\nThe Traders Unions Act, 1926 has made provisions under Sections 17 &amp;amp; 18. Section 17 provides an exemption from punishment of criminal conspiracy:\nImprisonment for not more than six months.&nbsp;\nFine or both.\nto the members or office-bearers of a registered Traders Union, related to any agreement made between the members with the purpose of facilitating objects of a Traders Union.\nSection 18 provides immunity from civil proceedings:-\nTo the registered Traders Union,&nbsp;\n<h2>Any members or office bearers.</h2>\nRelated to any Actdone in pursuit of a trade dispute to which a member of the trade is a party on the basis that such Acts Provokes some other person:\nTo breach a contract of employment,&nbsp;\nTo interfere in trade, business, employment or some other person,\nInterference with the right of some other person to destroy his capital or of his labour.&nbsp;\n<h2>Immunities of registration of Traders Unions</h2>\nSection 17 provides immunity from the criminal liability.\nSection 18 provides immunity from civil liability.\nSection 19 gives the privilege to make agreements in restraint of trade.\nDifference between registration and recognition of Traders Unions\nThe main difference between registration and recognition of Traders Unions is that registration is done by the registrar and recognition is done by management as a collective bargaining agent.&nbsp;\nNone of them is mandatory under the Traders Union Act. Registered Traders Unions have certain inherent benefits with it. Whereas recognition of Traders Union has no inherent right and once they are recognised, it leads to conferred certain rights upon them.\n<h2>National Labour Commission Reports on registration of Traders Unions</h2>\nIn view of the Traders Unions Act, 1926 the National Labour Commission has proposed various recommendations in the year 1969 –\nThe registration of Traders Unions which is voluntary should be made compulsory.\nSome time limit should be prescribed for the Registrar to decide on the issue of registration.\nEffective measures must be taken for cancellation if the conditions mentioned in the Act are not complied with by the unions.\nAfter the above-mentioned recommendations, various enactments were passed.\nAfter this, a Second National Labour Commission was established and consequently, a second report was submitted in the year 2002.\nIn this report, the commission recommended the eligibility condition i.e. requirement of 10 per cent membership shall not apply in the case of unions in the unorganised sector.\n<h2>Conclusion</h2>\nThe existence of a Traders Union creates a healthy working relationship between the employer and the employees.\nIt is because of Traders Unions that the workers feel that their rights are duly protected and can anytime create pressure on the employers if they feel that employers are overpowering them unnecessarily.&nbsp;\nApart from this the registration of Traders Unions under the Traders Union Act, 1926 helped the Traders Unions to gain recognition and certification. The detailed provisions of the Act talk about the procedure, advantages of registering Traders Unions and various immunities available to the union leaders from civil and criminal laws for the activities of a registered Traders Union.\nRead more:<a href=\"https://lekhy.com/\">Buy Guest post</a>"}]

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