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Smart Summary

Factual and Procedural Background

The petitioner, claiming to be a Federation of registered Trade Unions representing employees in various Nationalised and Non-Nationalised Banks in India, filed an appeal challenging the judgment of the Single Judge dated 21st January 1992 in writ petition No. 1834 of 1986. The second respondent is an Association of Banks coordinating member Banks on labour matters at the national level.

The appellant alleged that the second respondent had previously negotiated with them and other Federations of Trade Unions, including signing the third tripartite settlement in 1979. Some issues remained unresolved and were referred to arbitrators, who renounced the reference. Subsequently, the appellant, second respondent, and other federations agreed to settle residual issues by private negotiations, including matters relating to computerisation and mechanisation in the banking industry.

Fresh charter of demands were submitted to the second respondent but no response was given. Instead, the second respondent continued negotiations with other federations excluding the appellant. The appellant was asked to concur with the arrangement reached with other federations to participate in discussions on the new charter of demands but was unable to do so. Consequently, the second respondent signed a settlement with other federations on 8th September 1983, excluding the appellant, which the appellant claimed amounted to unfair labour practice violating their rights.

In September 1984, rumors circulated that the second respondent was again entering into an agreement excluding the appellant. The Chief Labour Commissioner (Central), Government of India, was approached to arrange a meeting. On 17th September 1984, the second respondent signed the Fourth Bipartite Settlement without inviting the appellant. After conciliation failed, a failure report was submitted to the Government. The Government refused to make a reference for adjudication on the ground that the second respondent was not an employer under the Industrial Disputes Act. The appellant challenged this refusal by filing a writ petition, which was dismissed by the Single Judge, leading to the present appeal.

Legal Issues Presented

  1. Whether the act of the second respondent in not negotiating with the appellant Federation amounts to unfair labour practice under Section 25-T of the Industrial Disputes Act.
  2. Whether the second respondent qualifies as an "employer" within the meaning of the Industrial Disputes Act.
  3. Whether the appellant Federation has the locus standi to raise an industrial dispute in its capacity as a federation of trade unions, particularly given its registration status under the Trade Unions Act, 1926.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court first identified the key question of whether the second respondent’s refusal to negotiate with the appellant constituted unfair labour practice under Section 25-T of the Industrial Disputes Act. Before addressing that, the court examined whether the second respondent qualifies as an "employer" under the Act and whether the appellant had the legal standing to raise the dispute.

The court noted that the appellant Federation is not registered under the Trade Unions Act, 1926, and therefore does not qualify as a Trade Union within the meaning of section 2(h) of that Act, which includes federations of two or more unions only if registered. Without registration, the appellant lacks the competence to raise demands on behalf of employees or to invoke the definition of "industrial dispute" under Section 2(k) of the Industrial Disputes Act.

Since the appellant is not a registered trade union and is not a juristic person, it was held to be incompetent to file the writ petition. Consequently, the court found it unnecessary to decide whether the act of unfair labour practice constitutes an industrial dispute or whether the second respondent qualifies as an employer for such purposes. The court left these questions open for determination in an appropriate case.

Holding and Implications

The court dismissed the appeal without any merit and without any order as to costs.

The direct effect of this decision is that the appellant Federation, being unregistered, cannot claim the privilege of negotiating demands or raise an industrial dispute under the Industrial Disputes Act against the second respondent. No broader legal precedent was established, as key questions were left undecided for future cases.

    National Organisation Of Bank Workers' Federation Of Trade Unions v. Union Of India And Others

    H.D Patel, J.:— The petitioner claiming to be a Federation of registered Trade Unions working in various Nationalised and Non-Nationalised Banks in India has filed this appeal challenging the judgment of the learned Single Judge dated 21st January, 1992 is writ petition No. 1834 of 1986.

    2. The second respondent is an Association of Banks and has been coordinating the activities of the member Banks in relation to matters of common interest and represents the member Banks at National level in labour matters.

    3. It is claimed by the appellant that the second respondent used to negotiate with them as well as other Federations of Trade Unions. The third tripartite settlement is signed by the second respondent on behalf of its member Banks in the year 1979. Despite the settlement, some issues remained to be resolved and such issues were referred for adjudication by arbitrators. The arbitrators, however, renounced the reference and, therefore, the appellant, the second respondent and other federations agreed to settle the residual issues themselves by private negotiations. One of the issues involved was relating to computerisation and mechanisation in the Banking Industry. In the meanwhile, fresh charter of demands were submitted to second respondent for which there was no response. Instead the second respondent continued to discuss the residual issue with the Federation other than the appellant. Union arriving at an arrangement, the appellant federation was called upon to concur with the said arrangement in case they desired to participate in the discussions to be held for the fresh charter of demands. Since the appellant was not in a position to concur, the issue being sensitive, it appears that the second respondent executed and signed the settlement with other federation of trade unions on 8.9.1983 The exclusion of the appellant federation in the matter of negotiations was claimed to be an unfair labour practice being in gross violation of their rights and its member unions.

    4. It is alleged that again in September, 1984 there were strong rumours about the second respondent entering into an agreement with other federation to the exclusion of the appellant. The Chief Labour Commissioner (Central), Government of India, was moved for arranging a meeting with the second respondent. On 17.9.1984 the second respondent signed the Fourth Bipartite Settlement without inviting the petitioner to negotiate and discuss the demands. In response to the notice issued, the second respondent appeared before the Chief Labour Commissioner and filed their reply. The conciliation having failed, a failure report, was submitted by the Authority to the Government. By a communication dated 10.7.1986, the first respondent informed the appellant that the Government has refused to make the reference because the second respondent was not an employer and hence no valid industrial dispute could be raised against them under the Industrial Disputes Act. This communication was challenged by the appellant Federation before this Court in a writ petition. A direction was claimed that the first respondent be directed to make a reference of the dispute for adjudication. The learned Single Judge of this Court upheld the order of the first respondent and dismissed the writ petition vide order impugned in this appeal.

    5. An interesting question does arise in this appeal for determination and that question is, whether the act of the second respondent in not negotiating with the appellant Federation could amount to unfair labour practice under Section 25-T of the Industrial Disputes Act. But before this question could be decided, it is necessary to determine whether refusal by the second respondent to negotiate with the appellant is justified? In this context what is to be examined is whether the second respondent is an employer falling within the definition of the word “employer” under the Industrial Disputes Act. Similarly it is equally necessary to find out the locus of the appellant to raise a dispute in its capacity as a federation of trade unions on behalf of the employees of the Bank. It has come to light during arguments that the appellant Federation is not a registered body under the Trade Unions Act, 1926. It is hence not a Trade Union within the meaning of section 2(h) of the said Act. The definition includes any federation of two or more unions. In the absence of it being a-registered body, the appellant is incompetent to raise or make any demand for and on behalf of the employees so as to fall within the scope and ambit of the “industrial dispute” as defined under Section 2(k) of the Industrial Disputes Act. If the appellant is not in a position to raise an ‘industrial dispute’, it has no locus standi to seek the privilege of negotiating those demands, which is the privilege of only registered trade unions or a group of workmen under the Industrial Disputes Act. The appellant, admittedly, not being a registered trade union is not a juristic person and hence also incompetent to file the writ petition. In the view which we have taken, we do not feel that it is necessary to decide whether the act of unfair labour practice is an industrial dispute and whether the second respondent is an employer for enabling the appellant to raise an industrial dispute against them. All the points are left open for being decided in an appropriate case.

    6. In view of the discussions above, we find that the appeal is without any merit and is accordingly dismissed, but without any order as to costs.

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    National Organisation Of Bank Workers' Federation Of Trade Unions v. Union Of India And Others
    (Feb 10, 1993)