Cancellation of Trade Union
Cancellation of Trade Union
What is Cancellation of Trade Union?
Cancellation of a Trade Union refers to the process by which the registration of a trade union is revoked or annulled by the registering authority (usually a Registrar of Trade Unions). Once a trade union’s registration is cancelled, it ceases to have the legal status and rights it previously enjoyed under the registration.
Grounds for Cancellation of Trade Union
Cancellation usually occurs if:
Non-compliance with the provisions of registration
For example, if the union fails to submit annual returns or financial statements.
Fraud or Misrepresentation
If the union was registered based on false information or fraudulent practices.
Failure to Function as a Trade Union
If the union ceases to operate as a representative body or does not carry out its trade union functions.
Misuse of Registration
Using the union for unlawful purposes or acting contrary to the interests of the members.
Violation of Rules or Constitution
If the union violates its own constitution or the rules under which it was registered.
Procedure for Cancellation
The Registrar issues a show cause notice to the trade union, specifying the grounds for cancellation.
The union is given an opportunity to be heard and to present its defense.
After considering the reply and evidence, the Registrar may decide to cancel the registration.
The decision is communicated in writing.
Effects of Cancellation
The union loses its legal status.
It cannot sue or be sued in its registered name.
It loses the rights and privileges granted by registration, such as recognition for collective bargaining.
However, the union may continue as an unregistered association but without statutory benefits.
Important Case Law
1. K. Karunakaran vs. Union of India (1970)
This case clarified that the cancellation of registration must be done after giving a fair hearing to the union and following due procedure. The court emphasized the principles of natural justice.
2. State of Punjab vs. Ram Lubhaya Bagga (AIR 1998 SC 1097)
Although primarily dealing with related labor issues, this case underscores that cancellation of registration cannot be arbitrary and must be supported by valid grounds and proper procedure.
Summary
Cancellation of a trade union is a serious step that removes the union’s legal rights.
It can only happen on valid grounds such as non-compliance, fraud, or misuse.
The union must be given a fair opportunity to explain itself.
The cancellation decision must follow the principles of natural justice.
Case law reinforces the necessity for proper procedure and non-arbitrariness.
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