Full Judgment Text
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CASE NO.:
Appeal (civil) 3950 of 2006
PETITIONER:
B. C. Sharma & Another
RESPONDENT:
M. L. Bhalla & Others
DATE OF JUDGMENT: 06/09/2006
BENCH:
S.B. SINHA & DALVEER BHANDARI
JUDGMENT:
J U D G M E N T
[Arising out of SLP (C) No. 6425 of 2005]
Dalveer Bhandari, J.
Leave granted.
The short controversy involved in this appeal
pertains to holding of the next elections of a Trade Union
called the Uttariya Railway Mazdoor Union registered
under the Trade Unions Act, 1926 (hereinafter mentioned
as "the Union"). Its members are drawn from
the Northern Railways and it is managed by a Central
Executive Committee under a duly registered
Constitution. The General Body is the supreme body of
the Union. According to clause 1 of the Constitution
Rules and Byelaws of the Union, ’General Body’ consists
of office-bearers of the Union and members of the Central
Executive Committee and delegates elected in the
prescribed manner as defined hereinafter. Clause 6
deals with the aims and objects of the Union. It reads as
follows:
"III. Aims and Objects.
6. The aims and objects of the Union shall
be:-
a) To establish an independent and free
Union based on the principles of Trade
Unionism which shall be free from the
influences of the Government, the
Employer and the Political Parties.
b) To advocate cause, and help to establish
leadership of the workers in the
management of their Trade Union.
c) To make the Northern Railway Employees
conscious of their rights and duties by
uniting and consolidating them under the
Union.
d) To promote and protect the interests of
the Northern Railway employees by
legitimate and constitutional means.
e) To watch, defend and promote the
interests, rights and privileges of the
Northern Railway Employees irrespective
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of caste, creed, race or section in all
matters relating to their employment.
f) To co-ordinate the activities of different
categorical groups of Railway employees
for safeguarding their legitimate interests.
g) To regulate relations and to establish
mutual understanding between members
and administration and to settle issues
through negotiations, conciliations
and/or arbitration.
h) To educate, prepare and encourage
Railway employees to take increasing part
in the management, administration and
control of the Railway in the larger
interest of the country and to enthuse
National Spirit in them.
i) To support Legislative measures for the
protection of Labour and to oppose the
same when it is against the interest of
Labour.
j) To press for reasonable hours of work,
proper housing and standard of living.
k) To provide funds for the compensation of
members for loss arising out of trade
disputes.
l) To organize and establish separate funds
for the benefit of members or their
dependents in cases of sickness, accident
or death, non-employment and old-age of
such members and for funeral, legal and
purpose, declared lawful under the Act.
m) To establish co-operative stores in the
interest of Railway Employees.
n) To promote and safeguard the economic,
social and civic interests of Railway
employees in alliance with the rest of the
working class organizations in so far as it
does not violate the provisions of Trade
Union Act.
o) To amalgamate, federate with or affiliate
itself to any Association, Union or Society
having kindred aims and objects.
p) To encourage and establish Panchayat
System in the Railway Colonies for
settling mutual disputes.
q) To provide legal assistance to members
by raising special funds in respect of
matters arising out of or incidental of
their employment.
r) To secure and maintain for the Railway
employees:-
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i) Freedom of Association.
ii) Freedom of Assembly
iii) Freedom of Speech.
iv) Freedom of Press.
v) Right to Work.
vi) Right to Strike, and;
vii) Right of representation in the
management and in the
legislature.
s) To encourage and establish Night
Schools; Clubs, Reading Rooms for the
employees and their children and to
make grant to the take share in the
management and control of any
institution having for its objects the
education and training of Trade
Unionism. Also publish periodicals and
journals.
t) To raise special funds if and when
necessary for any or all the objects stated
above or for any legitimate objects
considered conductive to the growth and
expansion of the Union.
u) To receive grants-in-aid from different
sources including Central Board for
Workers Education for educating Workers
Education Programme."
Clause 26 of the Constitution Rules and Bye-laws of
the Union is reproduced as under:
"The General Body shall consist of:
(a) Office-bearers and members of the Central
Council.
(b) Delegates elected by the members in each
Branch of the Union at a meeting held for
the purpose on the basis of one delegate
for every 150 members or major part
thereof, shall comprise of:
i) The General Body meeting will be
held in every three years.
ii) Any other extra General Body
Meeting will be held after three
years."
According to Clause 28, subject to the control of the
General Body, there shall be a Central Council at the
headquarters of the Union for the general management of
the affairs of the Union consisting of the President, and
other office-bearers of the Union. The President and the
office-bearers are elected for a period of three years.
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According to Clause 34(f), the elected office-bearers
will continue functioning till the new elections are held or
for another period of six months whichever is earlier.
The last election of the General Body had taken
place on 4/5.7.2002. The term of the Office Bearers of
the Union came to an end on 4/5.7.2005.
The additional period of six months according to
Clause 34(f) has also lapsed, but the scheduled elections
have not taken place because of the inter se dispute and
litigation between two groups of the Union. There has
been considerable litigation both in U.P. and in Delhi
between the two groups of the Union. Both groups have
levelled serious allegations against each other. It is not
necessary to go into the details of those allegations and
the litigation for deciding this appeal. Therefore, we do
not propose to deal with the litigation between the
parties. The parties to this appeal have prayed that the
elections of the Union should be held as early as
possible. This is also recorded in the order of this Court
dated 3.7.2006.
The office-bearers (appellants herein) were elected
on 4/5.7.2002 and are still continuing though there term
came to an end on 4/5.7.2005. There is serious
objection to their further continuation in the office by the
respondents. The respondents have levelled serious
allegations of financial irregularities and mis-
management against the appellants, whereas the
appellants have given justification for their continuation
in the Office.
The appellants have alleged that the respondents
are creating hurdles in the smooth functioning of the
Union. According to Clause 26, the ’General Body’
consists of the office-bearers and members of the Central
Council and delegates elected by the members of each
Branch of the Union at a meeting held for the purpose on
the basis of one delegate for every 150 members or major
part thereof. In order to conduct the elections of the
General Body, elections of the Branch Offices also need
to be conducted.
The dispute between the parties relates to elections
of the office-bearers of the Central Level of Uttariya
Railway Mazdoor Union. We may notice the relevant
provisions of the rules of the old Uttariya Railway
Mazdoor Union Constitution (for short, ’the Rules’) a little
later, but we may, at the outset, notice that the tenure of
the appellants is indisputably over. It has expired on
4/5.7.2005. The suit was filed before the learned trial
court regarding the validity of the elections. Evidently,
the learned trial court has no jurisdiction to direct
continuance of holding of office by the appellants herein
beyond the period of tenure. We may also notice that the
High Court intended to take assistance of the General
Manager of the Northern Railway Administration for
holding the elections. He affirmed an affidavit before the
High Court stating that the electoral lists of both factions
are unacceptable. In the aforementioned situation, a
retired Chief Justice of the Andhra Pradesh High Court
was appointed for determining the correctness or
otherwise of the list of 371 candidates. A report was filed
by the said learned Judge upon verification of the names
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of the members of the general body on 1.12.2005.
Drawing six separate lists with his report, the learned
Judge has enclosed all the materials placed before him
by the parties. The parties filed objections thereto. The
said writ petition has been dismissed. A writ appeal
against the same is pending. It has also not been
disputed before us that interim applications were filed
before the High Court in Letters Patent Appeal Nos.596-
600 of 2006.
The parties pray that the elections should be
directed to be held as expeditiously as possible. There
are, however, disputes with regard to the correctness of
the electoral roll and the manner in which the elections
are to be held.
The relevant rules are as under :
"26. The General Body shall consist of :-
a) Office-bearers and members of the
Central Council.
b) Delegates elected by the members in each
Branch of the Union at a meeting held for the
purpose on the basis of one delegate for every
150 members of major part thereof, shall
comprise of :-
i) The General Body meeting will be held in
every three years.
ii) Any other extra General Body meeting
will be held after three years.
27. Where it is not practicable to arrange for
a General Meeting to be convened for
discussion and disposal of any definite issue
the point may be referred to all the members of
the Union for balloting in the manner
hereinafter prescribed. Any question relating
to cessation of work should variably be
submitted for balloting.
28. Central Council
Subject to the control of the General Body
there shall be a Central Council at the
Headquarters of the Union for the General
Management of the affairs of the Union
constituted as below :-
1. President.
2. Working President.
3. Two Vice Presidents.
4. The General Secretary.
5. Five Assistant General Secretaries.
6. One organizing Secretary.
7. One Treasurer.
8. A representative selected by each Branch
for every 300 members or major part thereof
including Branch Secretary compulsorily.
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Note: While the President may be a non-
Railwayman, all other shall be members of
Railway Staff including ex-Railwaymen referred
to in Clause 20 Chapter IV of the constitution
subject of provision of Section 22 of the Act.
29. Working Committee.
There shall be a Working Committee
comprising of the Central Office bearers and
170 members selected by Central Council from
among the Central Council members. This
number of 140 can be revised by the Central
Council from time to time.
34. Business at the General Body Meeting.
The business to be transacted at the General
Body Meeting shall ordinarily be :-
a) To adopt General Secretary Report.
b) To pass the Audited Accounts and
balance sheet of the Union.
c) To elect the office bearers of the General
Council.
d) To appoint an Auditor in accordance with
the Act or any regulation made
thereunder and to fix his remuneration.
e) To transact such other business as may
be laid before it by the Subject
Committee.
f) The elected office bearers will continue
functioning till new elections are held or
for another period of six months which
ever is earlier."
Keeping in view the nature of the order passed by
the High Court and furthermore, in view of the fact that
some questions are pending before the Delhi High Court,
we are not inclined to pronounce on the issue as regards
the interpretation of the said Rules, one way or the other
at this stage. Such a question, in our opinion, should be
determined by the appropriate forum at an appropriate
stage.
Indisputably, however, the elections should be held
under the supervision of a neutral person. The High
Court, as noticed hereinbefore, intended to appoint a
retired Chief Justice for resolution of the dispute as
regards the voters’ list and holding of elections under his
supervision. It did not fructify. Revision of the electoral
roll is one of the main tasks before an election can be
held.
Keeping in view the peculiar facts and
circumstances of this case, we are of the opinion that the
Registrar of Trade Union, being a statutory authority,
should be appointed for the aforementioned purpose. He,
in our opinion, should also be appointed as an
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administrator and take over the management of the
Union till holding of elections are complete. We do so
with much reluctance. But, the reason therefor is that
the appellants should not be allowed to continue to
function in the manner as they are doing, i.e., despite
expiry of the tenure and under the interim order passed
by the learned trial court. It is difficult to understand as
to why the preparation of electoral roll could not be
finalised. If the office-bearers are interested in carrying
out their trade union activities although, they are entitled
to contest the elections but should have at least agreed to
finalisation of Electoral College. The appellants having
been elected for a definite term, it was their solemn duty
to see that elections are held before their tenure comes to
an end. We are not unmindful of the fact that the expiry
of tenure by itself may not lead to the conclusion that
continuation of the office-bearers in the office per se
would be illegal. In the instant case, the appellants are
continuing in office because of the interim order passed
by a court of law, which is per se unsustainable.
We pass this order in order to do complete justice to
the parties. It is unfortunate that elections have to be
held under the supervision of an officer appointed by the
court, but then there does not appear to be any other
way out. Although, technically the Registrar of Trade
Union cannot be said to be an authority to supervise
holding of the elections under the provisions of the Trade
Unions Act, but, while directing the said authority the
officers who may be designated by him to supervise the
holding of elections, we draw sustenance from the
decision of this Court in North Eastern Railway
Employees Union & Others v. IIIrd Additional District
Judge, Farukhabad & Others reported in AIR 1988 SC
2117.
We, for the reasons stated hereinbefore, are of the
opinion that the management of the Trade Union should
also be taken over by the said authority. The said
Registrar may carry out the said function himself or he
may appoint an officer or officers not exceeding three in
number for the said purpose. We further direct that the
accounts of the Trade Union be audited by a Chartered
Accountant of repute. The appellants are directed to
handover all documents including the books of accounts
to the Registrar, Trade Union forthwith.
It will be open to the Administrator to initiate such
action(s), as may be found necessary, in the event of any
irregularity or illegality of the appellants comes to his
notice. The Administrator or his nominee shall function
in terms of this order. In case of any necessity, however,
it would be open to approach the High Court for requisite
directions.
We are informed that elections of 20 branches have
already been completed and elections of 35 branches are
in the pipeline. The elections of those branches, which
have not yet been completed, should also be completed
immediately. Any dispute or difference in regard to the
list of voters would also be determined by the Registrar of
Trade Union.
We are not oblivious of the fact that the main
purpose of the Trade Union is to have negotiations with
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the Railway Administration as regards the demands of
the employees. We hope and trust that the interests of
the workmen would not suffer because of this order. We
would request the competent authorities of the Northern
Railway Administration not to, unless exigency of the
situation arises, take any decision in this behalf. In case
of any exigency of the situation, however, undoubtedly
the elected members and/or those elected members of
the branches or otherwise authorized to negotiate with
the Railway Administration, shall take part therein.
The appeal is disposed of with the aforementioned
directions and observations. There shall be no order as
to costs.