LL.B.

III Term
Paper LB 3032 - Labour Law - I
Objectives of the Course
The primary objective of this course is to draw attention of the students briefly to the march of the industrial society from laissez faire era to the dawn of the concept of welfare state and the need for state intervention in the area of employer-employee relationship for achieving higher economic growth tempered with social justice; need for which is more imperative in the present day era of globalization when both developed and developing economies have framed new economic policies. The students need to be acquainted with the historical perspective relating to the development of trade unions of workers in various countries which has been more or less the same. The struggle of the workers to replace individual bargaining by collective bargaining to achieve better economic and social progress was intense and painful. Employers thwarted their attempt to combine by invoking the doctrine of restraint of trade against their combinations and used doctrines of civil and criminal conspiracies against them to expose them to economic and physical hardships. It was in this background that State intervention became necessary to declare such combinations of workers as lawful bodies symbolizing their aspirations, their right to organise and right to press their demands collectively and to resort to industrial actions if their claims were not accepted. For this purpose, they were granted immunities in a limited way against the doctrine of restraint of trade and acts amounting to simple conspiracies, both civil and criminal. The students need also to know about the relevance and importance of trade unions in the present global economic scenario in achieving the object of overall economic development, better conditions of employment and job opportunities for teeming millions. In most countries, the state has provided legal framework which establishes general ground rules for union management interaction and for the purposes of bringing out amicable settlement of industrial conflicts. Additionally, provision of state service for conciliation, mediation and arbitration with a view to facilitating the settlement of industrial dispute is envisaged by law so that the production of goods and supply of various services to the society are ensured, as far as possible, without any disruption, if mutual negotiations in the form of collective bargaining fail to bring a settlement of the dispute. The other important functions of the state has been to establish minimum standards which an employer must adopt and which provide the base line on which collective bargaining with the employer for securing higher standards takes place. The state has basic duty to bring equilibrium amongst the competing and conflicting interests in the society namely, the capital, the workers and the society at large. The course of Labour Law - I has been designed to generate understanding amongst the students about the objectives of the labour legislations and enable them to critically examine the developments and changes that have taken place in the field of labour law from time to time. The course introduces the students to the three important legislations, viz. the Trade Unions Act, 1926, the Industrial Disputes Act, 1947 and the Industrial Employment (Standing

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Orders) Act, 1946, which regulate industrial relations at the Central level in India. The primary objectives of this course are:
1) To familiarize the students with the need for enactment of the Trade Unions Act,

1926 which declares trade unions as legitimate bodies, provides immunities to the registered trade unions, their members and office bearers against the general law liabilities, namely, restraint of trade and conspiracy, both civil and criminal, as long as the primary object is to further legitimate trade union objectives in a peaceful manner.
2) To familiarize the students with the provisions of the Industrial Disputes Act, 1947

which provides for settlement of industrial disputes through conciliation, voluntary arbitration and compulsory adjudication and to bring home to the students the importance of the basic concepts used in it and the social responsibilities imposed on the employer in certain situations in tune with constitutional mandate brought about by various amendments to the act in the post-constitutional period.
3) To familiarize the students with the need for providing uniform statutory conditions

of service in the form of certified standing orders under the Industrial Employment (Standing Orders) Act, 1946. 4) To examine whether the present legal framework provided by the state is adequate to meet the challenges of globalization and to keep the students abreast of the latest developments in the present economic order and discuss critically the resultant changes that need to be made in industrial relations law for achieving higher economic growth tempered with social justice. General Readings: 1. Report of the National Commission on Labour (1969) 2. Report of the Second National Commission on Labour (2002) Prescribed Legislation: 1. The Trade Unions Act, 1926 2. The Industrial Disputes Act, 1947 3. The Industrial Employment (Standing Orders) Act, 1946 Prescribed Books: 1. G.B. Pai, Labour Law in India (2001) 2. P.L. Malik, K.D. Srivastavas Law Relating to Trade Unions and Unfair Labour Practices in India (4th ed., 2002, with Supplement 2003) 3. S.C. Srivastava (Rev.) Labour Law and Labour Relations : Cases and Materials (Indian Law Institute, 2007) 4. E. M. Rao, O.P. Malhotras The Law of Industrial Disputes (6th ed., 2004) 5. K.D. Srivastava, Industrial Employment (Standing Orders) Act, 1946 (4th ed., 1998 with Supplement 2003)

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PART A : TRADE UNIONS The primary object of trade unions is to replace individual negotiation by collective bargaining with a view to ensure uniform and reasonable terms of employment and conditions of labour between the management and the representatives of trade unions in the interest of workers which would ultimately lead to lasting peace and harmony in the industry. The fundamentals of trade unionism are: (i) Right to form association (guaranteed to workers and/or employers as a fundamental or an ordinary right or both; (ii) Right of a trade union to be recognized as sole bargaining agent for the workers at the plant, local or national level; (iii) Right to collective bargaining (as a statutory obligation to bargain in good faith on voluntary basis); (iv) Right to permissible industrial action for bringing the parties to a negotiating table; and (v) Prevention of unfair labour practices. The right to form associations or unions is a fundamental right under Article 19(1)(c) of the Constitution of India. The right to form associations and unions and their registration was recognized for conferring certain rights on trade unions. The necessity to form unions is obviously for voicing the demands and grievances of labour. Trade unionists act as mouthpieces of labour. Topic 1 : General Evolution and Growth of Trade Unions in India Historical reasons for the formation of combinations of workers, legal impediments; Constitutional freedom to form associations and unions Constitution of India, Articles 19(1)(c), (4) and 33; International Labour Organisation - its influence in bringing changes in national legislations. 1. T.K. Rangarajan v. Government of Tamil Nadu (2003) 6 SCALE 84 2. B.R.. Singh v. Union of India (1989) 4 SCC 710 Topic 2 : Trade Union Definition, Registration and Recognition Definitions of trade union, workman and trade dispute - The Trade Unions Act, 1926, sections 2(g) and (h), 3-13, 15, 22 3. Rangaswami v. Registrar of Trade Unions, AIR 1962 Mad. 231 4. The Tamil Nad Non-Gazetted Government Officers Union, Madras v. The Registrar of Trade Unions, AIR 1962 Mad. 234 5. Registrar of Trade Unions v. Government Press Employees Union (1976) Lab 1C 280 (Mad.) 6. Tirumala Tirupati Devasathanam v. Commissioner of Labour (1995) Supp.(3) SCC 653 7. Tirumala Tirupati Devasthanam v. Govt. of A.P. (1995) Supp. (3) SCC 654 8. Delhi Police Non-Gazetted Karamchari Sangh v. Union of India, AIR 1987 SC 379 9. S.A. Sawant v. State of Maharashtra, AIR 1986 SC 617 10. In Re Inland Steam Navigation Workers Union, AIR 1936 Cal. 59 11. Chairman, SBI v. All Orissa State Bank Officers Association, AIR 2002 SC 2279 13 18 25 29 1 4

31

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Topic 3 : Immunities Criminal and Civil The Trade Unions Act, 1926, sections 17 and 18; The Indian Penal Code, sections 120-A, 120-B 12. R.S. Ruikar v. Emperor, AIR 1935 Nag. 149 13. Rohtas Industries Staff Union v. State of Bihar, AIR 1963 Pat. 170 (Also see Rohtas Industries v. Its Union, AIR 1976 S.C. 425) 14. Standard Chartered Bank v. Chartered Bank Employees Union (1997) 68 DLT 391 15. Common Cause v. Union of India (1996) 1 C.C.C. 242 (NCDRC) PART B : INDUSTRIAL DISPUTES Topic 4 : Industry Conceptual Analysis The Industrial Disputes Act, 1947, section 2(j) 16. Bangalore Water Supply and Sewerage Board v. A. Rajappa, AIR 1978 SC 548 17. General Manager, Telecom v. A. Srinivasa Rao (1997) 8 SCC 767 18. Coir Board, Ernakulam v. Indira Devi, PS (I), AIR 1998 SC 2801 19. Coir Board, Ernakulam, Kerala State v. Indira Devi,PS (II) (2000) 1 SCC 224 20. M.G.T. of Som Vihar Apartment Owners Housing Maintenance Society Ltd. v. Workmen, AIR 2002 SC 2530 21. State of U.P. v. Jai Bir Singh (2005) 5 SCC 1 Topic 5 : Industrial Dispute v. Individual Dispute - Contrast The Industrial Disputes Act, 1947, sections 2(k), 2A 22. Workmen of Dimakuchi Tea Estate v. Management of Dimakuchi Tea Estate, AIR 1958 SC 353 23. Bongalgaon Refinery & Petrochemicals Ltd. v. Samijuddin Ahmed, AIR 2001 SC 3507 24. Municipal Corporation of Delhi v. Female Workers (Muster Roll) AIR 2000 SC 1274 : (2000) 3 SCC 224 25. J.H. Jadhav v. Forbes Gokak Ltd. (2005) 3 SCC 202 Topic 6 : Concept of Workman Distinction between contract for services and contract of service: Due control and supervision test; Predominant nature of duty test, The Industrial Disputes Act, 1947, section 2(s) 118 57 101 35 38 45 50

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126 131

26. Dharangadhra Chemical Works Ltd. v. State of Saurashtra, AIR 1957 SC 264 27. Mangolore Ganesh Bidi Workers v. Union of India (1974) 4 SCC 43 28. Indian Banks Association v. Workmen of Syndicate Bank, AIR 2001 SC 946 : (2001) 3 SCC 36 29. Hussainbhai v. Alath Factory Tezhilali Union, AIR 1978 SC 1410 30. A. Sundarambal v. Government of Goa, Daman & Diu, AIR 1988 SC 1700 31. H.R. Adyanthaya v. Sandoz (India) Ltd. (1994) 5 SCC 737 32. S.K. Maini v. M/s.Carona Sahu Co. Ltd. (1994) 3 SCC 510 33. G.B. Pant University of Agriculture & Technology, Pant Nagar, Nanital v. State of U.P. (2000) 7 SCC 109 Topic 7 : Strike & Lock out

134 140 163 169 171 175

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Concepts, legality and justification The Industrial Disputes Act, 1947, sections 2(q), 2(l), 2(n), 10(3), 10A(3A), 22-28; The Industrial Employment (Standing Orders) Act, 1946; The Essential Services Maintenance Act, 1981 34. Management of Chandramalai Estate v. Its Workmen, AIR 1960 SC 902 35. Gujarat Steel Tubes Ltd. v. Gujarat Steel Tubes Mazdoor Sabha (1980) 2 SCC 593 : (1980) 1 LLJ 137 (SC) 36. B.R. Singh v. Union of India (1989) 4 SCC 710 37. Syndicate Bank v. K. Umesh Nayak (1994) 5 SCC 572 38. Essorpe Mills Ltd. v. P.O.; Labour Court (2008) 7 SCC 594 Topic 8 : Lay off Retrenchment & Closure Analysis of the Concepts, Pre-requisites, The Industrial Disputes Act, 1947, sections 2(cc), 2(kkk), 2(oo), Chapters VA, VB; The Industrial Employment (Standing Orders) Act, 1946 39. Mohan Lal v. The Management of M/s. Bharat Electronics Ltd., AIR 1981 SC 1253 40. Punjab Land Development and Reclamation Corporation Ltd. v. Presiding Officer, Labour Court (1990) 3 SCC 682 41. State of Rajasthan v. Rameshwar Lal Gahlot, AIR 1996 SC 1001 42. Uptron India Ltd. v. Shammi Bhan, AIR 1998 SC 1681 43. S.M. Nilajkar v. Telecom. District Manager, Karnataka (2003) 3 SCALE 533 44. The Workmen of Fire Stone Tyre & Rubber Co. Pvt. Ltd. v. Fire Stone Tyre & Rubber Co. Pvt. Ltd. (1976) 3 SCC 819 : AIR 1976 SC 1775 45. Orissa Textile and Steel Ltd. v. State of Orissa, AIR 2002 SC 708 46. U.P. State Brassware Corporation Ltd. v. Uday Narain Pandey (2006) 1 SCC 479 195

198 212

217 233 234 239

245 250

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IMPORTANT NOTE: 1. The topics and cases given above are not exhaustive. The teachers teaching the course shall be at liberty to add new topics/cases. 2. The students are required to study the legislations as amended up-to-date and consult the latest editions of books. 3. The question paper shall include one compulsory question. The question papers set for the examinations held during 2007-08 and 2008-09 are printed below for guidance of the students. ***** LL.B. III Term Examinations, December, 2008 Note: Answer five question including Question No. 1 which is compulsory. All questions carry equal marks.

1. Attempt briefly any four of the following (a) How many persons are required for registration of a Trade Union? What is the effect of withdrawal of a member? (b) Describe the mode of registration of a Trade Union Under Sec. 4 of the Trade Unions Act, 1926. (c) Employers power to lay-off workmen. (d) Distinction between. look out and closure under the Industrial Disputes Act, 1947. (e) Under which circumstances the laid off workmen are not entitled to compensation Under Sec. 25-E of the Industrial Disputes Act, 1947. 2. The concept of retrenchment is fraught with confusion and uncertainty. In its ordinary parlance, it means discharge of surplus labour. But in certain decisions the courts have not strictly adhered to this meaning and have deviated from it to suit to the exigencies of various fact situations. Comment. 3. (a) Neither the desire of the members, nor registration or any other formality, but the principal objects of the union or combination is the only test to ascertain as to whether the combination is a trade union or not. Elucidate. Can the following be registered as Trade Union under the Trade Unions Act, 1926? (i) Domestic Servants Employees Association, (ii) NDPL (North Delhi Power Limited) Employees Association?

(b)

4. Discuss the nature and extent of immunity granted to registered trade unions. Their office bearers and members under section 18 of the Trade Unions Act, 1926. 5. It seems fairly obvious that if the expression any person occurring in the third part of the definition of Industrial Dispute [Sec. 2(k)] is given its ordinary meaning, then the

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definition clause will be so wide as to become inconsistent not merely with the objects and other provision of the Act, but also with the other parts of that very clause [Das, C.J., in Workmen of Dimakuchi Tea Estate v. Management of Dimakuchi Tea Estate, AIR 1958 S.C. 353]. Explain. 6. An activity to be an industry it is not necessary that it must be carried on by private enterprise or must be commercial or result in profit. This result is reached by extending the meaning of undertaking to cover activities not strictly trade or business but objects very similar. Critically examine the correctness of the above statement in the light of provision of S.2 (j) of the Industrial Dispute Act, 1947. 7. (a) (b) A legal strike may be unjustified and an illegal strike may be justified. Discuss the legal validity of this statement in the context of law relating to strikes in India. Are workmen entitled to wages for participation in illegal strikes?

8. Discuss the definition of Workman under Sec.2(s) of the ID Act, 1947 and decide whether the following are covered by the said definition of Workman: (a) X is employed by the manufacturing of toilet soap for canvassing sales and distributing free samples in a particular locality. He is not required to do any other work. (b) P, a pilot with Air India and drawing Rs. 15,000 p.m. ***** LL.B. III Term (Supplementary) Examinations, May-June, 2009 Note: Attempt five questions including Question No. 1 which is compulsory. All questions carry equal marks.

1. Attempt briefly any four of the following: (a) Distinction between lock out and closure under the I.D. Act, 1947. (b) Powers of the Registrar under the Trade Unions Act, 1926 to cancel registration of a Trade Union. (c) Distinction between contract of service and contract for service. (d) Pre-requisities for lay-off compensation. (e) Right of Government employees to strike. 2. With the object of securing better service conditions through collective bargaining, members of the teaching staff of Government Medical College of State A form themselves into an association called Government medical College Teaching Staff Association and apply for registration to the Association as a trade union under the Trade Union Act, 1926. The Registrar refuses registration to the Association on the ground that teachers are not workmen and medical College of State Government is not industry under the Act. The Association wants to file an appeal against the order of the Registrar.

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You are required to advice in the light of the legal provisions and the judicial decisions on the correctness of the order of the Registrar. 3. A trade union whose members strike work to force the employer to concede to their demands cannot be held liable to compensate the employer for any loss resulting from their action in terms of non-production, breach of contract, etc. Discuss this view in the light of statutory provisions and judicial decisions. 4. Examine whether the following activities fall within the definition of industry under section 2(j) of the I.D. Act, 1947. (a) Posts and Tele-communication Department (b) Law firm employing junior lawyers and paralegal staff. (c) A club set up by residents of a colony for providing recreation to them and their guests in which there are more than 15 employees working to provide such facilities. (d) Physical Research Laboratory under the Government of Indias Department of Space. 5. (a) As a judge while deciding as to whether a person is a workman or not, how will you approach the definition of workman in Section 2(5) of the I.D. Act, 1947. (b) Are following workman within the meaning I.D. Act, 1947: (i) A medical representative in a pharmaceutical firm drawing a salary of Rs. 5,000 p.m. (ii) A pilot in an airline drawing salary of Rs. 50,000 p.m. 6. Discuss the following statements: (a) A dispute in an industry which does not concern workmen can also be termed as industrial dispute. (b) A dispute regarding the discharge of a workman is also an industrial dispute. (c) Last come first go rule must be strictly followed by the employers while terminating the services of the workman. 7. (a) What are the essential characteristics of strike under s.2 (q) of the I.D. Act? Do the following fall with the definition of strike : (i) Go-slow (ii) Work to rule (iii) Pen down strike. (b) Discuss the consequences of workers participation in strike with special reference to the question of workers entitlement to wages during the period of strike. 8. The concept of retrenchment under the Industrial Disputes Act, 1947 is not confined to termination of services on account of labour aurplusage only but encompasses within it all terminations except those specifically excluded in the definition. Critically examine the above statement bringing out the correct legal position on the subject. Also state the circumstances in which retrenchment by the employer of his workman can be held bad in law entitling the workman ordinarily to reinstatement with back wages.

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LL.B. III Term Examinations, December, 2010 Note: Answer five question including Question No. 1 which is compulsory. All questions carry equal marks.

1. Attempt briefly any four of the following (a) Explain the powers of the Registrar under the Trade Unions Act, 1926 to cancel registration of a Trade Union. (b) Highlight the difference between contract of service and contract for service. (c) Comment on the law on Lay-off. (d) What are the circumstances under which a strike is considered not illegal? (e) What are the circumstances under which an individual dispute may become an industrial dispute? 2. Critically examine the definition of Trade Union under the Trade Union Act, 1926. The Cycle Rickshaw drivers of Delhi form an association in the same of Delhi Cycle Rickshaw, Drivers Union with the object of empowering themselves and to ensure better bargaining position on the fares that may be charged on the passengers. Examine whether the Union could be registered under the Trade Unions Act, 1926. 3. Explain the triple test formulated in the Bangalore Water Supply case and examine whether the approach and interpretation of the Supreme Court in that case is acceptable to you or not. Substantiate your answer in the light of the development thereafter. 4. Today, the organized labour has acquired even the power of holding the society at large, to ransom, by withholding labour and thereby compelling the managements to give in to their demands whether reasonable or unreasonable. Critically examine the statement in the light of judicial decisions and see whether a policy of No Work No Pay is justified or not. 5. Write short notes on the following: (a) Immunities of trade unions under the Trade Union Act, 1926. (b) Distinctions between Lock-out and Closure. 6. What is Retrenchment under the Industrial Disputes Act, 1947? Explain the law on the subject highlighting the judicial decisions in India, in this regard. 7. Who is a workman under Section 2(S) of the Industrial Disputes Act, 1947? Discuss whether the following persons would fit in the definition of Workman under the I.D. Act, 1947. Give reasons for your answer. (a) An agent of an insurance Company who is canvassing for people to insure on a commission basis. (b) A Medical Representative, drawing a salary of Rs. 10,000/- and also getting an additional commission of 4% on the basis of the monthly sales.

8. Examine the scope of the expression any person appearing in the definition of Industrial dispute under the I.D. Act, 1947. Explain your views in the light of relevant case law.

LL.B. III Term Supplementary Examinations, June-July, 2011 Note: Answer five question including Question No. 1 which is compulsory. All questions carry equal marks.

1. Attempt briefly any four of the following (a) Explain the objectives of Trade Unions Act 1926. (b) Pre-requisities for lay off (c) Distinguish between Closure and Lockout (d) Powers of the Registrar of Trade Unions under the Trade Unions, Act, 1926. (e) Distinguish between contract of service and contract for service. 2. Discuss the definition of Trade Union under the Trade Unions, Act 1926. What is latest judicial approach in interpreting this definition? 3. There are certain immunities and privileges available to the Registered Trade Unions from liability for Criminal Conspiracy, breach of contract and tortuous liabilities. But these are not unconditional ones. Explain the extent and conditionalities for availing these immunities. 4. Do you think that the triple test propounded by the Constitution Bench of the Apex Court in Banganlore water supply case in still valid of determining whether any activity is an industry or not? Discuss it in the light of legislature and judicial development in the field. 5. What are the ingredients of strike? Discuss the law relating to justifiability, legality and illegality of strikes in the light of judicial decisions. 6. Define the concept of Industrial Dispute and explain whether the dispute between the management of school and teacher relating to his dismissal is an Industrial Dispute? 7. Critically examine the law relating to retrenchment under the Industrial Disputes Act, 1947. 8. Are the following workman under the Industrial Disputes Act, 1947? Given reasons for your answer. (a) A Teacher is a Primary School (b) A Sales representative in a pharmaceutical company (c) A Pilot of an Airlines company drawing wages Rs. 2 Lacs per month (d) A Carpenter employed in a jail

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LL.B. III Term Labour Law I

[The Trade Unions Act, 1926 The Industrial Disputes Act, 1947 The Industrial Employment (Standing Orders) Act, 1946]

Cases Selected and Edited by

B.T. Kaul P.S. Lathwal Rajan Varghese S.K. Gupta O.B. Lal O.P. Sharma Anu Gireesh Kumar

FACULTY OF LAW
UNIVERSITY OF DELHI, DELHI-110 007
July, 2011