Trade Union Act 1926 – Key Points

Trade Union: any combination (temporary/permanent) formed mainly to regulate relations between workmen-employers / workmen-workmen / employers-employers or to impose conditions on trade; includes federations.
Act: Trade Unions Act $1926$ ; extends to whole of India; enforced on date notified by Central Govt.

Eligibility: Minimum $7$ members may apply.
Extra for workmen unions: at least $\min(10\%,100)$ of workers (but $\ge 7$ ) must be members on application date.
Application to Registrar must attach rules + list (names, occupations, addresses, office-bearers, assets/liabilities if > $1$ yr old).
Mandatory rule contents: name; objects; permissible fund use; member list & inspection; admission criteria; minimum subscription (rural $1$ ₹, other unorganised $3$ ₹, otherwise $12$ ₹ p.a.); benefits & penalties; rule-change method; election/tenure (≤ $3$ yrs) of office-bearers; audit & custody of funds; dissolution mode.
Registrar can demand particulars / name change; on satisfaction issues Certificate (conclusive proof).
Ongoing membership requirement (Sec $9A$ ): same numeric threshold as at registration.
Cancellation (Sec $10$ ): on union’s request; fraud/mistake; contravention; ceased to exist; membership falls below requirement – after $2$ -month notice.
Appeal: High Court / Labour Court / designated Civil Court within prescribed period.
Registered office: change to be notified within $14$ days.
Incorporation: registered union becomes body corporate with perpetual succession & common seal.

General Fund uses (Sec $15$ ): admin costs, legal action, trade disputes, member compensation, welfare, periodicals, contributions (≤ $\frac14$ annual income + opening balance), any object notified.
Political Fund (Sec $16$ ): separate, voluntary; for electoral/legislative activities, meetings, literature etc.; non-contributors suffer no disadvantage.
Immunities:
• Criminal conspiracy (Sec $17$ ): no liability under IPC $120B(2)$ for acts furthering objects in Sec $15$ (except agreements to commit offences).
• Civil suits (Sec $18$ ): no liability for inducing breach of employment contract or interference with trade when in furtherance of trade dispute; no vicarious tort liability if agent acted without executive’s knowledge/contrary instructions.
Agreements between members not void for restraint of trade (Sec $19$ ) – but courts won’t enforce such agreements.
Inspection rights: books & member list open to members/office-bearers (Sec $20$ ).
Minors: persons $\ge 15$ yrs may join with full rights (Sec $21$ ).
Disqualification of office-bearers (Sec $21A$ ): < $18$ yrs or conviction for moral turpitude within last $5$ yrs.
Composition (Sec $22$ ):
• Unorganised sector: ≥ $50\%$ office-bearers must be employed in concerned industry.
• Other sectors: outsiders limited to $\min\left(\tfrac13\text{ of total},5\right)$ .
• Ministers/holders of profit posts (unrelated) barred.

Change of name (Sec $23$ ): consent of ≥ $\tfrac23$ total members + Registrar approval.
Amalgamation (Sec $24$ ): votes of ≥ $50\%$ members recorded & ≥ $60\%$ of votes cast favour proposal; notice to Registrar(s).
Effects (Sec $26$ ): rights/obligations & legal proceedings unaffected.

Dissolution: notice within $14$ days signed by $7$ members + secretary; Registrar registers if rule-compliant; if rules silent on fund distribution, Registrar divides per rules.
Annual returns (Sec $28$ ): audited statement of receipts, expenditure, assets, liabilities for year ending $31$ Dec; list of office-bearer changes; rule amendments within $15$ days; Registrar may inspect documents ≤ $10$ miles from office.

Govt may frame regulations (Sec $29$ ) on registration, transfer, audit, inspection etc.; published after $3$ -month draft period (Sec $30$ ).

Failure to file returns: fine up to $5$ ; continuing default $5$ per week; cap $50$ .
False entries: fine up to $500$ .
Supplying false rules/info: fine up to $200$ .
Jurisdiction: only Presidency Magistrate / 1st-class Magistrate; complaint within $6$ months; Registrar sanction needed (except Sec $32$ ).

Registration grants corporate status & statutory immunities but imposes membership thresholds, governance rules & reporting duties.
Funds strictly regulated: general vs voluntary political.
Significant immunities exist for acts in furtherance of trade disputes, yet no protection for criminal offences.
Governance emphasises democratic control by actual workers and integrity of office-bearers.
Compliance lapses attract modest fines and Registrar oversight.