High Court of KeralaSingle JudgeWrit petition dismissed; Ext.P10 order stands; ...

The Registrar of Trade Unions (Labour Commissioner) and Deputy Registrar of Trade Unions (District Labour Officer) v Social Democratic Trade Union and Labour Court

Case / Petition Number:WP(C) No.16270/2023

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • N. Nagareesh, J.
Judgment Date
2024-07-25
Court Decision / Holding
Writ petition dismissed. The High Court upheld the Labour Court’s Ext.P10 order, concluding that the Labour Court properly appreciated law and facts; Ext.P10 cannot be said to be suffering from any error or illegality, thereby sustaining the reversal of cancellation and allowing the appeal.
Final Disposition
Writ petition dismissed; Ext.P10 order stands; Labour Court’s decision to allow the appeal is sustained.

Parties to the Case

Appellants / Petitioners

  • The Registrar of Trade Unions (Labour Commissioner), Office of the Labour Commissioner, Thiruvananthapuram
  • The Deputy Registrar of Trade Unions (District Labour Officer), Civil Station, Kozhikode

Respondents

  • Social Democratic Trade Union, Kozhikode
  • Labour Court, Kozhikode

Legal Representation & Advocates

Counsels for Petitioners

  • • Government Pleader

Counsels for Respondents

  • • M. Asokan
  • • P. K. Ibrahim
  • • K. P. Ambika
  • • Sreeji K.B.

Case Synopsis & Summary

This is a Kerala High Court writ petition challenging Ext.P10, a Labour Court order (TUA.1/2022) dated 31.05.2022, which allowed an appeal challenging the cancellation of the 1st respondent Trade Union’s Certificate of Registration. The petitioners—The Registrar of Trade Unions and the Deputy Registrar—had earlier issued notices under Section 10 of the Trade Unions Act, proposing cancellation after finding that the registration, granted on 19.03.2013 (Ext.P2) to the 1st respondent Union, was obtained by misrepresentation since the application did not specify the exact trades/industries in which the Union would operate. The 1st respondent-union contended registration was granted after due enquiry and that it functioned across multiple trades, not confined to a single establishment. The Labour Court, relying on the Supreme Court’s decision in D’Souza R.G. v. Poona Employees Union, held that cancellation under Section 10 for mistakes in grant is not permissible where it results from incorrect assessment or non-application of mind, allowing the appeal by the 1st respondent. The Government Pleader argued that registration must be for workers in specific trades/industries. The High Court, after analyzing facts and law, found that Ext.P10 was properly considered and that the Labour Court’s approach was correct; therefore the writ petition is dismissed and Ext.P10 stands. The court concluded no error or illegality in the Labour Court’s order.

Provisions of Law Cited

Section 11 of the Trade Unions Act, 1926Section 10 of the Trade Unions Act, 1956

Legal Doctrines & Maxims

  • Trade unions must function in particular Trade/Industry/Establishment; registration can be questioned if obtained by fraud or mistake.
  • Cancellation under Section 10 is permissible for fraud or mistake, but Supreme Court in D’Souza R.G. v. Poona Employees Union holds cancellation cannot be based on a mere mistake due to incorrect assessment.

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contended that Ext.P10 is illegal as the registration was allegedly obtained by misrepresentation and that the Trade Unions Act requires registration to be specific to certain trades/industries. They argued that the Labour Court erred by not properly applying Section 10 and by relying on a flawed assessment, and that Civil Appeal No.10129/2010 is not applicable to the facts.

Contentions of Respondents

The respondents argued that registration was granted after due enquiry and that the Union functions across multiple trades; they challenged the cancellation by the Registrar as improper, asserting that Section 11 of the Trade Unions Act allows the Labour Court to hear and decide the matter and that the Labour Court correctly reversed the cancellation based on the facts and law.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
D'Souza R.G. v. Poona Employees Union and another(2015) 2 SCC 526PositiveCited to explain that Section 10 cancellation is not permissible for mistakes due to incorrect assessment; the Supreme Court’s view supports limitations on canceling a registration granted by mistaken reasoning.
Civil Appeal No.10129/2010Civil Appeal No.10129/2010Mentioned OnlyMentioned by the Government Pleader as not applicable to the facts; not used as a binding basis for the decision.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE N.NAGARESH** **THURSDAY, THE 25[TH] DAY OF JULY 2024 / 3RD SRAVANA, 1946 WP(C) NO. 16270 OF 2023** ## **PETITIONERS:** - **1 THE REGISTRAR OF TRADE UNIONS (LABOUR COMMISSIONER), OFFICE OF THE LABOUR COMMISSIONER, THIRUVANANTHAPURAM** - **2 THE DEPUTY REGISTRAR OF TRADE UNIONS (DISTRICT LABOUR OFFICER), CIVIL STATION, KOZHIKODE** ## **BY GOVERNMENT PLEADER** ## **RESPONDENTS:** - **1 THE SOCIAL DEMOCRATIC TRADE UNION, THAZHATTU BUILDING, PUTHIYARA ROAD, NEAR AGRICULTURE BANK, PUTHIYARA, KOZHIKODE, PIN - 673004 REPRESENTED BY ITS GENERAL SECRETARY, MR.NOUSHAD MANGALASSERY.** - **2 THE LABOUR COURT, REPRESENTED BY SECRETARY, KOZHIKODE, PIN – 673004** **BY ADVS. SRI.M.ASOKAN, R1 SRI.P.K.IBRAHIM SMT.K.P.AMBIKA SRI.SREEJI K.B.** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 23.07.2024 AND THE COURT ON 25.07.2024 DELIVERED THE FOLLOWING:** W.P.(C) No.16270/2023 : 2 : ## **N. NAGARESH, J.** ````````````````````````````````````````````````````````````` ## W.P.(C) No.16270 of 2023 ````````````````````````````````````````````````````````````` _Dated this the 25[th] day of July, 2024_ ## **J U D G M E N T** ~ ~ ~ ~ ~ ~ ~ ~ ~ The Registrar and the Deputy Registrar of Trade Unions are the petitioners in this writ petition. They are aggrieved by Ext.P10 order dated 31.05.2022 of the Labour Court, Kozhikode in TUA.1/2022. By Ext.P10, the Labour Court, Kozhikode held that the order dated 03.11.2021 of the Deputy Registrar of Trade Unions cancelling the registration of the appellant-Trade Union is illegal. 2. The Government Pleader representing the petitioners submitted that the 1[st] respondent-Trade Union submitted Ext.P1 application for registration under the Trade Unions Act. The 1[st] respondent-Union was registered as a Trade Union as per Ext.P2 Certificate of Registration dated W.P.(C) No.16270/2023 : 3 : 19.03.2013. The petitioners state that later they came to understand that the 1[st] respondent is not a Union representing workers of any particular Trade / Industry / Establishment. As per Ext.P3 bye-laws, the objectives of the 1[st] respondent are not limited to the workers of one Trade / Establishment / Industry. 3. The 2[nd] petitioner therefore issued Ext.P4 notice dated 11.02.2016 to the 1[st] respondent proposing cancellation of Certificate of Registration granted. In Ext.P4, the 2[nd] petitioner stated that the registration was obtained by the 1[st] respondent by misrepresentation of facts. The 1[st] respondent submitted Ext.P6 reply. Ext.P6 reply was not satisfactory. The 2[nd] petitioner hence passed Ext.P7 order dated 03.11.2021 cancelling the registration of the 1[st] respondent. 4. The 1[st] respondent thereupon filed Ext.P8 TUA.1/2022 invoking Section 11 of the Trade Unions Act. The petitioners state that the Labour Court, without properly appreciating the facts and without providing sufficient W.P.(C) No.16270/2023 : 4 : opportunity to the petitioners, passed Ext.P10 order allowing the appeal. Ext.P10 order is patently illegal and is liable to be interfered with, contended the Government Pleader. 5. The Government Pleader representing the petitioners submitted that in terms of the Trade Unions Act, a Trade Union has to be of workers of one or more particular Trade / Industry / Establishment. The 1[st] respondent, in their application, did not divulge as to the Trades / Industries / Establishments in which the 1[st] respondent-Union is functioning. The Government Pleader submitted that the judgment of the Hon'ble Supreme Court in Civil Appeal No.10129/2010 is not applicable to the facts of the case. The said case deals with registration/cancellation before the Amendment Act, 2001 which came into force with effect from 09.01.2002. Ext.P10 order is therefore liable to be set aside. 6. The 1[st] respondent resisted the writ petition filing a counter affidavit. The 1[st] respondent pointed out that their application was resubmitted after curing all defects. All necessary supporting documents accompanied the W.P.(C) No.16270/2023 : 5 : application. Registration was granted to the 1[st] respondentUnion after due enquiry by the Assistant Labour Officer. The 2[nd] petitioner, after scrutinising the documents, found that registration can be granted to the 1[st] respondent under the head “Others”. 7. The 1[st] respondent-Union has been working since then, organising workers in various Trades. It has participated in referendums conducted by various establishments. The allegation of the petitioners that registration was granted by misrepresentation has been emphatically denied by the 1[st] respondent. 8. The counsel for the 1[st] respondent relied on the judgment of the Hon’ble Apex Court in _**D'Souza R.G. v. Poona Employees Union and another** [(2015) 2 SCC 526]_ and contended that the Trade Unions Act permits the authority to cancel the registration of a Trade Union if it is obtained by fraud or mistake, but does not permit the authority to cancel the Certificate of Registration if the same is granted by mistake due to incorrect assessment or non W.P.(C) No.16270/2023 : 6 : application of mind or mechanical act on the part of the authority. 9. I have heard the learned Government Pleader appearing for the petitioners and the learned counsel representing the 1[st] respondent. 10. The 1[st] respondent was granted Certificate of Registration dated 19.03.2013, as is evident from Ext.P2. In Ext.P1 application for registration, the 1[st] respondent stated that it is a “Union of workers engaged in the general workers in Kerala State”. The petitioners later found that the 1[st] respondent has not divulged the particular trade in which the Union is to function. Therefore, the petitioners issued Exts.P4 and P5 notices under Section 10 of the Trade Unions Act proposing to cancel the certificate of registration. By Ext.P7 order dated 03.11.2021, the registration was cancelled holding that the application for registration submitted by the 1[st] respondent contained incorrect information. W.P.(C) No.16270/2023 : 7 : 11. The 1[st] respondent filed TUA.1/2022 invoking Section 11 of the Trade Unions Act, 1926, in the Labour Court, Kozhikode. The Labour Court, relying on the judgment in _**D'Souza R.G.**_ (supra), held that the Registrar either by mistake or due to incorrect assessment or non application of mind may have issued a Certificate of Registration to the 1[st] respondent. Cancellation of registration of the appellant on that ground is invalid. The petitioners are challenging Ext.P10 order in TUA.1/2022. 12. Ext.P1 application submitted by the 1[st] respondent for registration as a Trade Union would show that the 1[st] respondent intended to function in the trade of “general workers in Kerala State”. The petitioners have granted Ext.P2 Certificate of Registration based on Ext.P1 application. Subsequently, the petitioners found that a Trade Union statutorily has to function in any particular Trades / Establishments. But, that cannot be a reason to arrive at a conclusion that the 1[st] respondent has obtained Certificate of Registration by misrepresentation of facts. W.P.(C) No.16270/2023 : 8 : 13. Section 10 of the Trade Unions Act, 1956 enables withdrawal or cancellation of Certificate of Registration of a Trade Union by the Registrar of Trade Unions. Section 10 permits the authority to cancel the registration of a Trade Union, if it is obtained by fraud or mistake. The Hon’ble Apex Court in the judgment in _**D'Souza R.G.**_ (supra) has categorically held that Section 10 does not permit the authority to cancel the Certificate of Registration, if the same is granted by mistake due to incorrect assessment. 14. Taking into consideration the facts of the case, I find that the Labour Court, Kozhikode has properly appreciated the law and facts while passing Ext.P10 order. Ext.P10 order cannot be said to be suffering from any error or illegality. The writ petition is therefore dismissed. Sd/- **N. NAGARESH, JUDGE** aks/23.07.2024 W.P.(C) No.16270/2023 : 9 : ## **APPENDIX OF WP(C) 16270/2023** ## **PETITIONER'S EXHIBITS** **Exhibit P1 TRUE COPY OF THE ABOVE APPLICATION DATED 24.12.2012 IN FORM A** - **Exhibit P2 TRUE COPY OF THE CERTIFICATE OF REGISTRATION OF TRADE UNIONS DATED 19.03.2013** - **Exhibit P3 TRUE COPY OF THE UNDATED BY LAWS CONCERNING THE 1ST RESPONDENT** - **Exhibit P4 TRUE COPY OF A NOTICE DATED 11.02.2016 ISSUED TO THE 1ST RESPONDENT BY THE 1ST PETITIONER** - **Exhibit P5 TRUE COPY OF A NOTICE DATED 03.06.2021 ISSUED BY THE 2ND PETITIONER TO THE 1ST RESPONDENT** - **Exhibit P6 TRUE COPY OF THE REPLY/EXPLANATION SUBMITTED BY THE 1ST RESPONDENT TO THE 2ND PETITIONER** - **Exhibit P7 TRUE COPY OF ORDER DATED 03.11.2021 ISSUED BY THE 2ND PETITIONER CANCELLING THE REGISTRATION OF THE 1ST RESPONDENT** - **Exhibit P8 TRUE COPY OF THE APPEAL DATED 30.03.2022 FILED BY THE 1ST RESPONDENT BEFORE THE 2ND RESPONDENT ALONG WITH TYPED COPY.** - **Exhibit P9 TRUE COPY OF THE UNDATED WRITTEN STATEMENT FILED BY THE PETITIONERS BEFORE THE 2ND RESPONDENT LABOUR COURT IN TUA 1/2022** - **Exhibit P10 TRUE COPY OF THE ORDER DATED 31.05.2022 OF THE 2ND RESPONDENT IN TUA NO.1/2022** **RESPONDENTS' EXHIBITS** **EXHIBIT-R1(A) TRUE COPY OF THE COVERING LETTER RECEIPT BY THE DISTRICT LABOUR OFFICER KOZHIKODE** W.P.(C) No.16270/2023 : 10 : **EXHIBIT-R1(B) TRUE COPY OF THE FORWARDING LETTER NO.777/2012 DATED 01.03.2013 OF THE ASSISTANT LABOUR OFFICER, KOZHIKODE TO THE 2ND PETITIONER EXHIBIT-R1(C) TRUE COPY OF THE FILE NOTE MAINTAINED AT THE OFFICE OF THE 2ND PETITIONER OBTAINED UNDER RTI ACT EXHIBIT-R1(D) TRUE COPIES OF THE FRONT PAGES OF THE RETURNS OF THE YEARS FROM 2013 TO 2021 ENDORSING ITS RECEIPT BY THE DISTRICT LABOUR OFFICER, KOZHIKODE**