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RAJIV GANDHI NATIONAL UNIVERSITY OF LAW
LABOR AND INDUSTRIAL LAWS
CASE LAW: BOKAJAN CEMENT CORPORATION EMPLOYEES’ V. CEMENT
CORPORATION, (2004) 1 SCC 142
Submitted By: Submitted To:
Kunal Jain Dr. Shiva Satish Sharda
Roll No. 17010 Assistant Professor
4th Semester, B.A. LLB. (Hons.) Law
Group 17
Case Law: Bokajan Cement Corporation Employees’ Union V. Cement Corporation of India Ltd.
TABLE OF CONTENTS
1. INTRODUCTION ........................................................................................................................ 3
2. FACTS OF THE CASE AND THE JUDGMENT............................................................................... 4
2.1. Facts of the Case ................................................................................................................... 4
2.2. Application of the Laws Involved .......................................................................................... 4
2.3. The Judgment........................................................................................................................ 6
CONCLUSION.................................................................................................................................... 7
3. BIBLIOGRAPHY ......................................................................................................................... 8
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Case Law: Bokajan Cement Corporation Employees’ Union V. Cement Corporation of India Ltd.
CASE LAW: BOKAJAN CEMENT CORPORATION EMPLOYEES’ V.
CEMENT CORPORATION, (2004) 1 SCC 142
-By Kunal Jain*
1. INTRODUCTION
The judgment of Bokajan Cement Corporation Employees Union V. Cement Corporation
of India1 was given by the Supreme Court in the year 2004 after the decision made by the
High Court of Gauhati2. For the purpoe of the decision, reliance was placed on section 6(E)
of the Trade Unions Act, 1926. The question in this case was whether an employee ceases
to be in exercise of his right to be a member of the trade union as a result of cessation of
employment.
The high court, before the case was appealed, held that the right to continue as a member
of the trade union continues so long as an employee is actually employed. For its conclusion
reliance was placed by the high court on Section 6 of the Trade Unions Act, 1926 and
clause 5 of the constitution of the Bokajan Cement Corporation Employees’ Union. The
high court held that the membership of a trade union is not a benefit that accrues to
employees so as to claim its continuance even after an employee ceases to be in
employment; his right continues so long as he remains employed and on cessation of
employment, membership of the trade union cases.
The case entails the application of the Trade Union Act, 1926. The law relating to the
registration and protection of the Trade Unions is contained in the Trade Unions Act, 1926
which came into force with effect from 1st June 1927. The Act extends to the whole of
India except the State of Jammu and Kashmir.
*
17010, Batch of 2022, Rajiv Gandhi National University of Law, Patiala, Punjab.
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Bokajan Cement Corporation Employees Union V. Cement Corporation, (2004) 1 SCC 142
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Bokajan Cement Corporation Employees Union V. Cement Corporation, (2004) 1 SCC 142
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Case Law: Bokajan Cement Corporation Employees’ Union V. Cement Corporation of India Ltd.
2. FACTS OF THE CASE AND THE JUDGMENT
2.1. Facts of the Case
The dispute arose relating to elections of the office bearers of the petitioner trade union.
The assistant labor commissioner prepared a list of members of the trade union for the
purposes of annual general meeting and the elections scheduled to be held in future. He
deleted the names of 102 contract labourers form the list as well as that of Pratap Bora,
who was elected as general secretary of the trade union in the previous election. Quashing
of the list as prepared excluding the aforesaid members was prayed for in the writ petition.
It was also prayed that a direction be issued for inclusion of the names of 103 persons in
the list of members. The learned single judge considering the matter at length, quashed the
list prepared by the labour commissioner and further directed him to prepare a fresh
membership list. So far Pratap Bora is concerned , it has been held that the order of
dismissal of Pratap Bora being under challenge in the proceeding before labour court, he
cannot be considered to be an outsider.
2.2. Application of the Laws Involved
The admission of ordinary members who shall be persons actually engaged or employed
in an industry with which the trade union is connected, and also the admission of the
number of honorary or temporary members as office bearers required under section 22 to
form the executive of the trade union, section 22 of the Trade Unions Act, 1926 provides
as under :
Proportion of officers to be connected with the industry - Not less than one-half of the total
number of the office-bearers of every registered Trade Union in an unrecognized sector
shall be persons actually engaged or employed in an industry with which the Trade Union
is connected: Provided that the appropriate Government may, by special or general order,
declare that the provisions of this section shall not apply to any Trade Union or class of
Trade Unions specified in the order.
Section 2(h) defines the expression 'trade union'. It reads:
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Case Law: Bokajan Cement Corporation Employees’ Union V. Cement Corporation of India Ltd.
'"Trade union' means any combination, whether temporary or permanent, formed primarily
for the purpose of regulating the relations between workmen and employers or between
workmen and workmen, or between employers and employers, or for imposing restrictive
conditions on the conduct of any trade of business, and includes any federation of two or
more Trade Unions:
Provided that this Act shall not affect-
(i) any agreement between partners as to their own business;
(ii) any agreement between an employer and those employed by him as to such
employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business or of
instruction in any profession, trade or handicraft."
Section 22, inter alia, provides that not less than one-half of the total number of the office-
bearers of every registered trade union in an unrecognized sector shall be persons actually
engaged or employed in an industry with which the trade union is connected.
It is, thus, clear that the rules of the trade union have to provide for the admission of
ordinary members who shall be persons actually engaged or employed in an industry with
which the trade union is connected, and also the admission of the member of honorary or
temporary members as office bearers required under Section 22 to form the executive of
the trade union. The Constitution of trade union has, inter alia, to comply Section 6(e) so
as to seek registration under the Act.
it is also necessary to examine the relevant provisions of the Constitution of the appellant
trade union.
Clause 5 of the Constitution of the trade union reads as under:
"Membership: Any worker employed by the Cement Corporation of India Ltd., directly or
indirectly throughout shall be eligible for the membership of the Union provides he/she
accepts the constitution, Bye-laws and discipline of the Union and pays the stipulated
admission fee of Re. 1.00 along with stipulated subscription."
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Case Law: Bokajan Cement Corporation Employees’ Union V. Cement Corporation of India Ltd.
Relying upon the aforesaid clause 5 and laying great emphasis on the word 'throughout'
therein, it is contended by Mr. Reddy that continuing in employment all through so as to
remain a member of the trade union has been clearly provided in the Constitution and,
therefore, on discontinuance of employment, the membership of trade union would
automatically cease. The Constitution of a trade union is not required to be construed as a
statute. It deserves to be construed broadly and liberally. The Act and the Constitution of
the trade union, unless clearly stipulate otherwise, deserve to be interpreted so as to
advance the interest of the trade union and its members. The membership of a trade union
is a valuable right which can be taken away only within clear parameters of the Act and
the Constitution of the trade union
2.3. The Judgment
It was held that in view of the provisions in the constitution of the trade union and in
absence of any provision providing for cessation of membership as a result of cessation of
employment, it cannot be held that an employee would cease to be a member of the trade
union on termination of his employment. The judges relied on the decision of the court in
State Bank of India Staff Assn. V. State Bank of India where it was held that the
management was not supposed to negotiate with the retired employee as general secretary
of the Bank’s staff association since he ceased to be an employee of the bank after
retirement.3 In the said case, the relevant rules and the constitution of the state bank india
staff association provided that after retirement from the Bank’s service, ordinary members
shall not continue the said rules.
State bank of India staff assn. case does not lay down the clause of section 6 provides for
cessation of membership. In our view, it only provides for admission of membership. In
the courts view it only provides for admission of membership. In the absence of any
provision in the constitution of the trade union for automatic cessation of membership as a
result of cessation of employment, it cannot be held that that an employee would cease to
be such a member if he ceases to be a member of the trade union in such an eventuality.
3
State Bank of India Staff Assn. V. State Bank of India, (1996) 4 SCC 378
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Case Law: Bokajan Cement Corporation Employees’ Union V. Cement Corporation of India Ltd.
CONCLUSION
Before the case was appealed to the supreme court, the high court held that the membership
of a trade union is not benefit that accrues to the employee so as to claim its continuance
even after he ceases to be in employment.
The supreme court on the other hand stated that there is no specific provision in the act
which provides for automatic cessation of membership of the trade union. However, the
act requires that the rules of the trade union should provide for admission of members who
shall be persons actually engaged or employed in an industry with which the trade union is
connected.
The Supreme Court assessed the provisions of the TUA and the constitution of the trade
union and ruled that membership related provisions provided for the criteria for the
admission of members. Furthermore, they also set down scenarios in which the
membership of a person would be liable to be cancelled, which include non-payment of
dues, misconduct etc. The SC felt that if automatic cessation of membership upon cessation
of employment was the intent of the legislature, it would have been so provided under the
act. However, in the absence of such provision, it cannot be held that any such automatic
cessation should happen.
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Case Law: Bokajan Cement Corporation Employees’ Union V. Cement Corporation of India Ltd.
3. BIBLIOGRAPHY
CASES
• State Bank of India Staff Association v. State Bank of India [1996] 4 SCC 378.
STATUTES
• The Trade Unions Act (1926)
