http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 8  

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

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 8  

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:-

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 8  

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.   

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 8  

       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

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 8  

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.

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 8  

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

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 8  

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

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 8  

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.