Holding

Non‑recognised unions are limited to meeting the employer on individual grievances and representing members in domestic or departmental inquiries; they cannot partake in collective bargaining or appear before conciliation officers or tribunals, and the staff circular contravenes Rule 24.

Summary

The Supreme Court considered appeals by the State Bank of India challenging a High Court order that set aside a staff circular which barred the bank from dealing with a non‑recognised officers' association. The petitioners argued that the circular violated Rule 24 of the Verification of Membership and Recognition of Trade Unions Rules, 1994, which grants non‑recognised unions limited rights to discuss individual grievances and represent members in domestic or departmental inquiries. The Court examined whether a non‑recognised union is entitled to participate in collective bargaining, to be heard before conciliation officers or tribunals, and whether the bank’s conduct amounted to discrimination or unfair labour practice. It held that non‑recognised unions have only the limited rights enumerated in Rule 24 and that the bank cannot refuse dialogue on individual grievances, but they are not entitled to the broader bargaining rights of recognised unions. The Court found no serious illegality in the High Court’s judgment and dismissed the appeals.

Issues considered

The extent of rights of a non‑recognised trade union under the Trade Union Act and the 1994 Verification Rules
Whether a staff circular prohibiting any dialogue with a non‑recognised union is contrary to Rule 24
Whether the bank’s treatment of the non‑recognised association amounts to discrimination or unfair labour practice
Whether a non‑recognised union can appear before conciliation officers, labour courts or industrial tribunals

Legislation cited

Constitution of Indias. Article 19(1)(a), s. Article 19(1)(c)
Industrial Disputes Acts. 20(2)(b), s. 2A

Subjects

non‑recognised trade unionrecognition of trade unionscollective bargainingstaff circularunfair labour practiceconstitutional freedom of associationindustrial dispute

Judgment

CHAIRMAN, STATE BANK OF INDIA AND ANR. A
v.
ALL ORISSA STA TE BANK OFFICERS ASSOCtATION AND ORS.

MAY6,2002

[D.P. MOHAPATRA AND K.G. BALAKRISHNAN, JJ.] B

Trade Union Act, 1926:
·• Non-Recognised Association-Certain rights are vested in terms of
Trade Unions Act and Rules framed thereunder which acknowledge its C
existence.

Recognised Associations and Non-Recognised Associations-Rights-
Distinction between-Discussed

Non-recognised Association-Rights of-Held, it could discuss with D
the management/employer about the grievances of its members and may
represent an individual member in domestic inquiry/departmental inquiry
and proceedings before the Conciliation Officer/adjudication.

Staff Circular No. 9111987 issued by State Bank of India-Validity of-
Held, the Bank Management has decided not to have discussion with Office E
bearers of Non-recognised Association-Thus, it is contrary to express
provisions of Verification Rules and provisions of the Trade Union Act
Verification of Membership and Recognition of Trade Union Rules, I 994;
Rule 24. ''

Respondent No.I filed a Writ Petition challenging Staff Circular No. F
91 of 1987, whereby the non-recognised Association was debared to enter into
• any dialogue with the Bank, grievance was also raised against unjust, unfair
and hostile treatment towards its members and claiming equal treatment at
par with recognised associations. The Management of the Bank did not
recognise the Respondent Association as it had not satisfied the criteria laid G
down in the Verification of Membership and Recognition of Trade Union Rules,
1994 framed by the Government ofOrissa. In the petition, it was alleged that
inspite of recommendation by the Local Head Office, the Central Office did
not take proper action in the matter and instead started adopting unfair labour
practice to encourage defection in the Association and that its members were
797 H
798 SUPREME COURT REPORTS [2002] 3 S.C.R.

A put to various inconveniences in a calculated manner, on the other hand,
members of the recognised Associations were given undue and illegal favour
in the matters of posting, transfer etc.

The Writ Petition was disposed of by the High Court by setting aside
para-2 of the Circular and the Management was directed to confer such rights
B on the petitions-Non-recognised Association as available under Rule 24 of the
Verification Rules. Review Petition filed by the appellant-Bank was partly
allowed by the High Court. Hence these appeals.

Dismissing the appeals, the Court
c HELD: 1.1. Non-recognised unions may not have the right to participate
in the process of collective bargaining with the management/employer over
issues concerning the workmen in general, but they have the right to meet
and discuss with the employer or any person appointed by him on issues
relating to grievances of any individual member regarding his service
D conditions and to appeal on behalf of their members in any domestic or
departmental enquiry held by the employer or before the conciliation officer
or Labour Court or Industrial Tribunal. In essence, the distinction between
the two categories of trade unions is that while a recognized union has the
right to participate in the discussions/negotiations regarding general issues
E affecting all workmen/employees and settlement, if any, arrived at as a result
of such discussion/negotiations, which is binding on all workmen/employees,
a non-recognized union cannot claim such a right, but it has the right to meet
and discuss with the management/employer about the grievance of any
individual member relating to his service conditions a~~ to represent an
.individual member in domestic inquiry or departmental inquiry and proceedings
F before the conciliation officer and adjudicator. (805-E-F-G-H]

1.2. The very fact that certain rights are vested in a non-recognized union
shows that the Trade Union Act and the Rules framed there under acknowledge
the existence of a non-recognized union. The management/employer cannot
G outrightly refuse to have any discussjon with a non-recognized union in matters
relating to service conditions of individual members and other matters
incidental thereto. And that the right of the citizens of this country to form an
association or union is recognized under the Constitution in Article 19(1)(c).
• (805-H, 806-A-B)

H 1.3. Management should act in a manner which helps in uniting its
CHAIRMAN S.B.I. 1•. ALL ORIS SA ST ATE BANK OFFICERS ASSON. [D.P. MOHAPATRA, J.} 799

workmen/employees and not to give an impression of a divisive force out to A
create differences and distrust amongst workmen and employees. Judged in
this light, the contents of Staff Circular clearly give an impression that the
management has decided at the threshold before being aware of the nature of
the dispute raised that its representatives should have no discussion at all with
office bearers of the non-recognized Association. Such a Circular is not only
contrary to the express provision in Rule 24 but also runs counter to the B
scheme of the Trade Union Act and the Rules. [806-E-F)

... Balmer Lawrie Workers' Union, Bombay and Anr. v, Balmer Lawrie and
Co. Ltd. and Ors., [1985) 2 SCR 492, relied on.

2. Judgment of the High Court disposing of the Writ Petition and the
c
order disposing of the review petition filed on behalf of the management makes
the position amply clear that the rights and privileges vested in a non-
recognized association are limited to espousing the grievances of individual
members relating to their service conditions and representing them in
domestic or departmental enquiries held by the employer and not proceeding D
before the conciliation officer, labour court, industrial tribunal or arbitrator.
High Court has not conceded any right to the non-recognized union to
participate in discussions relating to general issues concerning all workmen.
Thus, there is no serious illegality or infirmity in the judgment and order
passed by the High Court. )809-E-F) E
CIVIL APPELLATE JURJSDICTION : Civil Appeal Nos. 3337-3338 of
2002

From the Judgment and Order dated 24.11.98 and 23.7.99 of the Orissa
High Court in O.J.C. No. 8863/97 and C.R. No. 15 of 1999. F

• Harish N. Salve, Solicitor General for India, Mukul Rohtagi, Rajiv Dhawan,
• Sanjay Kapur, Raj iv Kapur, Sanjeev Kumar, B.K. Satija, (NP), Rajiv Nanda and
Ms. Sushma Suri for the appearing parties.

In-person for Respondent No.2 G
The Judgment of the Court was delivered by

D.P. MOHAPATRA, J. Leave is granted.

These appeals filed by the Chairman, State Bank of India, Central Office, H
800 SUPREME COURT REPORTS [2002] 3 S.C.R.

A Mumbai and the Chief General Manager, State Bank of India, Local Head
Office at Bhubaneshwar are directed against the judgment dated 24.11.1998
of the High Court of Orissa in OJC No. 8863/1997 and the Order dated
23. 7 .1999 disposing of the petition for review of the said judgment, Civil
Review No. 15/99, filed by the appellants. The operative portion o.f the
judgment dated 24.11.98 reads as follows:
B
"For the foregoing reasons we set aside paragraph 2 of the Staff
Circular No. 91 of 1987 if the same is still in force and direct the
opposite parties to confer such rights on the petitioner-Association
as are available to them under Rule 24 of the Verification Rules.
c The Management of the State Bank of India are also directed to keep
in mind the observations made in this judgment while dealing with its
employees, officers and their Unions, recognized or unrecognized."

The High Court, allowing the review petition in part by the order dated
D 23rd July, 1999, issued the following directions :
"For the aforesaid reasons, in partial modification of the judgment
dated 24.11.1998, we pass the following order:-

(i) We.set aside paragraph 2 of the StaffCircularNo.91of1987 ifthe
same is still in force and direct the management of the Bank to
E permit the writ petitioners-Association to meet and discuss the
grievances of any individual member of the petitioner-Association
relating to his service conditions in a regulated prescribed manner
and further to appear on behalf of its members in any domestic
or departmental enquiry or in any proceeding before the
F Conciliation Officer, Labour Court, Industrial Tribunal or any other
Tribunal.

(ii) The management of the Bank will be at liberty to take such
suitable disciplinary action as permissible in law if any individual
employee or officer or office bearer of any Union or Association
G including the writ petitioner Association, recognized or
unrecognized, indulge in any coercive or intimidating or
indisciplined acts or behaviour.

(iii) We also direct the management of the State Bank of India to keep
in mind the relevant observations made in the judgment dated f
H 24.11.1998 and also in this order while dealing with its employees,
CHAIRMAN S.8.1. 1•. ALL ORISSA s;rATE BANK OFFICERS ASSON. (D.P. MOHAPATRA, J.] 80}
officers and their Unions, recognized or unrecognized. A
The review is allowed in part to the extent indicated above."

In the circular, Staff Circular No.91 of I 987 dated 13-11-1987 which was
under challenge in the writ petition, it was stated that the bank does not enter
into any dialogue etc. with a non-recognized union/ association; that the bank B
has recognized the All India State Bank Officers' Association for this circle;
the said rights and privileges cannot be extended to any other association of
the Officers in the same circle.

Para 2 of the Staff Circular No. 9 I of 1987 which was struck down by the
High Court, reads as follows: C
"Having regard to very serious developments as brought out in our
Staff Circulars Nos. 84 and 90of1987, it will not be in order for any
Bank functionary to enter into any dialogue or accept any
representation from the office-bearers of the unrecognized All Orissa D
State Bank Officers' Association in this Circle, even in matters
pertaining to individual grievances. In case the representatives of the
above unrecognized Association resort to any coercive methods like
dharna, gherao etc. decisions obtained, if any, under such
circumstances would be deemed to have been taken under duress and
such decisions shall not be binding on the Bank. Needless to add that E
the cases of officers indulging in such unwarranted actions would be
dealt with sternly and suitable disciplinary action would be taken
against them."

From the judgment under challenge it is clear that the controversy
raised in the case relates to the fights of the All Orissa State Bank Officers' F
Association (a non-recognised association), respondent no. I herein, vis-a-vis
the Management of the Bank, to espouse the case of the officers of the Bank
with the management of the bank; whether the respondent association has
any such right or the rights are vested only in a recognized association, the
All India State Bank Officers' Federation/Association.
G
The respondent No. I Association represented through its General
Secretary, filed the writ petition raising grievance against unjust, unfair and
hostile treatment towards its members and claiming treatment at par with
office-bearers of the recognized association, and prayed that norms for
guidance in matters relating to a non-recognized association may be laid H
802 SUPREME COURT REPORTS [2002) 3 S.C.R.

A down by the Court. It does not appear to have been disputed before the High
Court and it was also not disputed in this Court that a non-recognized
association is a registered association under the Trade Unions Act. The
management of the Bank has not recognized the said association. According
to' the Ban~, the association does not satisfy the criteria laid down by the
Verification of Membership and Recognition of Trade Unions Rules, 1994
B (hereinafter referred to as 'the Verification Rules') framed by the Government
of Orissa. The non-recognize1 a->sociation pleaded that in 1982 the association ·
submitted a list of its me!i:!.,~rs and claimed recognition, but iri spite of
recommendation of the Officer-in-charge of the local Head Office, the Central
Office at Bombay did not take any decision and started adopting unfair labour r-
C practice to encourage defection from the petitioner's association to the
recognized association. The non-recognized association also alleged that
members of the recognized association are being shown illegal and undue
favour in the matter of posting, transfer, entertainment or representations
whereas the members of the non-recognized association are being put to
various inconveniences in a system3:tic and calculated manner. Certain
D instances were stated in the writ application in support of the allegation of
hostile discrimination and unfair treatment.

The Chief General Manager in the local Head Office at Bhubaneshwar,
respondent No.2 herein, in his counter affidavit denied the allegations of
E discrimination, arbitrary treatment and unfair practice. However, he referred to
certain rights and privileges allowed to members of recognized association
and asserted that only such rights and privileges were not being extended to
the office-bearers of the non-recognized association. He refuted the claim of
the non-recognized association for parity of treatment with members and
office bearers of the recognized association.
F
The High Court in para 5 of the judgment observed, "Admittedly, the
verification of membership and recognition of Trade Union Rules, 1994 framed
by the State of Orissa are applicable to the petitioner-Association". Thereafter
the High Court took note of the provisions in Rule 18 in which it is laid down
that the Union which secures not less than 30% of the total number of votes
G polled shall be entitled to be recognized and considered. The provision of
Rule 24 in which are enumerated the rights of a non-recognized union is
quoted herein below :

"24 (a) Rights of Unrecognised Union to meet and discuss with the
H employer or.any person appointed by him in that behalf the grievances
CHAIRMAN S.B.L 1•. ALLORJSSA STATE BANK OFFICERS ASSON. [D.P. MOHAPATRA, J.J 803

of any individual member relating to his service conditions. A
(b) To appear on behalf of its members employed in the establishment

..
in any domestic or departmental enquiry held by the employer and
before the Conciliation Officer/Labour Court/Industrial Tribunal or
Arbitrator."
B
The High Court also took note of Rules 2 I and 23 in which are enumerated
the rights and facilities of recognized unions. The High Court observed that
the petitioner association (respondent no. I) is still a non-recognized union
and it is not possible for the Court in exercise of writ jurisdiction to determine
the dispute over membership and that, when a statutory machinery is available C
it is for the non-recognized association to avail of that machinery in accordance
with the prescribed procedure. Dealing with the question of.the right of the
non-recognized association to speak on behalf of its members, the High Court
observed that a non-recognized union has no right to represent the entire
\\'._Orkmen but it has the right to represent those who are its members,
individually or as a group of workmen; acceptance of a demand and discussion D
over a demand is not the one and same thing; right of raising grievance and
discussion is a fundamental right and cannot be taken away totally. The High
Court drew a distinction between acceptance of a demand and discussion
over the demand. The High Court placed reliance on the principles laid down
and observations made by this Court in Balmer Lawrie Workers' Union,
Bombay and Anr. v. Balmer Lawrie & Co. Ltd. and Ors.• [ 1985] 2 SCR 492. E
The High Court held that the staff circular No. 91/1987 on the face of it is
contrary to Rule 24 of the Verification Rules and also violative of the rights
forming the basis ofa domestic society, and that the management of the Bank
cannot direct its officers not to enter into any dialogue or accept any
representation from the non-recognized union even in matters pertaining to F
individual grievances. In para 9 of the Judgment the High Court summed up
its conclusions on the point in the following words:

"Mr. Dora, learned Advocate appearing for the Bank and its management
fairly submits that there cannot be any direction contrary to Rule 24
of the Verification Rules. Thus the direction contained in para 2 of the G
Staff Circular No.91 of 1987 is arbitrary, contrary to Rule 24 of the
Verification Rules and liable to be set aside."

Dealing with the allegations of discrimination or unfair labour practice
etc. the High Court recorded the following findings in para 11 of its judgment: H
804 SUPREME COURT REPORTS [2002] 3 S.C.R.

A "However, on the basis of the materials produced before us, we are
unable to hold that there is any deliberate or consistent policy of
discrimination or unfair labour practice against the members of the
petitioner Association. In the affidavits filed on behalf of the
management almost all the instances given by the petitioner-Association
have been specifically dealt with and answered. There is no sufficient
B material from which we can conclusively hold any systema~ic
victimization or har::~sment of the members of petitioner-Association."

The High Court also took note of the submissions made on behalf of
the management of the Bank that excepting the specified office bearers of the
C recognized Association or Union all other officers of the bank are entitled to
be treated equally in accordance with the Bank's administrative policy
irrespective of their union affiliation. On the above findings and observations
the High Court allowed the writ petition.

Coming to the order passed on the review petition filed by the appellants
D it appears that the main grounds urged in support of the prayer for review
of the judgment were that the Verification Rules framed by the Govt. of Orissa
were not applicable to the Officers of the Bank since they are not 'employees'
within the meaning of Rule 3 (c) of the Verification Rules, and that the Court
had erred in quashing para 2 of the Staff Circular No.91 of 1987 dated
13.11.J 987 which is applicable on All India basis, since that would amount to
E disturbing a long standing All India Policy of the Bank. Considering the first
ground, the High Court observed that the submission appears to be correct
although during hearing of the writ application it was clearly stated that the
said Rules are applicable. The High Court expressed its inability to give any
finding on the point in the absence of sufficient material before it. However,
p the High Court further observed "so we are inclined to accept the contention
that the Verification Rules as such will not cover a Union which.is not a union
of workmen as defined in the Industrial Disputes Act". The further observation
of the High Court was that although Rule 24 of the Verification Rules in terms
does not apply to a union of officers who are not 'workmen' but the principle
behind the Rule can be extended to any non-recognized union even if it is
G not a union of workmen. Dealing with the allegation made by the non-
recognized association regarding discrimination against its members and office-
bearers, the High Court reiterated that though the Verification Rules as such
do not apply to the petitioner's association if it is not a union of workmen
as defined under the Industrial Disputes Act, if any individual employee or
H officer of a union or association of employees or officers including petitioners
CHAIRMAN S.B.I. 1•. ALLORISSA STATE BANK OFFICERS ASSON. [D.P. MOHAPATRA,J.] 805

association recognized or not indulge in any disorderly or indisciplined or A
intimidating acts or behaviour, the management is at liberty to take such
action as is permissible in law.

The High Court disposed of the Review Petition by passing the judgment/
order which has been quoted earlier.
B
With growth of industrialization in the country and progress made in
the field of trade union activities the necessity for having multiple unions in
an industry has been felt very often. Taking note of this position power has
been vested in the mr.nagement to recognize one of the trade unions for the
purpose of having discussions and negotiations in labour related matters. C
This arrangement is in recognition of the right of collective bargaining of
workmen/employees in an industry. To avoid arbitrariness, bias and favouritism
in the matter of recognition of a trade union Rules have been framed laying
down the procedure for ascertaining which of the trade unions commands
support of majority of workmen/employees. Such procedure is for the benefit
of the workmen/employees as well as the management/ employer since collective· D
bargaining with a trade union having the support of majority of workmen will
help in maintaining industrial peace and will help smooth functioning of the
establishment. Taking note of the possibility of multiple trade unions coming
into existence in the industry, provisions have been made in the Rules conceding
certain rights to non-recognized unions. Though such non-recognized unions E
may not have the right to participate in the process of collective bargaining
with the management/employer over issues concerning the workmen in general,
they have the right to meet and discuss with the employer or any person
appointed by him on issues relating to grievances of any individual member
regarding his service conditions and to appear on behalf of their members in
any domestic or departmental enquiry held by the employer or before the .F
conciliation officer or labour court or industrial tribunal. In essence, the
distinction between the two categories of trade unions is that while the
recognized union has the right to participate in the discussions/negotiations
regarding general issues affecting all workmen/ employees and settlement if
any arrived at as a result of such discussion/negotiations is binding on all G
workmen/employees, whereas a non-recognized union cannot claim such a
right, but it has the right to meet and discuss with the management/employer
about the grievances of any individual member relating to his service
conditions and to represent an individual member in domestic inquiry or
departmental inquiry and proceedings before the conciliation officer and
adjudicator. The very fact that certain rights are vested in a non-recognized H
806 SUPREME COURT REPORTS. [2002] 3 S.C.R.

A union shows that the Trade Union Act and the Rules framed thereunder
acknowledge the existence of a non-recognised union. Such a union is not
superfluous entity and it has a relevance in specific matters relating to
administration of the establishment. It follows, therefore, that the management/
....
employer cannot outrightly refuse to have any discussion with a non-
recognized union in matters relating to service conditions of individual members
B and other matters incidental thereto. It is relevant to note here that the right
of the citizens of this country to form an association or union is recognized
under the Constitution in Article 19( 1)( c). It is also to be kept in mind that
for the sake of industrial peace and proper administration of the industry it
is necessary for the management to seek cooperation of the entire work force.
C The management by its conduct should not give an impression as if it favours
a certain sections of its employees to the exclusion of others which, to say
the least, will not be conducive to industrial peace and smooth management.
Whether negotiation relating to a particular issue is necessary to be made
with representatives of the recognized union alone or relating to certain
matters concerning individual workmen it will be fruitful to have discussion/
D negotiations with a non-rec.ognized union of which those individual workmen/
employees are members is for the management or its representative at the spot
to decide. At the cost of repetition we may state that it has to be kept in mind
that the arrangement is intended to help in resolving the issue raised on
behalf of the workmen and will assist the management in avoiding industrial
E unrest. The management should act in a manner which helps in uniting its
workmen/employees and not give an impression of a divisive force out to
create differences and distrust amongst workmen and employees. Judged in
this light the contents of paragraph 2 of the Staff Circular No. 91 of 1987
clearly give an impression that the management has decided at the threshold
before being aware of the nature of the dispute raised that its representatives
F · should have no discussion at all with office bearers of the non-recognized
association. Such a circular is not only contrary to the express provision in
Rule 24 but also runs counter to the scheme of the Trade Union Act and the
Rules.

In the case of Balmer Lawrie Workers' Union (supra), this Court,
.G reviewing the scheme of the Maharashtra Recognition of Trade Unions and
Prevention of Unfair Practices Act, 1971, traced the history of development
of trade-unions on the advent of industrial revolution and the need for
multiple trade-unions in industries and consequential necessity for selecting
one of the trade-unions as the recognised union by the management, and also
H took note of the difference between the rights and privileges of a recognized
CHAIRMAN S.B.I. 1·. ALL ORI SSA ST ATE BANK OFFICERS ASSON. [D.P. MOHAPATRA, J.J 807

trade-union and a non-recognised trade-union. In that connection, this Court A
made certain observations, portions of which are extracted hereunder:

"A need was felt that where there are multiple unions seeking to
represent workmen in an undertaking or in an industry, a concept of
recognized, union must be developed. Standing Labour Committee of
the Union of India at its 29th Session held in July 1970 addressed B
itself to the question of recognition of trade union by the employer.
In fact even amongst trade union leaders there was near unanimity
that the concept of recognized union as the sole bargaining agent
must be developed in the larger interest of industrial peace and harmony.
National Commission on Labour chaired by late Shri P.B. C
Gajendragadkar, fonner Chief Justice of India, after unanimously and
wholeheartedly expressing itself in favour of the concept ofrecognized
union and it being clothed with powers of sole bargaining agent with
exclusive right to represent workmen, addressed itself only to the
question of the method of ascertaining which amongst various rival
unions must be accorded the status of a recognized union. Planting D
itself firmly in favour of democratic principle, it was agreed that the
union which represents the largest number of workmen working in the
undertaking must acquire the status as that would be in tune with the
concept of industrial democracy."

xxx xxx xxx E
"Before the introduction of Sec. 2-A in the Industrial Disputes Act,
1947 the courts leaned in favour of the view that individual dispute
cannot be comprehended in the expression 'industrial dispute' as
defined in the Industrial Disputes Act, I 947. Any dispute not espoused
by the union for the general benefit of all workmen or a sizeable F
segment of them would not be comprehended in the expression
(
'industrial dispute' was the courts' view. Often an invidious situation
arose out of this legal conundrum. An individual workman if punished
by the employer and if he was not a member of the recognized union,
the latter was very reluctant to espouse the cause of such stray G
workman and the individual workman was without a remedy. Cases
came to light where the recognized union by devious means compelled
the workmen to be its member before it would espouse their causes.
The trade union tyranny was taken note of by the legislature and.
Sec. 2-A was introduced in the Industrial Disputes Act, 1947 by
which it was made distinctly clear that the discharge, dismissal H
.i-.
I

808 SUPREME COURT REPORTS [2002] 3 S.C.R.

A retrenchment or termination of service of the individual workman
would be an industrial dispute notwithstanding that no other
workman or any union of workman is a party to the dispute. Sec.20,
sub-sec.2 while conferring exclusive right on the recognized union
to represent workmen in any proceeding under the Industrial Disputes
Act, 1947 simultaneously denying the right to be represented by any
B individual workman has taken care to retain the exception as enacted
in Sec.2A. This legal position is reiterated in Sec.20(2) (b). Therefore
while interpreting Sec.20(2)(b) it must be kept in view that an
individual workman, who has his individual dispute with the employer
arising out of his dismissal, discharge, retrenchment or termination
c of service will not suffer any disadvantage if any recognized union
would not espouse his case and he will be able to pursue his remedy
under the Industrial Disputes Act, 1947. Once this protection is
assured, let us see whether the status to represent workmen conferred
on a recognized union to the exclusion of any individual workman or
one or two workmen and who are not members of the recognized
/. D union would deny to such workmen the fundamental freedom
guaranteed under Art. 19(1 )(a) and I 9(1)(c) of the Constitution."

xxx xxx xxx

" ............. Conferring the status of recognized union on the union
E satisfying certain pre-requisites which the other union is not in a
position to satisfy does not deny the right to form association. In fact
the appellant union has been recognized under the Trade Unions Act
and the members have formed their association without let or hindrance
by anyone. Not only _that the appellant union can communicate with
the employer, it is not correct to say that the disinclination of the
F
workmen to join the recognized union violates the fundamental freedom
to form association. It is equally not correct to say that recognition
by an employer is implicit in the fundamental freedom to form an
association. Forming an association is entirely independent and
different from its recognition. Recognition of a union confers rights,
G duties and obligations. Non-conferring of such rights, duties and
obligations on a union other than the recognized union does not put
it on an inferior position nor the charge of discrimination can be
entertained. The members of a non-recognised association can fully
enjoy their fundamental freedom of speech and expression as also to
H form the association.
CHAIRMAN S.B.L 1· ALL ORJSSA STATE BANK OFFICERS ASSON. [D.P. MOHAPATRA, J.J 809

The Legislature has in fact taken note of the existing phenomenon in A
trade unions where there would be unions clai1ning to represent

- workman in an undertaking or indust.ry other than recognized union.
Sec.22of1971 Act confers some specific rights on such non-recognised
unions, on such being the right to meet and discuss with the employer
the grievances of individual workman. The legislature has made a B
clear distinction between individual grievance of a workman and an
individual dispute affecting all or a large number of workmen. In the
case of even an unrecognized union, it enjoys the statutory right to
meet and discuss the grievance of individual workman. ft also enjoys
the statutory right to appear and participate in a domestic or
departn1ental enquiry in which its member is involved This is c
statutory recognition of an unrecognized union. The exclusion is
partial and the embargo on such unrecognized union or individual
workman to represent workman is in the large interest of industry,
public interest and national interest. Such a provision could not be
said to be violative offimdamental freedom guaranteed under Article D
19(1)(a) or 19(1)(c) of the Constitution."

(emphasis supplied)

The judgment of the High Court disposing of the writ petition and the
order disposing of the review petition filed on behalf of the management make E
the position amply clear that the rights and privileges vested in a non-
recognized association are limited to espousing the grievances of individual
members relating to their service conditions and representing them in domestic
or departmental enquiries held by the employer and not proceeding before the
conciliation officer, labour court, industrial tribunal or arbitrator. The High
Court has not conceded any right to the non-recognized union to participate F
in discussions relating to general issues concerning all workmen.

In our considered view there is no serious illegality or infirmity in the
• judgment and order passed by the High Court. Therefore, no interference in
the matter is called for. Accordingly, the appeals are dismissed, but in the G
circumstances of the case without any order as to costs.

S.K.S. Appeal dismissed.