Holding

The Supreme Court laid down a comprehensive procedure for secret ballot elections, with the Chief Labour Commissioner supervising, a Ministry of Labour officer as Returning Officer, and stipulated that the union obtaining the highest votes be recognized for five years.

Summary

The Food Corporation of India (FCI) had several registered trade unions and needed to select a sole bargaining agent. Both FCI and the unions agreed to use a secret ballot to determine which union(s) represented the majority of workers. The Supreme Court was asked to prescribe a procedure that would ensure a fair and reliable election. The Court directed that the Chief Labour Commissioner (Central) supervise the process, with a Ministry of Labour officer acting as Returning Officer, and set out detailed steps for voter lists, ballot preparation, polling, counting, and handling objections. Eligibility was limited to unions registered under the Trade Unions Act, 1926 for at least one year. The union receiving the highest number of valid votes would be recognized by FCI for a period of five years. The Court ordered the elections to be conducted according to these norms before 30 April 1995 and dismissed the appeal and writ petition.

Issues considered

How should a secret ballot election be conducted to determine the representative character of multiple trade unions in an establishment?
Who should supervise and conduct the election under the Trade Unions Act, 1926?
What are the eligibility criteria for trade unions to participate in such an election?
What is the legal effect of the election result on union recognition?

Legislation cited

Trade Unions Act, 1926

Subjects

trade union recognitionsecret ballotrepresentative charactercollective bargainingelection procedureChief Labour CommissionerFood Corporation of India

Judgment

)

A FO.Ob CORPORATION OF INDIA STAFF UNION
I'.

FOOD CORPORATION OF INDIA AND ORS.

FEBRUARY 17, 1995

B [KULDIP SINGH, B.L. HANSARIA·AND S.B. MAJMUDAR, JJ.)

Trade Unions Act, 1926-Registration under-Trade Union-Recogni-
tion of-Detennining representative character of Trade Unions-Mode of.

The Food Corporation of India had more than one registered trade
C unions and needed to determine a sole bargaining agent. In order to assess
the representative character of the trade unions FCI and the Trade Unions
representing the workmen had agreed to follow the secret ballot system.
The matter was brought before the Supreme Court to lay down the proce-
dure for tailoring the secret ballot to yield correct results.
D
Disposing the petition, this Court

Prescribed the norms and procedure of holding election via a secret _,._
ballot system under the overall supervision of the Chief Labour Commis·
sioner (Central) with an officer of the Government of India. Ministry of
E · Labour as the Returning Officer, and
HELD : The _union/unions obtaining the highest number of votes in
the process of election were to be given recognition by the FCI for a period
of 5 years from the date of the conferment of the recognition. [101-C]

F CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2336 't
(NL) of 1985.

From the Judgment and Order dated 25.9.84 of the Delhi High Court
in c,w. No. 2314 of 1984.
G WITH

Writ Petition (C) No. 534 of 1985 and I.A. No. 1.

(Under Article 32 of the Constitution of India).

H Govinda Mukhoty, S. Bagga, D.D. Thakur, Ms. Lalitha Kaushik,
96
F.C.I. STAFFUNIONv. F.C.I. 97

Shankar Divate, Seeraj Bagga, Ms. S. Bagga Y.P. Rao, P.S. Khera R.C. A
Verma, S.K. Bhattacharya, S.R. Bhat, Ms. Madhu Moolchandani, M.M.
• Kashyap, P. Gaur, Hathi & Co. (Nobody present) and A.K. Agrawal for
the appearing parties. Respondent in-person (NP).

The following Order of the Court was delivered :
B
Collective bargaining is the principal raison d'etre of the trade
unions. However, to see that the trade union, which takes up the matter
concerning service conditions of the workmen truly represents the
workmen employed in the establishment, the trade union is first required
to get itself registered under the provisions of Trade Unions Act, 1926. C
This gives a stamp of due formation of the trade union and assures the
mind of the employer that the trade union is an authenticated body; the
tat/II. names and occupation of whose office bearers also become known. But
,,_. when in an establishment, be it an industry or an undertaking, there are
more than one registered trade unions, the question as to with whom the · D
employer should negotiate or enter into bargaining assumes importance,
because if the trade union claiming this right be one which has as its
members minority of the workmen/employees, the settlement, even if any
arrived between the employers and such a unions, may not be acceptable
to the majority and may not result in industrial peace. In such a situation
with whom the employers should bargain, or to put it differently who E
should be the sole bargaining agent, has been a matter of discussion and
some dispute. The 'check off system' which once prevailed in this domain
has lost its appeals; and so, efforts are on to find out which other system
can foot the bill. The method of secret ballot is being gradually accepted.
All concerned would, however, like to see that this method is so adapted F
and adjusted that it reflects the correct position as regards membership of
the different trade unions operating in one and the same industry, estab-
lishment or mdertaking.

In the appeal at hand, the Food Corporation of India (FCI) and the
unions representing the workmen have agreed to follow the "secret ballot G
system" for assessing the representative character of the trade unions. We
have, however, been called upon to lay down as to how the method of
secret ballot should be tailored to yield the correct result. Keeping in view
the importance of the said matter, an order was passed as early as on
November 22, 1985 to issue notice and hear all the major all India trade H
98 SUPREME COURT REPORTS (1995) 2 S.C.R.

A union /organisations on this aspect. Pursuant to this notice some trade
unions' organisations have appeared; and we have heard the learned
counsel representing them, so also Shri Thakur, learned senior counsel
_appearing for the appellant.

Shri Khera appearing for one of the trade unions has brought to our
B notice instruction No. 25 of l980 dated 18.12.80 issued by the Office of the
Chief Labour Commissioner, Ministry of Labour, Government of India.
This communication styled as 'Memorandum' has stated that on receipt of
request either from the management or union for recognition of the union
for the purpose at hand, its eligibility for recognition is first required to be
.C examined, as stated in paragraph 3 in which mention has been made about
collection of some preliminary data. After this has been done, the exercise
of determu,.ation of the strength of all eligible unions is undertaken. This
is decided through secret ballot. The Memorandum has laid down a
detailed procedure in this regard. We have also on record a scheme which
has been prepared by the appellant for assessment of representative char-
D acter of the trade unions through secret ballot system. This _scheme is
annexed to IA No. 1 of 1994.

We have perused the aforesaid documents. We dir~harihe fol-
lowing norms and procedure shall be following for assessing the repre-
E sentative character of trade unions by the "secret ballot system":

(i) As agreed to by the parties the relative strength of all the eligible
unions by way of secret ballot be determined under the overall supervision
of the Chief Labour Commissioner {Central) (CLC).

F (ii) The CLC will notify the Returning Officer who shall conduct the
V_
election with the assistance of the FCI. The Returning Officer shall be an
officer of the Government of India,Ministry of Labour.

(iii) The CLC shall fix the mo~th of election while the actual
G date/dates of ele_ction shall be fixed by the Returning Officer. "'---

(iv) The Returning Officer shall require the FCI to furnish sufficient
~. ~-

number of copies of the lists of all the employees/works (category III and
IV) governed by the FCI {Staff) Regulations, 1971 borne on the rolls of
the FCI as on the date indicated by the CLC. The list shall be prepared in
H die pntlorma prescribed by the CLC. The said list shall constitute the
F.C.I. STAFF UNION v. F.C,1. 99

voters list. A
(v) The FCI shall display the voters list on the notice boards and
other conspicuous places and shall also supply copies thereof the each of
the union for raising objections, if any. The unions will file the objections
to the Returning officer. within the stipulated period and the decision of
the Returning Officer shall be final. · B
(vi) The FCI shall make necessary arrangement to :

(a) give wide publicity to the date/dates of election by informing
the unions and by affixing notices on the notice board and also at
other conspicuous places for the information of all the workers; C

(b) print requisite number of ballot papers in the proforma
prescribed by the CLC incorporating therein the names of all the
participating unions in an alphabetical order after ascertaining
different symbols of respective unions ; D
(c) the ballot papers would be prepared in the proforma
prescribed by the CLC in Hindi/English and the concerned
regional lang0age;
a ( d) set up requisite number of polling stations and booths near the E
premises where the workers normally work; and
\
(c) provide ballot boxes with requisite stationery, boards, scaling
wax etc.
\
-~ (vji) The Returning officer shall nominate Presiding Officer for each F\
of the polling station/booth with requisite number of polling assistants to
conduct the election in an impartial manner. The Presiding Officers and
the polling assistants may be selected by the Returning Officer from
amongst the o~cers of the FCI.
-J
(viii) The election schedule indicating the dates for filing of nomina- G
tion.S, scnitiny of nominations papers, withdrawal of nominations, polling,
counting of votes and the declaration of results, shall be prepared and
notified by the Returning Officer in consultation with the FCI. The election
schedule shall be notified by the Returning Officer well in advance and at
least one month's time shall be allowed to the contesting unions for H
I
J

100 SUPREME COURT REPORTS (1995) 2 S.C.R.

·A · .canvassing before the date of filing the nominations.
(ix) To be eligible for participating in the election, the unions must
have valid registration under the Trade Unions Act, 1926 for one year with
an existing valid registration on the first day of filing of nomination.

B. (x) The Presiding Officer shall allow only one representative to be
present at each polling station/booth as observer.

(xi) At the time of polling, the polling assistant will first score out
the name or' the employee/workman who comes for voting, from the master
copy of the voters' list and advise him thereafter to ·procure the secret
C ballot paper from the Presiding Officer.
(xii) The Presiding Officer will hand over the ballot paper to the
workman/employee concerned after affixing his signatures thereon. The
signatures of the workman/employee casting the vote shall also be obtained
on the counterfoil of,the ballot paper. He will ensure that the ballot paper
D is put inside the box in his presence after the voter is allowed.to mark on
the symbol of the candidate with the inked rubber stamp in camera. No
employee/workman shall be allowed to cast his vote unless he produces his
valid identity card before the Presiding Officer concerned. In the event of
non production of identity card due to any reason, the voter may bring in
E an authorisation letter from his controlling officer certifying that the voter
is the bona fide employee of the FCI.

(xi.ii) After the close of the polling, the Presiding Officer shall furnish
detailed ballot paper account in the proforma prescribed by the CLC
indicating total ballot papers received, ballot papers used, unused ballot
F papers available etc. to the Returning Officer.

(xiv) After the close of the polling, the ballot boxes will be opened
and counted by the Returning Officer or his representative in the presence
of the representative of each of the unions. An votes which are marked
G more than once, spoiled, cancelled or damaged etc. will not be taken into
account as valid votes but a separate account will be kept thereof.

(xv) The contesting unions through their representatives present at
the counting place may be allowed to file applications for re- counting of
votes to the Returr.ing Officer. The request would be considered by the
H Returning Officer and in a give case if he is satisfied that there is reason
F.C.I. STAFFUNIONv. F.C.I. 101

to do so he may permit recounting. However, no application for recounting A
shall be entertained after the results of the votes are declared.

(xvi) The result of voting shall the compiled on the basis of valid votes
polled in favour of each union in the proforma prescribed by the CLC and
signatures obtained thereon from the representatives of all the unions
concerned as a proof of counting having been done in their presence. B
(xvii) After declaring the results on the basis of the votes polled in
favour of each union by the Returning Officer, he will send a report of his
findings to the CLC.

(xviii) The union/unions obtaining the highest number of votes in the C
process of election shall be given recognition by the FCI for a period of
- ( r- five years from the date of the conferment of the recognition. ·

(xix) It would be open to the contesting unions to object to the'result
of the election or any illegality or material irregularity which niight have D
been committed during the election. Before the Returning Officer such
objection can only be raised after the election is over. The objection shall
be heard by the CLC and dispose of within 30 days of the filing of the
same. The decision of the CLC shall be final subject to challenge before a
competent court, if permitted under law.
E
It would be open to the CLC to deal with any situation not covered
by the procedure detailed above. He may do so in consultation with the
returning officer and the FCI.

We direct the CLC and the FCI to hold the elections in accordance
with the procedure prescribed by this order. This may be done before April F
30, 1995. The appeal and the writ petition are disposed of in the above
terms. No costs.

A.G. Appeal and petition disposed of.