BOKAJAN CEMENT CORPORATION EMPLOYEES' UNION versus CEMENT CORPORATION OF INDIA LTD.

Citation: [2003] SUPP. 5 S.C.R. 400 · Decided: 10-11-2003 · Supreme Court of India · Bench: Y.K. SABHARWAL · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
BOKAJAN CEMENT CORPORATION EMPLOYEES' UNION 
V. 
CEMENT CORPORATION OF INDIA LTD. 
NOVEMBER I 0, 2003 
B 
[Y.K. SABHARWAL AND B.N. AGRAWAL, JJ.] 
Labour Laws : 
C 
Trade Union Act, 1926-Sections 6 and 22-Constitution of Bokajan 
Cement Corporation Employees' Union-Clauses 5, 6(e) and 9-Trade Union-
Membership-Cessation of-Whether depends upon cessation of employment-
He/d: No-There is no provision in the Act or the Constitution of the Trade 
Union providing for automatic cessation of membership on cessation of 
D employment-The Act and the Constitution deserve to be interpreted so as to 
advance the interest of the Trade Union and its members. 
Single Judge of High Court held that an employee would not lose 
his right to continue as a member of a trade union as a result of cessation 
of his employment. However, Division Bench of High Court, on appeal, 
E relying on Section 6 of Trade Union Act, 1926 and Clause S of Constitution 
of Bokajan Cement Corporation Employees' Union held that the 
membership continues so long as the employee is actually employed.' Hence 
the present appeal 
F 
Allowing the appeal, the Court 
HELD : I. There is no provision in Trade Union Act or the 
Constitution ofBokajan Cement Corporation Employees' Union providing 
for automatic cessation of membership on cessation of employment. Apart 
from clause 9 of the Constitution, there is no other clause which provides 
for cessation of the membership of the trade union. It is not the case of 
G the respondent that the member in question ceased to be member of the 
trade union having suffered disqualification under clause 9. Clause 9 does 
not stipulate cessation of memberships on cessation of employment. 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 
H 
400 
BOKAJANCEMENTCORPN. EMPLOYEES' UNION•. CEMENTCORPN.OFINDIALTD. [SABHARWAL, 1.140 I 
cessation of employment, it cannot be held that an employee would cease A 
to be a member of the trade union on termination of his employment. 
(406-A; 405-D-E; 406-8) 
2. Clause 5 of the Constitution is also not a provision which provides 
for the circumstances under which member would lose his membership. 
It provides eligibility/conditions for becoming member of the union. The B 
expression 'throughout' in clause 5 only shows that all through the said 
eligibility condition will continue. (404-G; 405-B) 
3. 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, C 
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. (404-E-F) 
State Bank of India Staff Association and Anr. v. State Bank of India D 
and Ors., [1996) 4 SCC 378, distinguished. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2419 of2001. 
From the Judgment and Order dated 8.10.99 of the High Court Gauhati 
in W.A. No. 122/96 in C.R. No. 2329 of 1994. 
E 
P.K. Goswami and Rajiv Mehta for the Appellant. 
V.R. Reddy and S.V. Deshpande for the Respondent. 
The Judgment of the Court was delivered by 
F 
Y.l(. SABHARWAL, J. The short question for determination in this 
matter is whether an employee as a result of cessation of employment would 
, 
lose his right to continue as a member of the trade union. The High Court, 
by the impugned judgment, reversing the decision of a single judge, has 
answered the question in the affirmative. The union is the appellant. 
G 
The High Court has 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, the reliance has been placed by the High Court on. Section 6 of 
the Trade Union Act, 1926 (for short, "the Act") and clause 5 of the 
Constitution of Bokajan Cement Corporation ·Employees' Union. The High H 
402 
SUPREME COURT REPORTS [2003] SUPP. 5 S.C.R. 
A Court has held that the membership of a trade union is not a benefit that 
accrues to the employee so as to claim its continuance even after he ceases 
to be in employment; his right continues so long as he remains employed and 
on cessation of employment, membership of trade union ceases. 
There is no specific prov

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