FOOD CORPORATION OF INDIA STAFF UNION versus FOOD CORPORATION OF INDIA AND ORS.

Citation: [1995] 2 S.C.R. 96 · Decided: 17-02-1995 · Supreme Court of India · Bench: KULDIP SINGH, B.L. HANSARIA, S.B. MAJMUDAR · Disposal: Disposed off
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Judgment (excerpt)

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 
G 
(NL) of 1985. 
From the Judgment and Order dated 25.9.84 of the Delhi High Court 
in c,w. No. 2314 of 1984. 
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 : 
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 
B 
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 on
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