Calcutta High Court Quashes Registrar's Notice Debarring Retired Employees from Union Office Bearer Positions

Court Upholds Right of Retired Employees to Serve as Trade Union Office Bearers under Trade Unions Act, 1926

In a landmark decision, the Calcutta High Court has quashed a series of notices issued by the Registrar of Trade Unions, West Bengal, which sought to bar retired employees from holding office bearer positions in trade unions. The judgment, delivered by Justice Shampa Dutt (Paul) on November 4, 2025, emphasizes the statutory rights of retired and retrenched employees under the Trade Unions Act, 1926.

The case, brought by the CESC Sramik Karmachari Union, challenged notices dated April 8, May 7, and May 29, 2025, issued by the Registrar. These notices claimed that retired employees are disqualified from serving as key office bearers such as Secretary or Treasurer, unless they are currently employed, which the union argued was contrary to Section 22(2) of the Act.

Justice Dutt (Paul) ruled that the Registrar's interpretation was erroneous, asserting that the "Explanation" to Section 22(2) of the Trade Unions Act expressly states that retired or retrenched employees shall not be considered outsiders for the purpose of holding office within a trade union. The court highlighted that the legislative intent is clear in allowing retired employees to hold office due to their experience and familiarity with industry operations.

The judgment also referenced previous Supreme Court rulings, notably the decision in Bokajan Cement Corporation Employees' Union v. Cement Corporation of India Ltd., which clarified the rights of union members post-employment cessation, reinforcing the notion that cessation of employment does not automatically terminate union membership or office bearer eligibility.

Furthermore, the court underscored the fundamental right to form associations, protected under Article 19(1)(c) of the Constitution of India, stating that executive actions cannot override the democratic will of union members to elect office bearers, including retired employees, as long as the composition complies with statutory requirements.

The decision is a significant affirmation of the rights of trade union members and office bearers, ensuring that legislative provisions are not misinterpreted or misapplied by executive authorities. This ruling is expected to impact the administration of trade unions across the state and possibly set a precedent for similar cases nationwide.

Bottom Line:

Trade Union Act, 1926 - Notice issued by Registrar of Trade Unions debarring retired employees from holding office bearer positions is beyond the scope of the Act and inconsistent with Section 22(2) and its Explanation. Retired or retrenched employees are not to be construed as outsiders for the purpose of holding an office in a trade union.

Statutory provision(s): Trade Unions Act, 1926 Section 22(2), Article 19(1)(c) of the Constitution of India

CESC Sramik Karmachari Union v. State of West Bengal, (Calcutta) : Law Finder Doc Id # 2804409