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TMI Blog1993 (12) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... hat these shares were purchased in the personal ends of the concerned office bearers. A complaint was, therefore, made before the Registrar of Trade Unions, but that was not considered. An application was, therefore, made before the Industrial Court praying therein that the Executive Body should be 'dissolved' as it had abused its powers and a committee should be appointed for the administration of the Union. An interim relief was also prayed for whereby it was prayed that the accounts of the Union should frozen till such time the Committee is constituted for the purposes of proper accounting. 2. The Industrial Court by its order has come to a conclusion that the applicant had no prima facie case and in effect it has endorsed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of the Trade Union Act, 1926, section 15 provides the objects on which the general funds could be spent. The said general funds could be spent for payment of salaries, allowances and expenses of the office bearers of the Trade Union and for payment of expenses for the administration of the Trade Union, including audit of the accounts of the general funds of the Trade Union. Then they could be spend for legal proceedings in which the trade union or any member is a party. The other objects on which the general funds could be spent are - (i) the conduct of trade dispute on behalf of the Trade Union or any member thereof, (ii) the compensation of members for loss arising out of trade disputes; (iii) allowances to members or their d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive of the Union. Purchase of shares is clearly an attempt towards profit making and carries with it an odour of speculation . This would be clearly outside the scope of Union which is generated by the contribution of poor workers cannot be allowed to be lightly treated and will have to be jealously guarded. The mandate in Section 15 is not an empty formality. The commands therein will have to be strictly followed. Shri Wankhede, the learned counsel fort the respondents terms this purchase of shares as wise and fruitful investment. He is clearly incorrect as firstly, no speculative activity can be termed as wise investment and secondly, such so-called wise investment are impermissible under the Act. Clear language of Section 15 admits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity was undertaken by the Union at all. The Trade Union is not supposed to engage itself in a speculative activity like this. The learned member of the Industrial Court has completely ignored this aspect, strangely enough, the learned member accepts that this is a speculative activity. However, the learned member does not look at this transaction as an expenditure. If the cash Rs. 75,000/- was looked in the share, one fails to understand as to how it would be available for the emergencies which the Union might face or might have faced. Undoubtedly, the learned Member has made reference to Section 15 of the Act and Clause 14 of the Constitution of the Association. However, merely because the general body has approved of this transaction, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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