K. VEL Vs. NEYVELI LIGNITE CORPORATION LTD., REP BY ITS CHAIRMAN, CORPORATE OFFICE, BLOCK-1, NEYVELI-607801,

JUDGEMENT

(1.) THE petitioner in this writ petition seeks for a declaration declaring that the decision of the third respondent Assistant Provident Fund Commissioner, Sub Regional Office, Trichy, dated 17.10.2012 directing the first respondent Neyveli Lignite Corporation (for short NLC) to hold an election consisting of the members of the two recognized unions for electing representatives of employees to the NLC P.F. Board of Trust as illegal, null and void and contrary to Regulation 79 -C(3) of the Employees Provident Fund Scheme, 1952. Since the matter involves interpretation of Regulation 79C(3), it is necessary to extract the entire regulation 79C, which reads as follows :

(2.) IT was stated by the petitioner that he is the member of the NLC Progressive Workers Union. Until the year 2001, his union was the only recognized union. On 15.10.2002, his union had nominated 6 of its members as the representatives to sit in the Board of Trustees of the PF Trust. He was also one of the nominated trustees. The period of the office is for 5 years. Again during 2007, his union had nominated 6 members to the Board. He was again nominated to the Board. Thus, he had functioned as the member of the trust from 2002 -2012 for a period of 10 years. It was stated by the petitioner that under Regulation 79C(3), if no union is recognised by the employer under the Code of Discipline in industry or under any Act, but there are more than one registered union, functioning in the establishment, the union having the largest number of members, subject to a minimum of 15% membership, shall have the right to nominate employees' representatives. In case if there is only one registered union, it shall have the right to nominate the employees' representative provided it has membership of 15% in the establishment.

(3.) THIS court is not inclined to accept the same as it would be a strange interpretation to the regulation in question. As seen from the above, there are only 3 situations contemplated, i.e., the existence of single union recognized either under the Code of Discipline or under any other Act and that union alone shall nominate the representatives of employees. While the Code of Discipline is a non statutory arrangement evolved in the tripartite labour conference of the 15th Labour Conference. In the State of Tamil Nadu, there is no law for grant of recognition to unions. Therefore, if under the Code of Discipline, a union is given recognition, then certainly that union whether it has got 15% or lesser percentage of membership, can have the right to nominate its members to the trust. It is only when there are more than one recognized union by the employer, then the representatives of the employees will be elected from among the members of such unions in an election held for that purpose. In this case, admittedly, an election was conducted on 28.02.2012 for the grant of recognition. Only two unions secured largest number of votes. Thus the petitioner trade union as well as the 4th respondent union came to be recognised as the trade unions in the NLC. Therefore, in the present case, as rightly directed by the third respondent, Regulation 79C(3)(b) alone will apply and not 79C(3)(c).