Difference Between Cancellation and Dissolution of Trade Union
Cancellation vs. Dissolution of Trade Union
Both cancellation and dissolution refer to the ending of a trade union's legal status, but they differ in how and why they occur, as well as their consequences.
1. Cancellation of Trade Union
Definition:
Cancellation refers to the revocation of the registration of a trade union by a competent authority.
It is an external act imposed by an authority, usually for legal non-compliance or violation of conditions.
Key Points:
It is generally compulsory and done by the Registrar or a similar authority.
Occurs when the trade union violates rules, fails to maintain membership, or is involved in illegal activities.
After cancellation, the union loses its legal status as a registered trade union.
Cancellation can be challenged in courts.
Case Example:
A.K. Roy v. Union of India: The court discussed the conditions under which a trade union’s registration could be canceled, emphasizing that cancellation should not be arbitrary and the union must be given a fair opportunity to present its case.
2. Dissolution of Trade Union
Definition:
Dissolution is the voluntary winding up or termination of a trade union by its own members.
It is an internal act decided by the union through a resolution or as per its constitution.
Key Points:
It is voluntary and initiated by the trade union itself.
Usually done when the union becomes inactive, ineffective, or the members decide to disband.
After dissolution, the union ceases to exist, but this is by choice, not compulsion.
Dissolution is carried out through a formal process as per the union's rules.
Case Example:
Workmen of Madras Electric Supply Corporation Ltd. v. Management: The court recognized that a trade union can be dissolved voluntarily by members passing a resolution, and such dissolution must be done following the rules set out by the union.
Summary Table: Cancellation vs. Dissolution
| Feature | Cancellation | Dissolution |
|---|---|---|
| Initiated by | Registrar or competent authority | Trade union members themselves |
| Nature | Compulsory, imposed externally | Voluntary, initiated internally |
| Grounds | Non-compliance, illegal activities, rule violations | Union’s own decision or inactivity |
| Legal Status | Registration is revoked, legal existence ends | Union ceases to exist voluntarily |
| Process | Legal procedure, opportunity to be heard | Internal procedure, as per union’s constitution |
| Challenge Possible | Yes, before courts | Generally no, as voluntary |
| Case Example | A.K. Roy v. Union of India | Workmen of Madras Electric Supply Corporation Ltd. v. Management |
Summary
Cancellation is a compulsory, external act by the Registrar due to violations.
Dissolution is a voluntary, internal act decided by union members.
Both result in the trade union ceasing to exist legally but differ in procedure and reasons.
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