Ludhiana Fashions Pvt. Ltd. was incorporated in the year 2000 as a Private Limited Company. On account of its increased turnover and expansion, it was converted into a Public Limited Company and now known as Ludhiana Fas

CS Professional · Labour Laws & Practice · PYQS · June 2025
Ludhiana Fashions Pvt. Ltd. was incorporated in the year 2000 as a Private Limited Company. On account of its increased turnover and expansion, it was converted into a Public Limited Company and now known as Ludhiana Fashions Ltd. (LFL). Ludhiana Fashions Ltd. have 10 directors in its Board. Vanshika is the Managing Director of the Company. The Company is engaged in the business of manufacturing garments for young boys and girls. The company not even manufacture and sale in the domestic market but also have B2B selling in the European market under the brand name of 'Aha Fashions'. LFL have its factory in Phillaur, whereas the Registered office is in Ludhiana. The LFL's mission is to provide affordable garments with latest prevailing fashion trends and to promote the employment generation specifically for women. In order to fulfil its noble cause LFL has provided employment to the women and young girls who have been given the roles as managers, supervisors and workers as per the qualifications and experience of the candidate. Thus, the LFL is promoting empowerment and financial stability among the women. LFL has various divisions in its manufacturing plant which includes the cloth purchase division, cloth cutting division, garment stitching division, ironing division, packing division, storage and distribution division. Sangmitra is the overall head of the factory. Her responsibility is to oversee the work flow of each of the division and to ensure smooth functioning of the same. Besides this, she also takes care of the leave management of the staff working in the various divisions, and making arrangement of the proper relieving staff. The work load in the factory increases as and when the festive season comes and demand of the LFL make garment increases. During the festive season usually, the workers are encouraged to give focus on the targeted production and not to take leave. In garment cutting division, Radhika is the Division Head. Radhika's work in the LFL is to take care of overall responsibility of cutting the cloth to different size as per the requirement for its final stitching. When the Diwali time was approaching near, Radhika's father called her over phone and informed that her mother has slipped down from the stairs and has been hospitalised. Radhika's native place is near Jaipur and she thought of going Jaipur by air to save time, so that she gets more time to look after her mother. She forwarded her leave application to Sangmitra (who is overall head of factory divisions). Sangmitra declined the leave application of Radhika without knowing the reasons and shouted on her narrating how she dared to apply for the leave at this festive time, when the management is committed to fulfil the domestic as well as export demand of the garments. As cutting of the clothes is the first stage of tailoring and stitching and if this step is not taken care of in priority the rest of the process will not start functioning, so Sangmitra advised her to take leave only after the end of the festival season. Radhika again requested that it is really urgent on account of the hospitalisation of her mother, but Sangmitra without paying any attention to Radhika's request, abused her and passed on her unwelcomed personal remarks about her integrity and character and told that earlier also she had fabricated false stories for availing of leave. Aggrieved from this Radhika made a complaint of sexual harassment against Sangmitra before the Internal Committee formed by the LFL under the provision of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act). The Inquiry Committee summoned both the parties and after a long deliberation recommended for suspension of Sangmitra. The management took cognizance of the report given by the Internal Committee and Sangmitra was suspended on 1st January, 2024. Before the suspension she was getting a monthly salary of ₹ 50,000 per month. After submission of the written apology and withholding one grade increment, Sangmitra was reinstated in the service with effect from 1st October, 2024. The Board of the LFL recently approved the construction of its second factory premises in the industrial area of Ludhiana. The necessary machinery and electrical equipments were imported and installed in the new factory premises. The promoters of the Company want to start functioning of the new manufacturing plant with effect from the 15th August, 2025. Vanshika who is Managing Director of the Company nominated Ajay (who is Manager, stationed at Registered Office of the Company at Ludhiana) as the Occupier of the new factory premises. Avantika joined the LFL as Supervisor of Packaging Division. She was to supervise the overall work of packaging of the garments. Very soon she realised that the employees are being exploited by the management and no one has courage to raise their issues. A few workers working in same Division decided to form a trade union. Meanwhile the management came to know that few workers are in the process of formation of Trade Union in this industry, so they called up a meeting of the employees and conveyed the message of the management. It was emphasized about the penal provisions and expulsions from the services if anybody is found involved in the formation or association with any Trade Union. Ishika, is working in the Ludhiana Fashions Ltd. as Marketing & Recovery Officer (MRO) since 1st August, 2019. Ishika applied for maternity leave from 1st December, 2024 to 31st May, 2025. Her expected date of delivery as per doctor's report is 10th January, 2025. Ishika is already having 2 children. The HR Deptt. of the Company declined the maternity leave application of Ishika informing her that the maternity leave benefits with wages cannot be granted to a woman who is already having 2 children. However, she can avail the leave without wages. Aggrieved from this, Ishika tendered her resignation to the Company on 10th March, 2025 and also demanded for payment of gratuity. Based on the facts of the above, answer the following questions: Few employees of packaging department are in the process of formation of a Trade Union, however the management has discouraged the thought process. Whether management can prevent the formation and association of workers with any Trade Union? Also explain the process of registration of a Trade Union.

Answer & Explanation:

Answer 1(d) Formation of the Trade Union is a fundamental right Article 19 (1) (c) speaks about the Fundamental right of citizen to form an associations and unions. Under clause (4) of Article 19, however, the State may by law impose reasonable restrictions on this right in the interest of public order or morality or the sovereignty and integrity of India. The right of association pre-supposes organization as an organization or permanent relationship between its members in matters of common concern. It thus includes the right to form companies, societies, partnership, trade union and political parties. The right guaranteed is not merely the right to form association but also to continue with the association as such. The freedom to form association implies also the freedom to form or not to form, to join or not to join, an association or union. In the case of Damyanti Naranga Vs. The Union of India 1971 SCR (3) 840, the court observed that: "The right to form association necessarily implies that the persons forming the society have also the right to continue to be associated with only those whom they voluntarily admit in the association. Any law by which members are introduced in the voluntary association without any option being given to the members to keep them out, or any law which takes away the membership of those who have voluntarily joined it, will be a law violating the right to form association. The provisions relating to the registration of Trade Union are contained in Section 4 and 5 of the Trade Unions Act, 1926. Section 4 provides that - Any seven or more members of a Trade Union may, by subscribing their names to the rules of the Trade Union and by otherwise complying with the provisions of this Act with respect to registration, apply for registration of the Trade Union under this Act. Provided that no Trade Union of workmen shall be registered unless at least ten per cent. or one hundred of the workmen, whichever is less, engaged or employed in the establishment or industry with which it is connected are the members of such Trade Union on the date of making of application for registration: Provided further that no Trade Union of workmen shall be registered unless it has on the date of making application not less than seven persons as its members, who are workmen engaged or employed in the establishment or industry with which it is connected. Where an application has been made under sub-section (1) for the registration of a Trade Union, such application shall not be deemed to have become invalid merely by reason of the fact that, at any time after the date of the application, but before the registration of the Trade Union, some of the applicants, but not exceeding half of the total number of persons who made the application, have ceased to be members of the Trade Union or have given notice in writing to the Registrar dissociating themselves from the applications. Further, Section 5 provides that - Every application for registration of a Trade Union shall be made to the Registrar, and shall be accompanied by a copy of the rules of the Trade Union and a statement of the following particular's, namely:- the names, occupations and addresses of the members making the application; in the case of a Trade Union of workmen, the names, occupations and addresses of the place of work of the members of the Trade Union making the application; the name of the Trade Union and the address of its head office; and the titles, names, ages, addresses and occupations of the office-bearers of the Trade Union. Where a Trade Union has been in existence for more than one year before the making of an application for its registration, there shall be delivered to the Registrar, together with the application, a general statement of the assets and liabilities of the Trade Union prepared in such form and containing such particulars as may be prescribed.

Topics: Trade Unions Act, 1926

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