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Appeal No. 71 of 1976, decided on 29th July, 1976.

--- Ss, A & 19(iii) - Cancellation of registration of Union - Establishment closed temporarily with Court's permission-Employer terminating services of all workers also-Registrar, in circumstances, he'd, could not presume without inquiry that Union had ceased to exist-Cancellation of registration on such presumption, held, not sustainable.

Syed Zafar Rizvi for Petitioner.

Iqbal, Superintendent for Respondent.

This is an appeal under section 11 of the Industrial Relations Ordinance, 1969 against the order dated 21-6-19;6 of the Registrar of Trade Unions, Sargodha Region, Lyallpur, whereby the petitioner-Union was cancelled.

2. The petitioner is a Trade Union bearing the name of "Miari Textile Mills and Industries Workers Union, Lyallpur." Its General Secretary entered into an agreement on 17-6-1976 with the employer that the establishment would be closed from 18-6-1976 to 18-8-76 due to financial stringency and if the financial condition improved the factory would be re started on 18.8-76. On 18-6-76 the employer filed a petition in this Court under Standing Order I1-A for obtaining permission to close down the whole of the establishment. The General Secretary of the Union appeared in this Court on the same date and confessed judgment. On the basis of his statement the petition was accepted by this Court and necessary permission to close down the whole of the establishment was granted.

3. On the same date i.e. 18-6-1976 the employer terminated the services of all the workers, on the plea that this Court had given permission to close down whole of the establishment. The Registrar of the Trade Union cancelled the petitioner-Union on 21-6-1976 on the basis, firstly, that this Court had given permission to close down the whole of the establishment and secondly that all the workers had been terminated.

4. The order of the Registrar is in violation of natural justice. He had to give a finding under the provisions of section 19 (iii) of the Industrial Relations Ordinance, 1969 as to whether the Trade Union had ceased to exist. This provision is laid down for reference :-

"The registration of a Trade Union shall be cancelled by the Registrar, if after holding such inquiry as he deems fit, he finds that such Trade Union has dissolved itself or has ceased to exist."

5. It was essential to make inquiries from the Trade Union as to whether the workers had dissolved it or whether by the termination of their services it has ceased to exist. The Registrar did not give any chance to any of the workers to explain their position. Without affording any opportunity to the A office-bearers of the Union, the Registrar should not have cancelled the Union.

6. The fact that this Court had given permission to the employer to close down the whole of the establishment and the fact that the employer had terminated the services of the workers were not sufficient to coma to the conclusion that the Trade Union had ceased to exist. In spite of these orders the Trade Union automatically does not become dead. "There may be numerous circumstances under which the Trade Union may move the different Authorities either to challenge the order of this Court or challenge their termination. By declaring that it has become dead it has been deprived of all those rights. For instance the General Secretary of the Union may have colluded with the Management and may take gratification, it will not mean that the Union has been deprived of any remedy available to it either against the General Secretary or against the order of this Court. In such circumstances the duty of the Registrar was to make an independent inquiry especially from the office-bearers of the Union as to whether it has ceased to exist or not.

7. For the above reasons the appeal is accepted and the order of the Registrar is set aside.

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