Section 10: Appeal against non-registration or cancellation

The Industrial Relations Code, 2020 (Act No. 35 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter III: Trade Unions
Competent Labour Forum
Act No. 35 of 2020

Legal Commentary & Landmark Judgments: Section 10

Section 10 of the Industrial Relations Code, 2020 governs the formal registration of Trade Unions, the issuance of the Certificate of Registration as conclusive legal evidence of corporate status, and sets forth strict, exhaustive grounds and mandatory 60-day notice procedures for cancellation of registration.

  • Certificate of Registration as Conclusive Proof: Section 10(1) mandates that the Registrar, upon being satisfied that the Trade Union has complied with all requirements of Chapter III, shall register the Trade Union and issue a Certificate of Registration in prescribed form, which serves as conclusive evidence of due registration and legal compliance.
  • Exhaustive Statutory Grounds for Cancellation: Under Section 10(2), a certificate may be cancelled or withdrawn strictly on the following grounds: (a) on application of the Trade Union; (b) if obtained by fraud or mistake; (c) if the union has ceased to exist; (d) for willful contravention of the Code after notice; (e) if membership falls below 10% or 100 workers; or (f) if the union ceases to have seven worker members.
  • Mandatory 60-Day Show-Cause Notice Rule: Section 10(3) statutorily mandates that the Registrar must issue not less than sixty days' prior written notice specifying the exact grounds on which registration is proposed to be cancelled, affording the Trade Union a mandatory opportunity to show cause and rectify any technical or membership defects before cancellation.
Key Landmark Precedents:
  • Registrar of Trade Unions v. Mihir Kumar Goaswami AIR 1963 Cal 56: The Calcutta High Court held that the issuance of the 60-day notice specifying exact statutory defaults is a jurisdictional condition precedent; any cancellation of trade union registration without strict compliance with the notice period is void ab initio and violates natural justice.
  • Rohtas Industries Staff Union v. State of Bihar AIR 1963 Pat 170: The Patna High Court ruled that a certificate of registration issued by the Registrar is conclusive evidence of corporate incorporation; an employer cannot collaterally challenge the validity of registration before an Industrial Tribunal unless the certificate is cancelled by the Registrar under statutory procedure.
  • Bombay Union of Journalists v. State of Bombay (1964) 6 SCR 22 / AIR 1964 SC 1617: The Supreme Court affirmed that administrative and quasi-judicial authorities exercising statutory deregistration powers must record clear speaking reasons supported by objective evidentiary findings.
Courtroom Practice & Strategic Litigation Guidance:

Upon receiving a Section 10 show-cause notice from the Registrar, the Trade Union executive must immediately convene an urgent meeting and submit a comprehensive written reply within the 60-day period. If the notice alleges a drop in membership below 10% or 100 workers, immediately conduct a re-verification membership drive, collect verified subscription receipts, and place the audited muster rolls on record before the Registrar prior to the expiry of the notice.