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Section 23: Adjudication of dispute of Trade Unions

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
Section 22 All 104 Sections of Industrial Relations Code, 2020 Section 24

Legal Commentary & Landmark Judgments: Section 23

Section 23 of the Industrial Relations Code, 2020 vests exclusive adjudicatory jurisdiction in the Industrial Tribunal over all internal trade union election, executive, and property disputes, completely ousting the jurisdiction of civil courts and terminating protracted civil litigation over union governance.

  • Comprehensive Statutory Dispute Scope: Section 23(1) governs all disputes arising between: (a) one registered Trade Union and another; (b) two or more members of a registered Trade Union concerning its constitution, executive, or office-bearers; (c) any dispute regarding the property of a registered Trade Union; and (d) controversies concerning internal elections and tenure.
  • Exclusive Adjudication by the Industrial Tribunal: Mandates that any dispute under Section 23 must be referred by an application to the Industrial Tribunal having jurisdiction, establishing a specialized labor forum equipped to resolve organizational disputes expeditiously.
  • Express Ouster of Civil Court Jurisdiction: Section 23(3) expressly bars the jurisdiction of Civil Courts to entertain any suit or legal proceeding in respect of any dispute referred to in subsection (1), terminating the historical practice of rival factions obtaining ex-parte civil injunctions to stall union elections.
Key Landmark Precedents:
  • Bokaro Steel Workers Union v. State of Bihar 1995 Supp (1) SCC 20: The Supreme Court highlighted the rampant evil of parallel trade union elections and conflicting civil suits, holding that specialized labor forums must decide representative legitimacy to preserve industrial peace.
  • North-Eastern Railway Employees Union v. Registrar of Trade Unions AIR 1975 All 252: The Allahabad High Court ruled that the Registrar lacks adjudicatory competence to decide contested elections or declare winners, confirming that such disputes belong exclusively before specialized judicial tribunals.
  • Rajasthan State Road Transport Corpn. v. Krishna Kant (1995) 5 SCC 75: The Supreme Court established that where a labor enactment creates a specialized adjudicatory body and expressly ousts civil courts, the jurisdiction of the civil court under Section 9 CPC is completely excluded.
Courtroom Practice & Strategic Litigation Guidance:

When a factional dispute arises concerning union elections, illegal executive expulsions, or frozen bank accounts, initiate proceedings by filing an original application under Section 23 directly before the Industrial Tribunal. If a rival group attempts to file a civil suit or obtain an interim status-quo injunction from a civil munsif court, immediately file an application for rejection of the plaint under Order VII Rule 11(d) CPC citing the express statutory bar in Section 23(3).

Section 22 All 104 Sections of Industrial Relations Code, 2020 Section 24