Principle: According to the law of trade unions in Indi

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Principle: According to the law of trade unions in India, no suit or other legal proceeding shall be maintainable in any civil court against any registered trade union or any officer or member thereof in respect of any act done in contemplation or in furtherance of a trade dispute.

Facts: Soloman, the Secretary of a registered Trade Union took a loan from a Bank for the higher education of his daughter. Soon after completing the course she was married to an NRI Engineer. Solomon did not repay the loan. The Bank demanded the payments from Soloman and warned him that the Bank will take suitable legal action against him. Identify the legal position in this regard.

[CLAT 2017]

A The Bank cannot initiate any action against Soloman as he is the Secretary of a Registered Trade Union.

B The Bank can recover the loan amount from the Trade Union as Soloman is the Secretary of the Union.

C As Soloman did not use the loan amount for his use and hence, no action can be initiated against him.

D The Bank can file a suit for recovery of the loan amount against Soloman as he took the loan for a personal purpose and in such case no immunity will work.