Facts Solomon the Secretary of a registered Trade Union took a loan from a Bank for the higher educa...........

Legal Reasoning Others

Under the Employees Compensation Act, 1923, an employer is liable to pay compensation to his workmen for injuries sustained by them by an accident arising out of and in the course of employment.

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.

Sec. 2 of the Industrial Disputes Act, 1947, ‘Industrial dispute means any dispute or difference between employers and employers or between employers and workmen or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour of any person’.

Facts: Solomon, 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 Solomon and warned him that the Bank will take suitable legal action against him. Identify the legal position in this regard.

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

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

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

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

Explanation:

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