Are Raj Bhavan employees working in an industry?

No. Their work is governmental and personal, not a trade or business under the Trade Unions Act, 1926.

Can IDA and TUA be read as one system?

They are related but not the same. The broad IDA definition of industry cannot be copied into TUA without context.

Do laid-off or non-commercial tasks change the result?

No. The nature of Raj Bhavan work stays non-commercial and outside the TUA trade or business requirement.

Does selling surplus garden produce make it a business?

No. These sales are incidental and do not turn the overall activity into trade or business.

What was the final outcome of the case?

Registration was rightly refused. The petition was dismissed with costs.

Rangaswami v. Registrar of Trade Unions

Quick Summary

The Madras Raj Bhavan staff tried to register a trade union. The Registrar refused. The High Court agreed with the Registrar.

Main point: Raj Bhavan work is governmental/personal, not a trade or business. So, it is not an “industry” for Trade Unions Act purposes.
Extra point: Selling surplus garden produce or old materials is incidental. It does not turn the activity into a business.

Issues

Are Raj Bhavan employees engaged in an “industry” for Trade Unions Act registration?
Can the Industrial Disputes Act (IDA) and Trade Unions Act (TUA) be treated as one system?
Is the employer–employee cooperation test met here?
Do sales of surplus produce/unserviceable items amount to trade or business?

Rules

“Industry” covers trade, business, manufacture, or an undertaking. It is wider than common trade/business and involves cooperation to achieve a result.
For TUA registration, members must be engaged in a trade/business-linked activity.

Facts (Timeline)

CASE_TITLE

Raj Bhavan staff formed the “Madras Raj Bhavan Workers’ Union”.
On 9 Feb 1959, seven employees applied for TUA registration.
Two categories of workers: domestic (pensionable) and non-pensionable (maistries, gardeners) under the Comptroller.
Registrar rejected: work not connected with trade/business.
Petitioners argued IDA’s broad “industry” definition and pointed to sales of surplus garden produce.
Matter went to Madras High Court.

Arguments

Petitioners (Employees)

Work fits IDA Section 2(j) “industry”.
Sales of surplus produce add commercial character.
Services extend beyond the Governor’s household to guests/visitors.

Registrar (Respondent)

TUA needs link with trade or business; services here are personal/governmental.
IDA’s broader definition cannot be lifted into TUA without context.
Sales are incidental; do not create a business.

Judgment

Held

No “industry” for TUA: Raj Bhavan activity is governmental/personal, not trade/business. Registration rightly refused.
IDA vs TUA: The broad IDA meaning cannot automatically control TUA registration decisions.
Incidental sales: Selling surplus produce/unserviceable items does not change the core non-commercial nature.
Result: Petition dismissed; costs imposed.

Judgment illustration for Rangaswami case

Ratio Decidendi

To register under the TUA, employees must be linked to trade or business. Governmental/domestic services at Raj Bhavan do not meet this test. Incidental sales do not alter the character.

Why It Matters

Draws a line between public household work and commercial activity.
Clarifies that TUA registration needs a business/trade nexus.
Guides government establishments on union registration limits.

Key Takeaways

Raj Bhavan staff activity is not trade or business for TUA.
IDA’s broader “industry” cannot control TUA registration alone.
Incidental sales do not make the work commercial.

Mnemonic + 3-Step Hook

Mnemonic: “GOV-INC” — GOVernment work, INcidental sales, Cannot be trade.

Name the setting: Raj Bhavan = government/personal work.
Check the link: Any real trade/business? No.
Conclude: No TUA registration; petition dismissed.

IRAC Outline

Issue

Whether Raj Bhavan staff work amounts to “industry” for TUA registration.

Rule

TUA needs a trade/business connection; IDA’s broad scope is not decisive for TUA.

Application

Services are governmental/personal; sales are incidental; no trade/business core.

Conclusion

Registration refused; petition dismissed with costs.

Glossary

Industry (TUA context): Activity tied to trade or business, not mere governmental or household service.
Incidental Sales: Occasional sale of surplus items; does not make the activity a business.
Registrar of Trade Unions: Authority that grants or refuses trade union registration.