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Question
Consists of legal proposition(s)/ principle(s) (hereinafter referred to as 'principle') and facts. Such principles may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this Section. In other words, in answering these questions, you must not rely on any principle except the principles that are given herein below for every question.
Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest in study of law, research aptitude, and problem-solving ability, even if the 'most reasonable conclusion' arrived at may be absurd or unacceptable for any other reason. It is not the objective of this section to test your knowledge of the law.
Therefore, to answer a question, the principle is to be applied to the given facts and to choose the most appropriate option.
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.
Options
Soloman did not use the loan amount for his use and hence, no action can be initiated against him.
The Bank cannot initiate any action against Soloman as he is the Secretary of a Registered Trade Union.
The Bank can recover the loan amount from the Trade Union as Soloman is the Secretary of the Union.
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.
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Solution
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.
Explanation:
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. The Trade Union Act does not provide any immunity in any civil court to either a registered Trade Union or its officer against non-repayment of a personal loan.
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Decision
