Madhya Pradesh HC Quashes 'Unreasoned' Order Of Registrar Amending Trade Union's Name To One Resembling MP Working Journalist Union

The Madhya Pradesh High Court recently set aside an order of the Trade Union Registrar which allowed a trade union to change its name, after Madhya Pradesh Shramjeevi Patrakar Sangh moved a plea claiming that the name of the respondent union was deceptively similar to the Sangh's. 

In doing so the court said that the Registrar under Section 25(2) of the Trade Unions Act, must verify that a trade union's name does not resemble another's so closely that it may deceive the public, adding that in the present matter the Registrar's order was "unreasoned". 

A single judge bench of Justice G.S. Ahluwalia said in its order, "In order to find out as to whether there is any resemblance in the names of Trade Unions which may deceive the general public, the Registrar should not look for difference in the names but should look for similarities. The Registrar should have considered as to who are the persons likely to be deceived or confused due to the resemblance between two names and what are the rules of comparison to be adopted in judging whether such resemblance exists or not and what are the common elements and what is the first impression"

"If the impugned order passed by Registrar is considered, then it is clear that after mentioning facts of the case and objections raised by petitioner, conclusion has been drawn directly without assigning any reason. The reasons are the heart beats of the order and they are necessary to find out as to what prompted the Authority to pass the order in question," the bench added. 

The order was passed in a plea moved by petitioner Madhya Pradesh Shramjeevi Patrakar Sangh challenging two order of the Registrar Trade Union dated July 6, 2013 and September 30, 2013 by which the application filed by respondent trade union for changing its name from 'Working Journalist Union' to 'M.P. Working Journalist Union was allowed'.

Referring to the Section 25(2) of the Trade Unions Act, the court said that it is clear that if the proposed name is identical with the name by which any other existing Trade Union is registered under, or in the opinion of the Registrar, the proposed name "so nearly resembles such name" which would be likely to "deceive the public or the members of either Trade Union, the Registrar shall refuse to register the change of name".

The court thereafter observed that "resemblance likely to deceive public is basic guideline" for considering the request for change of name of Trade Union. 

"Since the order under challenge is an unreasoned order and without any reason to justify the conclusion, therefore this Court is of considered opinion that order dated 30/09/2013 passed by Registrar, Trade Union cannot be affirmed. It is, accordingly, quashed," the bench said while allowing Madhya Pradesh Shramjeevi Patrakar Sangh's plea. 

It thereafter remanded the matter back to the Registrar to decide the objections afresh. The high court directed the parties to appear before the Registrar, Trade Union on October 24, further directing the Registrar to decide the matter afresh by considering who are the persons who are likely to be deceived and what are the similarities which may deceive the members of Trade Unions.

Case Title: Madhya Pradesh Shramjeevi Patrakar Sangh Versus The State Of Madhya Pradesh And Others

Case No: W.P. No.19817/2013

Citation: 2024 LiveLaw (MP) 225

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