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.

Question

Examsnet · Accepted Answer

Correct Answer is : 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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