Legal Question in Employment Law in India

Dear Sir,
We are the members of a registered trade union under The Trade Union Act , 1926. We have general funds of the union of few lakhs. Recently we have decided to celebrate the foundation day of our union in December, 2014 where we want spend more than 50% of our fund in the form of gifts, community lunches etc to our members. Some of members have raised objections that this huge amount of money can be spent as it is violation of sec-15(j) of The Trade Union Act.
[ sec-15(j)- the payment, in furtherance of any of the objects on which the general funds of the trade union may be spent, of contributions to any cause intended to benefit workmen in general provided that the expenditure in respect of such contributions in any financial year shall not at any time during that year be in excess of one-fourth of the combined total of the gross income which has up to that time accrued to the general funds of the trade union during that year and of the balance at the credit of those funds at the commencement of that year;]
Sir Kindly advice us whether spending of more than 50% of our fund in the form of gifts, community lunches etc is violation of sec-15(j) of The Trade Union Act.
Regards,
Sankar

Asked on 11/08/14, 8:30 am

Fca Prashant Chavan Expert Edge LLP

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09.11.2014

Dear Sankar,

Yes, it is clearly a violation of the provisions of Section 15(j) of the Trade Union Act.

Regards,

Answered on 11/09/14, 5:16 am

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