- (1.) BACKGROUND This is a writ by the Indian Oil Officers' Association (the Association). It is a registered trade union, under Section 13 of the Trade Unions Act, 1926. This kind of a trade union is treated as a body corporate. It can sue. It can be sued. The petitioner no. 2 is their General Secretary. The members work in various offices, depots, establishments, divisions etc. of Indian Oil Corporation. The Association challenges a Memorandum of Understanding dated 24th April, 2009. It was purportedly entered into by six members of this Association with the Corporation. They challenge certain clauses in it i.e. clauses 4,11,13,16 and 18. The agreement as a whole is also challenged. These clauses are set out below: "4. Association shall on its own resolve and make endeavour to settle all the issues by mutual negotiation with the Management and shall not be part of any other federation/or collective forum. 11. Officers in Grade 'G' and above shall not be members of the Association. 13. Association will not interfere in any manner in the rights of Management concerning employment, non -employment, terms of employment and conditions of service. 16. Any officer in the position of Head of Department. Location Head irrespective of the grade shall not participate in any form of agitation. 18. Any violation of this code, reported or observed, shall render the Association to lose its status of recognition."
(2.) They say that the management of the Corporation had obtained this agreement by subterfuge. Three of the signatories on behalf of the Association were dismissed employees. Three were suspended officers. They could not represent the Association. They had not been expressly or impliedly authorised by the Association to sign the agreement. They had been allured by the Corporation to execute it on the promise of reinstatement. They were also promised fast track promotion and their desired posting. They got it after execution of the agreement.
(3.) The agreement is attacked on the ground of unconstitutionality, illegality, arbitrariness and mala fide. It is also alleged that this agreement was obtained by duress, coercion, undue influence and so on. The Association wants a declaration that the Memorandum is unconstitutional and void. In the alternative they pray that the above clauses are not binding on their members and should not be enforced.;