Section 19 of TUA, 1926 : Section 19: Enforceability Of Agreements

Explanation using Example

Imagine a scenario where a group of software engineers form a registered Trade Union to negotiate better working conditions with their employer. They agree among themselves to not accept projects from certain companies that do not meet their standards for working conditions. Normally, such an agreement could be seen as 'in restraint of trade' and potentially void. However, under Section 19 of The Trade Unions Act, 1926, their agreement is protected and cannot be deemed void simply because it restricts whom they choose to work with.

However, if one of the union members breaks this agreement and accepts a project from one of the banned companies, the Trade Union cannot go to a Civil Court to enforce this agreement or claim damages from that member for breach of the agreement, as the proviso in Section 19 prevents the court from entertaining such proceedings.