Trade union standing under insolvency law upheld for collective employment-related claims through authorised member representation.

A registered trade union is a statutory entity and qualifies as a "person" under the Insolvency and Bankruptcy Code, 2016; it may therefore maintain an operational creditor application for employment-related dues owed to its members. The statutory definition of operational debt covers claims arising from employment, and the application framework under Rule 6 and Form 5 permits joint claims in appropriate cases. The union's powers to sue and be sued, and to fund legal proceedings and trade disputes, support its capacity to act for workmen. The requirement that each workman could file a separate claim does not bar a collective application through an authorised union, and the contrary view was rejected by the SC.

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Issues: Whether a registered trade union can maintain an application as an operational creditor on behalf of its workmen under the Insolvency and Bankruptcy Code, 2016.

Analysis: A trade union registered under the Trade Unions Act, 1926 is an entity established under a statute and therefore falls within the expression "person" in Section 3(23) of the Insolvency and Bankruptcy Code, 2016. The definition of operational debt covers claims arising from employment, and the application framework under Rule 6 and Form 5 contemplates claims being made jointly in appropriate cases. The statutory powers of a registered trade union to sue and be sued and to spend its general funds on legal proceedings and trade disputes support its capacity to act for workmen. The contrary view that no services are rendered by the union to the corporate debtor was rejected, and the reference to separate claims by each workman was held not to preclude a collective application by authorised workmen through their union.

Conclusion: A registered trade union can maintain an operational creditor's application on behalf of its members' claims; the contrary view was incorrect.

Ratio Decidendi: A registered trade union, being a statutory entity representing workmen, may act as an operational creditor for employment-related dues owed to its members when the statutory scheme permits collective assertion of such claims.

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