(1) In accordance with the provisions of this Code, the statutory rules and compliance mandates governing Power to recover damages shall be enforced across all covered establishments throughout India.
(2) Every employer, establishment, or covered entity shall strictly adhere to the operational guidelines, contribution ceilings, registration schedules, and benefit disbursement standards specified under this section.
(3) Any default, failure to deposit contributions, or contravention of statutory mandates under this section shall be subject to recovery proceedings under Chapter XI and penalties under Chapter XII.
Legal Commentary & Landmark Judgments: Section 128
Section 128 of the Code empowers the Central Board, Corporation, or authorized officer to recover punitive damages from an employer who defaults in the payment of any contribution, penalty, or social security dues, up to the statutory ceiling.
In Section 128 damages hearings, rely on McLeod Russel to establish absence of mens rea: present evidence of banking technical failures, severe customer default, or government payment delays to persuade the officer to impose minimal nominal damages.