Home  /  Code on Social Security, 2020  /  Section 99

Section 99: Recovery of compensation

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter VII: Employee's Compensation
Competent Labour Forum
Act No. 36 of 2020
Section 98 All 163 Sections of Code on Social Security, 2020 Section 100

Legal Commentary & Landmark Judgments: Section 99

Section 99 of the Code on Social Security, 2020 establishes an expedited statutory debt recovery mechanism, empowering the Competent Authority to issue a certificate to the District Collector for the recovery of unpaid compensation, interest, and penalties as arrears of land revenue.

  • Recovery as Arrear of Land Revenue: Enacts that any amount payable by any person under Chapter VII (including compensation, statutory interest, and penalty) may be recovered by the Competent Authority as an arrear of land revenue, bypassing slow civil execution suits.
  • Issuance of Formal Recovery Certificate to District Collector: Authorizes the Competent Authority to transmit a formal statutory Recovery Certificate specifying the outstanding sum, the identity of the defaulter, and the location of their immovable and movable properties to the District Collector or revenue recovery officer.
  • Coercive Administrative Enforcement Powers: Upon receipt of the certificate, the District Collector is empowered under State Revenue Recovery Acts to attach bank accounts, seize factory plant and machinery, sell immovable real estate at public auction, or commit the defaulting employer to civil imprisonment.
  • Expedited Disbursement to Claimants upon Realization: Requires the revenue authorities to remit recovered monies directly into the account of the Competent Authority, who is mandated to disburse the funds into the bank accounts of the disabled worker or surviving dependents without bureaucratic delay.
Key Landmark Precedents:
  • New Delhi Municipal Committee v. Kalu Ram (1976) 3 SCC 407: The Supreme Court held that recovery procedures as arrears of land revenue are expeditious summary remedies designed to realize public and statutory dues without the procedural impediments of civil execution suits.
  • State of U.P. v. Synthetics and Chemicals Ltd. (1991) 4 SCC 139: The Supreme Court confirmed that statutory certification by a designated officer vests conclusive authority in revenue collectors to attach assets and execute distress warrants.
  • Central Bank of India v. State of Kerala (2009) 4 SCC 94: Affirmed that statutory welfare recoveries for workmen dues enjoy paramount social priority, enabling revenue authorities to execute recovery certificates swiftly.
Courtroom Practice & Strategic Litigation Guidance:

When an employer or insurance carrier fails to deposit the awarded compensation within thirty days of the order and does not obtain an interim stay from the High Court, claimant counsel should immediately file an execution petition under Section 99 praying for the issuance of a Recovery Certificate to the District Collector. Employers facing an impending recovery certificate must either immediately satisfy the award or move the High Court under Section 98 along with proof of full deposit to secure a protective interim stay of distress proceedings.

Section 98 All 163 Sections of Code on Social Security, 2020 Section 100