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Section 58: Protection of action taken in good faith

The Code on Wages, 2019 (Act No. 29 of 2019) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter IX: Miscellaneous
Competent Labour Forum
Act No. 29 of 2019
Section 57 All 67 Sections of Code on Wages, 2019 Section 59

Legal Commentary & Landmark Judgments: Section 58

Section 58 of the Code on Wages, 2019 confers statutory immunity upon the appropriate Government, its officers, Inspectors-cum-Facilitators, and adjudicating authorities, shielding them from civil suits, criminal prosecutions, and legal actions for anything done or intended to be done in good faith in the execution of the Code or rules.

  • Statutory Shield for Public Servants and Regulatory Bodies: The section provides an absolute defense of statutory immunity to government officials, authorities, and inspectors executing powers under the Code, ensuring they can enforce wage standards, inspect establishments, and issue recovery orders without fear of personal litigation or harassment.
  • The Objective Standard of Good Faith: Under Section 52 of the Indian Penal Code / Section 2(11) of the Bharatiya Nyaya Sanhita, 'good faith' requires that an act be done with due care and attention. If an officer acts within their statutory mandate without malice, corruption, or gross recklessness, they are insulated from liability even if their administrative determination is later reversed on appeal.
  • Exceptions: Malice, Corrupt Practice, and Ultra Vires Acts: The immunity does not extend to acts done with demonstrated mala fides, extortion, fraudulent collusion, or outside the territorial and subject-matter jurisdiction conferred by the Code. Sovereign immunity provides no shield for intentional abuses of regulatory power.
Key Landmark Precedents:
  • State of Maharashtra v. Buddikota Subha Rao (1993) 3 SCC 339: The Supreme Court held that statutory protection of public servants acting in good faith is essential to prevent administrative paralysis, provided the acts have a reasonable nexus with official duties.
  • K.K. Patel v. State of Gujarat (2000) 6 SCC 195: The Supreme Court ruled that statutory immunity clauses protect public officers from vexatious litigation for decisions made in the course of administering regulatory enactments.
  • General Officer Commanding-in-Chief v. Subhash Chandra Yadav (1988) 2 SCC 351: The Supreme Court affirmed that while good faith acts are protected, actions exceeding statutory powers (ultra vires) cannot claim immunity from judicial scrutiny.
Courtroom Practice & Strategic Litigation Guidance:

When employers consider filing civil damages suits or criminal complaints against an Inspector-cum-Facilitator for alleged overreach during an inspection, legal counsel must advise on the high bar of Section 58. Unless concrete documentary evidence of bad faith, extortion, or ultra vires malice exists, courts will dismiss such proceedings at the threshold. The proper remedy is an administrative complaint to the Labour Commissioner or a writ petition under Article 226.

Section 57 All 67 Sections of Code on Wages, 2019 Section 59