Section 111: Disposal of obsolete machinery

The Occupational Safety, Health and Working Conditions Code, 2020 (Act No. 37 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter XI: Offences and Penalties
Competent Labour Forum
Act No. 37 of 2020

Legal Commentary & Landmark Judgments: Section 111

Section 111 of the Code prohibits the sale, hire, or importation of obsolete, substandard, or unguarded machinery, holding manufacturers, importers, and leasing entities accountable for delivering safe industrial equipment.

  • Upstream Safety Accountability on Machinery Suppliers: Extends statutory safety liabilities beyond plant occupiers to machinery manufacturers, importers, and leasing agents who supply plant equipment.
  • Mandatory Integrated Safety Guarding: Prohibits the commercial transfer or leasing of any machine driven by power unless dangerous moving parts, revolving gears, and crushing rollers are enclosed in permanent structural guards.
  • Statutory Penalties for Supplying Unsafe Equipment: Exposes machinery vendors and equipment leasing firms to financial penalties under Section 84 for supplying non-compliant machinery.
Key Landmark Precedents:
  • J.K. Industries Ltd. v. Chief Inspector of Factories (1996) 6 SCC 665: Supreme Court recognized that industrial safety begins at the design and manufacturing stage of industrial machinery.
  • M.C. Mehta v. Union of India (1987) 1 SCC 395: Affirmed that suppliers of industrial hardware used in hazardous chemical containment owe a duty of strict engineering integrity.
  • State of Gujarat v. Jayantilal Amratlal AIR 1965 SC 1477: Affirmed that operating unguarded machinery constitutes a direct statutory violation creating absolute criminal liability upon fatal contact.
Courtroom Practice & Strategic Litigation Guidance:

Incorporate a mandatory warranty in all capital equipment purchase orders certifying that the supplied machinery complies with Section 111 of the OSH Code and BIS machine safety standards, backed by a 10% performance bank guarantee.