Section 114: Penalties for non-compliance with court remedial orders

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 114

Section 114 of the Code prescribes severe penalties for non-compliance with court remedial orders issued under Section 100, punishing continuing default with imprisonment of up to six months or additional daily fines of up to five thousand rupees, or both.

  • Contempt-Style Penal Sanctions for Defying Court Orders: Criminalizes managerial defiance of judicial orders directing structural repairs or safety installations, treating it as an aggravated judicial offense.
  • Cumulative Daily Compounding Fines: Imposes an escalating recurring financial penalty of up to five thousand rupees per day for every day the default persists beyond the court's remedial deadline.
  • Potential Incarceration of Corporate Controllers: Authorizes Magistrates to sentence the occupier or designated director to imprisonment for direct contempt of the court's remediation mandate.
Key Landmark Precedents:
  • M.C. Mehta v. Union of India (1987) 1 SCC 395: Supreme Court held that industrial establishments that disregard judicial safety directives must face immediate coercive closure and personal directorial accountability.
  • State of M.P. v. Kedar Narain AIR 1969 MP 110: Affirmed that disobeying judicial remediation orders in factory matters warrants immediate imposition of cumulative daily penalties.
  • J.K. Industries Ltd. v. Chief Inspector of Factories (1996) 6 SCC 665: Supreme Court affirmed that occupier liability for court orders cannot be diluted through administrative delegations.
Courtroom Practice & Strategic Litigation Guidance:

If compliance with a Section 100 remedial order encounters supply-chain or construction delays, file an application for extension of time supported by engineering affidavits at least fifteen days prior to deadline expiry; never allow the deadline to lapse without judicial leave.