Section 87: Penalty for contravention relating to hazardous process

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 87

Section 87 of the Code prescribes severe penalties for contraventions relating to hazardous processes, punishing failure to implement environmental safety controls with imprisonment of up to two years or fines of up to five lakh rupees, or both.

  • Heightened Penal Standards for Chemical & Toxic Defaults: Singles out hazardous process violations for stringent criminal sanctions, reflecting the catastrophic risk posed to both workforce and surrounding public.
  • Direct Culpability of Occupier & Resident Director: Focuses criminal prosecution directly on the designated director-occupier, preventing reliance on lower-level chemical engineers as scapegoats.
  • Daily Cumulative Penalties for Continued Default: Provides for additional fines of up to fifty thousand rupees per day for every day during which the hazardous process contravention continues after conviction.
Key Landmark Precedents:
  • M.C. Mehta v. Union of India (Oleum Gas Leak) (1987) 1 SCC 395: Supreme Court established that corporate executives managing hazardous processes carry personal responsibility for chemical containment and public safety.
  • Union of India v. Union Carbide Corp. (1989) 1 SCC 674: Bhopal Gas Tragedy precedent: Non-compliance with safety standards in toxic gas manufacturing constitutes gross negligence carrying unprecedented criminal and tortious liabilities.
  • Indian Council for Enviro-Legal Action v. Union of India (1996) 3 SCC 212: Polluters violating hazardous substance safety protocols face immediate plant closure, personal liability, and total environmental remediation costs.
Courtroom Practice & Strategic Litigation Guidance:

Occupiers of chemical units must commission annual independent Process Safety Management (PSM) audits (HAZOP / SIL), ensuring all recommendations are completed and certified by a chartered chemical engineer.