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Section 91: Offences by companies

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
Section 90 All 143 Sections of OSH Code, 2020 Section 92

Legal Commentary & Landmark Judgments: Section 91

Section 91 of the Code governs offenses by companies, enacting a comprehensive statutory framework attributing criminal liability to directors, managers, and corporate officers who consented to, connived in, or neglected safety compliance.

  • Corporate Attribution of Criminal Liability: Provides that where an offense under this Code is committed by a company, the company itself as well as every person in charge of its business shall be deemed guilty.
  • Individual Directorial Accountability for Consent or Neglect: Explicitly holds directors, secretaries, or corporate managers personally liable if the safety offense is proved to have occurred with their consent, connivance, or neglect.
  • Statutory Due Diligence Defense: Permits a director to escape criminal conviction only by proving that the offense was committed without their knowledge or that they exercised all due diligence to prevent its commission.
Key Landmark Precedents:
  • J.K. Industries Ltd. v. Chief Inspector of Factories (1996) 6 SCC 665: Landmark ruling: In the case of a company owning a factory, only a director can be nominated as occupier; directors cannot escape vicarious criminal liability for industrial safety defaults.
  • Sunil Bharti Mittal v. CBI (2015) 4 SCC 609: Supreme Court reiterated that corporate officers can only be prosecuted if the statute expressly creates vicarious liability or if there is active personal culpability in the offense.
  • Aneeta Hada v. Godfather Travels & Tours Pvt. Ltd. (2012) 5 SCC 661: Affirmed that for vicarious liability to attach to corporate directors, arraigning the company as an accused is a mandatory statutory prerequisite.
Courtroom Practice & Strategic Litigation Guidance:

Corporate boards must establish an unassailable due diligence trail: pass formal board resolutions delegating safety oversight to a named resident executive director, allocate dedicated annual safety budgets, and review safety compliance quarterly.

Section 90 All 143 Sections of OSH Code, 2020 Section 92