Section 99: Recovery of penalties

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 99

Section 99 of the Code provides for the summary recovery of financial penalties and compensation imposed under the Code, authorizing their recovery as arrears of land revenue through the District Collector.

  • Summary Recovery Mechanism as Arrears of Land Revenue: Vests recovery certificates issued by adjudicating officers or courts with the coercive recovery powers of the revenue recovery code.
  • Attachment & Sale of Movable & Immovable Assets: Empowers the District Collector to attach bank accounts, commercial vehicles, and corporate plant and machinery to satisfy unpaid penalties.
  • Priority of Worker Compensation Claims: Directs that fine proceeds allocated to injured workers or deceased dependents under Section 85 take first priority over ordinary unsecured claims.
Key Landmark Precedents:
  • State of Gujarat v. Vogue Garments (1983) 1 LLJ 255 (Guj HC): Affirmed that recovery of statutory dues under labor codes as arrears of land revenue is constitutionally valid and immune from ordinary civil stays.
  • Organo Chemical Industries v. Union of India (1979) 4 SCC 573: Supreme Court emphasized that statutory recovery provisions in labor welfare statutes must be enforced vigorously to deter corporate delinquency.
  • Dewan Chand Builders & Contractors v. Union of India (2012) 1 SCC 101: Constitution Bench affirmed the state's sovereign power to employ coercive land revenue mechanisms to realize worker welfare dues.
Courtroom Practice & Strategic Litigation Guidance:

To avoid sudden asset freeze or bank account attachment by the District Collector, corporate entities facing an adverse penalty order must either deposit the sum under protest or obtain an interim stay from the appellate authority under Section 98.