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Section 33: Protection of action taken in good faith

Recovery of Debts and Bankruptcy Act, 1993 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1993
Section 32 All 37 Sections of Recovery of Debts and Bankruptcy Act, 1993 Section 34

Legal Commentary & Landmark Judgments: Section 33

Section 33 enacts a statutory indemnity and protection clause shielding the Central Government, Presiding Officers, Chairpersons, Recovery Officers, and tribunal staff from civil suits and criminal prosecution for acts done in good faith.

  • Comprehensive Statutory Immunity: Section 33 mandates that no suit, prosecution, or other legal proceeding shall lie against the Central Government or against the Presiding Officer, Chairperson, or Recovery Officer, or any other officer or employee for anything done or intended to be done in good faith.
  • Prerequisite of Good Faith: Statutory protection is conditional upon the act being performed in 'good faith' pursuant to the provisions of the Act, or any rule or order made thereunder, as defined under Section 52 of the Indian Penal Code (done with due care and attention).
  • Shield Against Vexatious Litigious Retaliation: Prevents defaulting borrowers and disgruntled litigants from instituting malicious damages suits or criminal complaints against Presiding Officers or Recovery Officers to harass them or stall execution.
Key Landmark Precedents:
  • Authorized Officer, Indian Overseas Bank v. Ashok Saw Mill (2009) 8 SCC 366: The Supreme Court held that statutory good faith clauses protect judicial and recovery officers from civil damages and criminal liability, but do not insulate illegal, arbitrary, or unconstitutional orders from judicial review and reversal under appellate or writ jurisdiction.
  • General Manager, Telecom v. A. Srinivasa Rao (1997) 8 SCC 767: The Supreme Court held that statutory indemnities protect public functionaries discharging quasi-judicial responsibilities from personal exposure, ensuring unhindered enforcement of statutory duties.
Courtroom Practice & Strategic Litigation Guidance:

If a debtor threatens to file a personal damages suit or police complaint against the Recovery Officer or Bank Authorized Officer for executing a warrant of attachment or physical possession, invoke Section 33. Such vexatious collateral suits are barred at the threshold; apply for immediate rejection of the plaint under Order VII Rule 11(d) CPC on the ground that the suit is barred by Section 33.

Section 32 All 37 Sections of Recovery of Debts and Bankruptcy Act, 1993 Section 34