Section 55: Offences by companies
Attributes company offences to the company and responsible persons, subject to statutory defences, and addresses consent/connivance/neglect.
Statutory identity
What the provision requires
Attributes company offences to the company and responsible persons, subject to statutory defences, and addresses consent/connivance/neglect.
Implementation control: Define board and management oversight, delegation, exception reporting and due-diligence evidence.
Provision-level reading sequence
- Read each subsection, clause, proviso and explanation in the official text.
- Apply section 2 definitions before testing the obligation or exception.
- Identify the appropriate Government and the applicable Central or State rule.
- Check commencement, section-specific notifications and saved predecessor-law instruments.
- Document the factual test and the evidence supporting the conclusion.
Provision map — subsection, clause and qualification
This map decomposes the section into its operative tests. Use the linked India Code text for exact numbering and wording.
Company liability
The company can be prosecuted for an offence.
Person-in-charge
Responsible persons face deemed liability subject to the statutory knowledge/due-diligence defence.
Consent/connivance/neglect
Direct involvement creates an additional attribution route.
Governance evidence
Document assignment, monitoring, escalation and correction.
Linked Code on Wages (Central) Rules, 2026
No direct section citation was detected in the text of the 2026 Central Rules. The section may still operate with another rule, notification or State rule; verify the rule-making clause and current official library.
Authority, form and filing map
Evidence pack
- show-cause/complaint and sanction
- adjudication/prosecution record
- remediation and payment proof
- composition/appeal order
Compliance consequence
The consequence depends on the charged contravention, repeat status, responsible-person facts and whether adjudication, prosecution or composition applies.
Remedy path: identify the claims authority, appellate authority, adjudicating officer, Inspector-cum-Facilitator or criminal court applicable to the issue.
Worked example
A recurring payroll exception is known to management but not corrected. Responsible-person exposure will turn on role, knowledge, consent, connivance, neglect and due-diligence evidence.
Illustrative only. Apply actual wage notifications, contracts, dates, State rules and evidence.
Practical Q&A
Can an employment contract override this section?
Not where the contract reduces a statutory entitlement. Sections 60 and 61 must be considered, including any more favourable award, agreement or contract.
What should be checked before payroll or HR action?
Confirm coverage, appropriate Government, operative rate/order, the exact subsection and proviso, linked rule, evidence, approval and payment/filing deadline.
Primary sources
India Code — exact Section 55 text ↗
India Code — official consolidated Act PDF ↗
Ministry of Labour — Codes, Rules, notifications and FAQs ↗
Last official-source review: 16 July 2026.