Sections 97 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 97 says no civil court has jurisdiction over any matter to which a provision of the Code applies, and no civil court may grant an injunction for anything done or intended to be done by or under the Code. Section 98 says no suit, prosecution or other legal proceeding lies against a person for anything done, or intended to be done, in good faith under the Code or its rules. Each section is a single short paragraph, but together they decide where a labour dispute can be fought and who is shielded while the Code is worked.
Section 97 shuts out the civil courts: no civil court has jurisdiction in respect of any matter to which any provision of the Code applies, and no injunction may be granted by a civil court for anything done or intended to be done by or under the Code. Section 98 protects a person from suit, prosecution or other legal proceeding for anything done in good faith in pursuance of the Code or rules made under it. Neither section needs any notification or procedure; both are plain statements in the Code.
Sections 97 and 98 at a glance
| Section | What it says | Effect |
|---|---|---|
| 97 | No civil court has jurisdiction in respect of any matter to which any provision of the Code applies | Disputes go to the authorities the Code names, not to a civil suit |
| 97 | No civil court may grant an injunction in respect of anything done or intended to be done by or under the Code | A civil injunction cannot stop a Code process |
| 98 | No suit, prosecution or other legal proceeding lies for anything in good faith done or intended to be done under the Code or rules | Protects persons acting under the Code |
Section 97: civil courts are barred
Section 97 has two limbs, both in one sentence. First, "no civil court shall have jurisdiction in respect of any matter to which any provision of this Code applies". Second, "no injunction shall be granted by any civil court in respect of anything which is done or intended to be done by or under this Code".
Read the first limb by its wording. The bar turns on whether a provision of the Code applies to the matter. It is not limited to disputes about industrial disputes alone. If the Code has a provision on the subject, for example the raising of a grievance, an application to a Tribunal or a complaint under the Code, the matter belongs to the forum the Code names. The Code sets up several: the Grievance Redressal Committee, the conciliation officer, the Tribunal and the National Industrial Tribunal (see section 4 and sections 43 and 44).
The second limb matters at the start of a fight. A party cannot approach a civil court for an injunction to stop something being "done or intended to be done by or under" the Code, for instance a reference to a Tribunal or a step in a conciliation proceeding. The words "intended to be done" extend this to acts that have not happened yet.
What the sections do not say
The text does not mention writ jurisdiction of the High Courts or the Supreme Court, nor the powers of a Tribunal itself, and this article does not address them. The bar is on "civil court" only. We also do not discuss decided cases, because the Code text does not cite any, and the position in a particular case depends on the facts and the provision concerned.
Note how this fits with the Tribunal's own powers. Tribunals and conciliation officers have certain civil court powers under s.49, which is a grant of specific powers, not a change in the bar (see section 49). If you are an employer or union advised to file a civil suit over a labour matter, ask first whether a provision of the Code applies to it. Our legal consultation team can help you test that question before you choose a forum.
Section 98: protection for action in good faith
Section 98 reads: "No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Code or any rules made thereunder."
Three features stand out:
- "Any person". The section is not limited to government officers. Its words cover anyone acting under the Code, so it can protect an officer who issues an order and, on its plain wording, other persons whose act fits the section.
- "Good faith". The protection depends on good faith. An act done dishonestly or with no link to the Code falls outside it. The Code does not define good faith, so a court would look at the facts of each case.
- "In pursuance of this Code or any rules". The act must be done under the Code or its rules. The Central Rules, 2026 are made under s.99 (see section 99).
The protection is against a "suit, prosecution or other legal proceeding", so it covers civil and criminal proceedings. It does not say it bars every remedy. The Code's own penalty and complaint provisions continue to apply to those who contravene it.
Practical examples
Example (invented) on s.97. An employer, unhappy that a grievance has been taken to the conciliation officer, files a civil suit asking for an injunction to stop the proceeding. The suit runs into s.97: the matter is one to which a provision of the Code applies, and the injunction would restrain something being "done or intended to be done by or under this Code".
Example (invented) on s.98. An officer acts under the Code honestly on the material before him. A party later files a suit claiming damages for the step. Section 98 bars the suit, provided the act was done in good faith in pursuance of the Code. If the officer acted dishonestly, the section would not help.
Need help deciding where a labour dispute belongs?
Choosing the wrong forum wastes months, and a civil suit over a Code matter faces the bar in s.97 at the outset. Our legal consultation team can look at your facts and the Code provision involved, and help you decide the route.
Key takeaways
- Section 97 bars civil court jurisdiction in matters to which a provision of the Code applies.
- Section 97 also bars civil court injunctions for anything done or intended to be done by or under the Code.
- Section 98 bars suit, prosecution or other legal proceeding for anything done in good faith under the Code or its rules.
- Good faith is the condition; dishonest or unrelated acts are not protected.
- Neither section mentions constitutional writ remedies; the bar is on civil courts.
Read next
- Section 95-96: removal of doubts and power to exempt
- Section 99: power to make rules
- Section 93-94: protection of persons and representation of parties
- Industrial disputes under the new labour codes: IR Code 2020
Disclaimer: Based on the Industrial Relations Code, 2020 (as enacted) and, where noted, the Industrial Relations (Central) Rules, 2026 (G.S.R. 342(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.