Section 118 of the Factories Act 1948: Restrictions on Disclosure of Information

Section 118 imposed confidentiality duties on factory Inspectors in relation to manufacturing, commercial and working-process information obtained through official duties. The provision is important historically, but the current central framework is now contained in the Occupational Safety, Health and Working Conditions Code, 2020.

Current legal status The Occupational Safety, Health and Working Conditions Code, 2020 came into force on 21 November 2025. Section 143 of that Code repealed the Factories Act, 1948, subject to its savings provisions. For present-day matters, readers should therefore consult the Code, especially Sections 39, 100 and 124, while using former Section 118 for historical matters and saved rights, liabilities, proceedings or actions where applicable.

Meaning and scope of former Section 118

Former Section 118 of the Factories Act, 1948 restricted an Inspector from disclosing information about a manufacturing or commercial business or a working process that came to the Inspector's knowledge in the course of official duties. The obligation applied both during service and after the Inspector left service.

The rule was not absolute. The section itself recognised specified situations in which disclosure could lawfully be made, including written consent of the owner and disclosures connected with legal or criminal proceedings.

Text of former Section 118

When disclosure was permitted

Under former Section 118(2), the confidentiality restriction did not apply where the owner of the business or process had given previous written consent, or where the information was disclosed for specified legal proceedings, criminal proceedings, arbitration connected with the Act, or a report of those proceedings.

Penalty under the former provision

Former Section 118(3) provided a specific punishment for an Inspector who breached sub-section (1): imprisonment up to six months, a fine up to Rs. 1,000, or both. This was the penalty stated in the repealed Factories Act provision and should not be confused with the penalty structure under the current Code.

Current law under the Occupational Safety, Health and Working Conditions Code 2020

The current Code uses a broader and updated confidentiality framework. Section 39 treats specified records and information acquired during inspection or survey as confidential and regulates disclosure by the Chief Inspector-cum-Facilitator, Inspector-cum-Facilitator and other covered persons. It also protects the source of complaints, subject to the terms of the provision.

Section 124 contains a general restriction on disclosure of manufacturing, commercial-business and working-process information obtained in the course of official duties, while recognising statutory exceptions. Section 100 separately provides punishment for disclosure contrary to the confidentiality provisions referred to there.

ProvisionPresent relevance
Former Factories Act, 1948 - Section 118Historical confidentiality rule for Inspectors; relevant to the former Act and subject to repeal-and-savings considerations.
OSHWC Code, 2020 - Section 39Secrecy of information obtained by Chief Inspector-cum-Facilitator, Inspector-cum-Facilitator and covered persons, including protection of complaint sources.
OSHWC Code, 2020 - Section 100Punishment for unlawful disclosure of information covered by the provisions specified in that section.
OSHWC Code, 2020 - Section 124General restriction on disclosure of manufacturing, commercial and working-process information obtained through official duties.
OSHWC Code, 2020 - Section 143Repeal and savings provision, including repeal of the Factories Act, 1948 from commencement of the Code.
Practical reading: For an event, proceeding or liability arising under the old Factories Act regime, examine Section 143 and other applicable savings before deciding which provision governs. For current compliance after commencement of the Code, use the OSHWC Code and applicable rules or notifications.

Official legal resources

For the authoritative statutory text and current commencement information, use the official India Code and Ministry of Labour and Employment resources:

Last reviewed: 26 September 2026. This page is an informational legal reference and should be read with applicable notifications, rules, savings provisions and case-specific facts.