No suit or other legal proceedings shall lie against the Central Government, the Reserve Bank, or any officer thereof for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act, any regulations, order or direction made or given thereunder.
Simplified Explanation
This section of the Payment and Settlement Systems Act, 2007 provides legal protection to the Central Government, the Reserve Bank of India (RBI), and its officers for actions taken in good faith under the Act.
Key Provisions:
- No Legal Proceedings Against Government or RBI:
- This provision ensures that no suit or legal proceedings can be initiated against the Central Government, the RBI, or any of its officers.
- Protection for Actions Taken in Good Faith:
- Legal protection is granted only when actions are taken in good faith. This includes actions performed in the pursuit of the objectives of the Act and any regulations, orders, or directions made under it.
- Damage Caused in Good Faith:
- Even if actions taken under the Act cause damage, neither the Central Government, the RBI, nor their officers can be held liable, as long as the action was taken with good intent.
Practical Implications:
- Encourages Effective Implementation:
- This provision encourages the Central Government and the RBI to take necessary actions under the Act without the fear of being sued for damage, as long as their actions are in good faith.
- Prevents Abuse of Legal Proceedings:
- It protects the Government and RBI officers from frivolous or malicious lawsuits that could hinder their ability to enforce and regulate the payment and settlement systems effectively.
- Safeguard Against Honest Mistakes:
- The protection extends even if mistakes are made in good faith, recognizing that public servants may occasionally make errors while performing their duties.
Conclusion:
Section 36 protects the Central Government, the RBI, and its officers from legal liability for any damage caused by actions taken in good faith while performing their duties under the Payment and Settlement Systems Act. This safeguard promotes the efficient enforcement of the Act and encourages the responsible execution of its provisions without the concern of legal repercussions for actions done with honest intent.
