Chapter X - Agency
Section 224
Section 224: No indemnity for criminal acts
An agent cannot enforce an express or implied indemnity from the employer for consequences of an act that is criminal.
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This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Where one person employs another to do an act which is criminal, the employer is not liable to the agent, either upon an express or an implied promise, to indemnify him against the consequences of that Act.
Illustrations
(a) A employs B to beat C, and agrees to indemnify him against all consequences of the act. B thereupon beats C, and has to pay damages to C for so doing. A is not liable to indemnify B for those damages.
(b)B, the proprietor of a newspaper, publishes, at A’s request, a libel upon C in the paper, and A agrees to indemnify B against the consequences of the publication, and all costs and damages of any action in respect thereof. B is sued by C and has to pay damages, and also incurs expenses. A is not liable to B upon the indemnity.
Rule and business relevance
The section denies the stated indemnity even where the employer expressly promised it. The illustrations show why an undertaking cannot be used to shift those consequences in that way.
Limits and related provisions
This rule concerns indemnity liability to the agent; it does not exonerate the employer from any separate responsibility under criminal or other law.
Hypothetical business example
Hypothetical example: A principal promises to cover consequences if an agent commits a criminal act. That promise does not create the indemnity liability prohibited here.
Practical decision flow
Determine whether the entrusted act is criminal under applicable law.
Identify the indemnity being asserted.
Separate its enforceability from other liabilities of the participants.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Determine whether the entrusted act is criminal under applicable law.
- Identify the indemnity being asserted.
- Separate its enforceability from other liabilities of the participants.
Avoid
- This rule concerns indemnity liability to the agent; it does not exonerate the employer from any separate responsibility under criminal or other law.
Glossary
- Criminal act
- An act criminal under the applicable legal framework.
- Express or implied indemnity
- Either form of promise addressed by the statutory exclusion.
Frequently asked questions
Does an express promise avoid this rule?
No. Both express and implied promises are covered.
Does the section declare the employer innocent?
No. It addresses indemnity to the agent, not all other legal responsibility.
Should current law be checked for criminality?
Yes. The actual act and governing law must be established.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026