E. S. I. CORPORATION Vs. MOOSANKUTTY

JUDGEMENT

(1.) EMPLOYEES ' State Insurance Corporation, the appellant herein, questions the order of the Employees' Insurance Court in reducing the quantum of damages imposed by the Corporation under S.85B of the Employees' State Insurance Act, 1948 (hereinafter referred to as 'the Act'). The respondent was conducting a small scale industrial unit in partnership basis. There was some delay in payment of contributions. The establishment was closed due to financial difficulties and accumulated loss and the partnership itself was dissolved. The properties of the firm were sold for discharging the liabilities of the establishment. However, contributions due to the Corporation were paid, though there was some delay. The Corporation imposed damages under S.85B of the Act. Power of the Corporation to impose damages under S.85B of the Act, apart from interest on delayed payment of contribution, is not seriously disputed.

(2.) IT is true that under S.85B of the Act, the ceiling limit of damages is 100% of the arrears. But, without taking into the circumstances of the matter, the Corporation imposed maximum damages payable under the Regulations. Regulation.31C of the Employees' State Insurance (General) Regulations, 1950 reads as follows: