CHANDRASENAN Vs. REGIONAL DIRECTOR E S I C

JUDGEMENT

(1.) This is an appeal filed against the judgment of the Employees' Insurance Court, Alappuzha in I.C. No. 33 of 1992.

(2.) As per the impugned judgment, the Insurance Court has set aside the order passed by the first respondent under S.85B of the Employees State Insurance Act (for short "the Act") imposing damages for delayed payment of the contribution and directed a re-assessment of the damages in the light of the declaration granted by the court in the judgment to the effect that the appellant's liability to pay damages is only from the date of re-assessment order, namely 5.10.1988 and not for periods prior to that date.

(3.) The contention raised by the learned counsel for the appellant that he is not liable to pay damages during the period he was granted time for payment of dues in 16 instalments by the Minister for Revenue, Government of Kerala, cannot obviously be upheld. The instalment facility granted by the collecting agency, namely revenue authorities for payment of the dues keeping the revenue recovery proceedings in abeyance will not in our view suspend the liability of the appellant to pay the contribution, amount in accordance with the provisions of the Act. Contribution ought to have been paid within the time stipulated in the Act. The statutory liability to pay damages for the delay caused in remitting the contribution amount finally assessed cannot be avoided by relying upon the fact that the revenue authorities including the Minister for Revenue have granted time for payment of the amount due in exercise of the powers conferred under the Revenue Recovery Act. Such exercise of power by the revenue authorities under the Revenue Recovery Act cannot affect the scheme for levy and realisation of contribution under the Act which is a Central enactment. As such the view taken by the Insurance Court is perfectly justifiable and does not warrant interference by this Court. Thus we find no merit in the appeal. No other contention was raised by the learned counsel for the appellant.