(1.) This appeal is filed at the instance of the Employees State Insurance Corporation against the order of the Employees Insurance Court, Alappuzha in I.C. No. 104/1999 raising the following substantial questions of law:
(2.) The respondents herein were the employers who filed the I.C. challenging the order of the appellants imposing on them damages to the tune of Rs.79,969/- under S.85B of the Employees State Insurance Act, 1948 for delayed payment of contributions for the period from October, 1986 to March, 1987, October, 1987 to March, 1988, April, 1988 to March, 1989 and May, 1990 to March, 1991. In the I.C., the employers, after admitting that there was, in fact, delay in payment of contributions, contended that for that delay, no damages could have been imposed under S.85B, since the delay was on account of the pendency of litigations in respect of the liability to pay contributions themselves as also financial difficulties. The appellants herein contended before the Insurance Court that once delay is admitted, the fact that there were litigations pending and the employers were in financial difficulties are not factors which could be taken into account to reduce the damages payable under S.85B of the Act, imposition of which is at the discretion of the authorised officer under S.85B. Repelling these contentions, based on a Division Bench decision of this Court in Regional Director, E.S.I Corporation v. Sakthi Tiles (1988 (2) KLT 280) the Insurance Court reduced the damages leviable to Rs. 27,500/-. This decision of the Insurance Court, is under challenge in this appeal.
(3.) First we shall consider the second question of law raised as above as to whether the Insurance Court has jurisdiction to consider the question of waiver or reduction of damages imposed under S.85-B in exercise of its jurisdiction under S.75 of the Act.