E.I.COURT Vs. THE DIRECTOR

JUDGEMENT

(1.) The above appeal is filed challenging the order passed in E.I.C.No. 32/2012 by the Employees' Insurance Court, Kozhikode. The Employees Insurance Court, on the application filed by the respondent herein/applicant reduced the quantum of damage imposed by the appellants/respondents, under Section 85B of the ESI Act from an amount of Rs.2,74,286/- to Rs.25,000/-, in respect of the period from April-2008 to September-2010. The said damage was imposed for causing inordinate delay in the payment of ESI contribution during the said period. The legality and correctness of the aforesaid reduction in the quantum of penalty is challenged in this appeal.

(2.) According to the appellant/ESI corporation, they had issued Ext.D1 notice proposing to impose damage for an amount of Rs.5,48,571/- as provided under Section 85(b) r/w Regulation 31- C. But subsequently, they themselves have substantially reduced the quantum of penalty to Rs.2,74,286/- considering the representation of the respondent stating their financial difficulties. The grievance of the petitioner/appellant is that even though the appellant had substantially reduced the quantum of penalty, the respondent again filed application challenging the reduced amount and the Insurance Court, without stating any reason whatsoever, again reduced the penalty amount to Rs.25,000/-. According to the appellant, the aforesaid reduction is arbitrary and unsustainable.

(3.) Heard the learned counsel for the appellant and the learned counsel for the respondent.