REGIONAL DIRECTOR Vs. WALLACE PHARMACEUTICALS PRIVATE LIMITED

JUDGEMENT

(1.) This appeal was admitted on 18/9/2009 on the following substantial question of law:-

(2.) Respondent M/s Wallace Pharmaceuticals Pvt. Ltd. preferred application under Sec. 75 of Employees' State Insurance Act, 1948 (hereinafter called as "ESI Act "?) before the learned ESI Court, Panaji, challenging the demand notice. The said application was registered as E.S.I. Case No.5/2000 before Panaji Court. The said application was decided with the following operative order :-

(3.) Respondent thereafter received the demand notice from the appellant dtd. 8/9/2008 directing the Respondent to pay the total amount of interest payable as on 11/8/2008 calculating the rate of interest at the rate of 6% per annum from 23/2/1988 to 19/10/1989 at the rate of 12% per annum from 20/10/1989 to 31/8/1994, at the rate of 15% per annum from 1/9/1994 to 30/9/2005 and at the rate of 12% per annum from 1/10/2005 to 11/8/2008. The Appellant demanded the interest of such rates on the ground that the provisions under ESI Act and more specifically Sec. 39(5)(a) was amended from time to time by changing the rate of interest to be paid on the unpaid contribution. It is an admitted fact that the contribution which was ordered to be paid pertains to the period from March, 1984 to September, 1986 and at that time, the prevailing rate of interest was 6% per annum. Admittedly, the rate of interest was enhanced from 6% to 12% with effect from 20/10/1989, 15% from 1/9/1994 and reduced to 12% from 1/10/1995 by virtue of amendment to Sec. 39(5)(a) of ESI Act.