- (1.) The Regional Directors of the Employees' State Insurance Corporation (hereinafter referred to as 'the Corporation') issued notices under Section 85-B of the Employees' State Insurance Act, 1948 (hereinafter referred to as 'the Act') to the appellants between the years 1979 to 1981, stating that they proposed to impose damages against the appellants because there had been delay on the part of the appellants in making payment of the contribution, in accordance with the provisions of the said Act. Different amounts were mentioned in the said notices which were to be imposed, as damages against the different appellants. The appellants in pursuance to the notices aforesaid submitted their explanations indicating the reasons and circumstances, because of which the delay had occurred. The Regional Directors passed orders on different dates against the different appellants imposing damages, for the period in question. Being aggrieved by those orders the appellants filed petitions under Section 75 of the Act before the Employees' Insurance court. The Employees' Insurance court dismissed the petitions. Thereafter appeals were filed under Section 82 of the Act before the High court which were dismissed in limine.
(2.) Before this court, the validity of the impugned orders has been questioned on the ground that the power under Section 85-B could not have been exercised by the Regional Directors of the Corporation; it could have been exercised either by the Corporation or by the Director General of the said Corporation.
(3.) Section 3 of the Act provides for the establishment of the Employees' State Insurance Corporation and Section 4 provides for constitution of Standing Committee for the Corporation. Section 85-B vests power in the Corporation to recover from the employer such damages as it may think fit, whenever an employer fails to pay the amount due in respect of anycontribution or any other amount payable under the said Act. Section 85-B on the relevant date was as follows: "85-B.power to recover damages. (1 Where an employer fails to pay the amount due in respect of any contribution or any other amount payable under this Act, the Corporation may recover from the employer such damages not exceeding the amount of arrears as it may think fit to impose: Provided that before recovering such damages, the employer shall be given a reasonable opportunity of being heard. (2 Any damages recoverable under Ss. (1 may be recovered as an arrear of land revenue. "in view of Section 94-A the Corporation may delegate any of its powers to any officer or authority subordinate to the Corporation. "94-A.delegation of powers. The Corporation, and subject to any regulations made by the Corporation in this behalf, the Standing Committee may direct that all or any of the powers and functions which may be exercised or performed by the Corporation or the Standing Committee, as the case may be, may, in relation to such matters and subject to such conditions, if any, as may be specified, be also exercisable by any officer or authority subordinate to the Corporation. ";