ANJANI KUMAR, J. - (1.) Heard learned counsel appearing on behalf of the parties. The petitioners aggrieved by an order passed by the Joint Regional Director dated April 7, 1982, under Section 85-B of the Employees' State Insurance Act, 1948 (In short the 'Act'), with regard to the damages for delayed payment of amount of contribution under the scheme approached this Court by means of present writ petition under Article 226 of the Constitution of India. So far as the question of grant of delayed payment is concerned, it has not been disputed. Now the only question is as submitted by learned counsel appearing on behalf of the petitioners that the petitioners are not liable to pay the damages on the delayed payment of contribution.
(2.) I have gone through the order impugned in the present writ petition. The provision of Section 85-B of the Act, read with Employees' State Insurance (General) Regulations, 1950, Regulation 31-C, which is relevant, is reproduced below: "85-B. Power to recover damages (1) Where an employer fails to pay the amount due in respect of contribution or any other amount payable under this Act, the Corporation may recover from the employer by way of penalty such damages not exceeding the amount of arrears as may be specified in the Regulations. Provided that before recovering such damages, the employer shall be given a reasonable opportunity of being heard. Provided further that Corporation may reduce or waive the damages recoverable under this section in relation to an establishment which is a sick industrial company in respect of which a scheme for rehabilitation has been sanctioned by the Board for Industrial and Financial Reconstruction established under Section 4 of the Sick Industrial Companies (Special Provisions) Act, 1985, subject to such terms and conditions as may be specified in Regulations." (2) Any damages recoverable under sub-section (1) may be recovered as an arrear of land revenue or under Section 45-C to 45-1. Regulation 31-C. Damages or contributions or any other amount due, but not paid in time..... An employer who fails to pay contribution within the period specified under Regulation 31, or any other amount payable under the Act, shall be liable to any damages as under: p101.htm
(3.) It is admitted by the employers-petitioners in reply to the show cause notice that the amount of contribution was paid with delay. The show cause notice was towards the damages for the delayed payment amounting to Rs. 13,695/-. Learned counsel appearing on behalf of the petitioners-employers asserts that once the employers have paid the contribution amount to the Corporation, they cannot be subjected to the damages for the delay. This, in my opinion, is contrary to the Regulation 31-C, read with Section 85-B of the Act. No other point was argued on behalf of learned counsel for the petitioners.;