HINDUSTAN MONARK P LTD Vs. EMPLOYEES STATE INSURANCE CORPORATION
LAWS(ALL)-1997-4-33
HIGH COURT OF ALLAHABAD
Decided on April 24,1997

HINDUSTAN MONARK (P) LTD. Appellant
VERSUS
EMPLOYEES' STATE INSURANCE CORPORATION Respondents

JUDGEMENT

R.K.Mahajan, J. - (1.) This is an appeal against the order of Employees' State Insurance Court, Ghaziabad dated February 3, 1981 in case No. 3 of 1980 by virtue of which damages amounting to Rs. 5,618/were levied under Section 85-B of the Employees' State Insurance Act, 1948 (hereinafter referred to as the Act) on account of making late payment of contribution for the period September, 1975 to January, 1976. The grievance of the appellant is that the payment of the contribution due on the part of the employer along with interest for delayed payment has been paid and it was illegal and not warranted under law to levy the damages. The appellant is a Company which is covered under the Act and there is no dispute. It is also not disputed that they have been paying the contribution and there was delay in making contribution for the period of March, 1976 to July, 1977. This fact is also not disputed. Rather the interest was paid under Regulation 31-A of E.S.I.(General) Regulations, 1950 for late payment.
(2.) The only point which has been taken in the appeal is regarding the levying of damages under Section 85-B(1) of the Act, it has been also argued during the course of arguments that the power under Section 85-B of the Act cannot be delegated to Regional Director in view of the latest Supreme Court ruling reported in Sahni Silk Mills Pvt. Limited v. E.S.I. Corporation (1994-II-LLJ-1105).
(3.) Shri Rakesh Tiwari and Shri J.N.Tiwari, Senior Advocate appeared for the appellant. None appeared for the respondents.;


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