DEVI PRASAD SINGH, V.D.CHATURVEDI, JJ. - (1.) THE petitioner M/s. Cyan Security Press (P) Ltd. have approached this Court under Article 226 of the Constitution of India raising grievance as to what extent the Employees State Insurance Corporation may impose penalty, interest or damage on account of default of deposit of contribution under the Employees State Insurance Act, 1948 (hereinafter referred to as 'Act').
(2.) HEARD Sri M. P. Singh learned Counsel for the petitioners and the learned Counsel for the opposite parties. The submission of learned Counsel for the petitioner is that while imposing penalty, interest or damages the respondents have got no right to impose an amount which may exceed to the arrears of dues payable by the Employer. While approaching this Court, the petitioners have sought the following relief: "(a) that the proceedings started under Section 45-A of the Act by the Corporation be quashed by issuing a writ, order or direction in the nature of writ of certiorari, contained in Annexures No. 8 and 8-A to the writ petition by which the Corporation determined the contribution to the tune of Rs. 5,52,902/- and Rs. 2,74,729/-; (b) that the orders issued to the recovery officer by the Authorised Officer of the Corporation for recovery of amount of Rs. 8,37,374/-and Rs. 3,34,470/- contained in Annexures No. 11 and 12 be quashed by issuing a writ of certiorari; (c) That any other relief which this Hon'ble Court may deem fit and proper under the circumstances of the case, be granted to the petitioners, in the interest of justice; (d) that the writ petition may be allowed with cost against the opposite parties."
(3.) LEARNED Counsel for the petitioners has invited our attention to the provisions of Section 85-B of the Act which provides that if an employer fails to pay the amount due in respect of any contribution, the Corporation may recover the .same by way of penalty not exceeding the amount of arrears as may be specified in the Regulations. For convenience, Section 85-B of the Act is being reproduced below : 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 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 the Corporation may reduce or waive the damages recoverable under the section in relation to an establishment which is sick industrial company in respect of which a scheme for rehabilitation has been sanctioned by the Board or industrial and financial reconstruction established under Section 4 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986), 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 Section 45-1). ;