Ravi Krishan Kapur, J. - (1.) This petition has been filed challenging an order dated 13 September, 2011 passed under Section 85B of the Employees' State Insurance Act, 1948 ("the Act") whereby the Employees' State Insurance Authorities have levied penal damages of nearly Rs.60 lakhs under Section 85B of the Act on the petitioner establishment for delay in making payment of its contributions for the period from September 2002 to March 2010.
(2.) The facts are that the Premchand Jute Mill Ltd. is the owner of a jute mill known as Premchand Jute Mills situated at Howrah. It is alleged by the petitioner that by a conversion agreement dated 31 August, 2005 entered into by and between the Premchand Jute Mills Ltd. and the petitioner no.1, the petitioner no.1 was allowed to utilize the entire production capacity of the jute mill for production of jute goods.
(3.) The petitioner no.1 was previously known as Brishti Vinimay Private Ltd. and was renamed as Premchand Jute and Industries Private Limited with effect from March 25, 2011. By a Memo dated 26 November, 2007, the ESI authorities claimed that as on 31 October, 2007 a sum of Rs.3,73,04,297 was in arrears out of which only a sum of Rs.1,10,97,511 was on account of ESI contributions and the rest represented damages and interest. It was contended on behalf of the petitioners that these dues said to be payable by the petitioners were primarily for the period prior to the agreement which had been executed between the owners of the jute mill and the petitioner no.1.;