JUDGMENT

S.B. Sinha, J.

Leave granted.

1. Interpretation and application of Section 85-B of the Employees State Insurance Act (The Act) and Regulation 31C of the Employees State Insurance (General) Regulations, 1950 (The Regulations) is in question in this appeal which arises out of a judgment and order dated 12.9.2005 passed by a Division Bench of the Karnataka High Court in Writ Appeal No.2587 of 2004 allowing the appeal in part preferred from the judgment and order dated 25.3.2000 passed by a learned Single Judge of the said Court in Writ Petition No.38753 of 1998.

2. Respondent is an 'employer' within the meaning of the provisions of Section 2(17) of the Act. Indisputably, prior to issuance of the notification dated 27.3.1992, the wage ceiling of the employees was restricted to Rs.1,600/- per month. The same was increased to Rs.3000/- per month with a view to bring them within the purview of the Act.

3. Validity of the said notification was challenged in a large number of writ petitions by the employees. By an interim order passed by the High Court, the operation of the notification was directed to be stayed. The said w