1. A rather interesting and important question arises under the Employees State Insurance Act (34 of 1948) as to the liability of the employer to pay special contribution on the compensation payable by the employer to his employees who have been laid-off under the provisions of the Industrial Disputes Act, 1947.

2. The few facts which are necessary to be considered in order to dispose of this reference are that in the last quarter of 1953 the Nutan Mills became liable to pay compensation for layoff in the sum of Rs. 1,312-15-0 and on this amount it paid to the Employees State Insurance Corporation incorporated under the Act a sum of Rs. 9-13-6 as special contribution under Section 73A, Employees State Insurance Act.

In the first quarter of 1954 the Mills became liable to pay lay-off compensation in the sum of Rs. 521-11-9 and on this amount it paid a sum of Rs. 3-15-0 as special contribution. On 12-5-1954 the Mills called upon the Corporation to refund these two amounts as according to them they were not liable to pay special contribution on the lay-off compensation.

As the amount was not refunded, the Mills applied to the Authority appointed under the Employees State Insuranc