Back
JUDGMENT :
JITENDRA JAIN, J.
1. This appeal was admitted on 23 August 2011 on following substantial question of law :-
“Whether, on admitted facts, the learned Judge of the Employees State Insurance Court (ESI Court) could have set aside the order passed under Section 85-B of the Employees' State Insurance Act, 1948 (ESI Act) ?”
2. On 10 January 2006, the appellant passed an order under Section 85-B of the ESI Act, levying damages of Rs.27,849/-. The respondent was given an opportunity of hearing before levying damages. The respondent made submissions for reduction/waiver of damages. The submissions being verbal request made to the recovery officer for payment in installments and that had they known that damages are to be paid they would have paid the entire contribution at one time in lumpsum by taking a loan. The appellant considered the said reply and passed a detailed order levying damages. The said order was challenged before the ESI Court by the respondent.
3. On 22 February 2010, the ESI Court quashed the above order to the extent that it levied damages of Rs.27,849/- by observing that the order under Section 85-B has been passed in a mechanical way without application of mind to
The court ruled that damages for delayed ESI contributions must be calculated from the correct demand date, emphasizing the need for authorities to consider mitigating circumstances in penalty assess....
Mens rea is not required for imposing penalties under the Employees State Insurance Act for breach of civil obligations.
Damages under S.85B of the Employees' State Insurance Act are penalties, not compensation for actual loss, and do not require proof of loss for imposition.
Damages under the E.S.I. Act are discretionary, not mandatory, and must consider genuine hardships, reaffirming that penalties should not automatically apply.
The main legal point established in the judgment is that a subsequent transferee may not be liable for belated payment of contribution under the ESI Act if there is no mens rea on their part, and the....
Belated payment of contribution - Payment of contribution under the ESI Act is a statutory liability and the ESI Corporation has no power to grant waiver
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
