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MOHIT KUMAR SHAH
Hindustan Coca-Cola Beverages Pvt. Ltd. , through its authorized signatory Zonal Head- Legal, Mr. Ranjan Kumar – Appellant
Versus
Employees State Insurance Corporation, through the Regional Director – Respondent
JUDGMENT :
(Mohit Kumar Shah, J.)
1. The present writ petition has been filed for quashing the order dated 22.05.2014, passed by the Regional Director, Employees State Insurance Corporation, Patna i.e. the respondent no.2 whereby and whereunder, in exercise of the power vested under Section 85-B of the Employees State Insurance Corporation Act, 1948 (hereinafter referred to as ‘the Act, 1948’), damages have been levied upon the petitioner to the tune of Rs.1,09,620/-, as also to direct the respondent no.2 to pass a fresh order of assessment of damages by taking into account the period of delay to have commenced from 02.06.2008 upto 24.08.2009.
2. The brief facts of the case, according to the petitioner, are that the petitioner company is having one of its plant and office, situated at Industrial Area, Patliputra, Patna and is covered under the Act, 1948, as also has been regularly depositing the Employees State Insurance contribution of all its employees in the said plant, nonetheless, all of a sudden in the month of February, 2006, the petitioner company was surprised to receive a letter dated 20.02.2006 from the Deputy Regional Director, Employees State Insurance Corporation, Regio
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....
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
Mens rea is not required for imposing penalties under the Employees State Insurance Act for breach of civil obligations.
Point of law: Power of Regional Provident Fund Commissioner to impose damages under section 14B is quasi-judicial function.
Mens rea is not required for imposing damages under Section 14B of the Employees' Provident Funds Act; penalties must reflect the circumstances of each case.
Damages for delayed payment under the EPF Act cannot exceed the amount of arrears, and interest cannot be levied on penal amounts without statutory authority.
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