Siri Jagan, J.

This appeal is filed at the instance of the Employees State Insurance Corporation against the order of the Employees Insurance Court, Alappuzha in I.C.No. 104/1999 raising the following substantial questions of law:

(1) Whether the Financial difficulties or the pendency of litigation will absolve the Employer from the payment of damages by way of Penalty.

(2) Whether Sakthi Tiles' case (Supra) will empower the E.I. Court to reduce the quantum of damages imposed on the ground of pendency of litigation and the financial difficulties.

(3) Whether Section 85-B of the Employees State Insurance Act and the Regulation given unfettered right to the Corporation to impose damages by way of penalty for the belated payment of Contribution upto 100 percent."

The basic facts from which the above questions of law are sought to be raised are as detailed under.

2. The respondents herein were the employers who filed the I.C challenging the order of the appellants imposing on them damages to the tune of Rs.79,969/- under Section 85B of the Employees State Insurance Act, 1948 for delayed payment of contributions for the period from October, 1986 to March, 1987, October, 1987 to Ma