K.A. Abdul Gafoor, J.

The Regional Director of the E.S.I. Corporation challenges in this appeal an order dated 31.10.2000 of the Employees Insurance Court, Kozhikode in E.I.C. No. 72/99, and contends that the respondent-employer is liable to pay the interest on the contribution payable by him in terms of S.39(5) of the Employees State Insurance Act, 1948.

2. Certain facts are not in dispute. Employer is liable to pay contribution to the employees state insurance in respect of the employees as defined in S.2(c) of the Act provided the wages payable come within the limit made mention of in R.50 of the Employees State Insurance (Central) Rules, 1950. An amendment was brought in to the wage limit made mention of in the said rule by notification dated 23.12.1996 to be effective from 1.1.1971 enhancing the wage limit from Rs. 3,000/- per month to Rs. 6,500/-. Thus, more employees came within the coverage of the Act. Employees were aggrieved as the employer will become liable to deduct contribution from their salary. Accordingly, the employees of the respondent who were brought under the coverage of the Act by reason of such amendment challenged the provision in O.P. No. 2771/19