K. Vinod Chandran, J.

1. Essentially, these appeals raise a question of law as to the interpretation of Section 14B of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (hereinafter referred to as the Act) read with Paragraph 32A of the Employees Provident Fund Scheme, 1952 (hereinafter referred to as the 'Scheme'). Whether in imposing penalty under Section 14B of the Act, the adjudicating officer is fettered; in so far as, no discretion is conferred on the officer to waive or reduce the penalty since the rates are clearly determined under the sliding table in paragraph 32A of the Scheme? If not; in exercising such discretion what are the factors that ought to be considered by the adjudicating officer? These would be the questions we are called upon to answer in the above appeals.

2. The brief facts necessary are that the respondent Company having been prompt in payment of contribution as provided under the Act and Scheme; prior to 1995 and subsequent to the year 2002, defaulted the same in the intervening period. According to them the default was due to an interim order of stay between 1995 to 1997 and thereafter by reason of severe financial crisis in