J.B. Koshy, J.

1. This case is referred to the Division Bench noticing conflict of views in the decisions in Regional Director, ESI Corporation v. Cannanore Spinning and Weaving Mills (2001 (3) KLT 393) and Cannanor Drug Lines v. ESI Corporation (2007 (1) KLT 880) regarding liability to pay interest on delayed contribution due to the stay order issued by the court.

2. Respondent is a factory covered under the ESI Act. The wage ceiling for coverage under the Employees' State Insurance Act was extended from Rs.3,000/- to Rs.6,500/- with effect from 1.1.1997. Unions challenged the above notification before this Court and this Court granted a stay. In view of the above stay order, respondent was not able to collect the contribution from the employees who were drawing salary between Rs.3,000/- and Rs.6,500/-, but, later, stay was vacated and coverage was accepted by the court. When the stay was vacated, the entire employees' contribution and employers' contribution were paid by the respondent. Then, appellant ESI Corporation demanded interest for the delayed payment. Contention of the respondent was that they were willing to pay the amount even at the first instance, but, they wer