Siri Jagan, J.

The Employees' State Insurance Corporation has filed this appeal challenging the order of the Employees' Insurance Court, Kollam, in Insurance Case No.21 of 2003. The same was filed by the respondents herein. The matter relates to imposition of damages under Section 85B of the Employees' State Insurance Act, 1948 (for short, "the Act") for the period from May, 1980 to March, 1993, on the 2nd respondent whose management was taken over by the 1st respondent. The 2nd respondent committed delay in payment of contributions under the Act in respect of its employees. The Corporation imposed damages of Rs.19,06,968/- for the delay in payment of the contributions. Respondents filed Insurance Case No.21 of 2003 challenging the imposition of damages. They contended that the 2nd respondent was in great financial difficulties, which led to the 2nd respondent being declared as a relief undertaking under the Kerala Relief Undertakings (Special Provisions) Act, 1961, consequent to which, the State Government, who owns the shares of both the respondents took steps to rehabilitate the 2nd respondent and it is in the course of that effort, the management of the 2nd respondent