JUDGMENT :

The prime question that comes up for consideration in this appeal is whether the breach of civil obligations or liabilities by the employer is the sine qua non for imposition of penalty/damages under a welfare statute or whether the presence of mens rea or actus reus is an essential element in the said respect.

2. This appeal is filed challenging the judgment dated 14.02.2013 of the Employees Insurance Court, Alappuzha, in I.C.No.76 of 2012. The appellant herein was the respondent (hereinafter referred to as “the Corporation”) and the respondent herein was the applicant (hereinafter referred to as “the applicant”) in the said case.

3. Applicant’s establishment, Indira Motors is situated at Nagampadam, Kottayam. It is covered by the Employees State Insurance Act, 1948 (hereinafter referred to as “the ESI Act”). The applicant had earlier challenged the coverage of his establishment under the ESI Act, which was turned down by the E.I.Court. The said finding of the E.I.Court was later affirmed by this Court. During the period when the said litigation challenging coverage was pending, no demands were made and the applicant did not pay the contributions under the ESI Act. However