M/s. Madras Hotel Ashoka (P) Limited, Pantheon Road, Egmore, is the appellant herein. The Employees State Insurance Scheme was extended to hotels in Madras City from January 15, 1977 as per G.O. Ms. No. 287, dated July 3, 1976. There are about 156 workmen in the appellant hotel. On February 14, 1979 Inspector of the E.S.I. Corporation inspected the Hotel and submitted his report for the period from January, 1977 to January, 1978. Pursuant to the same Ex. P-2 communication dated September 25, 1978 was sent by the Regional Office of E.S.I. Corporation to the appellant pointing out that there has been a delay of 76 days and 93 days in submission of contribution cards for the contribution period ending on 7/77 and 9/77 respectively. The appellant has also been requested to pay interest of Rs. 147.60 towards late submission of contribution cards as laid down under Regulation 31-A of E.S.I. (General) Regulations, 1950 at the rate of 6% per annum for each day of default or delay in payment of contributions. The communication has also pointed out some other omissions on the part of the appellant. On October 14, 1978 the appellant sent Ext. P. 3 letter to the Corporation stating