R. Subbiah, J.

Challenging the order dated 18.5.2011 passed by the E.S.I. Court (Labour Court), Madurai, in E.S.I. O.P. No. 32 of 2010, reducing the quantum of damages awarded u/s 8SB of the Employees' State Insurance Act, the Employees' State Insurance Corporation, has filed the present appeal. The case, in brief, Is as follows:

The respondent, viz., M/s. Hafeez Motor Transport is a registered partnership firm and is engaged in the small business of transport operating mofussil and city bus service in and around Pudukottai area. The respondent is having 18 employees under various categories. The respondent has covered all the eligible employees under the provisions of the Employees' State Insurance Act ('ESI Act') and had been remitting both employees and employer ESI contributions to the appellant Corporation regularly. While so. the appellant Corporation issued two C-18 (Adhoc) notices dated 30.6.1999 and 18.7.2003, demanding ESI contributions from the respondent. Subsequently, the said notices were cancelled and the appellant Corporation issued a fresh notice in C-18 (Actual basis) dated 19.12.2003 demanding a sum of Rs. 1,78,798 towards ESI Corporation on amounts paid