This appeal under Section 85(2) of the Employees State

Insurance Act, 1948 (henceforth referred to as ‘Act of 1948’) is

filed by the ESI Corporation challenging the order dated

02.11.2009 passed by the Employees State Insurance Court,

Hubballi (henceforth referred to as ‘ESI Court’) in ESI Application

No.45/2005 by which it set aside the contribution demanded

from the respondent.

2.

The respondent is an establishment covered under

the provisions of the Act of 1948. The ESI Corporation had

passed an order under Section 45(A) of the Act of 1948

demanding contribution of Rs.123833/-. Later it reduced the

same to a sum of Rs.93,905/- which was challenged by the

respondent in ESI application No.15/1999. The ESI Court allowed

the same in part, in terms of the order dated 14.03.2001 and

struck off the interest demanded and ordered to pay the balance

contribution of Rs.18,803/- since the respondent had already

deposited part of the amount demanded. This order was again

challenged in MFA No.3030/2001. This Court in terms of the

order dated 14.03.2001 remitted the case back to the ESI Court

to reconsider the case relating to the grant of interest. After

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remand, the ESI Court passed an