IN THE HIGH COURT OF KERALA AT ERNAKULAM
M.A. ABDUL HAKHIM, J
DEPUTY DIRECTOR EMPLOYEES STATE INSURANCE CORPORATION – Appellant
Versus
M/S. MALABAR MEDICAL COLLEGE HOSPITAL – Respondent
| Table of Content |
|---|
| 1. discussion on penalty for delayed contributions. (Para 1 , 5) |
| 2. arguments on justification of imposed penalties. (Para 2 , 3) |
| 3. court's discretion and decisions evaluated. (Para 4) |
| 4. final dismissal of the appeal. (Para 6) |
JUDGMENT
1. The respondent before the EI Court – the Deputy Director of the Employees State Insurance Corporation, is the appellant. The respondent/applicant filed E.I.C. No.4/2022 challenging the penalty order under Section 85B of the Employees' State Insurance Act of 1948 (for short, the Act) imposing a penalty of Rs.38,33,258/- by way of damages for the delayed payment of contribution for the period from 10/2008 to 11/2020. The Employees Insurance Court modified the said order by the impugned order, reducing the penalty to Rs.5,74,990/-.
2. I heard the learned counsel for the appellant, Sri. Shashank Devan.
3. The learned counsel for the appellant contended that when there is a default on the payment of contribution by the employer, the E.S.I. Corporation is perfectly justified in imposing penalty under Section 85B of the Act by way of damages not exceeding the amount of arrears. The authority has correctly exercised its discretion and imposed
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