J U D G M E N T

Respondents in the insurance case are the appellants. The appeal is directed against the judgment dated 5.2.2010 in I.C.No.48/2008 on the file of the E.S.I. Court, Alappuzha. The respondent herein as applicant filed I.C.No.48/2008 for a declaration that the order dated 30.1.2008 passed by the 1st appellant imposing Rs.45,473/- as damages by way of penalty for the delayed payment of contribution for the wage period from

2001-02 to 2003-04 is unsustainable.

2. The 1st appellant has passed an order under Section

45A of the ESI Act on 28.11.2006 assessing and demanding Rs.1,99,973/-. The applicant paid the said amount on 30.12.2006. Thereafter, the 1st appellant issued Ext.D18 notice on 30.5.2007 proposing to impose Rs.45,473/- as damages by way of penalty alleging delay in payment of contribution. After hearing the applicant, the 1st appellant passed the order under Section 85B of the E.S.I Act on 30.1.2008 imposing Rs.45,473/-

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as damages by way of penalty for the alleged delay in payment of contribution with regard to the period from 2001-02 to 2003-04.

3. E.S.I Court considered the issue as to whether the action of the appellant imposing Rs.45,473/- as damages by way