9911796707
TMI Blog2008 (7) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent herein raised a demand for contribution under the Employees State Insurance Act, 1948 (in short the `Act') on the component of efficiency bonus for the period January 1988 to September, 1989 by order dated 23.7.1992. The demand was challenged before the ESI Court under Section 75 of the Act. Pending the proceedings before the ESI Court, Corporation by letter dated 1.3.1997 asked for production of record for the purpose of re-verification for the period from 1989 to 1991 and from 1992 to 1994 to determine the amount payable. The respondent Corporation on re-verification determined the actual amount payable as follows: (a) 1/88 to 3/89 as ₹ 2,26,454/- (b) 4/89 to 3/94 as ₹ 5,28,071/- ___________________ To ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. In any event the submission of the appellant that nothing further was payable as ESI contribution was noted and therefore, the bank guarantee was released. There was no question of any compromise to waive the interest which is not statutorily permissible. The High Court accepted the stand and dismissed the writ petition. 3. In support of the appeal learned counsel for the appellant submitted that there was an order of stay and therefore the question of any interest does not arise. Further when the counsel for the Corporation himself stated that nothing further was payable, it clearly indicated that there was a statement on the compromise for waiver of interest. It was pointed out that with a view to buy peace the appellant had agreed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 31, shall be liable to pay interest at the rate of 12% per annum in respect of each day of default or delay in payment of contribution." 6. As there was delay in making the payment of the contribution the Corporation had issued notice on 29.6.1990 at the first instance and thereafter the order was passed under Section 45(A) of the Act on 23.7.1992. The same was challenged before the ESI Court in which an interim stay was granted on 9.10.1992. During the pendency of the matter there was re-verification and the quantum payable by the payment was worked out. The liability to pay interest is statutory. There is no power of waiver. The question of any compromise or settlement does not really arise. Even otherwise the order of the ESI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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