Emp. State Insurance Corporation vs H M T Ltd & Anr

The Supreme Court interpreted Section 85-B of the Employees State Insurance Act and Regulation 31C of the Employees State Insurance (General) Regulations, 1950, holding that while the Act allows for the recovery of damages for delayed contributions, it is not mandatory to levy damages in every case. The Court found that the Karnataka High Court erred in limiting the interest payment period to two years without considering the enabling provisions of the Regulations. The appeal was allowed, emphasizing the need for a comprehensive approach to the recovery of contributions and associated damages.