Bangalore U.R.D.Co-Op.M.P.S.Union ... vs The Regional Director, Esi Corpn.& Anr

The Supreme Court held that the discretion to waive or reduce interest under Section 85-B of the Employees' State Insurance Act is not applicable in cases where there is no malafide intention, as stated by the High Court. However, the Court clarified that the levy of damages is not mandatory and should be assessed based on principles established in Employees' State Insurance Corporation vs. HMT Ltd. The matter was remitted to the High Court for re-hearing on the question of damages, while the decision regarding interest was upheld based on Goetze (India) Ltd. vs. Employees' State Insurance Corporation.