BANGALORE U.R.D.CO-OP.M.P.S.UNION LTD. vs THE REGIONAL DIRECTOR, ESI CORPN.

The Supreme Court held that the discretion to waive or reduce interest under Section 85-B of the Employees' State Insurance Act is not absolute and that the High Court must reconsider the damages aspect based on the principles established in Employees' State Insurance Corporation vs. HMT Ltd. The Court clarified that the levy of damages is not mandatory and directed the High Court to re-hear the parties on damages while affirming the decision regarding interest as per Goetze (India) Ltd. The appeal was disposed of without costs.