ESI damages of Rs 1.19 lakh restored against Bengaluru private firm for delayed contributions
The Employees State Insurance Corporation appealed against an ESI Court order that had set aside damages for late payment. The High Court recorded that contributions for July 1992 to March 1995 were paid belatedly in 2005-2007. On 23 March 2026 it allowed the appeal and held the employer liable for damages.
This page records what the cited court, tribunal and government records say happened. Findings belong to the court or authority that made them; this register adds none of its own. Names of private individuals are withheld unless a naming gate clears them.
How we verify →The Corporation's appeal stands allowed and the employer stands liable for Section 85B damages; the ESI Court's relief to the employer stands set aside.
What happened
The High Court recorded that the respondent-employer is a private company covered under the ESI Act and that the contribution payable for July 1992 to March 1995 was not remitted within the prescribed period and came to be paid belatedly during 2005-2007.
The Court recorded that the Corporation had passed an order dated 11.01.2008 levying damages of Rs 1,19,396/-, and that the ESI Court at Bengaluru by order dated 31.07.2015 in ESI Application No. 30/2010 had set that demand aside.
The High Court held that the respondent-employer is liable for damages under Section 85B of the Employees' State Insurance Act, 1948 for the delayed payment, allowed the Corporation's appeal, and set aside the ESI Court order dated 31.07.2015.
The judgment as shown contains no allegation of worker injury, death, cheating over wages owed, or child or bonded labour; the sole dispute was whether belatedly paid contributions still drew statutory damages.
What the record says
“The order dated 31.07.2015 passed in ESI Application 30/2010 by the ESI Court at Bengaluru is hereby set aside.”
The Employees State Insurance Corporation vs [name withheld] Pvt Ltd, MFA No. 7347 of 2015, operative paragraph — read the full text
A peaceful economic act
Late remittance of a statutory contribution harmed no complaining victim; penalising a private employer for the timing of payments restricts freedom in staffing and payroll administration.
What we could not confirm
Exact interest computation and whether further appeal was filed could not be confirmed from the page opened.