IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE M.N.KRISHNAN WEDNESDAY, THE 30TH JULY 2008 / 8TH SRAVANA 1930 Ins.APP.No. 85 of 2005() ------------------------ ORDER IN I.C.NO.77/2003 DATED 2/08/2005 ON THE FILE OF THE E.I COURT, PALAKKAD .................... APPELLANT/OPP.PARTY: -------------------- E.S.I. CORPORATION, REPRESENTED BY ITS REGIONAL DIRECTOR, THRISSUR. BY ADV. SMT. T.D.RAJALAKSHMI, SC, ESI CORPN. RESPONDENT/APPLICANT : ----------------------- SHRI C.P. LOUIS, MANAGING PARTNER, M/S. PRABHA TRADERS, KOTTEKKAD, PALAKKAD. BY ADV. SRI.B.RAJEEV KOYICKAL THIS INSURANCE APPEALS HAVING BEEN FINALLY HEARD ON 30/07/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: scm M.N.KRISHNAN, J. -------------------------- Ins. Appeal No. 85 OF 2005 --------------------- Dated this the 30th day of July, 2008 JUDGMENT This appeal is preferred against the order of the Employees' Insurance Court, Palakkad, in I.C. 77/03. By the said order the court below disposed of it by setting aside Ext.A5 order dated 5.11.2003 issued under section 80B of the ESI Act for damages and Ext.A6 notice dated 3.11.03 for interest in respect of the wage periods between 5/1998 and 3/2001. The ESI Corporation has challenged the order pertaining to the interest, i.e. A6. 2. Learned counsel for the appellant would contend before me that Section 39(5) of the Employees State Insurance Act provides that interest can be levied at a minimum of 12% and can be at a higher rate as prescribed in the regulations. It is further stated that in the said section such higher rate of interest shall not exceed the lending rate of interest charged by any scheduled bank. Learned counsel had invited my attention to Regulation 31(A) wherein there is a specification of payment of simple interest at the rate of 15%. What the court below has done is a direction to find out what was the Ins. Appeal No.85/05 2 lending rate of interest during the relevant period and passed revised orders. I find that when there is a mandate under section 39 of the ESI Act that the fixation of such interest shall not exceed the lending rate, there is a duty cast upon the authority to find out the lending rate either by its own accord or by furnishing of materials by the applicant. The order does not suffer from any infirmity and therefore the appeal is disposed of accordingly. M.N.KRISHNAN, JUDGE vps Ins. Appeal No.85/05 3