Section 85B of Employees’ State Insurance Act 1948

85B. Power to recover damages
(1) Where an employer fails to pay the amount due in respect of any contribution or any other amount payable under this Act, the Corporation may recover 126[from the employer by way of penalty such damages not exceeding the amount of arrears as may be specified in the regulations]:

PROVIDED that before recovering such damages, the employer shall be given a reasonable opportunity of being heard :

127[PROVIDED FURTHER that the Corporation may reduce or waive the damages recoverable under this section in relation to an establishment which is a sick industrial company in respect of which a scheme for rehabilitation has been sanctioned by the Board for Industrial and Financial Reconstruction established under section 4 of the Sick Industrial Companies (Special Provisions) Act, 1985, subject to such terms and conditions as may be specified in regulations.]

(2) Any damages recoverable under sub-section(I) may be recovered as an arrear of land revenue 127[or under section 45C to section 45-I].
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