ESIC Act 1948 Power to reduce imprisonment not extended to fine: SC

Brief of the Case The Supreme Court held In the case of Employees State Insurance Corporation vs. A.K. Abdul Samad & Anr. that the object of creating offence and penalty under the Employees’ State Insurance Act, 1948 is clearly to create deterrence against violation of provisions of the act which are beneficial for the employees. Non-payment of contributions is an economic offence and therefore the Legislature has not only fixed a minimum term of imprisonment but also a fixed amount of fine of five thousand rupees under Section 85(a) (i) (b) of the Act.  There is no discretion of award...