The appellant questioned the demand before the High Court by filing a writ petition.
Pending the proceedings before the ESI Court, Corporation by letter dated 1.3.1997 asked for production of record for the purpose of re verification for the period from 1989 to 1991 and from 1992 to 1994 to determine the amount payable.
The respondent Corporation on re verification determined the actual amount payable as follows a 1/88 to 3/89 as Rs.2,26,454/ b 4/89 to 3/94 as Rs.5,28,071/ Total Rs.7,54,525/ Appellant agreed to pay the companytribution and paid the same in October November, 1997.
Appellant took the stand that there was a bonafide dispute about eligibility.
Appellant took the plea that its stand was supported by a judgment of this Court in Whirlpool of India Ltd. v. Employees State Insurance Corporation 2000 3 SCC The ESI Court disposed of the matter on 6.1.1998 taking numbere of the stand of the appellant that it had deposited the definite amount after re verification and the bank guarantee furnished by the appellant was released.
On 11.1.2000 the Corporation wrote a letter to the appellant demanding payment of interest on the amount paid to the Corporation for the period from 1988 to 1994 as companyered by order dated 6.1.1998 and directed payment of interest amounting to Rs.4,61,825/ .
