31C. Damages or contributions or any other amount due, but not paid in time.- An employer who fails to pay contributions within the periods specified under regulation 31, or any other amount payable under the Act, shall be liable to pay damages as under: Period of delay | Rate of damages in % per annum of the amount due. | (i) Up to 2 months | 5% | (ii) 2 months and above but less than 4 months | 10% | (iii) 4 months and above but less than 6 months | 15% | (iv) 6 months and above | 25% |
PROVIDED that the Corporation, in relation to a factory or establishment which is declared as sick industrial company and in respect of which a rehabilitation scheme has been sanctioned by the Board for Industrial and Financial Reconstruction, may- (a) in case of a change of management including transfer of undertaking (s) to worker (s) co-operative or in case of merger or amalgamation of sick industrial company with a healthy company, completely waive the damages levied or leviable; (b) in other cases, depending on its merits, waive up to 50 per cent damages levied or leviable; (c) in exceptional hard cases, waive either totally or partially the damages levied or leviable. | 
