Section 39(5) in The Employees' State Insurance Act, 1948
(5)(a)If any contribution payable under this Act is not paid by the principal employer on the date on which such contribution has become due, he shall be liable to pay simple interest at the rate of twelve per cent. per annum or at such higher rate as may be specified in the regulations till the date of its actual payment:Provided that higher interest specified in the regulations shall not exceed the lending rate of interest charged by any scheduled bank.(b)Any interest recoverable under clause (a) may be recovered as an arrear of land revenue or under section 45C to section 45-I.Explanation.— In this sub-section, scheduled bank means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).
