JUDGMENT :- This is an appeal preferred by the complainant in prosecution Case No.34 of 2002 on the file of the Judicial Magistrate of First Class to try the offences under the Employees State Insurance Act, Hyderabad. 2. The complaint was filed by the complainant against the accused for the offences punishable under Section 85(a) and 85(e) of the Employees State Insurance Act, 1948 (for short "the Act"). The complainant alleged that the accused is the principal employer in respect of a Company, which is running within the meaning of Section 2(17) of the Act. Under Section 40 of the Act, every principal employer shall pay both the shares of contributions i.e., employer's share of contribution as well as employees share of contribution in respect of every employee and such contribution payable under the Act shall be paid by the principal employer within 21 days from the last day of the calendar month in which the contribution falls due as required under Regulation 31 of the Employees' State h1surance (General) Regulations, 1950 (for short "the Regulations"). Under Section 44 of the Act and Regulation 26 of the Regulations, every principal employer is required to submit the returns of the contribution in Form-6 in respect of the employees working in their factory within 40 days from the date of expiry of each contribution period. The accused failed to pay the contributions amounting to Rs.12,548/- for the period from October, 2000 to March, 2001 within the stipulated time. The accused also failed to submit the returns for the contribution period ended on 31.3.2001 within the specified time. Thus, the accused have committed the offences as referred to above. The complaint was filed on 2.1.2002. The accused made his appearance on 7.3.2002. Evidence was adduced for the prosecution. 3. Accused was examined under Section 313 Cr.P.C. During his examination under Section 313 Cr.P.C, the accused stated that he paid the entire contribution and submitted returns before the first hearing date, as such, he has not committed any offence. 4. Basing on the said representation, the lower Court observed that there are no mala fides or criminal intention can be attributed to the accused and to show the bona fides the accused paid the contribution on actuals for the relevant period and also submitted the returns of the contribution soon after receipt of the summons of this Court. 4. Basing on the said representation, the lower Court observed that there are no mala fides or criminal intention can be attributed to the accused and to show the bona fides the accused paid the contribution on actuals for the relevant period and also submitted the returns of the contribution soon after receipt of the summons of this Court. Under these circumstances, it cannot be held that the accused committed offences punishable under Section 85(a) and (e) of the Act. By making the above observations, the lower Court found the accused not guilty of the offences punishable under Sections 85(a) and (e) of the Act and he is acquitted. Being aggrieved by the same, the complainant preferred the present appeal. 5. It is an undisputed fact that the contribution of the employer and the employees have to be remitted within 21 days of the last day of the calendar month in which the contribution fell due as required under the Regulations. Section 40 of the Act reads as follows: "40. Principal employer to pay contributions in the first instance :-(1) The principal employer shall pay in respect of every employee, whether directly employed by him or by or through an immediate employer, both the employer's contribution and the employee's contribution. (2) Notwithstanding anything contained in any other enactment but subject to the provisions of this Act and the regulations, if any, made thereunder, the principal employer shall, in the case of an employee directly employed by him (not being an exempted employee), be entitled to recover from the employee the employee's contribution by deduction from his wages and not otherwise: Provided that no such deduction shall be made from any wages other than such as relate to the period or part of the period in respect of which the contribution is payable, or in excess of the sum representing the employee's contribution for the period. (3) Notwithstanding any contract to the contrary neither the principal employer nor the immediate employer shall be entitled to deduct the employer's contribution from any wages payable to an employee or otherwise to recover it from him. (4) Any sum deducted by the principal employer from wages under this Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted. (4) Any sum deducted by the principal employer from wages under this Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted. (5) The principal employer shall bear the expenses of remitting the contributions to the Corporation." Section 44 of the Act reads as follows: "44. Employers to furnish returns and maintain registers in certain cases :-(1) Every principal and immediate employer shall submit to the Corporation or to such officer of the Corporation as it may direct such returns in such form and containing such particulars relating to persons employed by him or to any factory or establishment in respect of which he is the principal or immediate employer as may be specified in regulations made in this behalf. (2) Where in respect of any factory or establishment the Corporation has reason to believe that a return should have been submitted under sub-section (1) but has not been so submitted, the Corporation may require any person in charge of the factory or establishment to furnish such particulars as it may consider necessary for the purpose of enabling the Corporation to decide whether the factory or establishment is a factory or establishment to which this Act applies. (3) Every principal and immediate employer shall maintain such registers or records in respect of his factory or establishment as may be required by regulations made in this behalf." 6. As per the above sections, when once the employer failed to remit the amount within the stipulated period under the Act, he is liable to punishment. Under Section 85(a) and (e) of the Act, simply because the employer remitted the amount immediately after receipt of the summons, will not exonerate the accused from prosecution. Therefore, the finding of the lower Court that there are no mala fides or criminal intention on the part of the accused for failing to pay the contribution amount within the stipulated time is not correct. I am therefore inclined to set aside the same but by taking into consideration the payment of the contribution and filing of the returns before attending the Court immediately after receiving summons, while imposing sentence on the accused. 7. In the result, the criminal appeal is allowed. The acquittal recorded by the lower Court through the judgment dated 10.2.2003 is set aside. 7. In the result, the criminal appeal is allowed. The acquittal recorded by the lower Court through the judgment dated 10.2.2003 is set aside. The accused is convicted for the offences punishable under Section 85(a) and (e) of the Act. Since the accused remitted the amount immediately after receipt of the summons from this Court and submitted the returns, I am inclined to take a lenient view in the matter. Though a minimum sentence of imprisonment is prescribed under the Act, for the reasons recorded above, I am inclined to impose a fine of Rs.1,000/- under each count. If the accused fails to pay the amount, he shall suffer simple imprisonment for one month on each count. The fine shall be paid within a period of two weeks from today.