Section 14B damages must be individualized, with prior hearing and lawful authority before any adverse determination.

Damages under Section 14B must be assessed on the facts of each default, because the power is discretionary and cannot be converted into a rigid percentage-based formula; the demand based on such a mechanical tariff was invalid. A show-cause opportunity is required before imposing damages, since the determination entails adverse civil consequences and must comply with natural justice. After delegation was recalled, the competent authority to make the determination was the Government, and the impugned demands were set aside with liberty for fresh determination in accordance with law.

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Issues: (i) Whether damages under Section 14B could be determined by a rigid and universal formula without case-specific consideration; (ii) Whether a determination under Section 14B required an opportunity to show cause; (iii) Which authority was competent to make the determination after delegation of power had been rescinded.

Issue (i): Whether damages under Section 14B could be determined by a rigid and universal formula without case-specific consideration.

Analysis: Section 14B confers a discretionary power to recover damages only to the extent the appropriate Government thinks fit, up to the statutory ceiling. The provision requires an application of mind to the facts and circumstances of each default. A fixed table of percentages tied only to the duration and number of defaults converted that discretion into a mechanical exercise and excluded relevant considerations.

Conclusion: The rigid formula was not authorised by Section 14B and the demand based on it was invalid, in favour of the petitioners.

Issue (ii): Whether a determination under Section 14B required an opportunity to show cause.

Analysis: Although Section 14B does not expressly provide for notice, the nature of the power and the adverse civil consequence of imposing damages make it necessary that the employer be heard before any determination is made. An assessment made without affording that opportunity would offend natural justice.

Conclusion: A show-cause opportunity was required before making a determination under Section 14B, in favour of the petitioners.

Issue (iii): Which authority was competent to make the determination after delegation of power had been rescinded.

Analysis: The authority entitled to exercise the power under Section 14B is the authority in whom that power vests at the time the determination is made. Once the delegation was recalled, the power reverted exclusively to the Government, irrespective of when the defaults occurred.

Conclusion: The competence to make the determination then vested in the Government, in favour of the respondent authority position on competence but without affecting the petitioners' substantive relief.

Final Conclusion: The impugned damage demands were set aside and the matters were left open only for a fresh determination in accordance with law by the competent authority after following the requirements of discretion and natural justice.

Ratio Decidendi: Where a statute empowers recovery of damages as the authority may think fit, the power must be exercised individually on the facts of each case and cannot be replaced by a rigid, mechanical tariff formula; any adverse determination must also comply with natural justice.

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