As per the case facts, the employer failed to deposit EPF contributions, leading to the imposition of damages under the relevant Act. The High Court had upheld the recovery order ... for damages, setting aside a Single Judge's decision. The reason for the appeal to the Supreme Court was to challenge the High Court's ruling that the levy of damages is automatic upon default, regardless of intent. The question arose whether mens rea or actus reus is an essential element for imposing penalties or damages for breaches of civil obligations under Section 14B of the Employees Provident Fund & Miscellaneous Provisions Act, 1952. Finally, the Supreme Court, relying on a three-Judge Bench judgment, held that any default or delay in EPF contribution by the employer is a necessary condition for imposing damages under Section 14B of the Act. The Court stated that mens rea or actus reus is not an essential element for imposing penalties or damages for civil breaches. Therefore, the appeals were dismissed.