Interest on unpaid accumulations or fine after notice of demand

(1) If an employer does not pay to the Board any amount of unpaid accumulation or fines realised from the employees, within the time specified by or under this Act, the Secretary may serve or cause to be served a notice on such employer to pay the amount within the period specified therein which shall not be less than thirty days from the date of service of such notice. (2) If the employer fails, without sufficient cause, to pay any such amount within the period specified in the notice, he shall, in addition to the amount, pay by way of penalty to the Board simple interest— (a) for the first three months at two per cent of the said amount for each complete month or part thereof after the last date by which he should have paid it according to the notice; and (b) for each complete month or part thereof thereafter at four and a half per cent of that amount during the time he continues to make default in the payment of that amount: Provided that, the Secretary may subject to such conditions as may be prescribed, remit the whole or any part of the penalty in respect of any period. (3) The Board shall have the powers to enhance the rate of interest mentioned in sub-section (2) above, subject to the conditions that such rate of interest shall in no case exceed the prevailing Bank rate of interest by more than 1%.