Vara was appointed as Company Secretary and Compliance Officer in Aaradhya Textiles Ltd. (ATL). As per the terms of offer, she was provided with a rent free furnished accommodation of 3BHK flat in Borivali (East), Mumbai

According to Section 452(1) of the Companies Act, 2013 , if any officer or employee of a company: (a) wrongfully obtains possession of any property, including cash of the company; or (b) having any such property including cash in his possession, wrongfully withholds it or knowingly applies it for the purposes other than those expressed or directed in the articles and authorised by this Act, he shall, on the complaint of the company or of any member or creditor or contributory thereof, be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees. Further, according to Section 452(2) of the Act , the Court trying an offence under Section 452(1) of the Act may also order such officer or employee to deliver up or refund, within a time to be fixed by it, any such property or cash wrongfully obtained or wrongfully withheld or knowingly misapplied, the benefits that have been derived from such property or cash or in default, to undergo imprisonment for a term which may extend to two years. Proviso: The imprisonment of such officer or employee shall not be ordered for wrongful possession or withholding of a dwelling unit, if the court is satisfied that the company has not paid to that officer or employee any amount relating to provident fund, pension fund, gratuity fund, compensation under Workmen's Compensation Act, etc. In the given situation, Vara was provided a furnished flat for her personal and exclusive use, but she sublet the property and charged rent, which amounts to using the property for a purpose other than that for which it was given. She was also making a profit by subletting it and is now wrongfully withholding the property after termination of service. Thus, the company can move an application before the National Company Law Tribunal (NCLT) against Vara for wrongful withholding of a property of the Company under Section 452 of the Companies Act, 2013.