Gaj, Managing Director of MGR Ltd. retired on March 31, 2021 upon attaining superannuation. The Company had allotted residential premises during his tenure, for his stay as part of his remuneration. At the time of full a

As per the provisions of Section 452(1) of the Companies Act, 2013 (the Act), 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 ₹1 lakh but which may extend to ₹5 Lakh. According to section 452(2) of the Act, the Court trying an offence under section 452(1) 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. Further, as per the proviso to section 452(2), which provides that the imprisonment of such officer or employee, as the case may be, 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, as the case may be, any amount relating to: a) provident fund, pension fund, gratuity fund or any other fund for the welfare of its officers or employees, maintained by the company; b) compensation or liability for compensation under the Workmen's Compensation Act, 1923 in respect of death or disablement. Accordingly, the company may file a complaint against Gaj under section 452(1) of the Act and he may be punished in accordance with section 452(2) along with proviso thereto.