Sunday, December 10, 2023

Tata Steel employee wrongfully withholding accommodation will have to pay fine

Jamshedpur, Dec. 30: Tata Steel has clarified that the New Companies Act 2013 is applicable in cases of wrongfully withholding of company�s accommodation.

As per earlier practice, in cases of Ex-employees of the Company wrongfully withholding Company�s accommodation, the Company used to file Complaint case u/s. 630 of Companies Act, 1956 against ex-employees for wrongfully withholding Company�s accommodation, before the Court of Special Judge (Economic Offence).

The punishment was maximum fine of Rs. 10,000/- and on non-vacation within the stipulated period fixed by the court there could be imprisonment up to 2 years.

Now the aforesaid Act has been repealed and as per the New Companies Act 2013, the fine amount has been increased to minimum of Rs. 1,00,000/- and maximum of Rs. 5,00,000/- and on non-vacation within the time fixed by the court, there could be imprisonment up to 2 years.

As per the new enactment, a Complaint has to be filed before the Principal District Judge & Sessions Court and the employees now cannot knock on the door of the local court but have to appeal before High Court in case of conviction.

It must be mentioned that Tata Steel files Complaints against the ex-employees as a last resort since the process could lead to a lot of pain.

Further, before initiating legal action, personnel from Estate & Legal Department personally visit and request them to vacate the quarter. The provisions of the New Companies Act 2013 should be understood by all.

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