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Section 630 of the Companies Act, 1956 - It is No Smooth Ride

By Shantimal Jain

Published In

CLC 2001

It is an age old practice among good and reasonably big employers to provide residential accommodation to their employees, at a nominal rent or free of rent. Thus, employees during their tenure of employment are in possession of the property of the employers, and are in the position of a service-tenant. Where an employee ceases to be in the employ of the employer for various reasons, at time, it becomes difficult to get back the possession of the residential property given in the possession of the employees. Rent Control Laws are special laws governing the landlord and the tenant, and contain provisions of eviction of a service tenant, where the employer is an individual or the like and not a ‘company’. Section 630 of the Companies Act, 1956 contains specific penal provision in regard to wrongful withholding of property and provides for effective and efficacious remedy against officers and employees of companies. Over the years, Section 630 has been interpreted by Cou ....

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