Void contract

abhijit majumder (Querist) 26 August 2020 This query is : Resolved
Respected Experts
A person appointed as a Company Secretary in a Company(A 100%State Govt Company) on 01.012.2008(as per Form 32 of Companies Acy,1956). He removed on 30.06.2020. Now he claims Gratuity under Gratuity Act,1972.
While checking his eligibility for entitlement of gratuity the following irregularities are surfaced:
1. He was appointed by the Board only for 1(one) year in its Board meeting held on September,2008 at a fixed remuneration. Although the resolution states about Terms & Conditions there is no such terms & Conditions.
2. In March 03.03.2010 in a Board meeting just by referring that as CS is mandatory he obtained a departments (Finance Dept of the state of WB) permission, note it before the board . But suppressing the fact before the Finance Department that “by virtue of MCA notification dated 01.01.2009 effective from 15.03.2009 the appointment of CS in a Company upto 5 crore capital is not mandatory (the Company’s capital Rs2.5 Crore).”
3. Form 32 which is essential (shows) his Date of appointment was 01.012.2008 (He appointed on September,2008). Attachment with Form 32 does not contain any Board Resolution copy nor there is any appointment letter.
4. The PAN in Form 32 shows ACIPR7015A but when I call for his PAN for filing DIR 12(Which is required for cessation from Secretary)he gave me AJTPR0310C and said as he had not received PAN Card in respect of PAN : ACIPR7015A he applied for another PAN ie AJTPR0310C since 2010. That he runs both PAN at the same time since 2010. Further his spelling of his surname is different as per PAN record.

My query is On the Basis of the points 2 and 4 can I call the contract as void contract ( specifically because of suppression of fact and false declaration) so that he will be prevented from claiming gratuity.
ABHIJIT

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Quick Summary

This discussion explores whether a Company Secretary's contract can be considered void, thereby invalidating their claim for gratuity. Concerns arise from alleged suppression of facts regarding the mandatory nature of the appointment and discrepancies in PAN details and surname spelling. The consensus is that professional legal advice is essential for the state government company to navigate this complex situation.

Dr J C Vashista (Expert) 27 August 2020
Your organisation, being a commercial entity, can afford to engage a prudent lawyer, seek professional services of a lawyer.

Rajendra K Goyal (Expert) 27 August 2020
It is state government entity. Obtain necessary opinion from your law section and Advocate from the panel and proceed accordingly.

P. Venu (Expert) 28 August 2020
Yes, the matter requires professional consultation.

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