ValidationSummary is not displaying

Hi Experts,
I have done this multiple times and it usually works with no problems but for the life of me I can figure out what I'm doing wrong this time.
I'm calling my action to enter data into the DB but first I run validation on it and I know that it is failing validation as I have first name and last name as required.

 public ActionResult Create([Bind(Include ="F_Name,L_Name,HireDate,LAN_ID,Office_ID")] Employee e)
        {
            try
                {
                    HRRepository RR = new HRRepository();
                 if(!ModelState.IsValid)                 
                    {
                        var allerrors = ModelState.Values.SelectMany(v => v.Errors).ToArray();
                        foreach (ModelError error in allerrors)
                        {
                            ModelState.AddModelError("", error.ErrorMessage.ToString());
                        }
                        return View("Index");      
                    }
                 else
                   {
                       RR.Enter_NewHire(e);
                       ViewBag.ShowPartial = true;
                       return View("Index");  
                  }
                }
                catch(Exception ex)
                {
                    return View("Error", new HandleErrorInfo(ex, "App", "Create"));
                }

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I can watch the 2 messages being attached as it runs in debug mode but when the page is displayed the is no validation summary

Here is the top of the view

@using (Html.BeginForm("Create", "NewHires", FormMethod.Post))
{
    @Html.AntiForgeryToken()   
    @Html.ValidationSummary(false, "Please Correct Errors")
     <div id="divmain" style="margin-left:10em;">
    <fieldset>

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I use jquery while passing the data to the action but I have done this multiple times before. The problem is probably staring me in the face but I just can't see it.
Any help would be greatly appreciated.
Thanks in advance