Mr. Ranjan is an employee of the company Moon Limited and investigation is going on him under the provisions of the Companies Act, 2013. The company wants to terminate the employee on the ground of the investigation goin
CS Executive · Company Law and Practice · PYQS · December 2023
Mr. Ranjan is an employee of the company Moon Limited and investigation is going on him under the provisions of the Companies Act, 2013. The company wants to terminate the employee on the ground of the investigation going against him. They have filed the application to tribunal for approval of termination. The Company has not received any reply from the tribunal within 30 days of filing an application. The Company consider it as a deemed approval and terminated Mr. Ranjan. What is remedy available to Mr. Ranjan?
Answer & Explanation:
Section 218 of the Companies Act, 2013 states that the company shall require to take approval of the Tribunal before taking action against the employee, if there is any pendency of any proceedings against any person concerned in the conduct and management of the affairs of the company. The company shall require approval in the following circumstances: discharge or suspension of an employee; or punishment to an employee by dismissal, removal, reduction in rank or otherwise; or change in the terms of employment to the disadvantage of employee; The Tribunal shall notify its objection to the action proposed in writing. In case, the company, other body corporate or person concerned does not receive the approval of the Tribunal within 30 days of making the application, it may proceed to take the action proposed against the employee. In view of the above provision of the Companies Act, 2013: In this scenario, Mr. Ranjan has no remedy available. As per the provision of the law appeal to the Appellate Tribunal can be made only if the person is dissatisfied with the objection raised by the Tribunal. In this case the Tribunal has not replied, hence Mr. Ranjan cannot prefer an appeal to the Appellate Tribunal.
Topics: Company Law
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