P is an employee of ABC Limited and he is being investigated under the provisions of Companies Act, 2013. The Company wants to terminate P on the ground that an investigation is going on against him. They have filed the

Yes, the termination of P made by the company is totally valid in law and company can do so by considering deemed approval of tribunal. The provision of Section 218 of the Companies Act, 2013 states that the company is required 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 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(s) 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. That means it can be consider as a deemed approval by the tribunal.