218. Protection of employees during investigation
(1) Notwithstanding anything contained in any other law for the time being in
force, if—
(a) during the course of any investigation of the affairs and other matters of or
relating to a company, other body corporate or person under section 210, section 212,
section 213 or section 219 or of the membership and other matters of or relating to a
company, or the ownership of shares in or debentures of a company or body corporate,
or the affairs and other matters of or relating to a company, other body corporate or
person, under section 216; or
(b) during the pendency of any proceeding against any person concerned in the
conduct and management of the affairs of a company under Chapter XVI,
such company, other body corporate or person proposes—
(i) to discharge or suspend any employee; or
(ii) to punish him, whether by dismissal, removal, reduction in rank or otherwise;
or
(iii) to change the terms of employment to his disadvantage,
the company, other body corporate or person, as the case may be, shall obtain approval of
the Tribunal of the action proposed against the employee and if the Tribunal has any objection
to the action proposed, it shall send by post notice thereof in writing to the company, other
body corporate or person concerned.
(2) If the company, other body corporate or person concerned does not receive within
thirty days of making of application under sub-section (1), the approval of the Tribunal, then
and only then, the company, other body corporate or person concerned may proceed to take
against the employee, the action proposed.
(3) If the company, other body corporate or person concerned is dissatisfied with the
objection raised by the Tribunal, it may, within a period of thirty days of the receipt of the
notice of the objection, prefer an appeal to the Appellate Tribunal in such manner and on
payment of such fees as may be prescribed.
(4) The decision of the Appellate Tribunal on such appeal shall be final and binding on
the Tribunal and on the company, other body corporate or person concerned.
(5) For the removal of doubts, it is hereby declared that the provisions of this section
shall have effect without prejudice to the provisions of any other law for the time being in
force.