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Section 218 of the Companies act, 2013

Mohd Azhar Chiragh (2 Points)

21 September 2021  
This section grants certain immunity to employees againts their removal or punishment in case they disclose information of the company undergoing investigation under section 210, 212, 213, 216, 219.
For such removal, the company has to make an application to the Tribunal and if no objection is received within 30 days of filing such application, the company may proceed with such removal or punishment.
If the Tribunal raises an objection, it may within 30 days prefer an appeal to the Appellate Tribunal and the decision of AT shal be final and Binding on the company.
However this section is silent on recourse of the employee.
If an employee is aggreived by an order of AT he may prefer an appeal to the Supreme Court (on the basis of section 423)

But one issue remains unanswered: What is the recourse available to the employee if the Tribunal does not object to the application made by the company ?
Section 421 will NOT be applicable in this case since no ORDER has been passed by the Tribunal and the text of section 421 says "Where any person has been aggreived by an ORDER of the Tribunal....."

Please provide your useful insights.

 1 Replies

setu rastogi (nagpur) (22 Points)
Replied 12 November 2021

It is a loophole brother. Without order no one can appeal u/s 421.

Employee can't do anything.

But if Tribunal give order and employee is aggrieved then he can make appeal u/s 218 also... Coz there concerned person is written in section.

 


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