Section 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 cas e 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