Hi,
VK Sajan,
RTI ACT CLEARLY STATE that PVT Companies are not extempted :
"Applicants have every right to seek information on a private company even though it is in the private sector, if it reports to a government body,"Only applications that served public interest would be dealt with, not those that sought to erode a company's competitive position.
Now, information regarding termination, cant be claimed as a ' TRADE SECRET', that can erode company's competitive position. Please note this point.
All companies formed under Companies ACT 1956, indirectly report to Ministry of Corporate Affairs, Ministry of Labor & employment, and government agencies like SEBI. Their Roles comes into play when discrepancies arise in term of laws. Legally, if any private company are free from not to report/answer any of the government agencies, like SEBI, Ministry Of Corporate Affairs, Ministry of Labor & employment, they can do whatever they wish & such organization (SEBI, Ministry of Corporate affairs etc), shall never have right to opt for intervention in case of discrepancies happens.
Similarly RTI can be used, but indirectly:
For example, say any stock broker/Equity Traders have a valid doubt based on evidence that any PVT company is applying illegal methods to increase its stock value in the market, Stock Broker/ Equity Trader, can ask for information via RTI through SEBI about company's affairs details. Stockbroker will ask SEBI, for more detailed information about a company's details as well as will inform SEBI that a forgery might be taking place based on evidence. Now, its SEBI's responsibility, to investigate, monitor that company's affairs, pros & cons, & provide a suitable answer to the broker, in such a way so that companies competitive position is not eroded . In Case SEBI, finds any discrepancies during investigation, SEBI possess all rights to go for an intervention in PVT company's affairs to protect the right Equity traders. Further, under such situation, Ministry of Corporate affairs, posses all rights for intervention, in PVT Company's affairs to safeguard the rights, of all kinds of partners associated with that PVT company.
Similarly, for termination of employees, labor laws associated with termination, must be followed. Labor laws for termination, clearly state that for Termination following Criteria Must be met:
1. Reason of Termination.
2. In case of employee completing 3 months continuous service, minimum 1 month’s written notice/ payment in lieu thereof is required by either side, as the case may be. (Notice of Dismissal- Sec 30)
3. Wages to be paid before the expiry of 2nd working day after the day on which employment is terminated . (Termination by or on behalf of the employer Sec. 19-5) .
In case of Unfair termination, as stated in Labor laws (PFA of Labor Laws modified after 2003), an employee possess all rights to appeal for Justice to Labor commission. Even can opt for Labor Tribunal.
In this case, a complain needs to be lodged in labor commission if ' Reason of Termination', is not specified/mentioned. And Under RTI act, employee can ask company through Labor commission/labor tribunal, to state reason of termination, if not provided by the company which is a valid demand on behalf of employee as per labor laws. As per labor laws, if it is considered unfair termination (Illegal), if reason of termination is not specified. Labor commission/labor tribunal, including Ministry of Labor & employment possess full right to investigate, & opt for intervention in affairs of private companies if satisfying reason for termination is not provided by the company.
Since, Industrial Dispute Act, domestic enquiry, has not been made before termination of gaurav, labor laws are not satisfied. In the attachment kindly read those sections which clearly state that under which criteria, termination is considered Illegal.
Once you understand this, will provide you details how, Ministry of Corporate affairs get involved in this case.
Regards
Sovik B