Suggesting ways to terminate any one is a thankless job but one has to perform the duties assigned subject to "natural justice"
The information provided here is not adequate, you have to indicate the follg. details:
1.What is the status of your estt.
2. Under which Act your estt. has been registered.
3. What is the labour strength of your firm
4. Whether covered under ESI Act & Employees Compensation Act.
5. What is the past instances which caused such ill health and how you to came to the conclusion of his mental ill health, was it "in the course of employment' or else..
6. Any competent authority testified his present condition and it is unlikely he would never/ever become normal.
7. How many years service he rendered in your firm
and such other relevant information.
30th March 2013 From India, Bangalore