Statement:  Employee Y of a company is trying to defame the image of employee X of the same company by making false allegations about him to his manager so that Employee X cannot get his pending promotion. Employee X has reported this event to the senior manager. Courses of action:
I. The manager should terminate employee X with immediate effect.
II. Employee Y should be strictly penalised for doing so.

The (I) course of action cannot be taken as terminating the employee without properly investigating the complete matter should not be done. The employee should not be terminated until the allegations on the employee X are found to be true. No, (II) Employee Y should be strictly penalised for doing so, as it is mentioned that Employee Y is trying to defame Employee X, but Employee Y cannot be strictly penalised instead can be given a warning and if done same in the future than can be penalised. So, Neither (I) nor (II) follow.