Section 416 of the Companies Act, 2013
Section 416 of the Companies Act, 2013 deals with the salary, allowances and other terms and conditions of service of the Chairperson and Members of the Appellate Tribunal and the Tribunal (i.e., NCLAT and NCLT).
🔹 Section 416 – Salary, Allowances, and Other Terms and Conditions of Service of Chairperson and Members
📘 Bare Act Provision:
The salary and allowances payable to, and the other terms and conditions of service of, the President and other Members of the Tribunal and the Chairperson and other Members of the Appellate Tribunal shall be such as may be prescribed:
Provided that neither the salary and allowances nor the other terms and conditions of service of the said President, Chairperson or Member shall be varied to their disadvantage after appointment.
🧠Explanation:
Who is covered?
Members of the National Company Law Tribunal (NCLT).
Members of the National Company Law Appellate Tribunal (NCLAT).
What is covered?
Their salary, allowances, and service conditions.
These will be prescribed by rules made under the Act.
Protection clause:
Once appointed, no changes can be made to their salary or service conditions that are disadvantageous to them.
✅ Purpose:
Ensures judicial independence and integrity of the Tribunal and Appellate Tribunal by providing secure and fixed service terms.
Prevents government from lowering benefits post-appointment as a means of pressure or control.
RELATED Blog
0 comments