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Section 414: Salary, allowances and other terms and conditions of service of Members

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Act 2013
Section 413 All 470 Sections of Companies Act Section 415
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Company Sec 2(20) Director Sec 2(34) Tribunal Sec 2(90)

Legal Commentary & Landmark Judgments: Section 414

Section 414 governs the salaries, allowances, and conditions of service of the President, Chairperson, and Members of the NCLT and NCLAT, mandating that they shall not be varied to their disadvantage after appointment.

  • Executive Rule-Making for Remuneration: Authorizes the Central Government to prescribe salaries, allowances, housing, medical benefits, and terms of service for tribunal members.
  • Constitutional Protection against Disadvantage: Expressly mandates that neither the salary and allowances nor the other terms and conditions of service of a Member shall be varied to their disadvantage after appointment.
  • Parity with Constitutional Courts: Implements the judicial directive ensuring parity of remuneration, pensions, and infrastructural allowances between tribunal members and High Court or Supreme Court judges.
Key Landmark Precedents:
  • Union of India v. Sankalchand Himatlal Sheth, (1977) 4 SCC 193: The Supreme Court affirmed that protection against adverse variation of service conditions is a foundational constitutional guarantee ensuring adjudicative independence.
  • Madras Bar Association v. Union of India, (2021) 7 SCC 369: Mandated that the Central Government provide salaries, allowances, and housing facilities to tribunal members commensurate with the dignity of High Court judges, prohibiting arbitrary financial curtailment.
Courtroom Practice & Strategic Litigation Guidance:

In administrative law challenges concerning tribunal conditions of service, rely on Section 414's non-derogation clause. Any executive memorandum or circular that attempts to withhold allowances or curtail pensionary benefits during or after a member's tenure violates this explicit statutory guarantee.

Section 413 All 470 Sections of Companies Act Section 415