Section 413 and 414 of the Companies Act 2013: Term of Office, Salary and Service Conditions of NCLT and NCLAT Members
Sections 413 and 414 form part of Chapter XXVII of the Companies Act, 2013, which deals with the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT). Section 413 states the statutory tenure and age limits contained in the Companies Act, while Section 414 deals with salary, allowances and other service conditions.
Meaning of the key terms
Under Section 407 of the Companies Act, 2013, the expression "President" refers to the President of the Tribunal, and "Chairperson" refers to the Chairperson of the Appellate Tribunal. A "Member" includes a Judicial Member or Technical Member of the Tribunal or Appellate Tribunal and includes the President or Chairperson, as the case may be.
Section 413 - Term of office of President, Chairperson and other Members
Section 413 prescribes the term of office, eligibility for reappointment and statutory age ceilings appearing in the Companies Act for the President and Members of the NCLT and for the Chairperson and Members of the NCLAT.
Section 413(1): President and Members of NCLT
The President and every other Member of the Tribunal hold office for a term of five years from the date on which they enter office and are eligible for reappointment for another term of five years.
Section 413(2): Age limits for NCLT
A Member of the Tribunal holds office until attaining the statutory age limit: sixty-seven years in the case of the President and sixty-five years in the case of any other Member.
The section also provides that a person who has not completed fifty years of age is not eligible for appointment as Member. It further permits a Member to retain lien with the parent cadre, Ministry or Department while holding office for a period not exceeding one year.
Section 413(3) and 413(4): Text relating to NCLAT
Section 413 also contains provisions concerning the term and age limits of the Chairperson and Members of the Appellate Tribunal. However, for appointments governed by Section 417A, the applicable tenure and service conditions are determined by Chapter II of the Tribunals Reforms Act, 2021.
Section 414 - Salary, allowances and other terms and conditions of service
Section 414 provides that the salary, allowances and other terms and conditions of service of Members of the Tribunal and Appellate Tribunal shall be as prescribed. It also contains an important safeguard: salary, allowances and other service conditions cannot be varied to the disadvantage of a Member after appointment.
For NCLAT appointments falling under Section 417A, the Tribunals Reforms Act, 2021 governs salary and allowances and similarly protects against disadvantageous variation after appointment.
How Section 417A changes the position for NCLAT
Section 417A is a non-obstante provision. It states that, notwithstanding anything contained in the Companies Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and other service conditions of the Chairperson and other Members of the Appellate Tribunal appointed after commencement of the Tribunals Reforms Act, 2021 are governed by Chapter II of that Act.
Section 5 of the Tribunals Reforms Act, 2021 provides, subject to its statutory qualifications and transitional provision, a four-year term for the Chairperson or until the age of seventy years, whichever is earlier, and a four-year term for a Member or until the age of sixty-seven years, whichever is earlier. Section 6 deals with eligibility for reappointment, and Section 7 deals with salary and allowances.
Quick reference
| Provision | Subject | Practical effect |
|---|---|---|
| Section 413(1) | NCLT tenure | Five-year term for President and Members, with eligibility for reappointment, subject to the statutory age limits. |
| Section 413(2) | NCLT age limits | President: 67 years; other Member: 65 years. Minimum age for appointment as Member: 50 years. |
| Section 414 | Salary and service conditions | Conditions are prescribed and cannot be varied to a Member's disadvantage after appointment. |
| Section 417A | NCLAT overriding provision | For covered post-2021 NCLAT appointments, Chapter II of the Tribunals Reforms Act, 2021 governs appointment and service conditions. |
| Tribunals Reforms Act, 2021, Section 5 | Covered tribunal tenure | Chairperson: four years or age 70, whichever is earlier; Member: four years or age 67, whichever is earlier, subject to the Act's transitional provision. |
Official legal resources
- Companies Act, 2013 - India Code
- Tribunals Reforms Act, 2021 - India Code
- Ministry of Corporate Affairs
- National Company Law Tribunal
- National Company Law Appellate Tribunal
Updated: 17 September 2026. This page is intended as a general legal information resource. Statutory provisions should be read with applicable amendments, rules, notifications and binding judicial decisions.