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The Appellate Tribunal dismissed the appeal filed by the Appellant Association, M/s. Lanco Infratech Employees Welfare Association, comprising 212 members, seeking entitlement to 'retention allowance'. The Tribunal held that the members were not entitled to the retention allowance amounting to Rs. 2,80,36,076/- as no service conditions or terms of appointment were provided to establish that the retention allowance formed part of their emoluments or salary payable under the service contract. The endorsement by the then Managing Director and payment slips alone were insufficient to establish the legal enforceability of the retention allowance. However, the Tribunal upheld the entitlement to salary for the month of June 2017, subject to it not being already paid or challenged before a superior forum. The Impugned Order dated 11.03.2024 by the NCLT was found free from apparent error, and the appeal was dismissed.
The Appellate Tribunal dismissed the appeal filed by the Appellant Association, M/s. Lanco Infratech Employees Welfare Association, comprising 212 members, seeking entitlement to 'retention allowance'. The Tribunal held that the members were not entitled to the retention allowance amounting to Rs. 2,80,36,076/- as no service conditions or terms of appointment were provided to establish that the retention allowance formed part of their emoluments or salary payable under the service contract. The endorsement by the then Managing Director and payment slips alone were insufficient to establish the legal enforceability of the retention allowance. However, the Tribunal upheld the entitlement to salary for the month of June 2017, subject to it not being already paid or challenged before a superior forum. The Impugned Order dated 11.03.2024 by the NCLT was found free from apparent error, and the appeal was dismissed.
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