Section 16: No compensation to directors for loss of office.

Q: What does Section 16 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) deal with?

Section 16 SARFAESI pertains to "No compensation to directors for loss of office.". It is part of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, a legislation enacted by the Parliament of India. Section 16 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) governs no compensation to directors for loss of office. As verified on 19 May 2026.

Q: Is Section 16 SARFAESI still in force?

Yes, Section 16 of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is currently in force across the Republic of India.

Q: What is धारा 16 SARFAESI?

धारा 16 SARFAESI is the Devanagari Hindi reference for Section 16 of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Section 16 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) governs no compensation to directors for loss of office. As verified on 19 May 2026.

Q: What is Dhara 16 SARFAESI?

Dhara 16 SARFAESI is the Roman Hindi reference for Section 16 of the The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. "Dhara" means "Section" in Hindi. Section 16 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) governs no compensation to directors for loss of office. As verified on 19 May 2026.

Q: How to cite Section 16 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002?

Cite as: "Section 16, The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI)" in legal briefs. For academic writing, use the BlueBook format: The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, § 16 (India).

Law on Tips Editorial Board

(1) Notwithstanding anything to the contrary contained in any contract or in any other law for the time being in force, no managing director or any other director or a manager or any person in charge of management of the business of the borrower shall be entitled to any compensation for the loss of office or for the premature termination under this Act of any contract of management entered into by him with the borrower.

(2) Nothing contained in sub-section (1) shall affect the right of any such managing director or any other director or manager or any such person in charge of management to recover from the business of the borrower, moneys recoverable otherwise than by way of such compensation.