SC Strikes Down Key Provisions of Tribunal Reforms Act 2021 :

Why in News? The Supreme Court recently struck down key provisions of the Tribunal Reforms Act, 2021, which aimed to overhaul the tribunal system in India. The Court held that the Act compromised the independence and autonomy of tribunals, a core constitutional value.

Key Provisions of the Tribunal Reforms Act, 2021:

The Act sought to restructure the tribunal system and address issues such as the growing pendency of cases and delay in appointments. Key provisions included:

Centralized Control over Appointments:

1. • The Act provided the Union government with the authority to appoint chairpersons and members of tribunals, effectively diminishing the role of judiciary in the selection process.

 Shortened Tenure and Service Conditions:

1. • The tenure of tribunal members was capped at five years, and their salaries and allowances were linked to the Union Government’s discretion.

Abolition of Appellate Tribunal in Some Cases:

1. • The Act aimed to merge and rationalize several tribunals and appellate authorities, reducing the avenues for appeal and limiting judicial oversight.

Unified Secretarial Control:

1. • The Act provided for a common secretariat for various tribunals, which would be controlled by the Union Government, potentially affecting the autonomy of individual tribunals.

Executive Control over Service Conditions:

1. • The executive had significant control over the service conditions (including appointment, removal, and salary) of tribunal members, which led to concerns about the erosion of judicial independence.

What the Supreme Court Said ?

• The Court struck down provisions that allowed executive interference in appointments, tenure, and salaries, calling it a violation of the basic structure of the Constitution.
• The Court observed that tribunals must operate independently of the executive to ensure fairness and impartiality in adjudication.
• The National Tribunal Commission (NTC), as mandated by the Court, is necessary to oversee the appointment procedures, functioning, and administration of tribunals to ensure independence, transparency, and uniformity.

Role of Tribunals in India:

• Tribunals provide specialized, speedy, and expert adjudication in areas such as taxation, environment, telecom, service matters, and company law.
• They help decongest regular courts by handling cases that require technical expertise.
• Tribunals also promote administrative efficiency, ensuring quick resolution of disputes in specific sectors.

 

Major Issues in the Tribunal System :

Excessive Executive Control:

• The Act gave the Union executive significant control over tribunal appointments, tenure, and functioning, undermining judicial independence.

 Short Tenure & Arbitrary Conditions:

• Short appointments (five years) and lack of security of tenure discouraged competent professionals from joining tribunals.

Delayed Appointments and Vacancies:

• Chronic vacancies in tribunals led to case backlogs and delay in justice delivery.

 Lack of Uniformity Across Tribunals:

• Different service conditions, structures, and administrative practices among tribunals created inconsistencies and inefficiency.

No Independent Oversight Body:

• The absence of a National Tribunal Commission meant no clear and independent body to monitor and regulate the functioning of tribunals.

Reform Committee / Commission Recommendations:

1. a) Law Commission (1988, 2017):

• Recommended an independent, uniform body for appointments and administration, including a National Tribunal Commission to ensure transparency and judicial independence.

1. b) Supreme Court Judgments:

• Rojer Mathew (2019): Emphasized the need for an independent oversight body to protect tribunal independence.
• Madras Bar Association Cases: In previous judgments, the Court struck down provisions that compromised the autonomy of tribunals.

1. c) Finance Commission / ARC Recommendations:

• Suggested unified structures, standardized rules, and autonomous oversight mechanisms.

Way Forward:

• Establish the National Tribunal Commission (NTC) as ordered by the Supreme Court to ensure transparency, uniformity, and accountability.
• Reduce executive control over tribunal appointments and functioning—empower judicially led committees for selection.
• Ensure long tenure (minimum five years) for tribunal members and secure their salaries and service conditions.
• Fill vacancies promptly to prevent pendency and backlog.
• Implement uniform administrative processes and streamlined functioning across all tribunals.
• Strengthen appellate structures and ensure consistent, quality adjudication.

Conclusion:

The Tribunal Reforms Act, 2021, while aimed at streamlining the tribunal system, faced criticism for undermining judicial independence. The Supreme Court’s intervention reaffirms that tribunals must function with autonomy and impartiality. Establishing the National Tribunal Commission is a positive step toward strengthening the independence, transparency, and efficiency of the tribunal system, ensuring it meets the constitutional values of justice and fairness.