The Tribunals Reforms Act, 2021
The Tribunals Reforms Act, 2021
1. Background and Purpose
India has a vast system of tribunals to adjudicate specialized disputes in areas like taxation, service matters, company law, administrative law, etc. Tribunals were created to provide speedy, expert, and less formal justice outside regular courts.
Over time, concerns arose about:
Delay and backlog in tribunals,
The quality of adjudication,
Appointment procedures,
Overlapping jurisdictions,
Institutional independence.
In this context, the Tribunals Reforms Act, 2021 was enacted to rationalize and streamline tribunals by:
Replacing certain existing tribunal laws,
Consolidating the appointment and administrative control of tribunals,
Establishing a common mechanism for appointments and service conditions,
Discontinuing some tribunals and transferring their functions elsewhere.
2. Key Features of the Tribunals Reforms Act, 2021
a. Consolidation and Replacement
The Act replaces four earlier laws:
The Income Tax Appellate Tribunal Act, 1963
The Customs, Excise and Service Tax Appellate Tribunal Act, 1982
The Central Administrative Tribunal Act, 1985
The Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982
b. Establishment of Tribunals
The Central Government can constitute tribunals for resolving disputes related to specified statutes.
A list of tribunals to be constituted is notified under the Act.
c. Tribunal Appointment Authority
The Act vests the appointment of tribunal members with a common Selection Committee headed by the Chief Justice of India (or a senior Supreme Court judge nominated by him).
This aims to ensure transparency, meritocracy, and independence.
d. Term and Conditions of Service
The Act sets uniform tenure (typically 5 years) and service conditions for tribunal members.
It also regulates salaries, allowances, and retirement age.
e. Jurisdiction and Functions
The Act lays down the jurisdiction, powers, and procedure of tribunals.
Tribunals shall have powers similar to civil courts for summoning witnesses, discovery, and enforcement of orders.
f. Discontinuation and Merger
Some existing tribunals may be discontinued or merged with other tribunals to avoid duplication and improve efficiency.
For example, the Company Law Appellate Tribunal (CLAT) was discontinued and its functions transferred to the National Company Law Appellate Tribunal (NCLAT).
3. Significance and Impact
The Act brings uniformity in the functioning and administration of tribunals.
It aims to strengthen independence and accountability.
It promotes specialized justice with expert adjudicators.
It reduces multiplicity and overlap in tribunals, streamlining dispute resolution.
By vesting appointment powers in a judicial-led committee, it counters concerns about executive interference.
4. Relevant Case Law
Case 1: L. Chandra Kumar v. Union of India (1997)
The Supreme Court held that tribunals are quasi-judicial bodies and their decisions are subject to judicial review.
The Court emphasized that tribunals must have independence and adequate safeguards to prevent executive interference.
Significance: Justified reforms ensuring tribunal autonomy, as reflected in the Tribunals Reforms Act.
Case 2: Madras Bar Association v. Union of India (2010)
The Supreme Court struck down provisions of the National Tax Tribunal Act for lacking adequate judicial independence and improper appointment processes.
This case highlighted the need for a transparent and independent selection process for tribunal members.
The Tribunals Reforms Act reflects these concerns by instituting a Selection Committee chaired by the CJI.
Case 3: Rojer Mathew v. South Indian Bank Ltd. (2019)
The Court held that tribunal members must be appointed following transparent and merit-based procedures.
The judgement underscores the importance of independent adjudication to uphold the rule of law.
The 2021 Act's emphasis on the Selection Committee is in line with this principle.
Case 4: Justice K. K. Mathew (as cited in Justice Krishna Iyer’s lectures)
Emphasized the importance of specialized tribunals for efficient and expert justice.
Advocated for maintaining tribunal independence and expertise, reinforcing the objectives behind the 2021 reforms.
5. Criticism and Challenges
Some critics argue the Act centralizes too much power in the executive regarding tribunal constitution and functions.
Concerns about adequate representation of experts from different fields.
Impact on existing members and transition procedures have been questioned.
6. Conclusion
The Tribunals Reforms Act, 2021 is a landmark law that modernizes India's tribunal system by:
Consolidating multiple statutes,
Introducing a transparent, judicial-led appointment mechanism,
Streamlining and rationalizing tribunal structures,
Strengthening independence and efficiency.
This reform aligns with Supreme Court rulings on tribunal independence and is expected to improve access to speedy, specialized justice in India.
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