Parliament passes tribunals reforms (rationalisation and conditions of service) bill, 2021

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CategoryPolity

Last Updated10/08/2021

The Rajya Sabha adopted the Tribunals Reforms (Rationalisation and Conditions of Service) Ordinance, 2021, to eliminate up to nine appellate tribunals, including the Film Certification Appellate Tribunal (FCAT).
On August 3, the Lok Sabha passed the Tribunals Reforms Bill, 2021.
It seeks to lay down terms and conditions for the service and tenure of members of various tribunals.

On July 14 this year, the Supreme Court struck down the provisions in the Ordinance which had fixed the term of members as 4 years and which had held fixed the minimum age of appointment of members as 50 years. However, the very same provisions are included in the Tribunals Reforms Bill.
The Bill contains the same provisions in the Tribunals Reforms (Rationalisation and Conditions of Service) Ordinance, 2021, which were struck down by the Supreme Court in the recent verdict in the Madras Bar Association case.

The Bill abolishes 9 appellate bodies and transfer their functions to existing judicial bodies like High Courts, Civil Courts, etc.

The Bill amends the Finance Act, 2017, to specifies that these Committees will consist of:

the Chief Justice of India, or a Supreme Court Judge nominated by him, as the Chairperson (with a second casting vote in case of a tie),
two Secretaries nominated by the central government,
the sitting or outgoing Chairperson, or a retired Supreme Court Judge, or a retired Chief Justice of a High Court,
the Secretary of the Ministry under which the Tribunal is constituted (with no voting right).

The Finance Act, 2017 specifies that the Chairperson and Members of the Tribunals will be appointed by the central government on the recommendation of a Search-cum-Selection Committee.
The Bill amends the 2017 Act to include provisions related to term of office in the Act itself.
The Bill retains the term of office at four years (subject to an upper age limit of 70 years for Chairperson and 67 years for other members) with provision for re-appointment.

It will increase the burden on the court system.
The short tenure of members of a tribunal along with provisions of re-appointment increases the influence and control of the Executive over the judiciary.
It also discourages meritorious candidates from applying for such positions as they may not leave their well-established careers to serve as a member for a short period.
The Supreme Court had stated that the term of office for the Chairperson and other members must be five years (subject to a maximum age limit of 70 years for the Chairperson and 67 years for other members).
The Bill and the Ordinance specify that a person must be at least 50 years old to be appointed as a member of a tribunal, it iolates past Supreme Court judgements and was also struck down by the Court in July 2021.
This may further increase the disposal time for cases.

Tribunals are judicial or quasi-judicial institutions established by law.
They intend to provide a platform for faster adjudication as compared to traditional courts, as well as expertise on certain subject matters.
In 1976, Articles 323A and 323B were inserted in the Constitution of India through the 42nd Amendment.
Article 323A empowered Parliament to constitute administrative Tribunals (both at central and state level) for adjudication of matters related to recruitment and conditions of service of public servants.
Article 323B specified certain subjects (such as taxation and land reforms) for which Parliament or state legislatures may constitute tribunals by enacting a law.
In 2010, the Supreme Court clarified that the subject matters under Article 323B are not exclusive, and legislatures are empowered to create tribunals on any subject matters under their purview as specified in the Seventh Schedule of the Constitution.
Currently, tribunals have been created both as substitutes to High Courts and as subordinate to High Courts.