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Tribunal Reforms
Why in news?
- On August 3, the Lok Sabha passed the Tribunals Reforms Bill, 2021 by voice vote.
- Upon becoming law, it will replace the Tribunals Reforms (Rationalization and Conditions of Service) Ordinance, 2021.
- As part of the Bill, several appellate tribunals would be abolished, among other things.
Basics about Tribunals:
- The quasi-judicial body dealing with issues such as tax disputes and other administrative problems.
- Objectives: They can be constituted for wide range of purposes viz., adjudicating disputes, determining rights between contesting parties, making administrative decisions, reviewing existing decisions, etc.
- The Law Commission of India in its 14th Report (1958) titled “Reform of Judicial Administration” recommended the establishment of an appellate Tribunal or Tribunals at the Centre and in the States.
- 42nd Amendment Act:
- The concept of tribunals was introduced based on recommendations made by the Swaran Singh Committee.
- The amendment introduced Part XIV-A, which outlines two articles relating to 'Tribunals'.
- Article 323A: Administrative Tribunals.
- Article 323B: tribunals for other subjects are discussed -taxation, industrial and labour relations, foreign exchange, imports and exports, land reform, food, limits on urban properties, and elections to parliament and state legislatures.
Rationale for bringing in Tribunals
- Reducing the pendency of cases in judiciary.
- Making access to justice easier and cheaper.
- Less cumbersome process and expertise in adjudication of disputes.
Issue with tribunals:
- Delay: There is a delay in the adjudication of cases in several sectors defeating the very purpose for which tribunals are created.
- Vacancies: Existing vacancies in the Tribunals undermine their efficacy. Government has found it challenging to get competent persons for appointment on these tribunals.
- Lack of specialization resulting in lagging decision-making.
- Expensive: Instead of reducing expense of litigation it has only increased it by adding one more layer of adjudication.
- Proliferation: Excessive proliferation of tribunals for different specific areas adding more offices without improving the outcomes.
- Overstepping of jurisdiction: Certain tribunals have been criticized for overstepping their jurisdiction.
- Executive's role: The role of Executive in appointment and removal of members of tribunals has led to criticism of undermining the independence of judiciary.
- Expense: Government has to incur huge administrative expense in running these tribunals.
Tribunals Reforms Bill, 2021:
- Amendment to Finance Act, 2017: It amends the Finance Act, 2017 that had merged the tribunals based on domain and had empowered the central government to notify rules on search-cum-selection committees and term of office. These provisions have been included in the Bill itself.
- Dissolution and transfer: The Bill seeks to dissolve certain existing appellate bodies and transfer their functions (such as adjudication of appeals) to other existing judicial bodies.
- Central Government is empowered to make rules regarding qualifications, appointment, term of office, salaries, allowances, resignation, removal, and other terms and conditions for Members of Tribunals.
- Appointments: Central Government will appoint the Chairperson and Members of the Tribunals based on the recommendation of the Search-cum-Selection Committee. This will help bring uniformity in the process.
- Search-cum-Selection Committee: The Chief Justice of India, or a Supreme Court Judge nominated by him, will be the Chairperson (with casting votes). It will also include - 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, and the Secretary of the Ministry (without voting rights) under which the Tribunal is constituted
- This committee will recommend 2 names to the Government, for the post of Chairman, which will finalize it.
- State tribunals will have separate search committees.
- Restructuring: Several existing appellate bodies will be dissolved and their duties will be transferred to other judicial bodies.
- Tenure:
- The Chairman of a Tribunal serves for a period of four years or until he reaches the age of 70 years, whichever is earlier.
- For other members of tribunal till the age of 67 years or 4 years whichever is earlier.
- Removal: Centre can remove Chairperson or member based on recommendation of the Search-cum-selection committee.
Criticism:
- Conflict with judiciary: It may lead to conflict with the judiciary since the earlier ordinance was rejected by the SC.
- Executive's role: It will increase the Executive's influence in the tribunals on account of its role in appointment and removal.
- Expertise: It might slow down the settlement of disputes as courts might not have the requisite expertise over specific domains.
- Hurts separation of powers: Since the Centre will have the power to decide upon the recommendations of the Committee, it hurts the separation of powers between the different wings of the state.
- Burden on courts: The transfer of cases will increase the burden on judiciary.
Conclusion:
- The decision to rationalize the tribunals in India is positive and well-founded albeit larger issues of concentration of power with the Executive, hurting of separation of powers, consequences on the functioning of the judiciary will have to be factored in for its success.
Source: The Hindu, the Indian express.