Tribunals Reforms Bill Passed In Lok Sabha

BACKGROUND

• In March 2017, the Government passed the Finance Act that aimed to reorganize the tribunals in the country and also dealt with terms and conditions of services of chairpersons and members of tribunals.
• In 2019, a Constitutional Bench of the Supreme Court struck down the changes made by this Act and directed the Government to formulate new rules.
• In April 2021, the Parliament passed an ordinance with similar provisions that to Tribunals Reforms Bills and amended the Finance Act.
• The said Ordinance was set aside by the Supreme Court in Madras Bar Association v. Union of India and the new Tribunals Reforms Bill was passed by Finance Minister Nirmala Sitharaman on 3rd August 2021 to replace the Ordinance.

MAJOR CHANGES MADE BY THE BILL

• The Bill abolished several tribunal authorities under Acts relating to Intellectual Property, Customs Act, Airport Authority of India Act, etc, and transferred the power of dissolved authorities to the respective High Courts.
• It amended the Finance Act 2017 and specified the tenure of members and chairpersons of the Tribunal as 4 years and retirement age as 67 years and 70 years respectively.
• Section 3 of the Bill fixed the eligible age as 50 for a person to be appointed as a member or chairperson of the tribunal.
• It also specified the membership of Search-cum-Selection Committees that play an important role in the recommendation of individuals as members and Chairpersons of the tribunals.

KEY ISSUES WITH THE BILL

• One of the major issues with the Bill is that ignores the directions and order of the Supreme Court passed in Madras Bar Association v. Union of India.
• The Supreme Court held in the case that, fixing the tenure of tribunal members to 4 years violates the guidelines of the Court and goes against the principles of separation of powers and independence of the judiciary but still the new Bill has kept the tenure as same.
• The Apex Court also stated that fixing the minimum required age to be appointed as a member or Chairperson as 50 years is violative of Article 14 of the Constitution and rule of law as it bars the experienced individuals from becoming a member but the new Bill still finds 50 years as the minimum required age for appointment to tribunals.
• Tell us what you think of the Tribunals Reforms Bill.