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Tribunal reforms Bill 2021

Posted on August 16, 2021 by admin1  32

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Recently, Parliament has passed the Tribunals Reforms Bill 2021.

About 

  • The Tribunals Reforms Bill, 2021 replaces a similar Ordinance promulgated in April 2021 that sought to dissolve eight tribunals.
    • The tribunals functioned as appellate bodies to hear disputes under various statutes and transferred their functions to existing judicial forums such as a civil court or a High Court.
    • The Bill states that the Chairpersons and Members of the tribunal being abolished shall cease to hold office, and they will be entitled to claim compensation equivalent to three months’ pay and allowances for their premature termination.

 

What are the tribunals that are being dissolved?

                              Image Courtsey: IE

Reasons for Dissolution 

  • The analysis of data of the last three years has shown that tribunals in several sectors have not necessarily led to faster justice delivery and they are also at a considerable expense to the exchequer. This has led to the decision to rationalise the functioning of tribunals, a process that began in 2015.
  • The Supreme Court recently expressed its discontentment over the functioning of tribunals in the country, given that several of these important quasi-judicial bodies are understaffed. 
    • India now has 16 tribunals including the National Green Tribunal, the Armed Forces Appellate Tribunal, the Debt Recovery Tribunal among others which also suffer from crippling vacancies as the SC has noted.

 

Major Highlights of the Bill 

  • Amendments to the Finance Act, 2017: The Finance Act, 2017 merged tribunals based on domain.  
    • It also empowered the central government to notify rules on 
      • Composition of search-cum-selection committees
      • Qualifications of tribunal members.
      • Their terms and conditions of service (such as their removal and salaries).  
  • The Bill removes these provisions from the Finance Act, 2017.
    • Provisions on the composition of selection committees and term of office have been included in the Bill.  
  • Search-cum-selection committees:  The Chairperson and Members of the Tribunals will be appointed by the central government on the recommendation of a Search-cum-Selection Committee. 
    •  The Committee will consist of: the Chief Justice of India, or a Supreme Court Judge nominated by him, as the Chairperson (with casting vote), 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 under which the Tribunal is constituted (with no voting right).  
  • State administrative tribunals will have separate search-cum-selection committees.  
  • The central government must decide on the recommendations of selection committees preferably within three months from the date of the recommendation.
  • Eligibility and term of office: The bill provides for a four-year term for tribunal members. It sets the upper age for the chairperson at 70 years and for the other members at 67 years. 
    • The minimum age limit for appointments is 50 years.
  • Uniform pay and rules: The Bill provides for uniform pay and rules for the search and selection committees across tribunals.
  • Removal of tribunal members: It also provides for the removal of tribunal members. It states that the central government shall, on the recommendation of the Search-cum-Selection Committee, remove from office any Chairperson or a Member, who—
    • Has been adjudged as an insolvent; or
    • Has been convicted of an offence which involves moral turpitude; or
    • Has become physically or mentally incapable of acting as such Chairperson or Member; or
    • Has acquired such financial or other interest as is likely to affect prejudicially his functions as such Chairperson or Member; or
    • Has so abused his position as to render his continuance in office prejudicial to the public interest.

Tribunals

  • Tribunal is a quasi-judicial body set up to deal with problems such as resolving administrative or tax-related disputes.
  • The provision for Tribunals was added by the 42nd Constitutional Amendment Act which added two new articles to the constitution.
  • Article 323A: It empowers the parliament to provide for the establishment of administrative tribunals for adjudicating the disputes relating to recruitment and conditions of service of a person appointed to public service of centre, states, local bodies, public corporations and other public authority.
  •  Accordingly, parliament has enacted the Administrative Tribunals Act, 1985 which authorizes parliament to establish Centre and state Administrative tribunals (CAT & SATs).
  • Article 323B: It empowers the parliament and the state legislatures to establish tribunals for adjudication of disputes related to matters of taxation, foreign exchange, industry and labour, land reforms, elections to parliament and state legislature, rent and tenancy Rights, etc.
  • The tribunals perform an important and specialised role in the justice mechanism. They take a load off the already overburdened courts. They hear disputes related to the environment, armed forces, tax and administrative issues.
  • President’s Power of Ordinance Making

 

  • Under the Constitution, the power to make laws rests with the legislature, however, in cases when Parliament is not in session and ‘immediate action is needed, the President can issue an ordinance.
  • An ordinance is a law and could introduce legislative changes.
  • Article 123 of the Constitution grants the President certain law-making powers to promulgate Ordinances.
  • It may relate to any subject that the Parliament has the power to legislate on.
  • Ordinances must be approved by Parliament within six weeks of reassembling or they shall cease to operate.
  • An ordinance may have a retrospective effect and may be modified to repeal any act of Parliament or even another ordinance. It may also amend or alter a tax law but never can be used to amend the Constitution.

Source: IE

 
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