The Central government has introduced the Tribunals Reforms (Rationalisation and Conditions of Service) Act, 2021 laying down the tenures and other service conditions of tribunal members.

Highlights of the Bill

  • The Bill dissolves certain existing appellate bodies and transfers their functions to other existing judicial bodies.
  • The term of office for the Chairperson and members of a Tribunals will be four years, subject to an upper age limit of seventy years for the Chairperson, and sixty-seven years for other members. 
  • The Bill specifies that a person should be at least 50 years of age to be eligible for appointment as a Chairperson or member.

Key Issues and Analysis

  • The term of office of four years is lower than the minimum of five years directed by the Supreme Court in various judgements.
  • The Supreme Court has also noted that the minimum age limit requirement of 50 years for appointment of members may discourage young talent.  It had earlier directed that advocates with 10 years of experience be made eligible to be appointed as a judicial member.
  • Abolishing Tribunals may increase the disposal time for new cases, as High Courts already have a large number of cases awaiting judgement.

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 specifies that these Committees will consist of: (i) 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), (ii) two Secretaries nominated by the central government, (iii) the sitting or outgoing Chairperson, or a retired Supreme Court Judge, or a retired Chief Justice of a High Court, and (iv) the Secretary of the Ministry under which the Tribunal is constituted (with no voting right). 

Under the Finance Act, 2017, the 2020 Rules specified a four-year term of office for members.  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.

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Vishal Gupta