Promulgation of “Tribunals Reforms Ordinance 2021”

Promulgation of “Tribunals Reforms Ordinance 2021”

The Government of India promulgated the Tribunals Reforms (Rationalisation and Conditions of Service) Ordinance, 2021. The Tribunal Reforms (Rationalisation and Conditions of Service) Bill, 2021 was introduced in the Parliament earlier this year but could not be taken up for consideration and passing.

About the Tribunals Reforms Ordinance 2021

The Tribunals Reforms (Rationalisation and Conditions of Service) Ordinance, 2021 dissolves certain existing appellate bodies and transfers their functions (such as adjudication of appeals) to other existing judicial bodies. A Bill with similar provisions was introduced in Lok Sabha on February 13, 2021 and is currently pending.

The Finance Act, 2017 empowered the central government to notify rules on:

• qualifications of members of tribunals
• terms and conditions of their service
• composition of search-cum-selection committees for 19 tribunals (such as the Customs, Excise, and Service Tax Appellate Tribunals).

Purpose of the Ordinance

Tribunals Reforms Ordinance 2021 dissolves at least eight existing appellate tribunals. Now, High Courts and certain other bodies will be the appellate bodies under 9 acts. Further, it also amends the Finance Act 2017.

Key Provisions of the Tribunals Reforms Ordinance

The above-mentioned nine laws where the existing appellate authorities have been replaced are:

1. The Cinematograph Act, 1952.
2. The Trade Marks Act, 1999.
3. The Copyright Act, 1957.
4. The Customs Act, 1962.
5. The Patents Act, 1970.
6. The Airports Authority of India Act, 1994.
7. The Control of National Highways (Land and Traffic) Act, 2002.
8. The Geographical Indications of Goods (Registration and Protection) Act, 1999.
9. Protection of Plant Varieties and Farmers Rights Act,2001.

Amendment to Finance Act, 2017

The ordinance empowers the Central Government to make rules for qualifications, appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of Members of Tribunals.

The amendment also seeks to empower the Government to remove members serving on different Tribunals upon the recommendations of the Supreme Court collegium.

It also provides that the central government will appoint the Chairperson and Members of the Tribunals on the recommendation of a Search-cum-Selection Committee.

Now, the tenure of Chairperson of a Tribunal is for a term of four years or till the age of 70, whichever is earlier. Members of a tribunal will also have a tenure of four years or until they turn 67.

The Committee will consist of:

• Chief Justice of India or a Supreme Court Judge nominated by him, as the Chairperson (with casting vote),
• 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).

About Tribunals

Tribunal is a quasi-judicial institution that was set up to deal with problems such as resolving administrative or tax-related disputes.

These courts were traditionally located in major cities, and citizens could travel there to seek resolution of their problems.

For this purpose, Tribunals were added to the Constitution by Constitution (Forty-second Amendment) Act, 1976 as Part XIV-A which has only two articles: (i) Article 323-A deals with Administrative Tribunals (ii) Article 323-B deals with tribunals for other matters.