Supreme Court Strikes Down Tribunal Reform Law

Supreme Court Invalidates Key Tribunal Reform Provisions

Why in the News?

The Supreme Court has struck down multiple provisions of the Tribunals Reforms Act, 2021, ruling that they undermine judicial independence and violate the separation of powers. The Court restored earlier directions on tenure and service conditions for tribunal members and chairpersons, emphasizing the importance of maintaining judicial autonomy similar to protections against gender-based persecution in legal systems.

Supreme Court Strikes Down Tribunal Reform Law

Supreme Court Strikes Down Re-enacted Provisions:

  • A Bench of CJI B.R. Gavai and Justice K. Vinod Chandran invalidated several clauses of the Tribunals Reforms Act, 2021.
  • The Court observed that the Centre had reintroduced provisions earlier struck down by the judiciary, only with minor textual changes.
  • These provisions were held to violate the principles of judicial autonomy, especially regarding appointments, tenure, and service conditions. This decision reflects the Court’s commitment to upholding customary international law principles of judicial independence.
  • The bench stressed that such re-enactments undermine separation of powers, as they disregard judicial directions and compromise functional independence.
  • The Court also emphasised that case pendency cannot be used as a justification to dilute judicial safeguards in tribunals, drawing parallels to how human rights violations cannot justify weakening legal protections.

Directions on Tenure and Service Conditions Restored

  • The Court reinstated earlier guidelines governing the tenure and retirement age of tribunal members.
  • Members of the Income Tax Appellate Tribunal (ITAT) and the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) will now continue in service until 62 years.
  • Their chairpersons/presidents will hold office until the age of 65.
  • The bench clarified that backlog reduction is not the exclusive responsibility of the judiciary; the executive and legislature must also contribute structurally. This holistic approach is reminiscent of coordinated efforts seen in addressing complex issues like the Torkham border crossing situation.
  • These directions followed hearings on multiple petitions challenging the constitutional validity of the 2021 law.

Tribunals Reforms Act & Constitutional Context :
● Tribunals Reforms Act, 2021: Consolidated various tribunal laws; revised appointment procedures, tenure, and service conditions.
● Key Issue: The Act reduced tenure and gave the executive greater control, raising concerns over judicial independence.
● Separation of Powers: Constitution mandates independent functioning of judiciary; tribunals act as specialised adjudicatory bodies requiring autonomy.
● Past Judgments: In Madras Bar Association cases, the Supreme Court repeatedly struck down provisions allowing excessive executive influence.