Supreme Court Quashes Tribunal Reforms Act Provisions; Cites Threat To Judicial Independence

The Supreme Court of India has struck down crucial provisions of the Tribunal Reforms Act 2021, ruling that the amendments were an unconstitutional attempt to nullify previous judgments.

The decision marks a major reaffirmation of judicial independence and the principle of separation of powers.

A Bench led by Chief Justice BR Gavai and Justice K Vinod Chandran ruled that the government attempted to bypass the Court’s earlier rulings by reintroducing provisions it had already quashed.

The judges observed that the Centre had made only minor modifications to the invalidated provisions and re-enacted them in a way that undermined the Court’s authority.

The Bench directed the Union government to establish a National Tribunals Commission within four months to oversee appointments and administrative matters relating to tribunals.

CJI Gavai remarked, “No law can be valid unless it respects judicial independence and the constitutional structure.”

Appointments and Tenure

The Court reiterated that its earlier directions on the tenure of tribunal members would continue to apply.

Members of the Income Tax Appellate Tribunal (ITAT) will serve until the age of 62, while ITAT Presidents will remain in office until 65.

The same age limits will apply to members and the Chairperson of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

The Bench criticised the Centre’s reluctance to implement directions issued in earlier judgments, including the Madras Bar Association (MBA) cases, which laid down binding norms for tribunal appointments.

The Court condemned the re-enactment of provisions previously struck down, noting that Parliament had attempted to override judicial decisions without addressing the defects identified earlier.

The judges held that such legislative action violated foundational constitutional principles.

The ruling emphasised that laws cannot be enacted to render binding judicial decisions ineffective without curing the underlying issues.

Why the Act Cannot Stand

The Supreme Court ruled that it could not uphold the Tribunal Reforms Act 2021 because the law violated judicial independence and the doctrine of separation of powers.

The Court also noted that the Act granted excessive legislative authority to nullify binding judicial pronouncements.

Until Parliament introduces a fresh law that complies with earlier rulings, the directions issued in the Madras Bar Association cases will remain in force.

The judgment came after the Supreme Court heard petitions filed by the Madras Bar Association and several others challenging the constitutionality of the Tribunal Reforms Act 2021.

The petitioners argued that Parliament could not reintroduce provisions that had already been struck down, merely with cosmetic amendments.

The Court agreed, holding that the government’s actions amounted to an unconstitutional encroachment upon the judiciary’s domain.

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