Setback for Centre: Supreme Court nullifies Tribunal Reforms Act 2021, calls it 'unconstitutional'

The Supreme Court on Wednesday, 19 November, struck down key provisions of the Tribunals Reforms Act, 2021, holding that the Centre had effectively reinstated clauses earlier quashed by the judiciary with only marginal alterations. A Bench of Chief Justice B.R. Gavai and Justice K. Vinod Chandran ruled that the contested sections violated the principles of separation of powers and judicial independence, and therefore could not be sustained.

Delivering the judgment, the Chief Justice said the court had examined the provisions of both the Tribunals Reforms Ordinance and the 2021 Act, and found that the same clauses previously struck down had been brought back “with minor tweaking.” The Bench observed that Parliament had attempted to “legislatively override” binding judicial precedents without addressing the underlying defects identified in earlier rulings.

The court emphasised that clearing the backlog of cases was not the judiciary’s responsibility alone, stressing that the executive and legislature must share the burden. It reiterated that statutory provisions affecting tribunals must respect judicial directions to preserve institutional independence.

The judgment was based on petitions filed by the Madras Bar Association and Congress leader Jairam Ramesh challenging the 2021 Act as a sly revival of the ordinance.

The court directed the Centre to establish the National Tribunal Commission in four months from the judgment and said this was needed as an “essential structural safeguard” to ensure independence, transparency and uniformity in the functioning, appointment to, and administration of tribunals.

The court also restored its previous directions on the tenure of tribunal members. It held that members of the Income Tax Appellate Tribunal (ITAT) and the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) will continue in service until the age of 62, while their chairpersons and presidents will remain in office until 65.

The verdict comes after the Supreme Court reserved its decision on 11 November on a batch of petitions challenging the constitutionality of the Tribunals Reforms (Rationalisation and Conditions of Service) Act, 2021. The law, among other changes, abolished several appellate bodies—including the Film Certification Appellate Tribunal—and altered rules governing appointments, age limits, and tenure across multiple tribunals.

With PTI Inputs