Supreme Court Strikes Down Tribunal Reforms Act, 2021

• On November 19, 2025, the Supreme Court struck down key provisions of the Tribunal Reforms Act, 2021. The Court held that the Act gave the Union Government excessive control over:
  • Appointment of tribunal members
  • Their functioning
  • Fixation of salaries and service conditions
• The Chief Justice described the Act as a “repackaged version” of the 2021 Ordinance that the Court had already struck down in July 2021.

Violation of Constitutional Principles

• The Bench ruled that judicial review is a basic feature of the Constitution.
• By reenacting provisions similar to those previously struck down, the Parliament and the Government had undermined constitutional supremacy.
• The Court emphasised that norms regarding:
  • Tenure and age limits
  • Selection procedures
  • Qualifications
  • Independence from the executive
    — are not mere judicial preferences, but constitutional requirements.

National Tribunal Commission Ordered

• The Court directed the Centre to establish a National Tribunal Commission (NTC) within four months.
• The Commission is intended to serve as an:
  • “Essential structural safeguard”
  • Ensuring independence, transparency, and uniformity across tribunals
  • Overseeing appointments, administration, and functioning

Why Tribunal Independence Matters

• The Court traced the constitutional basis of tribunals to Articles 323A and 323B, inserted through the 42nd Amendment (1976).
• Tribunal independence is linked to:
  • Separation of powers
  • Judicial independence
  • Equality under Article 14

Tribunal System: Constitutional Background

• Article 323A empowers Parliament to set up Administrative Tribunals for disputes related to public services.
• Article 323B allows Parliament and State legislatures to create tribunals on subjects such as:
  • Taxation
  • Land reforms
  • Industrial and labour disputes
• In 2010, the Supreme Court clarified that Article 323B subjects are not exhaustive, and legislatures can establish tribunals for any subject in the Seventh Schedule.

Evolution of India’s Tribunal Structure

• Since the 1980s, several tribunals have been formed, including:
  • Central Administrative Tribunal (CAT)
  • Sector-specific tribunals in areas such as environment, finance, IP, and telecom
• Tribunals function in two ways:
  • As substitutes to High Courts (e.g., Securities Appellate Tribunal → appeals go directly to Supreme Court)
  • As subordinate to High Courts (e.g., Copyright Appellate Board → appeals go to High Courts).

Sources: TH & PRS