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Tribunals Reforms Ordinance

Posted on April 6, 2021 by admin1  360

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The President of India has promulgated the Tribunals Reforms (Rationalisation And Conditions Of Service) Ordinance, 2021.

About

  • It will dissolve the certain existing appellate bodies and transfer their functions to other existing judicial bodies.
  • The proposed changes are based on the directions issued by the Supreme Court last year in the Madras Bar Association case.

Proposed Changes

  • Abolishment of Tribunals: The Ordinance will abolish existing tribunals set up under laws relating to cinematograph, copyright, trademark, airport authority, customs, patents, and others and transfer the concerned functions to respective High Courts.
  • Amendments to the Finance Act, 2017: Section 184 of the Finance Act, 2017 has been amended to empower 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.
    • It provides the Chairperson and Members of the Tribunals will be appointed by the Central Government on the recommendation of a Search-cum-Selection Committee.
    • It also provides the composition of the Committee, to be headed by the Chief Justice of India or a Judge of the Supreme Court nominated by him.
  • Tenure: The Chairperson of a Tribunal shall hold office for a term of 4 years or till he attains the age of 70 years, whichever is earlier.
    • Other Members of a Tribunal shall hold office for a term of 4 years or till he attains the age of 67 years, whichever is earlier.
    • It states that a person who has not completed the age of fifty years shall not be eligible for appointment as a Chairperson or Member.
  • Other Amendments: The Ordinance omits the following Tribunals/ Appellate Authorities from the purview of the Finance Act:
    • Airport Appellate Tribunal established under the Airport Authority of India Act, 1994.
    • Appellate Board established under the Trade Marks Act, 1999
    • Authority for Advance Ruling established under the Income Tax Act, 1961
    • Film Certification Appellate Tribunal established under the Cinematograph Act, 1952.
    • It substitutes the National Consumer Disputes Redressal Commission established under the erstwhile Consumer Protection Act, 1986 with a National Consumer Disputes Redressal Commission established under the Consumer Protection Act, 2019.

Tribunals

  • Tribunal is a quasi-judicial body set up to deal with problems such as resolving administrative or tax-related disputes.
  • The provision for Tribunals was added by the 42nd Constitutional Amendment Act which added two new articles to the constitution.
    • Article 323A: It empowers the parliament to provide for the establishment of administrative tribunals for adjudicating the disputes relating to recruitment and conditions of service of a person appointed to public service of centre, states, local bodies, public corporations and other public authority.
      •  Accordingly parliament has enacted Administrative Tribunals Act, 1985 which authorizes parliament to establish Centre and state Administrative tribunals (CAT & SATs).
    • Article 323B: It empowers the parliament and the state legislatures to establish tribunals for adjudication of disputes related to matters of taxation, foreign exchange, industry and labour, land reforms, elections to parliament and state legislature, rent and tenancy Rights, etc.
  • The tribunals perform an important and specialised role in justice mechanism. They take a load off the already overburdened courts. They hear disputes related to the environment, armed forces, tax and administrative issues.

President’s Power of Ordinance Making

  • Under the Constitution, the power to make laws rests with the legislature, however, in cases when Parliament is not in session and ‘immediate action’ is needed, the President can issue an ordinance.
  • An ordinance is a law, and could introduce legislative changes.
  • Article 123 of the Constitution grants the President certain law making powers to promulgate Ordinances.
  • It may relate to any subject that the Parliament has the power to legislate on.
  • Ordinances must be approved by Parliament within six weeks of reassembling or they shall cease to operate.
  • An ordinance may have retrospective effect and may be modified to repeal any act of Parliament or even another ordinance. It may also amend or alter a tax law but never can be used to amend the Constitution.

Source: TH

 
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