Supreme Court Directs Union Government To Establish National Tribunals Commission Within 4 Months

In a significant push for institutional reform, the Supreme Court has directed the Union Government to constitute a National Tribunals Commission (NTC) within four months, underscoring that the executive has a constitutional obligation to set up the body as repeatedly mandated in earlier judgments.

A bench comprising Chief Justice of India BR Gavai and Justice K Vinod Chandran passed the direction in the Madras Bar Association case, in which it struck down the Tribunal Reforms Act, 2021.

It may be noted that in 2020, in the earlier Madras Bar Association case, in which the Tribunal Rules of 2020 were struck down, the Court had directed the Centre to set up a National Tribunal Commission. The Commission was supposed to act as an independent body to supervise the appointments and functioning of Tribunals, as well as to conduct disciplinary proceedings against members of Tribunals and to take care of the administrative and infrastructural needs of the Tribunals, in an appropriate manner.

However, the Union Government did not abide by the direction and the National Tribunal Commission has not been constituted yet. In today's judgment, the Court recorded its displeasure at the Union's lapse. The Court underscored that the Union Government has the "constitutional obligation" to establish a National Tribunals Commission as held in the earlier judgment.

"The creation of such a commission is an essential structural safeguard designed to ensure independence, transparency, and uniformity in the appointment, administration, and functioning of tribunals across the country," the Court stated.

Noting that the piecemeal reforms sought to be introduced by the Central Government through the Tribnual Rules, 2020, Tribunal Reforms Ordinance, 2021 as well as the Tribunal Reforms Act, 2021 all failed to withstand judicial scrutiny, the Court stated that permanent and independent system was necessary.

Reiterating its concern about excessive executive control over tribunals, the bench noted that the Commission must be constituted strictly in line with the principles already laid down by the Court, particularly those guaranteeing freedom from executive interference, professional expertise in selections, transparent procedures, and robust oversight mechanisms to bolster public confidence.

"The commission so constituted must adhere to the principles articulated by this Court, particularly concerning independence from executive control, professional expertise, transparent processes, and oversight mechanisms that reinforce public confidence in the system," the judgment authored by CJI Gavai stated.

Granting the Union a final window to comply, the Court stated:

“We grant the Union of India a period of four months from the date of this judgment to establish a National Tribunals Commission.”