The Tribunals Reforms Bill, 2021 was introduced in Lok Sabha today.  It seeks to dissolve certain existing appellate bodies and transfer their functions (such as adjudication of appeals) to existing judicial bodies (mainly high courts) (see Table 1).  It also amends the Finance Act, 2017, to bring certain provisions (such as qualifications, appointments, term of office, salaries and allowances of tribunal members) under the purview of the Bill.  Currently, these provisions are notified through Rules under the Finance Act, 2017.   

Note that the 2017 Act reorganised the Indian tribunal system to ensure uniformity in their administration by amalgamating certain tribunals based on the similarity in their functional domain.  It also delegated powers to the central government to make Rules to provide for the qualifications, appointments, term of office, salaries and allowances, removal, and other conditions of service for chairpersons and members of these tribunals.  

This Bill replaces an Ordinance with similar provisions that was promulgated in April 2021.   The 2021 Ordinance was challenged in the Supreme Court over its compliance with past Supreme Court judgements.  In July 2021, the Court struck down certain provisions of the Ordinance, such as the four-year term of office for members, and the minimum age bar of 50 years to be appointed as a member of a tribunal.  Table 2 shows a detailed comparison of key provisions of the 2021 Bill with the 2021 Ordinance and the principles laid down by the Supreme Court in its judgement.  The Bill does not conform to the judgement of the Supreme Court and retains the provisions of the Ordinance that were struck down by the Court. 

For an analysis of the 2021 Ordinance, please see our note here.  For more details on the evolution of the tribunal system in India, please see our note

Table 1: Transfer of functions of key appellate bodies as proposed under the Bill

Appellate body

Role

Proposed entity

Appellate Tribunal under the Cinematograph Act, 1952

Adjudication of appeals against the Board of Film Certification

High Court

Appellate Board under the Trade Marks Act, 1999

Adjudication of appeals against orders of the Registrar

High Court

Appellate Board under the Copyright Act, 1957

Adjudication of certain disputes and appeals against orders of the Registrar of Copyright.   Disputes include those related to publications and term of the copyright

Commercial Court or the Commercial Division of a High Court*

Authority for Advance Rulings under the Customs Act, 1962

Adjudication of appeals against orders of the Customs Authority for advance rulings

High Court

Appellate Board under The Patents Act, 1970

Adjudication of appeals against decisions of the Controller on certain matters.  Matters include applications for patents and restoration of patents.

High Court

Airport Appellate Tribunal under the Airports Authority of India Act, 1994

Adjudication of:

  • disputes arising from the disposal of properties left on airport premises by unauthorised occupants, and
  • for appeals against the order of an eviction officer
  • Central government, for disputes arising from the disposal of properties left on airport premises by unauthorised occupants.
  • High Court, for appeals against orders of an eviction officer.

Airport Appellate Tribunal under the Control of National Highways (Land and Traffic) Act, 2002

Adjudication of appeals against orders of the Highway Administration on matters including, grant of lease or licence of highway land, removal of unauthorised occupation, and prevention of damage to highway.

Civil Court# 

Appellate Tribunal under the Protection of Plant Varieties and Farmers' Rights Act, 2001

Adjudication of appeals against certain orders of Registrar or Plant Varieties and Farmer Rights Authority

High Court

Appellate Board under the Geographical Indications of Goods (Registration and Protection) Act, 1999

Adjudication of appeals against orders of the Registrar

High Court

Notes: * Constituted under the Commercial Courts Act, 2015; # Refers to a Civil Court of original jurisdiction in a district and includes the High Court in the exercise of its ordinary original civil jurisdiction.
Sources: The Tribunals Reforms Bill, 2021; Parent Acts of the appellate bodies; PRS.

Table 2: Key provisions in the 2021 Bill and the Ordinance vis-a-vis the Supreme Court judgements

Provisions

2021 Ordinance

Supreme Court Judgement of July 2021

2021 Bill

Term of office of Chairperson and members

Four-year term with eligibility for re-appointment.

The Court stated that a short tenure of members (such as three years) along with provisions of re-appointment increases the influence and control of the Executive over the judiciary.  In a short tenure, by the time the members achieve the required knowledge, expertise and efficiency, one term gets over.  This prevents enhancement of adjudicatory experience, thereby, impacting the efficacy of tribunals.

The Court struck down the provision of four -year term and reiterated its past judgements, which recommended a five-year term with eligibility for re-appointment.  

Same as that in Ordinance.

Minimum age requirement for appointment of Chairperson and members

50 years

The Court observed that the minimum age requirement of 50 years violates past Court judgements, where the Court has stated that advocates with at least 10 years of relevant experience must be eligible to be appointed as judicial members, as that is the qualification required for a High Court judge.  Such a high age limit also prevents the recruitment of young talent.

The provision was struck down.

Same as that in Ordinance.

Time limit for appointments

Preferably within three months from the date of the recommendations of the search-cum-selection committee.

The Court noted that not mandating the central government to make appointments within three months (from the date of recommendation of the search-cum-selection committee) leads to delay in the appointment of members.  This impacts the functioning and efficacy of tribunals.

The provision was struck down over non-compliance with past judgements, which mandated the appointments to be made within three months.

Same as that in Ordinance.

Number of recommendations for a post

Two names for each post.

The Court stated that the recommendations for appointment of members by the search-cum-selection committee should be final.  The Executive must not be allowed to exercise any discretion in matter of appointments in a tribunal.

The Court struck down the provision and reiterated its past judgement, which specified that the selection committee must suggest one name for each post.  The Committee may recommend one name in wait list.  

Same as that in Ordinance.

Sources: The Tribunals Reforms Ordinance, 2021; The Tribunals Reforms Bill, 2021; Madras Bar Association vs Union of India, W.P.(C) No. 000502 of 2021; PRS.

On November 28, 2012, the Comptroller and Auditor General submitted its report on the implementation of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).  According to the report most of the projects initiated under JNNURM have not been completed.  For instance with respect to urban infrastructure projects, only 231 projects out of the 1298 sanctioned projects have been completed.  Similarly, with respect to housing projects, only 22 of the 1517 projects have been completed.  Some of the other key recommendations of the report are:

  •  Some of the reasons for the delay in completing the projects include: (i) delay in acquiring land; (ii) deficiency in preparation of projects; and (iii) non-identification of beneficiaries which increased the risk of ineligible beneficiaries getting the benefits.
  •  A total allocation of Rs 66,084 crore had been made by the Planning Commission.  However, against this total allocation, the central government had made an allocation of only Rs 37,070 out of which until March 30, 2011 only Rs 32,934 had been released.
  • There was a delay in releasing these funds to the states.  A large portion of the funds was released only in the last quarter and more particularly in March.
  • The JNNURM guidelines were deficient as they did not provide adequate guidance to the states on the method of parking the funds and utilization of interest.

The need and objectives of JNNURM According to the 2011 census India’s urban population has increased from 286 million in 2001 to 377 million in 2011 .  With the increase in urban population, there is a requirement to improve the urban infrastructure and improve the service delivery mechanisms.  With these specific objectives in mind, the central government launched the Jawaharlal Nehru National Urban Renewal Mission 2005-2006.  The aim of the Mission is to encourage reforms and fast track planned development of identified cities (such as cities with a population of more than 1 million as per the 2001 census).  JNNURM has two main components namely : (i) Urban Infrastructure and Governance  and (ii) Urban Infrastructure Development for Small and Medium Towns. The duration of JNNURM was from 2005-06 to 2011-12. However, as the projects have not been completed the Government has extended its duration until March 2014. Funds for JNNURM The funds for JNNURM are provided through the Additional Central Assistance.  This implies that the funds are provided as grants to the states directly from the centre.   In the 2012 Union Budget, the central government has allocated Rs 12,522 crore for JNNURM. This represents around 10 % of the total central assistance through the different schemes to states and union territories in 2012-13. As on June 30 2012, 554 projects at a total cost of Rs 62,253 crore have been sanctioned under the Urban Infrastructure and Governance sub-mission of JNNURM.   The table below shows the status of the sanctioned JNNURM  projects in the different states. State wise status of the projects under JNNURM                 (as on August 6, 2012)

Name of State Total Allocation (Rs Lakh) Number of sanctioned projects Completed Projects
Andhra Pradesh 2,11,845 52 18
Arunachal Pradesh 10,740 3 NA
Assam 27,320 2 NA
Bihar 59,241 8 NA
Chandigarh 27,087 3 NA
Chattisgarh 24,803 1 NA
Delhi 2,82,318 23 4
Goa 12,094 2 NA
Gujarat 2,57,881 72 40
Haryana 32,332 4 NA
Himachal Pradesh 13,066 5 NA
Jammu & Kashmir 48,836 5 NA
Jharkhand 94,120 5 NA
Karnataka 1,52,459 47 22
Kerala 67,476 11 NA
Madhya Pradesh 1,32,850 23 7
Maharashtra 5,50,555 80 21
Manipur 15,287 3 NA
Meghalaya 15,668 2 NA
Mizoram 14,822 4 NA
Nagaland 11,628 3 NA
Orissa 32,235 5 NA
Punjab 70,775 6 1
Puducherry 20,680 2 NA
Rajasthan 74,869 13 2
Sikkim 10,613 2 NA
Tamil Nadu 2,25,066 48 12
Tripura 14,018 2 NA
Uttar Pradesh 2,76,941 33 4
Uttarakhand 40,534 14 NA
West Bengal 3,21,840 69 15

Source: Jawaharlal Nehru National Urban Renewal Mission; PRS.

  • Gujarat at 55.55% has the highest number of completed projects, while Uttar Pradesh at 12.24% has the lowest number of completed projects.
  • Out of the larger states, Delhi and Maharashtra at 17% and 26% have a comparatively low rate of completed projects.
  • Maharashtra has the highest number of sanctioned projects, while the North Eastern states, Chattisgarh and Puducherry have the lowest number of sanctioned projects.