Centralised oversight needed to make tribunals more effective: CII

New Delhi: A centralised oversight mechanism is needed to improve efficiency and address the issues impacting the quasi-judicial bodies like the National Company Law Tribunal (NCLT), Income Tax Appellate Tribunal (ITAT), and Debt Recovery Tribunals (DRTs), which have direct impact on critical sectors of the economy, the Confederation of Indian Industry (CII) said on Sunday.

According to the industry body, enhancing the efficiency of tribunals is critical for unlocking substantial fiscal resources tied up in disputes and improving the overall ease of doing business.

As of December-end 2024, around Rs 6.7 lakh crore was pending resolution at the Income Tax Appellate Tribunal (ITAT) alone, which constitute nearly 57% of all ligated direct taxes amount in the country, as per data provided by CII in a research report.

Similarly, for indirect taxes, Rs 2.03 lakh crore, or 35% of the total, was locked up in litigations at Customs, Excise, and Service Tax Appellate Tribunals (CSAT) across 55,256 unresolved cases, as of January 31, 2025.

“Such a high figure highlights the magnitude of matters being adjudicated by tribunals, and the far-reaching implications on investment climate and economic growth,” the report stated.

At present, over 16 central tribunals operate under different ministries across key sectors of the economy. Besides these, there are various state-level tribunals. Prominent central tribunals include the National Company Law Tribunal (NCLT), Central Administrative Tribunal (CAT), National Green Tribunal (NGT), and Debt Recovery Tribunals (DRTs).

“There should be a central mechanism that can cater to the issues impacting stakeholders including litigators and litigants,” said Advocate Amarnath, Managing Partner at Indo Law Consultancy LLP.

Amarnath, who specialises in corporate and insolvency related issues, said a centralised mechanism would help in proper channelisation of resources, including the appointment of tribunal members and infrastructure.

Originally envisioned as a complement to the conventional court system, tribunals aim to ease the burden on the judiciary while enabling faster, expert-led adjudication in technically complex matters.

These bodies directly impact the rule of law, economic governance, and ease of doing business. For example, the National Company Law Tribunal (NCLT) plays a pivotal role in the implementation of the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016, central to corporate debt resolution, investor confidence, and financial stability.

“Establishing a centralised oversight institution for tribunals would be a transformational step towards making India’s justice delivery system more responsive, efficient, and future-ready, directly contributing to boosting regulatory credibility, improving ease of doing business and enhancing investors’ confidence,” CII said.

Highlighting the challenges, CII said, “India’s tribunal system remains fragmented, with no unified framework for performance monitoring, digital integration, or institutional support. Most tribunals operate in silos, lacking standardised case management tools, grievance redress mechanisms, and consistent service conditions. Training and capacity-building are uneven, and administrative inefficiencies persist across the system.”

“These challenges impact timely dispute resolution and impose economic and legal costs on businesses and citizens alike,” it added.