SC strikes down tribunal reforms ordinance provisions fixing four-year term for members

The Supreme Court on Wednesday struck down the provisions in the Tribunal Reforms Ordinance 2021, which fixed four-year term for members of various tribunals.

A three-judge bench of Justices L Nageswarao Rao, Hemant Gupta and Ravindra Bhat by a majority view of 2:1 passed the judgement on a petition filed by the Madras Bar Association. The plea challenged the validity of Sections 12 and 13 of the ordinance by which Sections 184 and 186(2) of the Finance Act, 2017 was amended.

The court said the Ordinance’s provisions would not apply to appointments made before its notification. The Tribunals Reforms (Rationalisation and Conditions of Service) Ordinance, 2021, issued by the Ministry of Law and Justice, was notified on April 4.

The majority judgment by Justices Rao and Bhat held that the fixing of the term violated the express direction given in an earlier judgment that the tenure of tribunal members should be five years.

Accordingly, the bench set aside those provisions. However, Justice Gupta delivered a dissenting judgment and dismissed the petition.

Sections 184 and 186 of the Finance Act 2017 gave the Centre power to make rules in connection with the mode of appointment, terms of service, allowances of members etc, of various tribunals.