President Grants Approval to Tribunals Reforms Act, 2026

thelawmonitor
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President Grants Approval to Tribunals Reforms Act, 2026

On August 13, President Droupadi Murmu officially approved the Tribunals Reforms Bill, 2026. This landmark legislation aims to revamp the tribunal system across India by establishing the National Tribunals Commission (NTC). The bill was passed by the Lok Sabha on August 10 and quickly followed by the Rajya Sabha on August 11, despite facing opposition protests.

Objective of the Reforms

The primary goal of the Tribunals Reforms Act, 2026, is to enhance the independence, transparency, and uniformity of tribunals in India. This new law supersedes the Tribunals Reforms Act, 2021, a piece of legislation partly invalidated by the Supreme Court for allowing excessive executive control over tribunals. The move aligns with several Supreme Court rulings, including the significant Madras Bar Association v. Union of India case, which emphasized the need for tribunal independence.

Establishment of the National Tribunals Commission

The Tribunals Reforms Act, 2026, proposes the creation of a National Tribunals Commission (NTC) to oversee 16 tribunals, such as the Central Administrative Tribunal, National Green Tribunal, National Company Law Appellate Tribunal, and others. The commission will consist of a chairperson, two judicial members, and two technical members. The chairperson must have served as a Supreme Court judge or a Chief Justice of a High Court, while judicial members should be current or former High Court judges. Technical members require at least 25 years of experience in relevant fields like public administration, finance, or technology.

Roles and Responsibilities of the NTC

The NTC will handle various tribunal-related administrative functions. These include managing the selection process for tribunal chairpersons and members, assessing tribunal performance, conducting inquiries into complaints against tribunal officials, and maintaining a National Tribunals Data Grid for case-related information.

Judicially-led Selection Committees

To ensure a fair selection process, the Act mandates the creation of search-cum-selection committees. These committees, led by the NTC chairperson or a judicial member, include a Technical Member, a retired High Court judge, a government secretary, and two experts. The committee has the authority to recommend candidates and must submit recommendations to the Central government within three days. Subsequent appointments should be made by the government within three months.

Removal Procedures for Tribunal Members

The Act outlines a standardized procedure for the removal of tribunal chairpersons and members, applicable in cases of conflict of interest, abuse of position, or incompetence. The National Tribunals Commission will oversee inquiries into such complaints before any further action by the Central government.

Transitional Provisions

The 2026 Act repeals its 2021 predecessor, but it safeguards existing appointments and ongoing selection processes. Current tribunal members appointed under the 2021 Act will remain in position until the completion of their terms, subject to transitional provisions.

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