Lok Sabha Question No. 3585 (UNSTARRED), answered on 2016-12-07
Subject: Reform of Tribunals
Ministry: LAW AND JUSTICE
Asked by: SRINIVAS KESINENI

3585. SHRI KESINENI NANI.

Will the Minister of LAW AND JUSTICE be pleased to state:

- (a)   whether there are any proposals for reform of tribunals;
- (b)   if so, the details thereof and the time frame for the same;
- (c)  whether there is any proposal to provide a unified administrative framework for all tribunals, thus removing problems of different procedures being followed by different  tribunals;
- (d)  if so, the details thereof;
- (e)  whether there is a time frame by which the Government envisages to usher in tribunal reforms in the country; and
- (f)  if so, the details thereof?

## GOVERNMENT OF INDIA MINISTRY OF LAW AND JUSTICE DEPARTMENT OF LEGAL AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO.3585 TO BE ANSWERED ON 07.12.2016

## Reform of Tribunals

## ANSWER

## MINSTER OF STATE FOR LAW AND JUSTICE AND ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI P.P. CHAUDHARY)

- a) to (f) Yes madam. With a view to bring about better governance and to reduce  the  number  of  Tribunals  through  merger/convergence,  the  Indian  Law Institute  (LI)  was  entrusted  the  task  to  make  a  study  and  to  submit  its  report thereon.
2. ILI  in  its  report  considered 36 (Annexure) Tribunals and after assessing the purpose, function and scope of all these Tribunals, recommended as follows:

(i) 36 tribunals can be restructured through amalgamation to form the aforementioned 17 tribunals.

(ii) A single nodal Ministry can be entrusted to supervise the functioning of these tribunals. It is proposed that a separate department for tribunals may be created within the Ministry of Law & Justice in this regard.

(iii)  The  possibility  of  creating  a  National  Tribunal  Commission  on  the  lines  of United  Kingdom  model  can  be  explored,  wherein  all  tribunals  function  within unified body. Implementation of such a system in India would require a complete overhaul  of  the  existing  tribunal  system.  The  possibility  of  constituting  such  a body to supervise all the tribunals was also suggested byte Department-Related Parliamentary  Standing  Committee  on  Personnel,  Public  Grievances,  Law  & Justice.

(iv)  The  feasibility  of  implementing  this  system  cannot  be  determined  at  the moment  as  further research is required to determine the practicality of implementing such a system in India.

(v)  In  order  to  implement  the  proposed  merger,  it  is  extremely  important  that uniform service conditions are implemented for all the tribunals.  The Tribunals, Appellate Tribunals and Other Authorities (Conditions of Service) Bill, 2014 made an  attempt  to  bring  about  uniformity  of  service  conditions  in  all  the  tribunals. However, this bill failed to address some pertinent issues.

To further  discuss  the  issue,  an  Inter-Ministerial  Group  (IMG)  under  the chairmanship  of  Law  Secretary  was  constituted  by  the  Department  of  Legal Affairs vide OM dated 05.02.2016. The IMG examined the merger/convergence of 36 Tribunals on three parameters: (i) functional requirements; (ii) qualifications, and (iii) workload. The IMG has, inter alia , recommended reducing the 36 Tribunals to 18 Tribunals with the Department of Legal Affairs being the Nodal Agency. Thereafter, a three phase Action Plan for the proposed merger of Tribunals has been prepared in consultation with all the concerned administrative Ministries/Departments.  This plan proposes that in the first phase, 23 Tribunals may be merged to 6; in second phase, 7 Tribunals may be merged to 3 and in third phase, possible option for 7 and other Tribunals may be finalized. A draft Note for the Cabinet has already been circulated to the concerned administrative Ministries/Departments of the Tribunals included in the first phase of Action Plan.

As  on  date,  during  the  study  undertaken  by  the  Department  of  Legal Affairs and Inter-Ministerial Committees on Merger/ Conversions of Tribunals, the number of Tribunals has been reduced by 5. The Company Law Board, Board for Industrial and Financial Reconstruction and Appellate Authority for Industrial and Financial  Reconstruction  have  been  subsumed  into  NCLT  &  NCLAT,  and  two Appellate  Tribunals,  namely  the  Appellate  Tribunal  for  Prevention  of  Money Laundering  and  Appellate  Tribunal  for  Forfeited  Property  (NDPS)  have  been converged by providing for those appeals to be heard by the Appellate Tribunal under  SAFEMA  through  the  Finance  Act,  2016.  Further,  Ministry  of  Water Resources has already moved a Note for the Cabinet for merger of five Water Dispute Tribunals. Therefore, it has been decided that the merger of these five Water Dispute Tribunals may not be included in the first phase of the proposal.

With regard to the time frame for ushering in the tribunal reforms, It has been proposed :

- (i) to introduce a Bill in the current session  of the Parliament  for amendments  of  relevant  laws  concerning  Tribunals  included  in  first  phase  for merger
- (ii) to introduce a Bill in the  Budget session of the Parliament for amendments of relevant laws concerning Tribunals included in second phase for merger.
- (iii) possible option for 7 and other Tribunals may be finalized within nine months.

|   Sl. No. | Name of the Tribunal                                                                                      | Act of Parliament under which established                                      |
|-----------|-----------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|
|         1 | Airport Appellate Tribunal                                                                                | Airport Authority of India Act, 1994                                           |
|         2 | Airport Economic Regulatory Authority Appellate Tribunal                                                  | Airport Economic Regulatory Authority of India Act, 2008                       |
|         3 | Appellate Authority for Industrial and Financial Reconstruction                                           | Sick Industrial Companies (Special Provision) Act, 1985                        |
|         4 | Appellate Tribunal for Electricity                                                                        | Electricity Act, 2003                                                          |
|         5 | Appellate Tribunal for Foreign Exchange                                                                   | Foreign Exchange Management Act, 1999                                          |
|         6 | Appellate Tribunal for Forfeited Property                                                                 | Narcotics Drug and Psychotropic Substances Act, 1985                           |
|         7 | Appellate Tribunal for Forfeiture of Property                                                             | Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 |
|         8 | Appellate Tribunal for Prevention of Money Laundering                                                     | Prevention of Money Laundering Act, 2002                                       |
|         9 | Armed Forces Tribunal                                                                                     | Armed Forces Tribunal, Act 2007                                                |
|        10 | Authority for Advance Rulings (Central Excise, Customs and Service Tax)                                   | Customs Act, 1962                                                              |
|        11 | Authority for Advance Rulings (Income Tax)                                                                | Income Tax Act, 1961 (S. 245 O)                                                |
|        12 | Board for Industrial and Financial Reconstruction                                                         | Sick Industrial Companies (Special Provision) Act, 1985                        |
|        13 | Cauvery Water Dispute Tribunal                                                                            | Article 262 , Inter- State Water River Disputes Act, 1956                      |
|        14 | Central Administrative Tribunals                                                                          | Administrative Tribunals Act, 1985                                             |
|        15 | Customs, Excise and Service Tax Appellate Tribunal                                                        | Customs Act, 1962                                                              |
|        16 | Central Sales Tax Appellate Authority                                                                     | Central Sales Tax Act, 1956                                                    |
|        17 | Company Law Board (replaced by National Company Law Tribunal and National Company Law Appellate Tribunal) | Companies Act, 2013                                                            |
|        18 | Competition Appellate                                                                                     | Competition Act, 2002                                                          |

## Annexure

|    | Tribunal                                            |                                                                        |
|----|-----------------------------------------------------|------------------------------------------------------------------------|
| 19 | Cyber Appellate Tribunal                            | Information Technology Act, 2000                                       |
| 20 | Debt Recovery Appellate Tribunal                    | The Recovery of Debt Due to Banks and Financial Institutions Act, 1993 |
| 21 | Debt Recovery Tribunal                              | The Recovery of Debt Due to Banks and Financial Institutions Act, 1993 |
| 22 | Employees, Provident Funds Appellate Tribunal       | Employees' Provident Funds and Miscellaneous Provisions Act, 1952      |
| 23 | Film Certification Appellate Tribunal               | Cinematograph Act, 1952                                                |
| 24 | Income Tax Appellate Tribunal                       | Income Tax Act, 1961                                                   |
| 25 | Intellectual Property Appellate Tribunal            | Trade Marks Act, 1999                                                  |
| 26 | Krishna River Water Dispute Tribunal                | Article 262 , Inter-State Water River Disputes Act, 1956               |
| 27 | Mahadayi Water Dispute Tribunal                     | Article 262 , Inter-State Water River Disputes Act, 1956               |
| 28 | National Consumer Disputes Redressal Commission     | Consumer Protection Act, 1986                                          |
| 29 | National Green Tribunal                             | National Green Tribunal Act, 2010                                      |
| 30 | National Highways Tribunal                          | Control of National Highways (Land & Traffic) Act, 2002                |
| 31 | Railway Claims Tribunals                            | Railway Claims Tribunal Act, 1987                                      |
| 32 | Railway Rates Tribunals                             | Railways Act, 1989                                                     |
| 33 | Ravi and Beas Water Dispute Tribunal                | Article 262 , Inter -State Water River Disputes Act, 1956              |
| 34 | Securities Appellate Tribunal                       | Securities and Exchange Board of India Act, 1992                       |
| 35 | Telecom Disputes Settlement and Appellate Tribunals | Telecom Regulatory Authority of India Act, 1997.                       |
| 36 | Vansadhara River Water Dispute Tribunal             | Article 262 , Inter-State Water River Disputes Act, 1956               |