Tribunals Reforms Bill 2026: Government-Judiciary Conflict and Judicial Independence

Tribunals Reforms Bill 2026 Latest News

• Parliament passed the Tribunals Reforms Bill, 2026 — introduced in Lok Sabha on August 10, 2026, and passed by both Houses within two days.
• The Bill repeals the Tribunals Reforms Act, 2021, and seeks to restructure tribunal governance in line with Supreme Court directions, ending a near-decade-long confrontation between the judiciary and the executive.
• Tribunals are quasi-judicial bodies set up to provide swift, specialised resolution of disputes and to reduce the caseload of regular courts.

Background: A Decade of Government-Judiciary Conflict

• 2017: The Finance Act empowered the Centre to frame rules governing tribunal appointments and service conditions.
• 2019: In the Rojer Mathew case, a Constitution Bench of the Supreme Court struck down these rules for undermining judicial independence.
• 2020: When the Centre notified fresh rules, the Supreme Court suggested modifications, including a five-year tenure for members.
• 2021: Instead of accepting these suggestions, the Centre promulgated an Ordinance fixing tenure at four years, setting a minimum appointment age of 50, and requiring selection committees to give the government a panel of two names to choose from.
• After the Supreme Court struck down these provisions as arbitrary, Parliament re-enacted the same provisions through the Tribunals Reforms Act, 2021 — effectively overriding the Court’s ruling.

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The Supreme Court’s 2025 Verdict

• In November 2025, a two-judge Bench struck down the 2021 Act’s provisions, terming their re-enactment an “impermissible legislative override” of earlier judgments.
• The Court criticised the government for repeatedly reopening settled constitutional debates instead of implementing its rulings.
• It held that a four-year tenure was “anti-merit” and increased executive interference, jeopardising judicial independence. 
• It also held that a two-name panel gave the executive undue discretion in appointments.
• The judgment reiterated the need for a National Tribunals Commission and directed the Centre to set one up within four months, while protecting certain existing appointments in the interim.
• By December 2022, chronic vacancies had left several tribunals “virtually defunct” — for instance, the National Company Law Tribunal had 24 vacancies against a sanctioned strength of 32, and the Armed Forces Tribunal had 24 vacancies against 34.

Key Provisions of the Tribunals Reforms Bill, 2026

• National Tribunals Commission
  • The Bill establishes a National Tribunals Commission to:
    • Conduct the selection process for filling tribunal vacancies.
    • Review the performance of tribunals.
    • Oversee inquiries into complaints against chairpersons or members.
    • Develop and maintain a National Tribunals Data Grid.
• Composition of the Commission
  • A chairperson (a former Supreme Court judge or High Court Chief Justice), two judicial members, and two technical members with at least 25 years’ experience in relevant fields.
  • Term of five years or till age 70, whichever is earlier.
  • The chairperson and judicial members are appointed by the central government after consultation with the Chief Justice of India.
• Selection Process for Tribunals
  • A search-cum-selection committee, headed by a Commission member, will include a retired High Court judge, a government secretary, a technical member, and experts.
  • For each vacancy, the committee will recommend one name, with one additional name on a waiting list — a significant shift from the 2021 framework’s two-name panel system.
  • The government must make the appointment within three months of receiving the recommendation.
• Tenure and Removal
  • Tribunal chairpersons and members will serve five-year terms, with age limits of 70 years (chairpersons) and 67 years (members).
  • Grounds for removal include insolvency, conviction involving moral turpitude, incapacity, abuse of position, incompetence, or engaging in paid assignments outside office.

Does the Bill Fully Insulate Tribunals from the Executive?

• Not entirely. While the Bill addresses the Supreme Court’s core concerns on tenure and appointment discretion, the Centre still:
  • Appoints the Commission’s chairperson, members, and secretary.
  • Provides funding/grants to the Commission.
  • Retains rule-making powers over qualifications, service conditions, salaries, and removal procedures.

Conclusion

• The Tribunals Reforms Bill, 2026 marks a significant course correction, aligning tribunal governance with Supreme Court mandates on tenure and merit-based appointments. 
• However, by retaining control over funding, rule-making, and key appointments, the Centre ensures its administrative footprint persists — meaning the underlying tension between executive oversight and judicial independence may not be fully resolved.

Source: IE | PRS