RECENT TRIBUNAL REFORMS IN INDIA

In India, we had the Tribunals Reforms Act, 2021 which provided for appointment and terms and conditions of various tribunals such as ITAT, CESTAT, NCLT, SAT and so on (16 Tribunals). Since certain provisions of 2021 Act have been struck down by Courts due to non adherence to principle of separation of powers and judicial independence, there was a need to bring in changes in Act of 2021. The new law enacted as the Tribunal Reforms Act, 2026 was introduced as Bill in Lok Sabha on August 10, 2026 as a Bill No. 153 of 2026. It has been made effective from 25.08.2026.

The new law seeks to provide for changes which are in consonance with Supreme Court judgments. Its objective is to improve the efficiency, ensure independence, transparency, and uniformity in the qualifications, appointment, terms and conditions of service of Chairpersons and Members of various Tribunals, the administration and functioning of the Tribunals, to establish a National Tribunals Commission and to make consequential amendments in related enactments and for matters connected therewith or incidental thereto. It has come into force w.e.f. 25.08.2026.

It may be noted that the Supreme Court, in the matter of Madras Bar Association v. Union of India [(2026) 2 SCC 1], struck down certain provisions of the Tribunals Reforms Act, 2021, inter alia, on the grounds that they are contrary to the principles of separation of powers and judicial independence and not in consonance with the earlier judicial pronouncements that have clarified the standards governing the appointment, tenure and functioning of Chairpersons and Members of Tribunals. Further, the Court, inter alia, directed for the establishment of a National Tribunals Commission, which is independent, has professional expertise, and adopts a transparent process and oversight mechanism for selection and appointment of Chairpersons and Members of various Tribunals.

The new Act inter alia, provides for the establishment of the National Tribunals Commission, the qualifications, manner of selection, appointment, salaries and allowances, resignation, removal and other conditions of service of the Chairpersons and Members of various Tribunals specified in the First Schedule to the Bill. It is also proposed to make necessary consequential amendments in the related enactments governing various Tribunals.

The new Act contains 4 Chapters and 24 statutory provisions and shall apply to various Tribunals, viz,

A Ne

The Tribunal Reforms Act, 2026 seeks to create a more independent, transparent and professionally administered tribunal system. The Bill provides for setting up of a judiciary-led National Tribunals Commission that will make selections to the tribunals and exercise oversight on their functioning. The aim is to reduce executive discretion while strengthening accountability. By creating a common institutional framework for tribunal administration, the Bill seeks to address longstanding concerns over appointments, tenure and functioning, while giving effect to the principles laid down by the Supreme Court in its Madras Bar Association judgments.

It prescribes setting up of a new National Tribunals Commission (NTC) which will be dominated by members of judiciary and replaces the Central Government. It inter alia, provides for:

• Composition of Commission
• Functions of Commission
• Terms of service
• Search cum selection committee for selection of chairman / members
• Financial and Administrative Independence

The National Commission creates a permanent institutional mechanism for appointments, performance review and disciplinary oversight. Judicially led selection committees strengthen the judicial element in appointments. Expert assessment places greater emphasis on professional competence. Five-year tenure provides greater stability.

Its core goal is to establish a more independent, transparent, and professionally managed system that aligns with the Supreme Court's Madras Bar Association jurisprudence.

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