Govt to scrap 8 appellate tribunals; NCLAT to take over COMPAT's duties

Seventeen Acts to be amended through Finance Bill

The government plans to dissolve eight appellate tribunals immediately while also making enabling provisions in 17 legislation to bring amendments through notifications. The eight tribunals are being dissolved through the Finance Bill, 2017.

Among those to go will be the Competition Appellate Tribunal, whose functions would be taken by the National Company Law Appellate Tribunal. Similarly, Airports Economic Regulatory Authority Appellate Tribunal and Cyber Appellate Tribunal would be replaced and their functions would be taken over by the Telecom Disputes Settlement and Appellate Tribunal.

The government has moved amendments to the Finance Bill in order to facilitate the changes. Further, the Copyright Board would be dissolved, too, and its functions would be taken over by the Intellectual Property Appellate Board. The National Highways Tribunal would be replaced and its functions would be taken over by the Airport Appellate Tribunal. In the case of Employees Provident Fund Appellate Tribunal, its function would be taken over by the Industrial Tribunal.

There will be transitional provisions for the tribunals being replaced. The chairpersons, vice-chairpersons, chairmen, or other members who are currently occupying posts with tribunals to be merged will be entitled to receive up to three months’ pay and allowances for premature termination of their office term.

Officers and other authorities of tribunals that will cease to exist after the merger will stand reverted to their parent cadre, ministries or departments.

Amendments to the Finance Bill, 2017, propose that the central government may make rules to provide for the qualifications, appointments, term of office, salaries and allowances, resignation, removal, and other conditions of service for these members.

These rules will be applicable to members, including the chairperson, vice-chairpersons and members, among others, of specified tribunals, appellate tribunals and other authorities.

The amendments state that the term of office for these persons will not exceed five years and that they will be eligible for reappointment. Further, the age of retirement for these persons has been specified, such as 70 years for chairpersons, chairmen or presidents, and 67 years for vice-chairpersons, vice-chairmen, vice-presidents, and presiding officers.

The amendments also state that the central government would have the power to amend the list of tribunals under 17 laws through a notification. Prior parliamentary approval in such cases would not be needed to bring other tribunals into this scheme.

These laws include Industrial Disputes Act, 1947; Airport Authority of India Act, 1994; Income Tax Act, 1961; Telecom Regulatory Authority of India Act, 1997; Customs Act, 1962; Trade Marks Act, 1999; Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976; Companies Act, 2013; Administrative Tribunals Act, 1985; Cinematograph Act, 1952; Railway Claims Tribunal Act, 1987; Consumer Protection Act, 1986; Securities and Exchange Board of India Act, 1992; Electricity Act, 2003; Recovery of Debts due to Banks and Financial Institutions Act, 1993; Armed Force Act; and National Green Tribunal Act, 2010.