In a report submitted to the law ministry, the law panel also said vesting of administrative control of tribunals to various departments and ministries make the bodies subservient to the executive, whose dispute they are deciding.
It recommended that all central tribunals should be under the law ministry which should be made the nodal agency.
The Commission said that a selection committee, headed by the Chief Justice of India or a sitting judge of the Supreme Court, as his nominee and comprising two nominees of the central government not below the rank of secretary should be be set up for appointment of chairman, vice-chairman and judicial members of a tribunal.
It pointed that the selection committee should not be headed by a secretary level officer "for the reason that the central government is a party to every litigation before such tribunal".
It said reappointment of chairman and others compromises the independence and fairness of the tribunal.
"One may be inclined to decide matters in a manner that would ensure their reappointment," it said.
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