SC strikes down Rules on Tribunals, refers to larger bench passage of Fin Act 2017 as Money Bill

In a blow to the government, the Supreme Court Wednesday struck down in entirety the rules formulated by the Centre on appointment and service conditions for members of various tribunals, and referred to a larger bench the issue of examining the validity of the passage of the Finance Act 2017 as Money Bill which was vigorously opposed in Parliament by opposition parties.

The questions the apex court framed for consideration included whether the 'Finance Act, 2017', insofar as it amends certain other enactments and alters conditions of service of persons manning different Tribunals, can be termed as a 'Money Bill' under Article 110 and consequently is validly enacted.

The top court held that Section 184 of Finance Act, 2017, which empowers the Centre to frame rules relating to appointment and service conditions of members of various tribunals, does not suffer from excessive delegation of legislative functions as there are adequate principles to guide its framing.

However, a 5-judge Constitution bench, headed by Chief Justice Ranjan Gogoi, said: "Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of Service of Members) Rules, 2017 suffer from various infirmities as observed earlier.

"These Rules formulated by the Central Government under Section 184 of Finance Act, 2017 being contrary to the parent enactment and the principles envisaged in the Constitution as interpreted by this Court, are hereby struck down in entirety."
The bench said: "It would be open to Central government to provide in new set of Rules that the Presiding Officers or Members of the Statutory Tribunals shall not hold 'rank' and 'status' equivalent to that of the Judges of Supreme Court or High Courts, as case may be, only on basis of drawing equal salary or other perquisites."
As the Tribunal, Appellate Tribunal and other Authorities (Qualification, Experience and other Conditions of Service of Members) Rules, 2017 have been struck down and several directions have been issued vide the majority judgment for framing of fresh set of Rules, we, as an interim order,