Tribunal Reforms Bill passed in Lok Sabha: How it differs from 2021 Act

The new Bill does not bring back the tribunals abolished under the 2021 rationalisation exercise. Its main change is to replace the 2021 system for running and staffing the remaining tribunals

Tribunals
Representative image from file.
Akshita Singh New Delhi
4 min read Last Updated : Aug 10 2026 | 3:52 PM IST
Lok Sabha on Monday passed the Tribunals Reforms Bill, 2026, which seeks to replace the Tribunals Reforms Act, 2021, with a new framework for appointments, tenure and functioning of tribunals.
 
It comes after the Supreme Court struck down key provisions of the 2021 law in its November 2025 judgment in Madras Bar Association vs Union of India.
 
The 2021 Act had introduced a common framework for the appointment and service conditions of tribunal Chairpersons and Members. It prescribed a minimum age of 50 years, a four-year term and required selection committees to recommend a panel of two names for each vacancy.
 
The 2026 Bill makes several changes to this framework.

National Tribunals Commission proposed

The biggest change is the creation of a National Tribunals Commission (NTC). The 2021 Act did not have such a body.
 
The proposed Commission will oversee the selection of tribunal Chairpersons and Members, review tribunal performance, handle complaints against members and maintain a National Tribunals Data Grid.
 
The Bill provides for a five-member Commission comprising a Chairperson, two Judicial Members and two Technical Members. The Central Government will appoint the members, after consulting the Chief Justice of India before appointing the Chairperson and Judicial Members. 

Selection process changes

The 2021 Act placed the Chief Justice of India (CJI) or a Supreme Court judge nominated by him at the head of the Search-cum-Selection Committee for most tribunals. Two government secretaries were also members of the committee.
 
The 2026 Bill changes the composition of these committees. They will be constituted by the NTC and will include members of the Commission, retired High Court judges, a government secretary and experts who assess candidates.
 
The recommendation process also changes in the new Bill. Under the 2021 Act, the committee had to recommend two names for each vacancy. Under the 2026 Bill, it will recommend one suitable candidate, along with another name to be kept on a waiting list.
 
The Bill also changes the timeline for appointments. The 2021 Act said the government should take a decision “preferably within three months” of receiving the recommendation. The 2026 Bill requires the appointment to be made within three months.

Five-year tenure replaces four years

The 2021 Act provided a four-year term for both Chairpersons and Members, subject to the upper age limits of 70 years and 67 years respectively.
 
The 2026 Bill increases the tenure to five years, while retaining the existing upper age limits.
 
It also removes the 2021 Act's provision that a person below 50 years could not be appointed as a Chairperson or Member.

Wider removal and accountability provisions

The 2021 Act allowed removal for grounds including insolvency, conviction involving moral turpitude, incapacity, conflict of interest and abuse of position.
 
The 2026 Bill adds incompetence or inefficiency and undertaking a paid assignment during the term as grounds for removal.
 
The new framework also gives the NTC a role in dealing with complaints against tribunal members and reviewing tribunal performance.

Existing tribunals remain

The 2021 Act covered 16 tribunals, including the National Green Tribunal, Central Administrative Tribunal, Armed Forces Tribunal, Debt Recovery Tribunals, NCLAT, NCDRC and Income-tax Appellate Tribunal.
 
The 2026 Bill continues with the same broad set of 16 tribunals. It does not reverse the rationalisation exercise carried out through the 2021 law, under which several appellate bodies were abolished, and their functions shifted to courts or other forums.
 
In a post on X, Senior Congress leader Jairam Ramesh, who said he had joined the challenge, has linked the new Bill to the Supreme Court's November 2025 judgment.
 
He said the Bill could “chart a new future” for 16 tribunals, including the National Green Tribunal.  ALSO READ: Explained: What is NCDC (Amendment) Bill 2026 & what it proposes to change? 

What did the Supreme Court strike down?

In its judgment in 2025, the Supreme Court struck down provisions of the Tribunals Reforms Act, 2021 concerning the eligibility criteria, selection and appointment process, tenure and reappointment of tribunal members.
 
The court held that the 2021 law reproduced provisions from the Tribunals Reforms Ordinance that it had declared unconstitutional in July 2021 and said the law contradicted its earlier judgments in Madras Bar Association-4 (2020) and Madras Bar Association-5 (2021).
 
The court also said that there is a need for a national commission for tribunals, saying such a body would be an “essential structural safeguard designed to ensure independence, transparency and uniformity” in their functioning. 

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Topics :Tribunal rulesDebt Recovery TribunalLok SabhaBS Web ReportsDecoded

First Published: Aug 10 2026 | 3:50 PM IST

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