Should the Government Establish a Centralised Oversight Mechanism for Tribunals?

New Delhi, May 25 (NationPress) The leading business organization CII has called upon the Government to establish a centralised oversight mechanism aimed at ensuring consistency, policy alignment, and enhancing the overall effectiveness of tribunals that handle a significant number of cases in vital sectors such as labour, environment, and taxation.

In a research note published on Sunday, CII (Confederation of Indian Industry) proposed that appropriate amendments be made to the Tribunals Reforms Act, 2021 to legally support this initiative.

The note outlined that such a central authority could take on roles like performance monitoring, data tracking, collaboration with search-cum-selection committees, capacity enhancement, and independent grievance resolution.

CII emphasized that improving tribunal efficiency is essential for unlocking significant fiscal resources tied in disputes, thus enhancing the overall ease of doing business. For instance, by December 31, 2024, Rs 6.7 trillion was pending resolution at the Income Tax Appellate Tribunal (ITAT) alone, representing nearly 57% of all litigated direct taxes in the nation. This staggering figure underscores the importance of tribunal adjudication and its far-reaching effects on the investment environment and economic growth.

The CII pointed out that the governance of tribunals is presently scattered across multiple ministries and departments, leading to inconsistencies and a lack of standardization. A major issue faced by tribunals is the unavailability of real-time performance data, which hampers the potential for evidence-based reforms. In contrast, such data is easily accessible for the nation's complete court system through the 'National Judicial Data Grid', managed by the Supreme Court's e-committee.

Tribunals serve as quasi-judicial entities designed to resolve specific disputes in fields such as taxation, company law, environmental regulations, and public service. Originally intended to supplement the traditional court system, tribunals seek to alleviate the judiciary's workload while facilitating faster, expert-led resolutions in complex technical matters, as noted.

Currently, over 16 central tribunals operate under various ministries in key economic sectors. These institutions significantly influence the rule of law, economic governance, and the overall ease of doing business.

For example, the National Company Law Tribunal (NCLT) is crucial in implementing the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016, both integral to corporate debt resolution, investor trust, and financial stability, as highlighted in the note.

CII has referred to several Supreme Court rulings and expert opinions, including the 272nd Report of the Law Commission of India (2017), all of which support the establishment of a centralised oversight body for tribunals.

Creating a centralised oversight institution for tribunals would represent a groundbreaking move towards making India's justice delivery system more responsive, effective, and prepared for the future, directly enhancing regulatory credibility, improving the ease of doing business, and boosting investor confidence, added CII.