The Supreme Court on Monday gave the government an ultimatum, directing it to fill tribunal vacancies by September 13, otherwise it would be compelled to pass orders. The Centre was also criticised for repeatedly bringing in new tribunal reform laws that were identical to provisions struck down by the Supreme Court in its judgments.
The government appears hell-bent on emasculating the tribunals, the Supreme Court observed while castigating the Centre over crippling vacancies in the tribunals.
Chief Justice of India NV Ramana, who was leading a special bench hearing the issue said, the top court was left with only three options to tackle the situation:
a) stay the new tribunal reforms law that was enacted last month in August;
b) Close down the tribunals altogether, or
c) the supreme court would make the appointments and initiate contempt action against the Centre.
“You are emasculating the tribunals by not appointing any members,” said a special bench comprising Chief Justice of India N.V. Ramana and justices D.Y. Chandrachud and L.N. Rao. The bench warned Solicitor General Tushar Mehta that it would initiate contempt proceedings if appointments were not done within a week.
“It is clear that you don’t want to respect the judgements of this court,” the bench said. “Now we have the option to stay the Tribunal Reforms Act or close down tribunals or we ourselves appoint the people or the next option is initiate the Contempt Of Courts Act.”
Justice Chandrachud said that several important cases were not being heard by the National Company Law Tribunal and the National Company Law Appellate Tribunal because of lack of members, The Times of India reported. Both of these are important for the economy and they play a key role in rehabilitation of corporate entities, he added.
Justice Rao said that the Centre was “emasculating these tribunals” by not appointing members. “Many tribunals are on the verge of closing down,” he observed.
The Supreme Court questioned why the government has allowed the Tribunals to become defunct. “Important tribunals such as NCLT, NCLAT, Consumer forum, Green Tribunal, Armed Forces Tribunal, TDSAT, Debt recovery — are virtually defunct without members. Why has CGST Tribunal not been set up yet?” the bench asked.
CJI Ramana said there was no reason for debate as everyone, including secretaries of the government, know the law. “We don’t want to insist that AG should take pains to appear in the matter. We are not interested in any confrontation. We are listing the matter for next Monday. By that time, we expect appointments to be made.”
The bench also issued a notice on the writ petition filed by Congress MP Jairam Ramesh challenging the Tribunal Reforms Act. Senior advocate AM Singhvi, appearing for Ramesh, said the provisions brought again in the law are identical to the ones struck down by the Supreme Court and are “flagrant contempt of court orders”.
