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The Challenges of Tribunalization in India

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What is a Tribunal?

A tribunal is a person or institution that has the authority to settle disputes or claims. Tribunals can be used to resolve administrative or tax-related disputes. In India, tribunals are quasi-judicial bodies that are an alternative to the traditional court system. 

Tribunals: A Solution That Hasn’t Delivered

  • Purpose: Tribunals were set up to ease the burden on courts, offering faster, specialized adjudication.
  • Reality: Many have become inefficient and slow, mirroring the very problems they aimed to resolve.

Key Challenges Across Tribunals

A. Overburdened & Inefficient Tribunals

  • National Company Law Appellate Tribunal (NCLAT)
    • Overloaded after merging with the Competition Appellate Tribunal (COMPAT) in 2017.
    • Handles Companies Act, Insolvency & Bankruptcy Code, and Competition Law cases—leading to delays.
    • Result: Slower case resolution, loss of competition law specialization.
  • Debt Recovery Tribunal (DRT)
    • Created to expedite loan recoveries but now has 215,431 pending cases.
    • Recovery rates fell to just 9.2% (2022-23), undermining its purpose.
  • Appellate Tribunal for Electricity (APTEL)
    • Struggles with vacancies, delaying key regulatory reforms in the power sector.

B. Judicial Intervention: Undermining Tribunal Authority

  • Supreme Court Overruling Tribunals
    • Example: The AGR case (TDSAT ruling overturned by SC), affecting the telecom industry.
    • Impact: Tribunals lose credibility if major rulings are routinely challenged and overturned.

C. Economic & Legal Ramifications

  • Delays create regulatory uncertainty, discouraging investment and affecting industries like finance, energy, and telecom.
  • Merging tribunals with courts hasn’t improved efficiency—it adds more cases to an already burdened judiciary.

Core Issues Behind Tribunal Inefficiency

A. Poor Selection & Lack of Infrastructure

  • Retired judges and bureaucrats dominate tribunals, raising concerns about:
    • Lack of technical expertise in specialized areas.
    • Post-retirement placements that may lack accountability.

B. Lack of Structural Oversight

  • No central regulatory authority to streamline tribunal functioning.
  • Law Commission (272nd Report, 2017) suggested a central nodal agency, but it hasn’t been implemented.

C. Appeal System Undermines Finality

  • High Courts & Supreme Court frequently override tribunal decisions, leading to:
    • Increased judicial workload (e.g., CAT cases appealed under Articles 226/227).
    • Reduced tribunal effectiveness and longer case timelines.

Potential Reforms & Solutions

A. Strengthening Tribunal Autonomy

  • Implement SC recommendations from L. Chandra Kumar (1997) for an independent oversight authority.
  • Set up a National Administrative Appellate Tribunal to handle CAT & SAT appeals, reducing HC workload.

B. Improving Efficiency & Reducing Backlogs

  • Double-shift working hours (discussed in 2011 but never implemented).
  • Better case management systems & digitalization to streamline dispute resolution.

C. Overhauling Appointment Process

  • Inclusion of domain experts, not just retired judges and bureaucrats.
  • Merit-based selection to ensure technical expertise.

D. Addressing Government Apathy

  • The government must prioritize tribunal reforms to ensure they serve their intended purpose rather than becoming a burden.

Tribunals were meant to fast-track justice, but inefficiency, poor oversight, and excessive judicial intervention have made them part of the problem

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