CII urges govt to establish centralised oversight mechanism for tribunals

Business Standard

25-05-2025

The Confederation of Indian Industry (CII) has urged the government to establish a centralised oversight mechanism for tribunals, emphasising the need for uniformity, policy coherence, and enhanced performance across these crucial adjudicatory bodies. Calling for amendments to the Tribunals Reforms Act, 2021, the CII said there was a need to provide a robust statutory foundation for such a mechanism.
Despite handling a significant caseload in critical domains such as taxation, environment, and labour, tribunals currently operate under fragmented administrative controls across various ministries, resulting in functional inconsistencies and a lack of standardisation, the CII pointed out.
'A key concern for tribunals is the absence of real-time performance statistics, which limits the scope for undertaking evidence-based reforms. In contrast, such statistics are readily available for the entire court system of the country on the 'National Judicial Data Grid', maintained by the e-Committee of the Supreme Court,' the policy advocacy body said.
A central oversight body could be tasked with key responsibilities such as performance monitoring, data tracking, coordination with search-cum-selection committees, capacity building, and independent grievance redressal, the CII said, adding that this institution should be backed by appropriate legal amendments defining its structure, scope, and mandate.
Currently, over 16 central tribunals operate under different ministries, adjudicating disputes across sectors integral to economic governance and the rule of law. For instance, the National Company Law Tribunal (NCLT) plays a central role in implementing the Companies Act, 2013, and the Insolvency and Bankruptcy Code, 2016—both crucial to corporate debt resolution and investor confidence, the release said.
Citing a staggering ₹6.7 trillion in tax disputes pending before the Income Tax Appellate Tribunal (ITAT) as of 31 December 2024—amounting to nearly 57 per cent of all litigated direct tax claims—the CII stressed that improving tribunal efficiency could unlock substantial fiscal resources and boost the ease of doing business.
While acknowledging that the government has taken steps through the Tribunal Reforms Act, 2021, CII noted that challenges such as persistent vacancies, delayed appointments, inadequate infrastructure, and the absence of systematic performance tracking continue to plague the system.
To reinforce its proposal, CII referred to multiple Supreme Court judgments and expert recommendations, including the 272nd Report of the Law Commission of India (2017). The idea of a centralised tribunal oversight body was first endorsed by the Supreme Court in L. Chandra Kumar v. Union of India (1997), and reiterated in Madras Bar Association v. Union of India (2020), where the Court directed the Centre to establish a National Tribunals Commission, the body said.
'A centralised oversight institution would be a transformational step in making India's justice delivery system more efficient, responsive, and future-ready,' CII concluded, noting that such a move would significantly enhance regulatory credibility, investor confidence, and economic governance.