MADRAS BAR ASSOCIATION v. UNION OF INDIA AND ANR.
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- Court
- Supreme Court of India
- Decided
- Bench
- L. NAGESWARA RAO, HEMANT GUPTA and S. RAVINDRA BHAT
- Citation
- [2021] 5 S.C.R. 791
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Catchwords
Service of Members) Rules, 2020 – Tribunal, Appellate Tribunal A and other Authorities (Qualifications, Experience and other Conditions of Service of Members) (Amendment) Rules, 2021 – Constitution of India – Arts. 14, 21 and 50. Disposing the writ petition, the Court
Held
B
Reporter's headnote (continued) and case details
791
(W.P. (C) 502 of 2021) Tribunals – Finance Act, 2017 – ss.184 and 186(2) [as amended by the Tribunal Reforms (Rationalisation and Conditions C of Service) Ordinance, 2021] – Tribunal Reforms (Rationalisation and Conditions of Service) Ordinance, 2021 – ss.12 and 13 – Appointment as Chairperson / Member of Tribunals – Procedure – Conditions of service – Age qualification – Principles of separation of powers – Independence of judiciary – Impermissibility of legislative override – Challenge to first proviso and second proviso, D read with third proviso to s.184 (1) – Whether first proviso to s.184(1) which stipulated that a person below the age of 50 years was not eligible for appointment as Chairperson or Member was in violation of the doctrine of separation of powers as the Supreme Court judgment in MBA-III case [Madras Bar Association v. Union of E India & Anr., (2020) SCC Online SC 962] was frustrated by an impermissible legislative override – Whether the second proviso, read with the third proviso, which stipulated that allowances and benefits payable to Chairpersons and Members was to be the same as a Central Government officer holding a post carrying the same pay, was an affront to the judgment in MBA-III case – Whether F s.184(7) which stipulated that the Selection Committee shall recommend a panel of two names for appointment to post of Chairperson or Member and the Central Government shall take decision preferably within three months from the date of the recommendation of the Committee, was also an attempt to override G the law laid down in MBA-III case – Challenge to use of the expression ‘preferably’ in s.184(7) – Insertion of s.184(11) prescribing a term of four years for the Chairpersons and Members of tribunals by giving retrospective effect to the provision was also challenged – Held (per L. Nageswara Rao, J.) – The first proviso and the second proviso, read with the third proviso, to s.184 H 791
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A overriding the Supreme Court judgment in MBA-III case in respect of fixing 50 years as minimum age for appointment and payment of HRA, s.184(7) relating to recommendation of two names for each post by the Search-cum-Selection Committee (SCSC) and further, requiring the decision to be taken by the Government preferably within three months are unconstitutional – s.184(11) prescribing B tenure of four years is contrary to principles of separation of powers, independence of judiciary, rule of law and Art.14 of the Constitution – Though, there is nothing wrong with the proviso to s.184(11) being given retrospective effect, the appointments made pursuant to the interim directions passed by the Court cannot be interfered with – C Held (per S. Ravindra Bhat, J.) (Concurring) – The first proviso and the second proviso to s.184(1), as well as s.184(7) of the Finance Act, 2017, are all void and inoperative – s.184(11)(i) and (ii) also void and unconstitutional – Declaration of Supreme Court in MBA- III case shall prevail and the term of Chairperson of a Tribunal shall be five years or till she or he attains the age of 70 years, D whichever is earlier and the term of Member of a Tribunal shall be five years or till she or he attains the age of 67 years, whichever is earlier – Retrospectivity given to the proviso to s.184(11) upheld; however, without affecting the appointments made to the post of Chairperson or members of Tribunals, as a consequence of Supreme E Court’s various orders during the interregnum period – Held (Hemant Gupta, J.) (Partly dissenting) – The first, second and third proviso to s.184(1), the use of expression ‘preferably’ in s.184(7) and the proviso to s.184(11) are legal and valid as such provisions fall within the exclusive domain of the legislature – The legislature has not nullified the judgment of Supreme Court on the above aspects as F there were no such corresponding provisions in the 2020 Rules, which were part of judicial review process – It is open to the legislature to fix tenure of the Chairperson and the members other than four years as the tenure of four years was found to be not tenable in MBA-III case – s.184(7) which contemplates that Select G Committee should recommend a panel of two names is however contrary to directions of Supreme Court in MBA-III case – s.184(11)(i)(ii) and s.184(7) are void as the Ordinance has reiterated the provisions in 2020 Rules – Challenge to other provisions not legally sustainable –Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of H
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Per L. Nageswara Rao, J.
1. The permissibility of legislative override in this country should be in accordance with the principles laid down by this Court, which are as under: C a) The effect of the judgments of the Court can be nullified by a legislative act removing the basis of the judgment. Such law can be retrospective. Retrospective amendment should be reasonable and not arbitrary and must not be violative of the fundamental rights guaranteed under the Constitution. D b) The test for determining the validity of a validating legislation is that the judgment pointing out the defect would not have been passed, if the altered position as sought to be brought in by the validating statute existed before the Court at the time of rendering its judgment. In other words, the defect pointed E out should have been cured such that the basis of the judgement pointing out the defect is removed. c) Nullification of mandamus by an enactment would be impermissible legislative exercise. Even interim directions cannot be reversed by a legislative veto. F d) Transgression of constitutional limitations and intrusion into the judicial power by the legislature is violative of the principle of separation of powers, the rule of law and of Article 14 of the Constitution of India.[Para 44][844-C-G]
2. The direction given by this Court in the nature of G mandamus in Madras Bar Association v. Union of India & Anr., (2020) SCC Online SC 962 (MBA-III) is to the effect that advocates are entitled for appointment as Members, provided they have experience of 10 years. The first proviso to Section
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A 184 which prescribes a minimum age of 50 years is an attempt to circumvent the direction issued in MBA-III striking down the experience requirement of 25 years at the bar for advocates to be eligible. Introduction of the first proviso to Section 184(1) is a direct affront to the judgment of this Court in MBA-III. This Court in Union of India v. R. Gandhi, President, Madras Bar Association, B (2010) 11 SCC 1 and Roger Mathew underlined the importance of recruitment of Members from the bar at a young age to ensure a longer tenure. Fixing a minimum age for recruitment of Members as 50 years would act as a deterrent for competent advocates to seek appointment. Practically, it would be difficult for an advocate appointed after attaining the age of 50 years to resume legal practice after completion of one term, in case he is not reappointed. Security of tenure and conditions of service are recognised as core components of independence of the judiciary. Independence of the judiciary can be sustained only when the incumbents are assured of fair and reasonable conditions of service, which include adequate renumeration and security of tenure. Therefore, the first proviso to Section 184(1) is in violation of the doctrine of separation of powers as the judgment of this Court in MBA-III has been frustrated by an impermissible legislative override. Resultantly, the first proviso to Section 184 E (1) is declared as unconstitutional as it is violative of Article 14 of the Constitution. [Para 49][851-B-F]
3. The second proviso to Section 184(1) deals with the allowances and benefits payable to the Members which are to be the same as are admissible to a Central Government officer holding a post carrying the same pay. The second proviso to Section 184(1), read with the third proviso, is an affront to the judgment of this Court in MBA-III. By no stretch of imagination can it be said that the said provisos are a result of curative legislation. The direction issued by this Court in MBA-III for payment of HRA was to ensure that decent accommodation is provided to Tribunal Members. Such direction was issued to uphold independence of the judiciary and it cannot be subject matter of legislative response. A mandamus issued by this Court cannot be reversed by the legislature as it would amount to impermissible legislative override. Therefore, the second H proviso, read with the third proviso, to Section 184(1) is declared A as unconstitutional. [Para 50][851-G-H; 852-F-G] 4.1. Rule 4(2) of the Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of Service of Members) Rules, 2020 pertains to the procedure to be followed by the Search-cum-Selection Committee (SCSC). B According to the said Rule, the SCSC should recommend two or three names for appointment to each post. A direction was given in MBA-III to amend Rule 4(2) of the 2020 Rules to provide that the SCSC shall recommend one person for appointment in each post in place of a panel of two or three persons for appointment to each post. One more name could be recommended to be C included in the waiting list. Sufficient reasons were given in MBA-III to hold that executive influence should be avoided in matters of appointments to tribunals - therefore, the direction that only one person shall be recommended to each post. The decision of this Court in that regard is law laid down under Article D 141 of the Constitution. The only way the legislature could nullify the said decision of this Court is by curing the defect in Rule 4(2). There is no such attempt made except to repeat the provision of Rule 4(2) of the 2020 Rules in the Ordinance amending the Finance Act, 2017. Ergo, Section 184(7) is unsustainable in law as it is an attempt to override the law laid E down by this Court. Repeating the contents of Rule 4(2) of the 2020 Rules by placing them in Section 184(7) is an indirect method of intruding into judicial sphere which is proscribed. [Paras 52, 53][853-G-H; 855-A-C] 4.2. The second part of Section 184(7) provides that the F Government shall take a decision regarding the recommendations made by the SCSC preferably within a period of three months. This is in response to the direction given by this Court in MBA-III that the Government shall make appointments to tribunals within three months from the completion of the selection G and recommendation by the SCSC. Such direction was necessitated in view of the lethargy shown by the Union of India in making appointments and filling up the posts of Chairpersons and Members of tribunals which have been long vacant. The direction given by this Court for expediting the process of H
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A appointment was in the larger interest of administration of justice and to uphold the rule of law. Section 184(7) as amended by the Ordinance permitting the Government to take a decision preferably within three months from the date of recommendation of the SCSC is invalid and unconstitutional, as this amended provision simply seeks to negate the directions of this Court. B [Para 54][855-C-E, G; 856-A]
5. The tenure of the Chairperson and Member of a tribunal is fixed at four years by Section 184(11), notwithstanding anything contained in any judgment, order or decree of any court. After perusing the law laid down by this Court in Union of India v. R. C Gandhi, President, Madras Bar Association and Rojer Mathew which held that a short stint is anti-merit, this Court directed the modification of tenure in Rules 9(1) and 9(2) of the 2020 Rules as five years in respect of Chairpersons and Members of tribunals in MBA-III. This Court declared that the Chairperson, Vice- D Chairperson and the Members of the tribunals shall hold office for a term of five years and shall be eligible for reappointment. The insertion of Section 184(11) prescribing a term of four years for the Chairpersons and Members of tribunals by giving retrospective effect to the provision from 26.05.2017 is clearly an attempt to override the declaration of law by this Court under E Article 141 in MBA-III. Therefore, clauses (i) and (ii) of Section 184(11) are declared as void and unconstitutional. [Para 55][856- A-B, D-F]
6. Insofar as the proviso to Section 184(11) is concerned, the Ordinance sets the maximum tenure at five years even with respect to the appointment orders passed between 26.05.2017 and 04.04.2021 provide for a higher tenure. In the process, interim directions given by this Court in Kudrat Sandhu are also nullified. Though, there is nothing wrong with the proviso to Section 184(11) being given retrospective effect, the appointments made pursuant to the interim directions passed by this Court cannot be interfered with. While making it clear that the appointments that are made to the CESTAT on the basis of interim orders passed by this Court shall be governed by the relevant statute and the rules framed thereunder, as they existed prior to the Finance Act, 2017, the retrospectivity given to the proviso to Section H
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184 (11) is upheld. Further, all appointments after 04.04.2021 A shall be governed by the Ordinance, as modified by the directions contained herein. [Para 57][857-F-G; 858-B-C, D-F]
7. To conclude, the first proviso and the second proviso, read with the third proviso, to Section 184 overriding the judgment of this Court in MBA-III in respect of fixing 50 years as minimum age for appointment and payment of HRA, Section 184(7) relating to recommendation of two names for each post by the SCSC and further, requiring the decision to be taken by the Government preferably within three months are declared to be unconstitutional. Section 184(11) prescribing tenure of four years is contrary to the principles of separation of powers, independence of judiciary, rule of law and Article 14 of the Constitution of India. Though, the proviso to Section 184(11) has been upheld, the appointments made to the CESTAT pursuant to the interim orders passed by this Court shall be governed by the relevant statute and the rules framed thereunder that existed prior to 26.05.2017. Notice has been already taken of the notification dated 30.06.21 by way of which Rule 15 of the 2020 Rules dealing with HRA has been amended in conformity with directions in MBA-III. [Para 58][858- F-H; 859-A] S.R. Bhagwat & Ors. v. State of Mysore (1995) 6 SCC E 16 : [1995] 3 Suppl. SCR 545; Cauvery Water Disputes Tribunal (1983) 1 Suppl. SCC 96 : [1991] 2 Suppl. SCR 497; Medical Council of India v. State of Kerala & Ors. (2019) 13 SCC 185 : [2018] 10 SCR 213 and Virender Singh Hooda & Ors. v. State of Haryana & Anr. (2004) 12 SCC 588 : [2004] 5 Suppl. SCR 720 – F relied on. Union of India v. R. Gandhi, President, Madras Bar Association (2010) 11 SCC 1 : [2010] 6 SCR 857; Rojer Mathew v. South Indian Bank Limited & Ors. (2020) 6 SCC 1 : [2019] 16 SCR 1; Madras Bar Association v. G Union of India & Anr. (2020) SCC Online SC 962; Madras Bar Association v. Union of India & Anr. (2014) 10 SCC 1 : [2014] 10 SCR 1; S.P. Sampath Kumar v. Union of India & Ors. (1987) 1 SCC 124 : [1987] 1 H
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A SCR 435; Minerva Mills Ltd. & Ors. v. Union of India & Ors. (1980) 3 SCC 625 : [1981] 1 SCR 206; L. Chandra Kumar v. Union of India & Ors. (1997) 3 SCC 261 : [1997] 2 SCR 1186; Madras Bar Association v. Union of India & Anr. (2015) 8 SCC 583 : [2015] 6 SCR 638; R.K. Jain v. Union of India (1993) 4 SCC B 119 : [1993] 3 SCR 802; Gujarat Urja Vikas Nigam Ltd. v. Essar Power Ltd. (2016) 9 SCC 103 : [2016] 5 SCR 101; Madras Bar Association v. Union of India & Anr. (2020) SCC Online SC 962; Kudrat Sandhu v. Union of India [2018] 10 SCR 956; Smt. Indira Nehru C Gandhi v. Shri Raj Narain (1975) Suppl. SCC 1 : [1976] 2 SCR 347; State of Tamil Nadu v. State of Kerala & Anr. (2014) 12 SCC 696 : [2014] 12 SCR 875; I.R. Coelho v. State of T.N. (2007) 2 SCC 1 : [2007] 1 SCR 706; Supreme Court Advocates-on-Record Association & Ors. v. Union of India (1993) 4 SCC D 441 : [1993] 2 Suppl. SCR 659; Union of India v. Sankalchand Himatlal Sheth & Anr. (1977) 4 SCC 193 : [1978] 1 SCR 423; Supreme Court Advocates-on- Record Association & Anr. v. Union of India (2016) 5 SCC 1 : [2015] 13 SCR 1; R.K. Garg v. Union of India E & Ors. (1981) 4 SCC 675 : [1982] 1 SCR 947; T. Venkata Reddy & Ors. v. State of Andhra Pradesh (1985) 3 SCC 198 : [1985] 3 SCR 509; Krishna Kumar Singh & Anr. v. State of Bihar & Ors. (2017) 3 SCC 1 : [2017] 5 SCR 160; State of Madhya Pradesh v. Rakesh Kohli & Anr. (2012) 6 SCC 312 : [2012] 6 SCR 661; F K.S. Puttaswamy & Anr. v. Union of India & Anr. (2019) 1 SCC 1 : [2018] 8 SCR 1; Shri Prithvi Cotton Mills Ltd. & Anr. v. Broach Borough Municipality & Ors. (1969) 2 SCC 283 : [1970] 1 SCR 388; Patel Gordhandas Hargovindas & Ors. v. Municipal G Commissioner, Ahmedabad & Anr. [1964] 2 SCR 608; Janapada Sabha Chhindwara v. Central Provinces Syndicate Ltd. & Anr. (1970) 1 SCC 509 : [1970] 3 SCR 745; I.N. Saksena v. State of Madhya Pradesh (1976) 4 SCC 750 : [1976] 3 SCR 237; Indian Aluminium Co. & Ors. v. State of Kerala & Ors. (1996) H
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7 SCC 637 : [1996] 2 SCR 23; Bakhtawar Trust & Ors. A v. M. D. Narayan & Ors. (2003) 5 SCC 298 : [2003] 1 Suppl. 1 SCR; Madan Mohan Pathak & Anr. v. Union of India & Ors. (1978) 2 SCC 50 : [1978] 3 SCR 334; Sri Ranga Match Industries & Ors. v. Union of India & Ors. (1994) 2 Suppl. SCC 726; A.V. Nachane & Anr. v. B Union of India & Anr. (1982) 1 SCC 205 : [1982] 2 SCR 246; Dr. Ashwani Kumar v. Union of India & Anr. (2020) 13 SCC 585 : [2019] 12 SCR 30; Ram Pravesh Singh & Ors. v. State of Bihar & Ors. (2006) 8 SCC 381 : [2006] 6 Suppl. SCR 512; Union of India & Ors. v. Karnail Singh & Ors. (1995) 2 SCC 728 : [1994] C 5 Suppl. SCR 584; State of Punjab & Ors. v. Rafiq Masih (Whitewasher) (2014) 8 SCC 883 : [2014] 8 SCR 228 and State v. Kalyan Singh & Ors. (2017) 7 SCC 444 : [2017] 6 SCR 946 – referred to. Marbury v. Madison 5 U.S. 137 (1803); United States D v. Peters 9 U.S. 115 (1809); Brown v. Board of Education of Topeka 347 U.S. 483 (1954); Cooper v. Aaron 384 U.S. 436 (1966); Miranda v. Arizona 384 U.S. 436 (1966); Dickerson v. United States 530 U.S. 428 (2000) and Plaut v. Spendthrift Farm, Inc. 514 U.S. 211 (1995) – referred to. E
Erwin Chemerinsky, The Court Should Have Remained Silent: Why the Court Erred in Deciding Dickerson v. United States, 149 Pennsylvania Law Review 287-308 (2001) and Nicholas Stephanopoulos, The Case for the Legislative Override, 10 UCLA Journal of International F Law and Foreign Affairs 250 (2005) – referred to. Per S. Ravindra Bhat, J. (Concurring)
1. The challenge to the first proviso to Section 184, which prescribes the age qualification, has to be seen from several G angles. First, the underlying parent statutes which created the tribunals (ITAT, CESTAT, TDSAT, CAT) did not prescribe, as an eligibility criterion for selection of candidates as members, any minimum age. The prescription of 50 years as a minimum eligibility criterion, in the opinion of this court, is without any H
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A rationale. The ITAT has existed for the last 79 years; no less than 33 of its members were appointed as judges of various High Courts; one of them (Ranganathan, J.) was appointed to this court. The CESTAT too has comprised advocates who have staffed the tribunal efficiently. The absence of any explanation for the preference given to older persons, in fact leads to an absurd result- as was pointed out in MBA-III and as has been reiterated by L. Nageswara Rao, J. in his opinion. The Constitution of India makes an advocate who has practiced for more than 10 years, eligible for consideration for appointment as a judge of the High Court and even this Court. An advocate with 7 years’ practice with the Bar can be considered for appointment to the position of a District Judge. Prescribing 50 years as a minimum age limit for consideration of advocates has the devastating effect of entirely excluding successful young advocates, especially those who might be trained and competent in the particular subject (such as Indirect Taxation, Anti-Dumping, Income-Tax, International D Taxation and Telecom Regulation). The exclusion of such eligible candidates in preference to those who are more than 50 years of age is inexplicable and therefore entirely arbitrary. As this Court in its previous judgment (Rojer Mathew) has pointed out in another context, the exclusion of such young and energetic legal practitioners could result in not so efficient or competent practitioners left in a field for consideration which would have telling effects on the quality of decisions they are likely to render. [Para 21][874-G-H; 875-A-E]
2. Prescribing 50 years’ minimum age as a condition for appointment to these tribunals is arbitrary also because absolutely no reason is forthcoming about what impelled Parliament to divert from the long-established criteria of giving weightage to actual practice, reputation, integrity and subject expertise, without a minimum age criterion, in the pleadings in this case, nor in any other cases (R. Gandhi –MBA –I; Madras Bar Association –III G and Roger Mathew). Such being the case, it is astonishing that in the span of a year (i.e. after the decision in Roger Mathew) ”new thinking” seems to have prevailed to frame rules excluding advocates who can otherwise, based on their expertise, be considered for appointment to even High Courts. [Para 22][875- H F-H]
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3. The consideration of younger advocates in the age group of 40-45 years would have long term benefits since the domain knowledge and expertise in such areas (Telecom Regulation, Taxation –both Direct and Indirect, GATT Rules, International Taxation etc.) would be useful in adjudication in these tribunals and lead to a body of jurisprudence. Depending on how such counsel/advocates fare as members of the Tribunal, having regard to their special knowledge of these laws, at a later and appropriate stage, they may even be considered for appointment to High Courts. [Para 23][876-A-B]
4. The age criteria, impugned in this case also leads to wholly anomalous and absurd results. For instance, an advocate with 18- or 20-years’ practice, aged 44 years, with expertise in the field of indirect taxation, telecom, or other regulatory laws, would be conversant with the subject matter. Despite being eligible, (as she or he would fulfil the parameters of at least 10 years’ practice, in the light of the decision in MBA-III) such a D candidate would be excluded. On the other hand, an individual who might have practiced law for 10 years, and later served as a private or public sector executive in an entirely unrelated field, but who might be 50 years of age, would be considered eligible, and can possibly secure appointment as a member of a tribunal. Thus, the age criterion would result in filtering out candidates E with more relevant experience and qualifications, in preference to those with lesser relevant experience, only on the ground of age. [Para 24][876-C-E] 5.1. Given that the essential educational qualifications and experience in the relevant field are fixed for all candidates, for a F classification based on minimum age for appointment (like in the present case) to succeed, the Union cannot say that it should be held to be valid, irrespective of the nature and purposes of the classification or the quality and extent of the difference in experience between candidates. As between someone with 18 G years’ experience but aged 42 or 43 years, and someone with only 12 years’ experience, if a system of weightage for experience and qualification were to be applied, the one with greater experience would in all likelihood be selected. Then, to say that one with lesser experience, but who is more aged should be H
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A selected and appointed, not only eliminating the one with more experience, but even disqualifying her or him, would mean that better candidates have to be overlooked and those with lesser experience would be appointed, solely on the ground that the latter is over 50 years of age. [Para 27][877-D-G] B 5.2. In the present case, the rule has the effect of excluding deserving candidates, without subserving any discernible public policy or goal. Thus, the classification is based on no justifiable rationale; nor can it be said that the age criterion has some nexus with the object sought to be achieved, such as greater efficiency or experience. [Para 27][878-B] C 5.3. The qualification of a minimum age of 50 years as essential for appointment, is discriminatory because it is neither shown to have a rational nexus with the object sought to be achieved, i.e. appointing the most meritorious candidates; nor is it shown to be based on any empirical study or data that such D older candidates fare better, or that younger candidates with more relevant experience would not be as good, as members of tribunals. It is plain and simple, discrimination based on age. The criterion (of minimum 50 years of age) is virtually “picked out from a hat” and wholly arbitrary. [Para 31][881-G-H; 882-A-B] E 6.1. The tribunals which were reorganized by the Finance Act, 2017 and now, through the impugned ordinance, exercise judicial functions of the State, interpret and enforce the law, in the course of adjudication of disputes. The appointment of members (of such tribunals), their conditions of service, manner of selection, remuneration and security of tenure are vital to their efficiency and independent functioning. It is in this backdrop that the Union’s contention regarding “equivalence” or “parity” with members of the civil services of the Union or holders of civil posts under the Union, as a justification for the age criterion, needs to be examined. In addition, it is worthwhile to recollect that a civil servant’s experience, though varied and diverse – ranging from co-ordination and administration at taluk, district and state levels, to devising, framing and implementing the government’s policies and programmes, to managing statutory corporations and even commercial enterprises of the state, does not always entail adjudicatory functions. However, legal practitioners, chartered accountants and one segment of civil servants, i.e. tax administrators and adjudicators are involved in the day to day interpretation of law, leading to adjudicatory outcomes. Such being the case, the equivalence of “status” of members of tribunals cannot be compared in a linear or rigid manner. That according to the Union’s scheme of rules and regulations, members of its services can attain a certain rank upon attaining the age of, say, 50 years, therefore, cannot be determinative. In any case, the argument of equivalence is not relevant. This point too, was brought home in the judgment of this court, in All India Judges Association II. [Paras 32, 34][882- B-D; 884-A-D] 6.2. There are other points of distinction too between civil servants and members of tribunals. Members of tribunals are not drawn from any civil service; they are not holders of civil posts. Civil servants, especially members of the All-India Services recruited by the Union, some of whom are deployed to different States, are governed by rules and other service conditions embodied in circulars and orders. These govern their entire universe of employment: starting with eligibility conditions, rules for recruitment and selection, pay and allowances, seniority, promotion, discipline and other matters related to misconduct, pension, terminal benefits etc. On the other hand, such rules or similar rules do not apply to members of tribunals not drawn from public service. It is only conditions of equivalence such as pay scale which they are assured of under the rules, which also determine their status. The manner of selection, conditions of eligibility, rules for their removal upon proven misbehaviour and so on, are entirely different from public servants. In fact, the latter category, i.e. members of tribunals not drawn from public service sources, are not even holders of civil posts or members of any encadred civil service. They are not governed by Article 311 of the Constitution, nor are their conditions of service laid out in rules framed under the proviso to Article 309 of the Constitution. Such being the position, the argument of parity, in the opinion of the Court, is entirely devoid of merit. Nor is the argument of the H
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A Attorney General that a uniform age is necessary, merited. There is no material to show that members recruited on the technical side, such as experts in engineering, scientific or other technical fields would be suitable only after they cross the age of 50. The Union’s argument that 50 years is necessary as it brings about parity between the members of the civil services who are eligible to be considered in their stream for tribunals or that there is an overall uniformity, is without merit and accordingly rejected. [Para 35][884-F-H; 885-A-C; 886-F]
7. The proviso to Section 184 (1), inserted by the impugned ordinance is declared void. A declaration is issued that all candidates, otherwise eligible on their merit, based on qualifications and experience in the relevant field, are entitled to be considered, without reference to the impugned “minimum” age (of 50 years) criteria. [Para 38][888-C]
8. The interim directions of this court, which culminated and were subsumed in Roger Mathew, resulted in the appointment of members of various tribunals, whose term is now sought to be interdicted by the proviso to Section 184 (11), which has been introduced with retrospective effect. While the retrospectivity accorded to this provision cannot be faulted, nevertheless, the said proviso, to the extent it seeks to interfere with and curtail the tenure of members appointed under interim orders, who are entitled to enjoy their term of office, in accordance with the pre- amended legislation and rules, is arbitrary and void. [Para 41][890- D-F]
F 9. The curtailment of tenure to five years, of the few individuals appointed as members of tribunals, who were entitled to continue in office in terms of the pre-existing enactments (upto the age of 62 years etc.) is arbitrary. Apart from the fact that the Union wishes to curtail their tenure despite the finality of directions of this court in Roger Mathew and MBA-III, there is no G conceivable rationale. Nor has any overriding public interest been espoused as a justification for this. The divesting of judicial office by legislative fiat, in this court’s opinion, directly affects the independence of the judiciary. It also amounts to naked discrimination, because all other members of the same tribunals H would enjoy longer tenure, in terms of the pre-existing conditions A of service, which prevailed at the time of their appointment. [Para 42][892-B-E]
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10. It is concluded and held as follows: (i) The first proviso to Section 184(1) of the Finance Act, 2017, introduced by Section 12 of the Tribunals Reforms B (Rationalisation and Conditions of Service) Ordinance, 2021 is hereby declared void and inoperative. Similarly, the second proviso to Section 184(1) of the Finance Act, 2017, introduced by Section 12 of the Tribunals Reforms (Rationalisation and Conditions of Service) Ordinance, 2021 is held to be void and C inoperative. (ii) Section 184(7) of the Finance Act, 2017 introduced by Section 12 of the Tribunals Reforms (Rationalisation and Conditions of Service) Ordinance, 2021 is hereby declared void and inoperative. D (iii) Section 184(11)(i) and (ii) introduced by Section 12 of the Tribunals (Reforms Rationalisation and Conditions of Service) Ordinance, 2021 are hereby declared as void and unconstitutional. (iv) Consequently, the declaration of this Court in para 53(iv) of MBA-III shall prevail and the term of Chairperson of a E Tribunal shall be five years or till she or he attains the age of 70 years, whichever is earlier and the term of Member of a Tribunal shall be five years or till she or he attains the age of 67 years, whichever is earlier. (v) The retrospectivity given to the proviso to Section F 184(11) – introduced by Section 12 of the Tribunals (Reforms Rationalisation and Conditions of Service) Ordinance, 2021 is hereby upheld; however, without in any manner affecting the appointments made to the post of Chairperson or members of various Tribunals, upto 04.04.2021. In other words, the G retrospectivity of the provision shall not in any manner affect the tenures of the incumbents appointed as a consequence of this Court’s various orders during the interregnum period. [Para 46][894-F-G; 895-A-E] State of Gujarat v. Raman Lal Keshav Lal Soni (1983) 2 SCC 33 : [1983] 2 SCR 287 – followed. H
p. 806
A State of J&K v. Triloki Nath Khosa (1974) 1 SCC 19 : [1974] 1 SCR 771; Mohd. Shujat Ali v. Union of India (1975) 3 SCC 76 : [1975] 1 SCR 449; Anuj Garg v. Hotel Assn. of India (2008) 3 SCC 1 : [2007] 12 SCR 991 and All India Judges’ Assn. (II) v. Union of India (1993) 4 SCC 288 : [1993] 1 Suppl. SCR 749 – B relied on. Union of India v. R. Gandhi, President, Madras Bar Association (2010) 11 SCC 1 : [2010] 6 SCR 857; Madras Bar Association v. Union of India (2014) 10 SCC 1 : [2014] 10 SCR 1; Roger Mathew (2020) 6 C SCC 1 : [2019] 16 SCR 1; Madras Bar Association v Union of India (2020) SCC Online (SC) 962 (MBA- III); Dr. D.C. Wadhwa & Ors. v. State of Bihar & Ors. [1987] 1 SCR 198; Krishna Kumar Singh v. State of Bihar (2017) 3 SCC 1 : [2017] 5 SCR 160; D Kesavananda Bharati v. State of Kerala [1973] 1 Suppl. SCR; L. Chandra Kumar v Union of India (1997) 3 SCC 261 : [1997] 2 SCR 1186; Ismail Faruqui v. Union of India (1994) 6 SCC 360 : [1994] 5 Suppl. SCR 1; Pareena Swarup v. Union of India (2008) 14 SCC 107 : [2008] 13 SCR 1217; S.P. Sampath Kumar v. Union E of India & Ors. (1987) SCC Suppl. 734 : [1987] 3 SCR 233; Madras Bar Association (2015) 8 SCC 583 : [2015] 6 SCR 638; R.K. Jain v. Union of India [1993] 3 SCR 802; Chandra Mohan v. State of U.P [1967] 1 SCR 77; Chandramouleshwar Prasad v. Patna High F Court (1969) 3 SCC 56 : [1970] 2 SCR 666; State of Kerala v. A. Lakshmikutty and Ors. [1987] 1 SCR 136; State of Bihar v. Bal Mukund Sah (2004) 4 SCC 640; Lt. Col. Nitisha & Ors. v. Union of India (2021) SCC OnLine SC 261; Commissioner, M.C.D. v. Shashi (2009) 165 DLT 17 and P. Venugopal v. Union of India (2008) G 5 SCC 1 : [2008] 8 SCR 1 – referred to. Liyanage v. The Queen [1967] 1 AC 259, 287–288; Smith v. City of Jackson 544 US 228 (2005) and Baab v. Wilke No. 18-882, 589 U. S. – referred to.
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Per Hemant Gupta, J. (Partly dissenting) A
1. The views expressed in the detailed judgment authored by Justice L. Nageswara Rao as also separate but concurring judgment of Justice Ravindra Bhat, are not agreed with, except to the limited extent that part of Section 187(7) of the Tribunals Reforms (Rationalisation and Conditions of Service) B Ordinance, 2021 that the Search and Selection Committee shall recommend two names for a post and that the tenure of members including Chairperson etc. shall be four years in terms of Clauses (i) and (ii) of Section 184 (11) of the Ordinance is illegal since the issues of constitution of panel and tenure have already been decided in MBA-III case and that without removing such defect, the Ordinance could not be enacted. [Para 1][895-F-H]
2. The judiciary in exercise of power of judicial review can strike down any legislation which violates fundamental rights or if it is beyond the legislative competence but the courts cannot direct the legislature to frame or enact a law and in a particular manner. The law declared by the Supreme Court is binding on all Courts in India in terms of Article 141 of the Constitution. The directions issued under Article 142 of the Constitution, are binding on every Court in terms of Article 141 of the Constitution. The legislature cannot be said to be Court within the meaning of E Article 141 of the Constitution by any stretch of imagination. The directions of this Court stop outside the four walls of legislature. The judiciary will step in only after a law is enacted to test the legality of a statute on the known principles of judicial review. The Judiciary cannot and should not usurp the powers vested with legislature. The Judiciary cannot legislate in the scheme of the constitution. The directions of this Court in MBA-III case are encroaching upon the field reserved for legislature. [Para 13][900-E-G; 901-A-C]
3. The Court will not direct to the State or Union to enact any particular law, or amend/ issue any notification for amendment of any statutory Rule or even to direct an Act to be enforced, when the legislature has conferred such power on the executive. The directions of this Court in MBA-III case were issued in the
p. 808
A peculiar facts to make the Tribunal functional at the earliest rather than mandating legislature to amend the law in a particular manner. The legislature has a right to enact law, which may not be necessarily in terms of the directions of this Court. Such law when enacted by Parliament or the State Legislature, even if contrary to the directions or guidelines issued by the Court, cannot be struck down for the said reason. Though transgression of constitutional limitations and intrusion into the judicial power by the legislature is violative of the principle of separation of powers, the rule of law and of Article 14 of the Constitution of India, but it is equally true that judiciary in exercise of power of judicial review cannot direct legislature to frame any law in a particular manner. [Paras 20, 29][904-A-C; 909-E]
4. It cannot be said that the first proviso to Section 184 prescribing a minimum age of fifty years is an attempt to circumvent the direction issued in MBA-III case. The condition of eligibility for appointment as a Judge of a High Court was kept in view while considering the eligibility of advocates as members of Tribunals. However, the Memorandum of Procedure for appointment as judges of the High Court finalized by this Court and forwarded to the Central Government in March, 2017 was that a person shall not be eligible to be considered for appointment as Judge of a High Court against Bar quota unless he has completed forty-five years of age on the date of recommendation by the High Court Collegium. Though, in terms of Article 217 of the Constitution, a candidate becomes eligible for appointment after 10 years of practice as an Advocate. Thus, an Advocate would be eligible for appointment as judge of the High Court around the age of 35 years. The Memorandum of Procedure adopted by the Collegium of this Court prescribed forty-five years of age as the minimum age. The eligibility to seek appointment is not solely dependent upon qualification of a candidate but experience and suitability, likely term which a candidate may have are necessary considerations. [Para 31][909-G-H; 910-A-D]
5. In terms of the Constitution read with the Memorandum of Procedure adopted by this Court, an advocate would have maximum tenure of 17 years as a Judge of the High Court, may be another three years as Judge of this Court. On the other hand, an advocate appointed as member of a Tribunal can have a tenure of 17 years, even if 50 is the minimum age for appointment. The tenure of such member is up to the age of 67 years with the possibility of being appointed as the Chairperson. This is not to compare the status of a High Court Judge with that of a member of a Tribunal. The members would be appointed on the basis of recommendation of the high-powered Search and Selection Committee having judicial dominance. If a member is discharging his functions legally, there is no need to bear any apprehension about his not being re-appointed. The process of re-appointment is again with the High-Powered Search and Selection Committee C with judicial dominance. A provision in the statute cannot be found to be untenable merely for the reason that there is a possibility of not being re-appointed. [Para 32][910-E-G]
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6. The advocates were not eligible for appointment under 2020 Rules. Therefore, there was no condition of age of eligibility of such candidates. The discussions in the judgment are not to be considered as directions. There is background in which the ultimate directions are issued. Since no directions were issued in respect of eligibility conditions particularly relating to age, thus, fixing of eligible age as fifty years cannot be treated to be in contradiction to the directions issued in MBA-III case. Even if it is contravening to any such direction, the legislature is within its jurisdiction to determine the minimum eligibility age for the purpose of appointment. [Paras 33, 34][910-H; 911-A-C]
7. The age of 50 years as the eligibility condition is not off the hat but is based upon previous legislation in respect of members of the National Company Law Tribunal. Thus, the fixation of fifty years of age as the eligibility condition cannot be said to be manifestly arbitrary or violative of any of the Fundamental Rights of any of the candidates which may render such condition of age as illegal. The argument is based on apprehension that it would be difficult for an advocate appointed after attaining the age of fifty years to resume legal practice after completion of one term, in case he is not reappointed. A person
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A who is competent and good in his work will not find any difficulty to resume his practice but what would happen to his professional career if his term is not extended is a calculated risk which a candidate shall take at the time of seeking appointment. Such apprehensions as to what will happen in future cannot be a ground to strike down a condition of age in the statute. This Court is not possessed of the expertise to say that it will be difficult for an advocate to resume practice if he is not reappointed. The statutory provisions cannot be struck down on such grounds based on presumed apprehensions. [Para 40][913-E-H; 914-A]
8. The apprehensions or misuse of a statutory provision is not a ground to declare the provisions of a statute as void. In case of failing to secure reappointment, the candidate will not be able to resume practice is based upon apprehensions. Whether they are good or valid grounds to refuse reappointment can be subject matter of judicial review although the decision of the high- D power Search and Selection Committee not to re-appoint a candidate may not warrant interference in exercise of judicial review. [Paras 41, 43][914-A-B; 915-D-E]
9. The second proviso is to the effect that allowances and benefits shall be to the extent as are admissible to a Central E Government officer holding the post carrying the same pay. The third proviso to Section 184(1) is that where Chairperson or Members take a house on rent, he may be reimbursed a house rent subject to such limits and conditions as may be prescribed. In terms of third proviso, the Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other F Conditions of Service of Members) (Amendment) Rules, 2021 have been published. As per the Rules now notified, the Chairman, Chairperson, President, Vice Chairman, Vice Chairperson or Vice President shall have option to avail of accommodation to be provided by the Central Government as G per the rules for the time being in force or entitled to house rent allowance subject to a limit of Rs. one lakh fifty thousand rupees per month and the Members shall have option to avail of accommodation to be provided by the Central Government as per the rules for the time being in force or entitled to house rent allowance subject to a limit of Rs.one lakh twenty-five thousand rupees per month with effect from the 1st January, 2021. Therefore, the directions issued stands complied with. [Para 45][916-A-D]
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10. The direction of this Court was that the Union shall make appointments to Tribunals within three months whereas the Ordinance has used the expression that the Central Government shall take a decision on the recommendations of the Committee “preferably within three months”. Both the directions are only directory. It is well-settled that the use of expression ‘shall’ or ‘may’ is not determinative of the fact that whether the condition is mandatory or directory. Therefore, there is no reason to set aside the expression ‘preferably’ used in sub- section (7) of Section 184. Such directions were issued in terms of Article 142 of the Constitution which stop at the four walls of the Parliament. The language to be used falls within the legislative competence and do not violate any fundamental right nor can be said to be manifestly arbitrary. [Para 47][916-G-H; 917-A-B]
11. The inserted proviso to Section 184(11) by the Ordinance deals with two situations. One is in respect of the candidates appointed from 26.5.2017 till the notified date that is 4.4.2021 in terms of sub-Section (11) of Section 184. Second is in respect of the candidates who have not been appointed falling within proviso to sub-Section (1) of Section 184, which provides that a person who has not completed the age of fifty years shall not be eligible for appointment as a Chairperson or Member. There is no doubt that this is a prospective provision as no candidate who has not completed 50 years of age is eligible to seek appointment. There is no merit in the argument that a selected candidate has a right to seek appointment and that too within three months of the order of this Court. Firstly, a selected candidate has no right to seek appointment. The successful candidates do not acquire an indefeasible right to be appointed which cannot be legitimately denied. The fact that the legislation has intervened to prescribe a particular age which is at variance with the condition in the advertisement is a good reason not to appoint the candidates. The legality of Sections 174, 175 and 184
p. 812
A of the Finance Act, 2017 has been upheld in the matter of Rojer Mathew. Therefore, after such an amendment, appointments can be made only in terms of the Rules famed under Section 184 of the Finance Act. Now, some of the Rules stand substituted by the Ordinance. Therefore, candidates who have not been appointed will have to seek appointment only in terms of the B substituted Section 184 of the Finance Act. The candidates who were selected cannot seek appointment on the basis of their old selection and being in merit. [Paras 54, 55, 56][921-G-H; 922-A- C; F-H] 12.1. Some of the Chairpersons and Members of the C Tribunals were appointed between 26.5.2017 to 4.4.2021 in terms of the interim orders passed by this Court. The interim order which permitted the appointments now stands subsumed in the Ordinance which has defined the tenure and the terms and conditions of appointment. The Ordinance is in fact in terms of D the liberty granted to Union to seek modification. Mere fact that an application for modification is pending will not bar the legislature to enact a statute by way of an Ordinance. The appointments made after 26.5.2017 by virtue of Section 184(11) will be governed not by the parent statute but by the terms and conditions as enumerated in the Ordinance. The consent of the E Attorney General will not act as an estoppel against the statute i.e. the Ordinance. [Paras 57, 58][923-A, D-E] 12.2. The candidates in question were appointed during the pendency of lis. These appointments were not concluded appointments but were subject to the provisions of the parent F Act which has been amended by the Finance Act, 2017. They cannot claim any right to continue on the post till the age of retirement under the parent Act in terms of proviso to sub-section (11) of Section 184 of the Finance Act as substituted. The provisions of the parent Act cease to be in existence with the G order passed in Rojer Mathew and subsequent legislative enactments introduced by way of the Ordinance. [Para 62][925- D-F] 13.1. The first, second and third proviso to Section 184(1), the use of expression ‘preferably’ in Section 184(7) and the proviso H to Section 184(11) are legal and valid as such provisions fall within A the exclusive domain of the legislature. The legislature has not nullified the judgment of this Court on the above aspects as there were no such corresponding provisions in the 2020 Rules, which were part of judicial review process. [Para 63][925-F-G] 13.2. It is open to the legislature to fix tenure of the B Chairperson and the members other than four years as the tenure of four years was found to be not tenable in MBA-III. Section 184(7) which contemplates that Select Committee should recommend a panel of two names is contrary to the directions of this Court in MBA-III. Thus, Section 184(11)(i)(ii) and Section 184(7) is declared to be void as the Ordinance has reiterated the C provisions which were in 2020 Rules. The challenge to other provisions is not legally sustainable. [Para 64][925-G-H; 926-A] S.R. Bhagwat & Ors. v. State of Mysore (1995) 6 SCC 16 : [1995] 3 Suppl. SCR 545; Cauvery Water Disputes Tribunal (1983) 1 Suppl. SCC 96 : [1991] 2 Suppl. D SCR 497; Medical Council of India v. State of Kerala & Ors. (2019) 13 SCC 185 : [2018] 10 SCR 213 and Virender Singh Hooda & Ors. v. State of Haryana & Anr. (2004) 12 SCC 588 : [2004] 5 Suppl. SCR 720 – distinguished. E P. Ramachandra Rao v. State of Karnataka (2002) 4 SCC 578; A.K. Roy v. Union of India & Ors., (1982) 1 SCC 271 : [1982] 2 SCR 272; Kalpana Mehta & Ors, v. Union of India & Ors. (2018) 7 SCC 1 : [2018] 4 SCR 1; Powers, Privileges and Immunities of State F Legislatures, AIR 1965 SC 745; Padma Sundara Rao (Dead) & Ors. v. State of T.N. & Ors., (2002) 3 SCC 533 : [2002] 2 SCR 383 and Natural Resources Allocation, in Re, Special Reference No. 1 of 2012 – followed. G Dr. Ashwani Kumar v. Union of India & Anr. (2020) 13 SCC 585 : [2019] 12 SCR 30; Mangalam Organics Limited v. Union of India, (2017) 7 SCC 221 : [2017] 5
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p. 814
A SCR 406; State of Orissa & Ors. v. Md. Illiyas (2006) 1 SCC 275 : [2005] 5 Suppl. SCR 395; Union of India v. Amrit Lal Manchanda & Anr., (2004) 3 SCC 75 : [2004] 2 SCR 422; Som Mittal v. Government of Karnataka, (2008) 3 SCC 574 : [2008] 3 SCR 130; Arasmeta Captive Power Company Private Limited & B Anr. v. Lafarge India Private Limited, (2013) 15 SCC 414 : [2013] 17 SCR 496; Shanti Bhushan v. Supreme Court of India & Anr., (2018) 8 SCC 396 : [2018] 12 SCR 972 and M.C. Mehta v. Kamal Nath & Ors., (2000) 6 SCC 213 : [2000] 1 Suppl. SCR 389 – relied on. C Union of India v. R. Gandhi, President, Madras Bar Association (2010) 11 SCC 1 : [2010] 6 SCR 857; Rojer Mathew v. South Indian Bank Limited & Ors. (2020) 6 SCC 1 : [2019] 16 SCR 1; Madras Bar Association v. Union of India & Anr. (2020) SCC Online SC 962; D Madras Bar Association v. Union of India & Anr. (2015) 8 SCC 583 : [2015] 6 SCR 638; Collector of Customs, Madras & Anr. v. Nathella Sampathu Chetty & Anr. AIR 1962 SC 316 : [1962] 3 SCR 786; Government of Andhra Pradesh & Anr. v. G. Jaya Prasad Rao & Ors., (2007) 11 SCC 528 : [2007] 4 SCR 256; People’s Union E for Civil Liberties & Anr. v. Union of India (2004) 9 SCC 580 : [2003] 6 Suppl. SCR 860; Charan Lal Sahu v. Union of India, (1990) 1 SCC 613 : [1989] 2 Suppl. SCR 597; Mehmood Alam Tariq & Ors. v. State of Rajasthan & Ors. (1988) 3 SCC 241 : [1988] 1 Suppl. F SCR 379; Shri Prithvi Cotton Mills Ltd. & Anr. v. Broach Borough Municipality & Ors. (1969) 2 SCC 283 : [1970] 1 SCR 388; Madan Mohan Pathak & Anr. v. Union of India & Ors., (1978) 2 SCC 50 : [1978] 3 SCR 334; S.S. Bola & Ors. v. B.D. Sardana & Ors. (1997) 8 SCC 522 : [1997] 2 Suppl. SCR 507; B.K. G Pavitra v. Union of India (2019) 16 SCC 129 : [2019] 7 SCR 1086; State of Tamil Nadu v. State of Kerala (2014) 12 SCC 696 : [2014] 12 SCR 875; Mullaperiyar Environmental Protection Forum v. Union of India, (2006) 3 SCC 643 : [2006] 2 SCR 740 and Shankarsan H
p. 815
Dash v. Union of India (1991) 3 SCC 47 : [1991] 2 A SCR 567 – referred to. Case Law Reference In the judgment of L. Nageswara Rao, J. [2010] 6 SCR 857 referred to Para 1 B [2014] 10 SCR 1 referred to Para 1 [2019] 16 SCR 1 referred to Para 1 [1987] 1 SCR 435 referred to Para 3 [1981] 1 SCR 206 referred to Para 3 C [1997] 2 SCR 1186 referred to Para 4 [2010] 6 SCR 857 referred to Para 5 [2015] 6 SCR 638 referred to Para 6 [1993] 3 SCR 802 referred to Para 8 D [2014] 10 SCR 1 referred to Para 8 [2016] 5 SCR 101 referred to Para 8 [2004] 5 Suppl. SCR 720 relied on Para 12 E [2018] 10 SCR 956 referred to Para 13 [1976] 2 SCR 347 referred to Para 21 [2014] 12 SCR 875 referred to Para 21 [2007] 1 SCR 706 referred to Para 21 F [1993] 2 Suppl. SCR 659 referred to Para 26 [1978] 1 SCR 423 referred to Para 26 [2015] 13 SCR 1 referred to Para 29 [1982] 1 SCR 947 referred to Para 38 G [1985] 3 SCR 509 referred to Para 38 [2017] 5 SCR 160 referred to Para 38 [2012] 6 SCR 661 referred to Para 39 [2018] 8 SCR 1 referred to Para 39 H
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A [1970] 1 SCR 388 referred to Para 40 [1964] 2 SCR 608 referred to Para 40 [1970] 3 SCR 745 referred to Para 41 [1976] 3 SCR 237 referred to Para 41 B [1996] 2 SCR 23 referred to Para 41 [2003] 1 Suppl. SCR 1 referred to Para 41 [1978] 3 SCR 334 referred to Para 42 (1994) 2 Suppl. SCC 726 referred to Para 42 C [1982] 2 SCR 246 referred to Para 42 [1991] 2 Suppl. SCR 497 relied on Para 43 [1995] 3 Suppl. SCR 545 relied on Para 43 [2018] 10 SCR 213 relied on Para 43 D [2019] 12 SCR 30 referred to Para 53 [2006] 6 Suppl. SCR 512 referred to Para 53 [1994] 5 Suppl. SCR 584 referred to Para 53 [2014] 8 SCR 228 referred to Para 57 E [2017] 6 SCR 946 referred to Para 57 In the judgment of S. Ravindra Bhat, J. [2014] 10 SCR 1 referred to Para 5
F [1987] 1 SCR 198 referred to Para 6 [2017] 5 SCR 160 referred to Para 7 [1973] 1 Suppl. SCR referred to Para 8 [1997] 2 SCR 1186 referred to Para 9 G [1994] 5 Suppl. SCR 1 referred to Para 9 [2008] 13 SCR 1217 referred to Para 10 [1987] 3 SCR 233 referred to Para 11 [1997] 2 SCR 1186 referred to Para 11 H [2010] 6 SCR 857 referred to Para 11
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[ 2015] 6 SCR 638 referred to Para 11 A [2019] 16 SCR 1 referred to Para 11 [1993] 3 SCR 802 referred to Para 14 [1967] 1 SCR 77 referred to Para 17 [1970] 2 SCR 666 referred to Para 17 B [1987] 1 SCR 136 referred to Para 17 (2004) 4 SCC 640 referred to Para 17 [1974] 1 SCR 771 relied on Para 25 C [1975] 1 SCR 449 relied on Para 26 [2007] 12 SCR 991 relied on Para 28 [1993] 1 Suppl. SCR 749 referred to Para 33 [1983] 2 SCR 287 followed Para 39 D [2008] 8 SCR 1 referred to Para 41 In the judgment of Hemant Gupta, J. [2019] 12 SCR 30 relied on Para 3 (2002) 4 SCC 578 followed Para 8 E [1982] 2 SCR 272 followed Para 8 [2017] 5 SCR 406 relied on Para 9 [2018] 4 SCR 1 followed Para 10 AIR 1965 SC 745 followed Para 10 F [2002] 2 SCR 383 followed Para 14 [2005] 5 Suppl. SCR 395 relied on Para 15 [2004] 2 SCR 422 relied on Para 16 [2008] 3 SCR 130 relied on Para 17 G [2013] 17 SCR 496 relied on Para 17 [2018] 12 SCR 972 relied on Para 18 [2000] 1 Suppl. SCR 389 relied on Para 19 [1962] 3 SCR 786 referred to Para 41 H
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A [2007] 4 SCR 256 referred to Para 42 [2003] 6 Suppl. SCR 860 referred to Para 42 [1989] 2 Suppl. SCR 597 referred to Para 42 [1988] 1 Suppl. SCR 379 referred to Para 42 B [1970] 1 SCR 388 referred to Para 49 [1978] 3 SCR 334 referred to Para 50 [1997] 2 Suppl. SCR 507 referred to Para 50 [2019] 7 SCR 1086 referred to Para 51 C [2014] 12 SCR 875 referred to Para 52 [2006] 2 SCR 740 referred to Para 52 [1991] 2 SCR 567 referred to Para 55 CIVIL ORIGINAL JURISDICTION: Writ Petition (Civil) No. D 502 of 2021. Under Article 32 of The Constitution of India KK Venugopal, AG., Balbir Singh, ASG., R. Balasubramanium, Arvind P Datar, Siddharth Luthra, Aruneshwar Gupta, C S Vaidyanathan, Krishnan Venugopal, Shashikiran Shetty, Ranjit Kumar, Mukul Rohtagi, E Gourab Benerjee, Paramjit Singh Patwalia, Sr. Advs., Zoheb Hossain, Ms. Shradha Deshmukh, Ms. Chinmayee Chandra, Shyam Gopal, Ankur Talwar, Ms. Suhasini Sen, Gurmeet Singh Makker, Mrs. Anil Katiyar, Rahul Unnikrishnan, TVS Raghavendra Sreyas, Naveen Hegde, Siddharth Vasudev, Navdeep Singh, Ms. Gayatri Gulati, Ms. Sakshi F Kakkar, Nalin Talwar, Sameer Abhyankar, Amish Tandon, Ayush Beotra, Dipin Tamang, Uddhav Khanna, Akshay Joshi, K. C. Kaushik, Rahul Kaushik, Ms. Bhuvneshwari Pathak, Ms. Shilpi Satyapriya Satyam, Pankaj Singh, Ms. Ranjana Singh, Mahesh Thakur, Kaushik Mishra, Kiran Patel, Ms. Viapsha Singh, R. Gowrishankar, S. Rajappa, Gourav Agrawal, Chritarth Palli, Sahil Tagotra, Rupesh Kumar, Rajeev Sharma, G Ms. Neelam Sharma, Ms. Pankhuri Shrivastava, Alekshendra Sharma, Pravesh Bahuguna, Ninad Loud, Shubro Mukherjee, Ivo D’ Costa, Rajeev Singh, P. B. Suresh, Krishna Dev Jagarlamudi, Sai Kaushal N., Advs. for the appearing parties.
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Judgment
The Judgment of the Court was delivered by A L. NAGESWARA RAO, J.
11. The Madras Bar Association has filed this Writ Petition seeking a declaration that Sections 12 and 13 of the Tribunal Reforms (Rationalisation and Conditions of Service) Ordinance, 2021 and Sections 184 and 186 (2) of the Finance Act, 2017 as amended by the Tribunal B Reforms (Rationalisation and Conditions of Service) Ordinance, 2021 as ultra vires Articles 14, 21 and 50 of the Constitution of India inasmuch as these are violative of the principles of separation of powers and independence of judiciary, apart from being contrary to the principles laid down by this Court in Union of India v. R. Gandhi, President, C Madras Bar Association1, Madras Bar Association v. Union of India & Anr.2, Rojer Mathew v. South Indian Bank Limited & Ors.3 and Madras Bar Association v. Union of India & Anr.4. The Petitioner seeks a further direction to Respondent No.2 for establishment of a separate wing to cater to the requirements of tribunals in India. D
22. A brief reference to the historical background of tribunalisation in this country is necessary for a better appreciation of the dispute that falls for adjudication in this Writ Petition. The Statement of objects and reasons for insertion of Articles 323-A and 323-B in the Constitution of India by the Forty-Second Amendment is as follows: E “To reduce the mounting arrears in High Courts and to secure the speedy disposal of service matters, revenue matters and certain matters of special importance in the context of the socio-economic development and progress, it is considered expedient to provide for administrative and other tribunals for dealing with such matters while preserving the jurisdiction of the Supreme Court in regard to such matters under Articles 136 of the Constitution. It is also necessary to make certain modifications in the Writ Jurisdiction of the High Courts under Article 226.”
33. The vires of the Administrative Tribunals Act, 1985, enacted under Article 323-A (1), was challenged in S.P. Sampath Kumar v.
1 (2010) 11 SCC 1 2 (2014) 10 SCC 1 3 (2020) 6 SCC 1 4 (2020) SCC Online SC 962 H
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A Union of India & Ors.5 before this Court. The main ground taken in the writ petition was that the jurisdiction of the High Court under Article 226 and Article 227 cannot be barred. It was held by this Court in S.P. Sampath Kumar (supra) that in place of a High Court, the Parliament can set up an effective alternative institutional mechanism with the power of judicial review vested in it, by placing reliance on the observation made in Minerva Mills Ltd. & Ors. v. Union of India & Ors.6. However, this Court was of the firm opinion that the tribunals should be a real substitute to High Courts. While scrutinizing Chapter II of the Act which dealt with the establishment of tribunals, this Court expressed its view that a short tenure of Members of tribunals would be a deterrent for competent persons to seek appointment as Members.
44. The correctness of the judgment of this Court in S.P. Sampath Kumar (supra) was considered by a larger bench of this Court in L. Chandra Kumar v. Union of India & Ors.7 which found the exclusion of the jurisdiction of the High Courts and the Supreme Court in Articles D 323-A and 323-B to be unconstitutional. This Court declared that tribunals shall continue to act like courts of first instance in respect of areas of law for which they have been constituted.
55. A High-Level Committee on law relating to insolvency of companies was constituted by the Union of India under the Chairmanship E of Justice V. Balakrishna Eradi, retired Judge of this Court who made certain recommendations for setting up the National Company Law Tribunal (hereinafter referred to as NCLT) combining the powers of the Company Law Board under the Companies Act, 1956 (hereinafter referred to as the 1956 Act), BIFR and AAIFR under the Sick Industrial Companies (Special Provisions) Act, 1985 and the jurisdiction and powers F relating to winding up vested in the High Courts. The Government accepted the recommendations and passed the Companies (Second Amendment) Act, 2002. The reason for the said amendment was to avoid multiplicity of litigation before various fora and to reduce pendency of cases. The Madras Bar Association filed a writ petition in the Madras G High Court challenging the constitutional validity of the said amendment to the 1956 Act on the ground of legislative incompetence and violation of the doctrines of separation of powers and independence of the judiciary.
5 (1987) 1 SCC 124 6 (1980) 3 SCC 625 7 H (1997) 3 SCC 261
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The High Court upheld the validity of the Amendment Act of 2002 but A pointed out certain defects in the provisions of the Act. The High Court declared that the NCLT and the National Company Law Appellate Tribunal (hereinafter referred to as NCLAT) cannot be constituted without removing the defects pointed out in the judgment. The judgment of the High Court was upheld by this Court in Union of India v. B R. Gandhi, President, Madras Bar Association8 (hereinafter referred to as MBA-I). Parts I-B and I-C of the 1956 Act were directed to be modified in accordance with the observations made in the judgment.
66. The Companies Act, 2013 (hereinafter referred to as the 2013 Act), which replaced the 1956 Act, contained provisions for establishment of the NCLT and the NCLAT. Madras Bar Association filed a writ C petition under Article 32 of the Constitution challenging the formation of NCLT under Section 408 of the 2013 Act. Several other provisions pertaining to constitution of the NCLT and the NCLAT, qualifications for appointment of Members and Chairperson / President and constitution of the Selection Committee were also assailed in the said writ petition. D This Court in Madras Bar Association v. Union of India & Anr.9 (hereinafter referred to as MBA-II) upheld the validity of Section 408 by which the NCLT was constituted. However, clauses (a) and (e) of Section 409(3) relating to the appointment of Technical Members were held to be invalid. Section 411(3), which provided qualifications of Technical Members, and Section 412(2), which dealt with the constitution E of the Selection Committee, were also held to be invalid. A direction was given to the Union of India to scrupulously follow the judgment in MBA-I and set right the defects that were pointed out therein by bringing the provisions in accord with the MBA-I judgment.
77. The Finance Act, 2017 was brought into force from 31.03.2017 F to give effect to the financial proposals for the financial year 2017-18. Sections 183 to 189 thereof dealt with conditions of service of Chairperson and Members of Tribunals, Appellate Tribunals and other authorities. According to Section 183, provisions of Section 184 applied to the Chairperson, Vice-Chairperson, Chairman, Vice-Chairman, President, G Vice-President, Presiding Officer or Member of the Tribunal, Appellate Tribunal and other specified authorities, notwithstanding anything to the contrary contained in the provisions of the statutes listed in Column (3)
8 (2010) 11 SCC 1 9 (2015) 8 SCC 583 H
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A of the Eighth Schedule. The Central Government was empowered by Section 184 to make rules to provide for qualifications, appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of the Chairperson and Vice-Chairperson (and commensurate positions bearing different nomenclature) and other Members. As per the first proviso, the Chairperson, Vice-Chairperson B (and commensurate positions bearing different nomenclature) or Member of the Tribunal shall hold office for such term as may be specified by the rules made by the Central Government, not exceeding five years from the date on which such person enters office. The Chairperson, Chairman or President can hold office till they reach the age of 70 years and the C Vice-Chairperson, Vice-Chairman, Vice-President, Presiding Officer or any other Member can continue till the age of 67 years, as per the second proviso to Section 184.
88. A Notification was issued by the Central Government on 01.06.2017 by which the Tribunal, Appellate Tribunal and other Authorities D (Qualifications, Experience and other Conditions of Service of Members) Rules, 2017 (hereinafter referred to as the 2017 Rules) were made. The validity of Part XIV of the Finance Act, 2017 and the 2017 Rules framed thereunder was questioned in Rojer Mathew (supra). The petitioners contended that para XIV of the Finance Act, 2017 cannot be classified as a money bill. The question of money bill was referred to a E larger bench. The validity of Section 184 of the Finance Act, 2017 was upheld. The 2017 Rules were held to be contrary to the parent amendment and therefore, struck down. The Central Government was directed to reformulate the rules strictly in accordance with the principles delineated by this Court in R.K. Jain v. Union of India10, L. Chandra Kumar F (supra), Madras Bar Association v. Union of India & Anr. 11 and Gujarat Urja Vikas Nigam Ltd. v. Essar Power Ltd.12 The Central Government was directed to formulate a new set of rules which would ensure non-discriminatory and uniform conditions of service, including assured tenure. As an interim order, this Court in Rojer Mathew (supra) directed that the appointments to the Tribunals/ Appellate Tribunals and G the service conditions shall be in terms of the respective statutes before the enactment of the Finance Bill, 2017. Union of India was given liberty to seek modification of the orders after framing fresh rules. On 10 (1993) 4 SCC 119 11 (2014) 10 SCC 1 H 12 (2016) 9 SCC 103
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12.02.2020, a notification was issued by the Central Government by which the Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of Service of Members) Rules, 2020 (hereinafter referred to as the 2020 Rules) were framed. The validity of the 2020 Rules was challenged by Madras Bar Association. After detailed deliberations on the issues involved, this Court by its judgment in Madras Bar Association v. Union of India & Anr.13 (hereinafter referred to as MBA-III) disposed of the writ petition by issuing the following directions: “53. The upshot of the above discussion leads this Court to issue the following directions: C (i) The Union of India shall constitute a National Tribunals Commission which shall act as an independent body to supervise the appointments and functioning of Tribunals, as well as to conduct disciplinary proceedings against members of Tribunals and to take care of administrative and infrastructural needs of the Tribunals, in an appropriate D manner. Till the National Tribunals Commission is constituted, a separate wing in the Ministry of Finance, Government of India shall be established to cater to the requirements of the Tribunals. (ii) Instead of the four-member Search-cum-Selection E Committees provided for in Column (4) of the Schedule to the 2020 Rules with the Chief Justice of India or his nominee, outgoing or sitting Chairman or Chairperson or President of the Tribunal and two Secretaries to the Government of India, the Search-cum-Selection Committees should comprise of the F following members: (a) The Chief Justice of India or his nominee—Chairperson (with a casting vote). (b) The outgoing Chairman or Chairperson or President of the Tribunal in case of appointment of the Chairman or G Chairperson or President of the Tribunal (or) the sitting Chairman or Chairperson or President of the Tribunal in case of appointment of other members of the Tribunal (or) a retired Judge of the Supreme Court of India or a retired Chief Justice 13 (2020) SCC Online SC 962 H
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A of a High Court in case the Chairman or Chairperson or President of the Tribunal is not a Judicial member or if the Chairman or Chairperson or President of the Tribunal is seeking re-appointment—member; (c) Secretary to the Ministry of Law and Justice, Government B of India—member; (d) Secretary to the Government of India from a department other than the parent or sponsoring department, nominated by the Cabinet Secretary—member; (e) Secretary to the sponsoring or parent Ministry or C Department—Member Secretary/Convener (without a vote). Till amendments are carried out, the 2020 Rules shall be read in the manner indicated. (iii) Rule 4(2) of the 2020 Rules shall be amended to provide that the Search-cum-Selection Committee shall recommend the name of one person for appointment to each post instead of a panel of two or three persons for appointment to each post. Another name may be recommended to be included in the waiting list. (iv) The Chairpersons, Vice-Chairpersons and the members of the Tribunal shall hold office for a term of five years and shall be eligible for reappointment. Rule 9(2) of the 2020 Rules shall be amended to provide that the Vice-Chairman, Vice-Chairperson and Vice President and other members shall hold office till they attain the age of sixty-seven years. F (v) The Union of India shall make serious efforts to provide suitable housing to the Chairman or Chairperson or President and other members of the Tribunals. If providing housing is not possible, the Union of India shall pay the Chairman or Chairperson or President and Vice-Chairman, Vice- Chairperson, Vice President of the Tribunals an amount of G Rs. 1,50,000/- per month as house rent allowance and Rs. 1,25,000/- per month for other members of the Tribunals. This direction shall be effective from 01.01.2021. (vi) The 2020 Rules shall be amended to make advocates with an experience of at least 10 years eligible for appointment as H
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judicial members in the Tribunals. While considering advocates for appointment as judicial members in the Tribunals, the Search-cum-Selection Committee shall take into account the experience of the Advocate at the bar and their specialization in the relevant branches of law. They shall be entitled for reappointment for at least one term by giving preference to the service rendered by them for the Tribunals. (vii) The members of the Indian Legal Service shall be eligible for appointment as judicial members in the Tribunals, provided that they fulfil the criteria applicable to advocates subject to suitability to be assessed by the Search-cum-Selection Committee on the basis of their experience and knowledge in the specialized branch of law. (viii) Rule 8 of the 2020 Rules shall be amended to reflect that the recommendations of the Search-cum-Selection Committee in matters of disciplinary actions shall be final and the recommendations of the Search-cum-Selection D Committee shall be implemented by the Central Government. (ix) The Union of India shall make appointments to Tribunals within three months from the date on which the Search-cum- Selection Committee completes the selection process and makes its recommendations. E
(x) The 2020 Rules shall have prospective effect and will be applicable from 12.02.2020, as per Rule 1(2) of the 2020 Rules. (xi) Appointments made prior to the 2017 Rules are governed F by the parent Acts and Rules which established the concerned Tribunals. In view of the interim orders passed by the Court in Rojer Mathew (supra), appointments made during the pendency of Rojer Mathew (supra) were also governed by the parent Acts and Rules. Any appointments that were made after the 2020 Rules came into force i.e. on or after 12.02.2020 G shall be governed by the 2020 Rules subject to the modifications directed in the preceding paragraphs of this judgment. (xii) Appointments made under the 2020 Rules till the date of this judgment, shall not be considered invalid, insofar as they H
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A conformed to the recommendations of the Search-cum- Selection Committees in terms of the 2020 Rules. Such appointments are upheld, and shall not be called into question on the ground that the Search-cum-Selection Committees which recommended the appointment of Chairman, Chairperson, President or other members were in terms of the 2020 Rules, B as they stood before the modifications directed in this judgment. They are, in other words, saved. (xiii) In case the Search-cum-Selection Committees have made recommendations after conducting selections in accordance with the 2020 Rules, appointments shall be made within three months from today and shall not be subject matter of challenge on the ground that they are not in accord with this judgment. (xiv) The terms and conditions relating to salary, benefits, allowances, house rent allowance etc. shall be in accordance with the terms indicated in, and directed by this judgment. (xv) The Chairpersons, Vice Chairpersons and members of the Tribunals appointed prior to 12.02.2020 shall be governed by the parent statutes and Rules as per which they were appointed. The 2020 Rules shall be applicable with the modifications directed in the preceding paragraphs to those who were appointed after 12.02.2020. While reserving the matter for judgment on 09.10.2020, we extended the term of the Chairpersons, Vice-Chairpersons and members of the Tribunals till 31.12.2020. In view of the final judgment on the 2020 Rules, the retirements of the Chairpersons, Vice- Chairpersons and the members of the Tribunals shall be in accordance with the applicable Rules as mentioned above.”
99. The Tribunal Reforms (Rationalisation and Conditions of Service) Bill, 2021 was introduced in the Lok Sabha on 13.02.2021 but could not be taken up for consideration. According to the Statement of objects and reasons, the said Bill was proposed with a view to streamline tribunals and sought to abolish certain tribunals and other authorities, which “only add to another additional layer of litigation” and were not “beneficial for the public at large”. Thereafter, the Tribunal Reforms (Rationalisation and Conditions of Service) Ordinance, 2021 H
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(hereinafter referred to as the Ordinance) was promulgated on A 04.04.2021. Chapter II thereof makes amendments to the Finance Act,
2017. The dispute raised in this Writ Petition relates to the first proviso to Section 184(1) according to which a person below the age of 50 years shall not be eligible for appointment as Chairperson or Member and also the second proviso, read with the third proviso, which stipulates that the allowances and benefits payable to Chairpersons and Members shall be the same as a Central Government officer holding a post carrying the same pay as that of the Chairpersons and Members. Section 184(7) stipulates that the Selection Committee shall recommend a panel of two names for appointment to the post of Chairperson or Member and the Central Government shall take a decision preferably within three months from the date of the recommendation of the Committee, notwithstanding any judgment, order or decree of any Court. The said provision is also assailed in this Writ Petition. Section 184 (11) which shall be deemed to have been inserted with effect from 26.05.2017 provides that the term of office of the Chairperson and Member of a tribunal shall be four years. The age of retirement of the Chairperson and Members is specified as 70 years and 67 years, respectively. If the term of office or the age of retirement specified in the order of appointment issued by the Central Government for those who have been appointed between 26.05.2017 and 04.04.2021 is greater than that specified in Section 184(11), the term of office or the age of retirement shall be as set out in the order of appointment, subject to a maximum term of office of five years. The validity of Section 184(11) is also challenged in the Writ Petition.
1010. We have heard Mr. Arvind P. Datar, learned Amicus Curiae, Mr. K.K. Venugopal, learned Attorney General for India, Mr. Balbir Singh, learned Additional Solicitor General, Mr. Mukul Rohatgi, learned F Senior Counsel, Mr. Sidharth Luthra, learned Senior Counsel, Mr. Gaurab Banerjee, learned Senior Counsel, Mr. Aruneshwar Gupta, learned Senior Counsel and Mr. Krishnan Venugopal, learned Senior Counsel.
1111. Mr. Arvind P. Datar, learned Amicus Curiae, made the following submissions: G i) The Ordinance is violative of the rule of separation of powers which forms part of the basic structure of the Constitution. The Ordinance is liable to be struck down as being violative of another basic feature of the Constitution, i.e., independence of the judiciary. H
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A ii) Reversal of judgments which are not in accord with the Government’s views undermines the judiciary, violating the supremacy of the Constitution. iii) Stipulation of a minimum age limit of 50 years for appointment is contrary to the directions given in the judgments of this Court in B MBA-I, Rojer Mathew (supra) and MBA-III. iv) The provisos to Section 184(1) fixing the allowances and benefits payable to the Members to the extent as admissible to Central Government officers holding a post carrying the same pay is unsustainable and requires to be set aside. C v) Section 184(7) is liable to be declared invalid as the direction issued by this Court in MBA-III to make appointments within three months from the date of recommendation of the Selection Committee is sought to be annulled. D vi) Section 184(11) is unconstitutional insofar as it fixes the tenure of the Chairperson and Members as four years. vii) Retrospectivity given to Section 184(11) is only to nullify the effect of interim orders of this Court which are in the nature of mandamus and is, therefore, prohibited legislative activity. E viii) The appointments made pursuant to the directions of this Court on 09.02.2018, 16.07.2018 and 21.08.2018 with the consent of the learned Attorney General cannot be disturbed. The directions issued by this Court with the consent of the Union of India cannot be legislatively overruled. F
1212. Mr. P.S. Patwalia, learned Senior Counsel appearing for Mr. P. Dinesha, Member, CESTAT, submitted that there are at least four orders passed by this Court on 09.02.2018, 20.03.2018, 16.07.2018 and 21.08.2018 which clarified that the age of retirement would be 62 years for Members of the CESTAT and the ITAT. Relying upon the judgment G of this Court in Virender Singh Hooda & Ors. v. State of Haryana & Anr.14, he submitted that even if this Court upholds the Ordinance, the appointments made pursuant to the interim orders of this Court should not be disturbed.
14 H (2004) 12 SCC 588
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1313. Mr. Rohatgi, learned Senior Counsel, argued that Mr. Ajay A Sharma who was practicing as an AOR in this Court responded to an advertisement issued on 29.06.2016 for the appointment to the post of Member (Judicial), CESTAT. He was appointed along with others on 11.04.2018 with a condition that his tenure will be for five years or till he attains the age of 65 years, whichever is earlier. This Court clarified on B 21.08.2018 that the retirement age of Member (Judicial), CESTAT shall be 62 years. Proviso to Section 184(11) which prescribes a maximum of five years tenure is a result of an impermissible exercise undertaken by the Union of India. He further submitted that a mandamus issued by this Court cannot be overruled by the legislature. Mr. Gaurab Banerjee, learned Senior Counsel, submitted that Mr. S.K. Pati was appointed C Member (Judicial), CESTAT on 11.04.2018. He submitted that Mr. Pati left his employment as an Additional District Judge and joined as Member (Judicial). Mr. Sidharth Luthra, learned Senior Counsel, submitted that Mrs. Rachna Gupta who is at present working as Member (Judicial) has resigned as District Judge. He requested this Court to permit the D Members, CESTAT and other tribunals to continue till 62 years as directed by this Court in its judgment in Kudrat Sandhu v. Union of India15. Mr. Krishnan Venugopal, learned Senior Counsel appearing for Advocates’ Association, Bengaluru, which was interested in appointments being made to the posts of Judicial and Accountant Members of the ITAT, submitted that pursuant to the advertisement issued on 06.07.2018 E inviting applications to 37 posts of Members (Judicial)/ (Accountant) in the ITAT, 650 applications were filed. The candidates between the age of 35 years and 50 years were eligible according to the advertisement. Interviews were held between May-September, 2019. Appointments to the post of Accountant Members were made but the Judicial Members F were not appointed. He submitted that there are few persons who are below 50 years and would not be considered for appointment in view of the Ordinance. He argued that Section 184(11) alone is given retrospective effect and the amendments to Section 184(1) to (10) would be prospective and cannot be made applicable to the recruitment and selection conducted prior to 04.04.2021. Therefore, according to G Mr. Krishnan Venugopal, learned Senior Counsel, the candidates who have been selected pursuant to the advertisement issued in 2018 should not be held ineligible on the ground that some of the candidates were below the age of 50 years on the date of the advertisement. 15 W.P. No. 279 of 2017 H
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1414. The learned Attorney General strongly refuted the contentions of the learned Amicus Curiae and other Senior Counsel. He stated that a judgment of a court can be overridden by the legislature. Service conditions of Members of tribunals is a policy decision which should be left to the collective decision of the Parliament. Legislative overruling is a permissible exercise as has been held in a number of judgments of this B Court. He asserted that there can be no direction issued by this Court to make law in a particular manner. Such directions issued by this Court are treated as suggestions. Ultimately, the will of the people has to prevail. Even interstitial directions given in the absence of law are subject to future legislation. He was of the opinion that the Ordinance cannot be C challenged on the ground that it is contrary to the judgment of this Court in MBA-III. The learned Attorney General argued that the minimum age for appointment to tribunals is fixed at 50 years for the purpose of maintaining equality. All aspirants from various fields have been put on an even keel. According to him, there is no uniformity in the directions issued by this Court regarding the tenure of Chairperson and Members. D Initially in S.P. Sampath Kumar (supra), this Court recommended five to seven years as tenure. Thereafter, directions were issued to the effect that tenure should be five years. The learned Attorney General submitted that tenure of four years instead of five years was fixed after detailed deliberations by experts which should not be interdicted by this Court. E Insofar as HRA is concerned, the learned Attorney General submitted that Members of tribunals cannot be permitted to claim allowances higher than officers in the Government carrying the same pay scale. In respect of two names being sent for each post by the Selection Committee, the learned Attorney General stated that the recommendations are subject to inquiry by the Intelligence Bureau (IB) and in case the selected candidate is found to be not suitable, there should be an alternative. Therefore, it was decided that at least two names should be recommended by the Selection Committee for each post. The Government is also interested in filling up the vacant posts in the tribunals and the stipulation of taking a decision preferably within three months does not mean that the Government will not act with alacrity.
1515. Mr. Balbir Singh, learned Additional Solicitor General defended the retrospectivity given to Section 184(11) by arguing that the defect pointed out by the judgment of MBA-III has been cured by the Ordinance. It was held in MBA-III that the 2020 Rules came into force on the date of their notification, i.e., 12.02.2020. Further, it was held that
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subordinate legislation cannot be given retrospective operation unless authorized by the parent legislation. By the Ordinance, the Finance Act has been amended and retrospective effect has been given to Section 184(11). Any judgment or orders passed between 26.05.2017 and 04.04.2021 are overridden by the Ordinance which is in the nature of a curative legislation. The learned ASG submitted that all appointments that have been made between 26.05.2017 and 04.04.2021 shall be governed by the Ordinance. Separation of Powers
1616. Sir Edward Coke on being summoned by King James I to answer why the King could not himself decide cases which had to go before his own Courts of justice, asserted: “... no king after the conquest assumed to himself to give any judgment in any cause whatsoever, which concerned the administration of justice within his realm, but these were solely determined in the Courts of justice”. When the King said that “he thought the law was founded on reason, and that he and others had reason, as well as the Judges”, Coke answered: D “True it was, that God had endowed His Majesty with excellent science, and great endowments of nature; but His Majesty was not learned in the laws of his realm of England, and causes which concern the life, or inheritance, or goods, or fortunes of his subjects, are not to be decided by natural E reason, but by the artificial reason and judgment of the law, which law is an act which requires long study and experience, before that a man can attain to the cognizance of it; and that the law was the golden metwand and measure to try the causes of the subjects; and which protected His Majesty in safety and peace. (“The Higher Law —Background of American F Constitutional Law” by Edward S. Corwin, pp. 38-39).”16
1717. This dictum of Coke, announced in Dr Bohman case [(1610) 8 Co Rep 118-A] was soon repudiated in England, but the doctrine announced in Coke’s dictum found fertile soil in the United States and sprouted into such a vigorous growth that it was applied by the United G States Supreme Court in the decision of cases coming before it; and it has been said that the doctrine of the supremacy of the Supreme Court is the logical conclusion of Coke’s doctrine of control of the Courts over legislation (See: Willis on Constitutional Law, 1936 Edn., p. 76). 16 Smt. Indira Nehru Gandhi v. Shri Raj Narain 1975 Supp SCC 1 H
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1818. De l’esprit des lois was published in 1748 by Charles de Secondat, Baron de Montesquieu. According to Montesquieu, there can be no liberty where the legislative and executive powers are united in the same person or body of Magistrates. He argued that there is no liberty, if the judicial power is not separated from the legislative and executive. He further noted that there would be an end of everything, B were the same man or same body, whether of the nobles or of the people, to exercise those three powers, that of enacting laws, that of executing the public resolutions, and of trying the causes of individuals.
1919. The Federalist Papers were written by Alexander Hamilton, James Madison, and John Jay under the collective pseudonym “Publius” C to promote the ratification of the United States Constitution. James Madison dealt with the particular structure of the new government and the distribution of powers among its different parts in Federalist No.47 and separation of the departments not having constitutional control over each other in Federalist No.48. The structure of the Government furnishing D proper checks and balances between different departments was the subject matter of Federalist No.51.
2020. All powers of Government — legislative, executive and judicial — result in the legislative body. The concentration of these powers in the same hands is precisely the definition of despotic Government. It E will be no alleviation that these powers will be exercised by a plurality of hands and not by a single person. One hundred and seventy-three despots would surely be as oppressive as one. [See: Jefferson : Works : 3, 223]
2121. The American Constitution provides for a rigid separation of governmental powers into three basic divisions, executive, legislative F and judiciary. It is an essential principle of that Constitution that powers entrusted to one department should not be exercised by any other department. The Australian Constitution follows the same pattern of the separation of powers. Unlike these Constitutions, Indian Constitution does not expressly vest the three kinds of powers in three different organs of the State.17 G
2222. The doctrine of separation of powers informs the Indian constitutional structure and is an essential constituent of rule of law. In other words, the doctrine of separation of powers, though not expressly engrafted in the Constitution, its sweep, operation and visibility are 17 H Smt. Indira Nehru Gandhi v. Shri Raj Narain (supra)
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apparent from the scheme of the Indian Constitution. The Constitution A has made demarcation, without drawing formal lines between the three organs—legislature, executive and judiciary. Separation of powers between three organs—the legislature, executive and judiciary—is also nothing but a consequence of principles of equality enshrined in Article 14 of the Constitution of India. Accordingly, breach of separation of judicial power may amount to negation of equality under Article 14. Stated thus, a legislation can be invalidated on the basis of breach of the separation of powers since such breach is negation of equality under Article 14 of the Constitution.18 Equality, rule of law, judicial review and separation of powers form parts of the basic structure of the Constitution. Each of these concepts are intimately connected. There can be no rule of law, if there is no equality before the law. These would be meaningless if the violation was not subject to the judicial review. All these would be redundant if the legislative, executive and judicial powers are vested in one organ. Therefore, the duty to decide whether the limits have been transgressed has been placed on the judiciary.19 Though, there is no rigid separation of governmental powers between the executive, legislative and judiciary, it is clear from the above judicial pronouncements and literature that separation of powers forms part of the basic structure of the Constitution. Violation of separation of powers would result in infringement of Article 14 of the Constitution. A legislation can be declared as unconstitutional if it is in violation of the principle of separation of powers. Independence of the Judiciary
2323. Alexander Hamilton wrote in The Federalist No.78 as follows: “The complete independence of the courts of justice is peculiarly essential in a limited Constitution. By a limited Constitution, I understand one which contains certain specified exceptions to the legislative authority; such, for instance, that it shall pass no bills of attainder, no ex post facto laws, and the like. Limitations of this kind can be preserved in practice in no other way than through the medium of courts of justice, whose duty it must be to declare all acts contrary to the manifest tenor of the Constitution void. Without
18 State of Tamil Nadu v. State of Kerala & Anr. (2014) 12 SCC 696 19 I.R. Coelho v. State of T.N. (2007) 2 SCC 1 H
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A this, all the reservations of particular rights or privileges would amount to nothing.”
2424. Basic Principles on the Independence of the Judiciary were adopted by the 7th United Nations Congress on the Prevention of Crime and the Treatment of Offenders held at Milan from 26.08.1985 to B 06.09.1985 and endorsed by the General Assembly resolutions on 29.11.1985 and 13.12.1985. The relevant basic principles are that the independence of the judiciary shall be guaranteed by the State and enshrined in the Constitution or the law of the country. It is the duty of the governmental and other institutions to respect and observe the independence of the judiciary. The term of office of Judges, their independence, security, adequate renumeration, conditions of service, pensions and the age of retirement shall be adequately secured by law. The United Nations Economic and Social Council authorized the UN Sub-Commission on Prevention of Discrimination and Protection of Minorities to request Dr. L.M. Singhvi to prepare a report on the independence and impartiality of judiciary. He submitted a draft declaration on the independence and impartiality of the judiciary, jurors, assessors and the independence of lawyers, which came to be known as the Singhvi Declaration. The United Nations Commission on Human Rights invited governments to take the Singhvi Declaration into account in implementing the Basic Principles on the Independence of the Judiciary. E The Bangalore Principles on Judicial Conduct, the product of several meetings and deliberations of Chief Justices and Judges of both common law and civil law systems and adopted by the United Nations Commission on Human Rights on 29.04.2003, identified core values of the judiciary, one of which is independence. The measures adopted by the Judicial F Integrity Group at its meeting held in Lusaka, Zambia on 21st and 22nd January, 2010 for effective implementation of the Bangalore Principles of Judicial Conduct referred to the responsibilities of States to ensure guarantees, through constitutional or other means, on judicial independence. One of the guarantees required to be provided by the State to maintain judicial independence is that the legislative or executive powers that may affect Judges in respect of their office, their renumeration, conditions of service or other resources, shall not be used with the object or consequence of threatening or bringing pressure upon a particular Judge or Judges.
2525. In his address dated 24.05.1949, Dr. B.R. Ambedkar stated that: -
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“There can be no difference of opinion in the House that our judiciary must be both independent of the executive and must also be competent in itself. And the question is how these two objects can be secured”.
2626. Article 50 of the Constitution of India provides that the State shall take steps to separate the judiciary from the executive in the public services of the State. The concept of separation of judiciary from executive cannot be confined only to the subordinate judiciary, totally discarding the higher judiciary. If such a narrow and pedantic or syllogistic approach is made and a constricted construction is given, it would lead to an anomalous position that the Constitution does not emphasise the separation of higher judiciary from the executive20. Article 50, occurring in a chapter described by Granville Austin as “the conscience of the Constitution” in his work titled ‘The Indian Constitution: Cornerstone of a Nation’, underlines the importance given by the Constitution-makers to immunize the judiciary from any form of executive control or interference. 21 D
2727. The independence of the judiciary is a fighting faith of our Constitution. It is the cardinal principle of the Constitution that an independent judiciary is the most essential characteristic of a free society like ours and the judiciary which is to act as a bastion of the rights and freedom of the people is given certain constitutional guarantees to safeguard the independence of judiciary. An independent and efficient judicial system has been recognised as a part of the basic structure of our Constitution.22
2828. Article 37 of the Constitution declares that the principles laid down in Part IV of the Constitution are fundamental in the governance of the country and it should be the duty of the State to apply the principles in making laws. Undoubtedly, it is true that the provisions of Part IV are not enforceable by the courts of law. However, this does not absolve the obligation of the State from applying the principles of Part IV in making laws. It is necessary to remind ourselves of what Dr. B.R. Ambedkar stated in the Constituent Assembly on 19.11.1948 of Part IV, which is as under: - 20 Supreme Court Advocates-on-Record Association & Ors. v. Union of India (1993) 4 SCC 441 21 Union of India v. Sankalchand Himatlal Sheth & Anr. (1977) 4 SCC 193 22 Supreme Court Advocates-on-Record Association & Ors. v. Union of India (supra) H
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A “It is the intention of this Assembly that in future both the legislature and the executive should not merely pay lip services to the principles enacted in this part, but they should be made the basis of all executive and legislative action that may be taken hereafter in the matter of governance of the country”.
2929. Impartiality, independence, fairness and reasonableness in decision-making are the hallmarks of the judiciary. If “impartiality” is the soul of the judiciary, “independence” is the lifeblood of the judiciary. Without independence, impartiality cannot thrive. Independence is not the freedom for Judges to do what they like. It is the independence of judicial thought. It is the freedom from interference and pressures which provides the judicial atmosphere where he can work with absolute commitment to the cause of justice and constitutional values. It is also the discipline in life, habits and outlook that enables a Judge to be impartial. Its existence depends however not only on philosophical, ethical or moral aspects but also upon several mundane things—security in tenure, freedom from ordinary monetary worries, freedom from influences and pressures within (from others in the judiciary) and without (from the executive)23. The independence of an individual Judge, that is, decisional independence; and independence of the judiciary as an institution or an organ of the State, that is, functional independence are the broad concepts of the principle of independence of the judiciary/ tribunal24. E
3030. Individual independence has various facets which include security of tenure, procedure for renewal, terms and conditions of service like salary, allowances, etc. which should be fair and just and which should be protected and not varied to his/her disadvantage after appointment. Independence of the institution refers to sufficient degree of separation from other branches of the Government, especially when the branch is a litigant or one of the parties before the tribunal. Functional independence would include method of selection and qualifications prescribed, as independence begins with appointment of persons of calibre, ability and integrity. Protection from interference and independence from the executive pressure, fearlessness from other power centres — economic and political, and freedom from prejudices
23 MBA-I 24 Supreme Court Advocates-on-Record Association & Anr. v. Union of India (2016) H 5 SCC 1
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acquired and nurtured by the class to which the adjudicator belongs, are A important attributes of institutional independence25.
3131. The fundamental right to equality before law and equal protection of laws guaranteed by Article 14 of the Constitution, clearly includes a right to have the person’s rights adjudicated by a forum which exercises judicial power in an impartial and independent manner. 26 B
3232. The constitutional mandate is that the legislature should adhere to the principles laid down in Part IV of the Constitution of India while enacting legislations. No provision shall be made in legislative acts which would have the tendency of making inroads into the judicial sphere. Any such encroachment by the legislature would amount to violating the C principles of separation of powers, judicial independence and the rule of law. Independence of courts from the executive and the legislature is fundamental to the rule of law and one of the basic tenets of the Indian Constitution. Separation of powers between the three organs, i.e., the legislature, the executive and the judiciary, is a consequence of the principles of equality as enshrined in Article 14 of the Constitution27. D Any incursion into the judicial domain by the other two wings of the Government would, thus, be unconstitutional. Judicial decisions and legislative overruling I. Comparative Jurisdictions E
3333. It would be profitable to refer to the reaction of courts to legislative override in comparative jurisdictions. Chief Justice John Marshall of the US Supreme Court in Marbury v. Madison28 referred to the Constitution as the fundamental and paramount law of the nation. He declared that “It is emphatically the province and duty of the F judicial department to say what the law is.” In United States v. Peters29, Chief Justice Marshall speaking for an unanimous Court said that “If the legislatures of the several states may at will annul the judgments of the Courts of the United States, and destroy rights acquired under those judgments, the Constitution itself becomes a solemn mockery…” G 25 Rojer Mathew (supra) 26 MBA-I 27 State of Tamil Nadu v. State of Kerala & Anr. (supra) 28 5 U.S. 137 (1803) 29 9 U.S. 115 (1809) H
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3434. In Brown v. Board of Education of Topeka30, the United States Supreme Court held that the Fourteenth Amendment forbids states to use governmental powers to bar children on racial grounds from attending school where there is states’ participation through any arrangement, management, funds or property. The Governor or legislature cannot declare that they are not bound by the judgment mentioned above. B The Board of Little Rock’s Central High School suspended its plan to do away with desegregation in public schools. The said action of the school was rejected by the District Court which was affirmed by the Court of Appeal. There was an amendment to the Arkansas Constitution pursuant to which a law was made relieving school children from compulsory attendance at racially mixed schools. The school filed a petition in the District Court seeking postponement of the programme of desegregation. The District Court allowed the writ petition. The Court of Appeal reversed the decision of the District Court which was affirmed by the United States Supreme Court in Cooper v. Aaron31. It was held therein that the constitutional rights of children not to be discriminated against in school admissions on grounds of race or color as declared by the United States Supreme Court in the Brown case can neither be nullified openly and directly by state legislators or state executives or judicial officers, nor nullified indirectly by them through evasive schemes for segregation. The Supreme Court declared that the principles announced in the decision of Brown v. Board of Education (supra) are indispensable for the protection of the freedoms guaranteed by the fundamental charter.
3535. Chief Justice Warren speaking for the majority in Miranda v. Arizona32, declared that a person in custody must, prior to interrogation, be clearly informed that he has the right to remain silent, and that anything he says will be used against him in a court. He must be clearly informed that he has the right to consult with a lawyer and have the lawyer with him during interrogation and, that, if he is indigent, a lawyer will be appointed to represent him. The Congress enacted § 3501 which provided that a confession shall be admissible in criminal prosecution brought by the United States or by the District of Columbia if it is voluntarily given. G Charles Thomas Dickerson charged with a robbery and use of a firearm moved the District Court to suppress his statement which he made to the Federal Bureau of Investigation (FBI) that he has not received 30 347 U.S. 483 (1954) 31 358 U.S. 1 (1958) 32 H 384 U.S. 436 (1966)
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Miranda warnings. The motion to suppress was quashed by the District A Court which was reversed by the United States Court of Appeal for the Fourth Circuit on the basis of the enactment § 3501. The United States Supreme Court in Dickerson v. United States 33 authoritatively pronounced that the Congress cannot legislatively supersede a decision of the Supreme Court interpreting and applying the Constitution. As B Miranda amounts to a constitutional rule, the Supreme Court concluded that the Congress cannot supersede the judgment legislatively. The learned Attorney General referred to an article written by Erwin Chemerinsky titled “The Court should have remained silent: Why the Court erred in deciding Dickerson v. United States”34. The said article is a critical analysis of the judgment of the Supreme Court in Dickerson C wherein the author wrote that the desire to rule on the constitutionality of the law simply does not justify the courts raising it sua sponte. He opined that the Fourth Circuit and ultimately the Supreme Court violated the separation of powers by considering § 3501 over the objection of the executive branch. In Dickerson, the justice department informed the D Supreme Court that it was not invoking § 3501 and that it could not use the confession only if the Court found that Miranda warnings were not properly administered. In spite of the submission made by the justice department, the Fourth Circuit ruled on the admissibility of the confession on the basis of § 3501. Chemerinsky argues in his article that the judiciary exceeded its jurisdiction in considering § 3501 when none of the parties raised the issue.
3636. Justice Scalia speaking for the majority in Plaut v. Spendthrift Farm, Inc.35 referred to earlier judgments of the United States Supreme Court which held that a judicial decision becomes the last word of the judicial department with regard to a particular case or controversy, and the Congress may not declare by retrospective action that the law applicable to that very case or a whole class of cases was something other than what the courts said it was. Justice Scalia held that depriving judicial judgments of the conclusive effect that they had when they were announced would be in violation of separation of powers. G
33 530 U.S. 428 (2000) 34 Erwin Chemerinsky, The Court Should Have Remained Silent: Why the Court Erred in Deciding Dickerson v. United States, 149 Pennsylvania Law Review 287- 308 (2001) 35 514 U.S. 211 (1995) H
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