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Showing posts with label tribunals. Show all posts
Showing posts with label tribunals. Show all posts

Saturday, December 1, 2012

Legalising Tribunals: A Judicial Sell Out?

Posted on 5:49 AM by Unknown
In a watershed development, the Government of India announced that it is now considering an umbrella legislation for all tribunals. Those of you tracking this space will appreciate that tribunalisation has been one of the most contentious issues in India, with  fresh constitutional challenges filed against tribunals almost every year. 


Essentially a creature of Mrs Gandhi's anxiety to rein in the power of a fiercely independent judiciary, tribunals were set up as allegedly speedy and specialised alternatives to regular courts. As expected, they were staffed for the most part with executive stooges, raising serious issues about their impartiality and independence. As tellingly noted by Justice Ruma Pal (a former judge of the Supreme Court) in her Tarkunde memorial lecture :

"It has been said of Britain by a British judge that “the reputation of the judiciary for independence and impartiality is a national asset of such richness that one government after another tries to plunder it.” The same could be said of the Indian judiciary.

...The year 1976 saw the Executive deliver what they must have perceived as the coup de grace against a stubbornly independent judiciary by the enactment of the 42nd Constitutional amendment which introduced Articles 323A and 323B, authorising legislatures to create tribunals for adjudicating disputes.."

Controversial Appointments/Other Tribulations:


Appointments to many of these tribunals have been highly controversial. In a case highlighted by us on this blog, an appointment to the IPAB (Intellectual Property Appellate Tribunal) was made on the basis of an application by a candidate who attempted to demonstrate his trademark expertise by claiming to have represented clients in a legal dispute dating back to 1880's, almost eight decades before he was born! Perhaps the first time that a job applicant expressly relied on the concept of reincarnation to bolster his application!

Most worryingly perhaps, a survey of our tribunals reveals that the government has meted out what can only be described as shabby treatment, denying tribunals access to adequate resources and personnel, as befitting a high level judicial body. When I visited the IPAB in Chennai around a year ago, I was aghast to see a large part of the IPAB's floor space littered with files, since there was no other space for them. It turns out that this piling up had even caused an employee of the IPAB to trip, fall and break his hand!  Little wonder then that many judges often refuse offers to head up these tribunals! 

Most importantly perhaps, the twin advantages upon which tribunals had been initially been premised (namely, "speedy" and "specialised" justice) do not appear to have played out in a large number of cases. 

IPAB Challenge:

It is for these reasons that we challenged the constitutionality of one such tribual, the intellectual property appellate tribunal (IPAB) almost two years ago in a public interest litigstion (PIL) before the Madras High Court. Unfortunately, this challenge has not made any significant progress so far, and the court has not even begun to apply its mind to the serious constitutional issues at stake. 

What makes this delay even more tragic is the fact that this is not a new issue before the court; rather courts have been confronted with constitutionality challenges for the last two decades or so. And in the famous NCLT case, the Supreme Court laid down very clear norms governing the constitutionality of tribunals. Amongst other things, the apex court noted that only those with serious judicial mettle ought to be appointed to tribunals and that such appointments must be largely free of executive influence. All that the Madras HIgh Court has to do is to apply these norms to the facts at hand and voila.. it will be self evident (to even a six year old) that the IPAB is not on firm constitutional footing. 

Further, this case is one of those exceptional ones where the Chairman of the IPAB herself went on record calling for a thorough restructuring of the IPAB to bring it in line with the Supreme Court's ruling in the NCLT case.

New PIL by Datar/Reddy Contribution:

Arvind Datar, the crusader behind the NCLT case, filed another PIL earlier this year before the Supreme Court highlighting a select set of tribunals and their abysmal record/performance as also the various constitutional infirmities plaguing them. And it is this new PIL that has triggered this welcome reaction from the government to seriously consider an umbrella legislation to place tribunals on a more efficient and constitutionally sound footing (under the overall superintendence of the law ministry). 

The Indian Express reports:

"The government is working on bringing all Central tribunals including the Intellectual Property Appellate Board and the Telecom Disputes Settlement and Appellate Tribunal under the law ministry.

An inter-ministerial group (IMG) is meeting on Friday on the issue to discuss the modalities of the framework. The move comes after the Supreme Court issued a notice to the Centre, based on a PIL filed by the Madras Bar Association, asking it to bring all tribunals under the law ministry.

“All the departments which have tribunals will put forward their view point on how to bring all tribunals under one umbrella. There are around 20 tribunals and they need to be brought under one ministry as per the apex court’s direction,” an official told said.

The idea of bringing all tribunals is essentially to better regulate the appointment, removal or administration of these bodies. Also, funding of such bodies will also be looked after by the law ministry.

The PIL had argued that tribunals functioning under different ministries had affected their functioning and in some cases had also resulted in appointment of members not qualified to practice."

I have to mention that a large part of the credit for all of this goes to Prashant Reddy  who took the lead in drafting and filing the IPAB petition. He then worked tirelessly to gather  data on various other tribunals to demonstrate their pitfalls; it was this data and several of his arguments that constituted the writ that Mr Datar finally filed in the Supreme Court (SC) on behalf of the Madras Bar Association. I am glad that his efforts appear to be finally paying off!


Tribunals vs High Court "Special" Benches:

However, the debate is far from over. As our polls demonstrated, many prefer specialised HIgh Court benches to specialised tribunals. Leading senior counsel, Mukul Rohatgi went on record in a lively TV debate some weeks ago vociferously demanding that, rather than wasting precious time and resources on tribunals, we'd be better off if we simply instituted specialised benches (an IP bench, a competition bench etc) at the various High Courts. 

This line of thought finds resonance in Justice Pal's speech as well, where she labels the NCLT approach as a classic judicial sell out! In her words:

"Although the Supreme Court intrepidly asserted the independence of the judiciary to justify virtually excluding the Executive from having any real say in the appointment of judges, it was timorous in defending the same independence when it was most needed, namely in answering the question of whether the powers of adjudication can be shared with the Executive. Under the Constitutional scheme, in keeing with the separation of powers, judicial functions are to be performed by the judiciary alone and not by the Executive. 

....In a Kalidas-like action of cutting the branch of the Constitutional tree on which the Judiciary is sitting and what in less picturesque language one can only describe as a judicial sell out to the Executive, the Supreme Court has upheld legislations establishing tribunals in a number of decisions subject to certain "adjustments" in the law which are more in the nature of sops to the concept of judicial independence rather than an assertion of it."

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Posted in Constitution, IPAB, judicial independence, tribunals | No comments

Thursday, November 1, 2012

Central Govt. dragged to the High Court over securities tribunal: When will the Govt. learn?

Posted on 6:36 PM by Unknown

The struggle against the Central Government apathy towards the tribunal system, including the IP tribunals, continues with yet another Public Interest Litigation filed by Delhi based lawyers in the High Court of Delhi questioning, amongst other practices, the functioning of the Securities Appellate Tribunal (SAT) without the presence of a Presiding Officer. The tribunal is a three member tribunal, with two members and one Presiding Officer who is required by the SEBI Act to be a retired judge of the High Court or Supreme Court. In the normal course, the Presiding Officer is the only judicial member, with judicial experience since the other two members are usually civil servants with no judicial experience.

The writ petition filed before the Delhi High Court can be accessed over hereand for an article by Amit Agarwal, the lawyer representing the petitioner, please click hereto read the same on the IndiaCorpLaw blog. The last order of the Delhi High Court can be read over here.

The primary contention of the petitioners in this case is that SAT is currently functioning in contravention of the SEBI Act since it is functioning without the presence of a Permanent Presiding Officer, who is required to be a former judge of the High Court or the Supreme Court. The last such presiding officer, Justice Sondi retired in November, 2011. Since then the tribunal has been functioning with just two technical members who are former civil servants with no judicial experience.  

In addition the petitioner also expresses deep concern about the appointment process to SAT, especially the fact that the entire process appears to be leaning in favour of only civil bureaucrats and that the Executive seems to have overwhelming control of the appointments.  The current rules which allow for SAT to function in the complete absence of a judicial officer are also being challenged by the petitioner.  

Interestingly, the government’s handling of appointments to SAT has already come under scathing attack by a Parliamentary Standing Committee. The report can be accessed over here. In pertinent part the petitioner quotes the following paragraph from the Standing Committee Report, in support of his petition:

“30. There have been instances where the Ministry of Finance (Department of Economic Affairs) took unjustifiably long time for selecting the Members of SAT, owing to which, the incumbents were left with a short term in office, which in turn adversely affected the disposal of cases by the Tribunal. For instance, during the period 16 January to 9 June, 2009 a piquant situation arose when SAT could not function for want of quorum, which was owing to the delay in the selection/appointment process. The Committee desire to be furnished with a detailed report on the reasons for the undue delay in the selection process which led to the stalling of functioning of the Tribunal. Such instances also add credence to the Department of Personnel and Training’s circulars which, with reference to the selection process of Members of various Tribunals and Statutory bodies pointed out inter-alia that lack of wide publicity of the vacancies hinder and delay the selection process of the Members.

31. From the Statement of Objects and Reasons appended to the Bill as well as the submission made by the Ministry of Finance it is seen that selection of Members of SAT is by and large restricted to or weighed towards selecting retired civil servants, or civil servants on the verge of retirement. Moulding the selection process of members of SAT to include and consider younger persons with requisite qualifications and experience from a wider arena of fields will enable greater continuity and efficiency in the functioning of SAT. The Committee thus are of the view that apart from the induction age of Members the question of timely completion of the selection process and widening the arena of choice for selecting the Members also need to be addressed in right earnest by the Government.”

These problems are not new to the Indian tribunal system. Virtually every Indian tribunal, be it SAT or CLB or IPAB, has faced similar problems. Almost like clockwork, every five years, once the terms of the incumbents expires, we can expect a PIL in one of the High Courts by a lawyer requesting directions to the Central Government to speed up the process of the appointments. The Central Govt. then begins to run around like headless chickens with furious judges in the High Courts threatening contempt action. Inevitably, the process leads to at-least some flawed appointments not to mention a terrible backlog. Unfortunately, the Central Govt. never learns from its mistakes. The Supreme Court in the NCLT case had ordered the Central Govt. to streamline the entire process of appointments and delegate all such appointments to one ministry. The Supreme Court's order is yet to be implemented.

The Delhi High Court has cracked the whip on the Central Govt. in the present case and has ordered it to speed up the appointment process.

While PILs for speeding up the appointment process are usually successful, the larger substantive challenges often get bogged down in the High Courts. The IPAB challenge filed by Shamnad, almost 2 years ago is making almost no headway before the Madras High Court and I for one have lost all hope of it being decided anytime in the next decade. Similarly, the PIL filed by the Madras Bar Association (MBA), challenging virtually the entire tribunal system before the Supreme Court, which we blogged about over here, has not even been responded to by the Central Govt. Contrast this to the judgment of the Supreme Court in the Namit Arora case where the Supreme Court ruled on the constitutionality of the Central Information Commission in a record 2 months. There was a gap of just a few days between the filing of the Namit Sharma petition and the MBA petition. Yet, while one has already been decided the other is yet to even receive a response from the Central Govt.

Clearly in this land of equals some are more equal than the rest.  
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Posted in judicial independence, tribunals | No comments
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