Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Finance Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
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Case Type | Writ Petition |
Court | Supreme Court of India |
Disposal Nature | Petition Disposed Off |
Headnote | Tribunals – Finance Act, 2017 – ss.184 and 186(2) [as amended by the Tribunal Reforms (Rationalisation and Conditions 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, 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 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 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 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 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 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 – 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, 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 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 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 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 Service of Members) Rules, 2020 – Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of Service of Members) (Amendment) Rules, 2021 – Constitution of India – Arts. 14, 21 and 50. |
Judge | Hon'ble Mr. Justice L. Nageswara Rao |
Neutral Citation | 2021 INSC 332 |
Petitioner | Madras Bar Association |
Respondent | Union Of India And Anr. |
SCR | [2021] 5 S.C.R. 791 |
Judgement Date | 2021-07-14 |
Case Number | 502 |
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