Madras Bar Association v. Union of India

Writ Petition (Civil) · 2020 INSC 666Decided 27 Nov 2020
Writ Petition (Civil) No. 804 of 2020
Justice L. Nageswara Rao · Justice Hemant Gupta · Justice S. Ravindra Bhat

Background

This was the latest round in a long-running dispute over how members of India's specialised tribunals (such as tribunals dealing with tax, company law, securities and competition matters) are selected and how long they serve. The Madras Bar Association challenged the "Tribunal, Appellate Tribunal and other Authorities (Qualification, Experience and Other Conditions of Service of Members) Rules, 2020," arguing these rules, framed by the government after the Supreme Court had already struck down an earlier, similar set of rules in 2019 (the Rojer Mathew case), again failed to protect the independence of tribunals from executive control. Multiple connected petitions, transfer petitions and appeals on the same subject were clubbed together and decided in this single judgment.

Decision Breakdown

The Court held that while the government has the power to frame these rules, several provisions of the 2020 Rules undermined judicial independence and needed modification. It directed that a National Tribunals Commission be set up to independently oversee tribunal appointments and discipline; restructured the Search-cum-Selection Committees to give the Chief Justice of India's nominee a stronger, casting-vote role; fixed a uniform five-year tenure for tribunal members with eligibility for reappointment, raised the retirement age to 67, and ordered the government to pay house-rent allowance if it could not provide housing. The Court also ruled that the 2020 Rules could only apply prospectively (from 12 February 2020) and not retrospectively, and it closed with a pointed "Epilogue" criticising the government for repeatedly re-issuing rules that ignored the Court's prior directions, warning this must stop.

Lesson Learnt

Even when the executive has the statutory power to frame rules for quasi-judicial bodies, those rules must still respect constitutional guarantees of judicial independence: the Supreme Court will keep striking down and rewriting rules that effectively let the government control who judges disputes against it, and how long they keep their jobs.

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