On 10 August 2026, the Lok Sabha passed the Tribunals Reforms Bill, 2026, seeking to improve the efficiency, independence, transparency and uniformity of tribunals across the country. The Bill proposes the establishment of a National Tribunals Commission (NTC) and introduces a common framework governing appointments, qualifications, service conditions and administration of various tribunals.
Background:
The Tribunals Reforms Bill, 2026 has been introduced as part of the ongoing effort to streamline India’s tribunal system. Earlier reforms undertaken through the Finance Act, 2017 led to the merger or abolition of several tribunals, while the Tribunals Reforms Act, 2021 sought to create a common framework governing the appointment, tenure and service conditions of tribunal Chairpersons and Members.
Subsequently, in Madras Bar Assn. (6) v. Union of India, (2026) 2 SCC 1, the Supreme Court invalidated certain provisions of the 2021 Act, holding them inconsistent with the principles of judicial independence and separation of powers. The Court also called for the creation of an independent National Tribunals Commission with professional expertise and a transparent oversight mechanism for tribunal appointments and administration.
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The Tribunals Reforms Bill, 2026 seeks to address these concerns by establishing a National Tribunals Commission, creating a uniform framework for appointments and service conditions, and introducing a centralised oversight mechanism for major tribunals, including CESTAT, CAT, SAT, DRTs, DRATs, TDSAT, NGT, NCLAT, NCDRC, Industrial Tribunals and ITAT.
Key Highlights:
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The Bill establishes a National Tribunals Commission (NTC) to oversee appointments, administration and functioning of tribunals.
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The Commission will consist of Chairperson and four Members, including two Judicial Members and two Technical Members, and will be headquartered in New Delhi.
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A former Supreme Court Judge or Chief Justice of a High Court will be eligible for appointment as Chairperson of the Commission. The Central Government is required to consult the Chief Justice of India before appointing the Chairperson of the Commission or its Judicial Members.
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A Judicial Member must have served as a Chief Justice or Judge of a High Court, while a Technical Member must be a person of ability, integrity and standing with at least twenty-five years of experience in public administration, finance, law, accountancy, banking, management or technology.
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Section 4 empowers the Commission to conduct selection processes through Search-cum-Selection Committees, review tribunal performance, oversee inquiries against tribunal members and maintain a National Tribunals Data Grid.
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The National Tribunals Data Grid will function as a central repository of case-related information pertaining to tribunals covered by the legislation.
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Section 14 introduces a uniform framework governing qualifications, appointments, salaries, allowances, resignation, removal, reappointment and other service conditions of tribunal Chairpersons and Members.
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All appointments to tribunals covered by the Bill will be made by the Central Government on the recommendation of the Search-cum-Selection Committee. Each Search-cum-Selection Committee is required to include a retired Chief Justice or Judge of a High Court, a Secretary to the Government of India, a Technical Member of the Commission, and two empanelled domain experts, in addition to its Chairperson.
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The Central Government will be required to make appointments within three months of receiving recommendations from the Search-cum-Selection Committee.
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The Secretariat will be required to communicate recommendations of the Search-cum-Selection Committee to the Central Government within 3 days of such recommendation.
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Section 15 provides for empanelment of domain experts to assist in assessing the suitability of candidates for tribunal appointments.
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The Bill prescribes a structured procedure for inquiry and removal of tribunal Chairpersons and Members on grounds including misconduct, incompetence and abuse of position. The Chairperson or a Member of the Commission itself can be removed only after being informed of the charges and given a reasonable opportunity of being heard, in an inquiry conducted by a committee headed by a sitting Judge of the Supreme Court.
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The Chairperson of a tribunal will hold office for five years or until attaining the age of 70 years, whichever is earlier.
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Members of tribunals will hold office for five years or until attaining the age of 67 years, whichever is earlier, and will be eligible for consideration for reappointment.
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The First Schedule identifies 16 tribunals and appellate tribunals that will be governed by the Tribunals Reforms Act, 2026, including CESTAT, CAT, State Administrative Tribunals, SAT, DRTs, DRATs, TDSAT, NGT, NCLAT, NCDRC, Industrial Tribunals and ITAT.
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Section 18 empowers the Central Government to amend the First Schedule through notification for bringing additional tribunals within the framework of the Act.
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The Commission will be supported by a Secretariat headed by an officer of the rank of Secretary to the Government of India, and its annual reports and audited accounts will be laid before Parliament.
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Section 18 read with the Second Schedule amends the parent laws governing covered tribunals so that qualifications, appointments, tenure, reappointment and service conditions of their Chairpersons and Members are governed by a common framework under the Tribunals Reforms Act, 2026.
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The Bill repeals the Tribunals Reforms Act, 2021 while preserving existing appointments, proceedings, rights and actions taken under the earlier framework.
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The Bill’s Financial Memorandum estimates an annual cost of approximately ₹27.14 crore for establishing and running the Commission and its Secretariat, comprising ₹24.79 crore in recurring expenditure and ₹2.35 crore in non-recurring expenditure, with built-in year-on-year increases in subsequent years.
[Tribunals Reforms Bill, 2026, dated 10-8-2026]