Case Title: Madras Bar Association v. Union of India
By a 2:1 majority, the Supreme Court overturned provisions in the Tribunals Reforms Ordinance 2021 that set the term of members of several tribunals at four years.
The majority, which included Justices L Nageswara Rao and S Ravindra Bhat, found that the period specified in the present Ordinance is contrary to the principles laid down by this Court in Union of India v. R. Gandhi, Madras Bar Association v. Union of India (2015) etc. in which the term of a Tribunal member is suggested to be of five years. As a result, the bench overruled such provisions. Justice Hemant Gupta dissented, arguing that legislation cannot be overturned just because it contradicts previous decisions.
The majority ruled in its decision in the writ action brought by the Madras Bar Association contesting the Ordinance that its restrictions will not apply to appointments made before February 4, 2021. ( the date when the Ordinance was notified).
The Madras Bar Association petitioned the Supreme Court to challenge the Tribunals Reforms (Rationalization and Conditions of Service) Ordinance 2021, which alters Sections 184 and 186 of the Finance Act 2017.
Sections 184 and 186 of the Finance Act 2017 grant the Central Government rule-making authority over the appointment, terms of service, and allowances of members of various Tribunals.
The majority also deemed unconstitutional the following conditions imposed by the Tribunals Ordinance 2021 via its amendment to the Finance Act 2017:
The provision fixing the minimum age limit of 50 years for appointment as tribunal members was struck down being contrary to the direction in earlier cases which suggest that advocates with minimum experience of 10 years should be made eligible.
The provision prescribing that the Search cum Selection Committee will recommend two names for each post was struck down being contrary to the direction in previous judgments that the committee should only recommend one name for each post.
The provision prescribing that the Union Government should make appointments "preferably within three months" of recommendation by the Search-cum-Selection committee was struck down as the earlier judgment in Madras Bar Association Case had issued a mandatory direction that the appointments should be made within 3 months of recommendation by the Search-cum-Selection Committee.