TRIBUNALS REFORMS BILL, 2026 PASSED BY LOK SABHA ON 10 AUGUST 2026

National Tribunals Commission to oversee appointments, performance and functioning of major tribunals

New Delhi, 10 August 2026: The Lok Sabha has passed the Tribunals Reforms Bill, 2026, proposing a comprehensive framework to strengthen the independence, transparency, efficiency and uniformity of tribunals across India. The Bill seeks to replace the Tribunals Reforms Act, 2021 and establish an independent National Tribunals Commission for supervising the appointment and functioning of various tribunals.

The legislation has been introduced following the Supreme Court’s decision in Madras Bar Association v. Union of India, (2026) 2 SCC 1, which struck down certain provisions of the 2021 Act for being inconsistent with the principles of separation of powers and judicial independence. The Court had also directed the establishment of an independent and professionally competent National Tribunals Commission.

National Tribunals Commission

The proposed Commission will have its headquarters in New Delhi and will consist of:

--      A Chairperson who has been a Judge of the Supreme Court or Chief Justice of a High Court;

--      Two Judicial Members; and

--      Two Technical Members having at least 25 years’ experience in specified professional fields.

The Chairperson and Judicial Members will be appointed by the Central Government after consultation with the Chief Justice of India. They will hold office for five years or until attaining the age of 70 years, whichever is earlier.

Major responsibilities

The Commission will:

--        Conduct the selection process for Tribunal Chairpersons and Members;

--        Review the performance of tribunals;

--        Oversee inquiries into complaints against Tribunal Chairpersons and Members;

--        Submit an annual performance report to the Central Government; and

--        Develop and maintain a National Tribunals Data Grid containing case-related information of tribunals.

Uniform selection and tenure

Separate Search-cum-Selection Committees will recommend candidates for appointment. The Central Government will be required to process recommendations and make appointments within three months.

A Tribunal Chairperson will hold office for five years or until the age of 70 years, while a Member will hold office for five years or until the age of 67 years, whichever is earlier. Both will remain eligible for reappointment.

The Bill also provides a structured mechanism for investigating complaints and removing Tribunal Chairpersons or Members on grounds including insolvency, conviction involving moral turpitude, incapacity, conflict of interest, abuse of position, incompetence, inefficiency or undertaking paid assignments during their tenure.

Sixteen tribunals covered

The reform framework applies to 16 major tribunals and authorities, including the Central and State Administrative Tribunals, Income-tax Appellate Tribunal, National Green Tribunal, Armed Forces Tribunal, National Company Law Appellate Tribunal, Debts Recovery Tribunals, Securities Appellate Tribunal, Railway Claims Tribunal, Telecom Disputes Settlement and Appellate Tribunal, National Consumer Disputes Redressal Commission and Customs, Excise and Service Tax Appellate Tribunal.

Financial implications

The establishment and operation of the Commission and its Secretariat is estimated to involve an expenditure of approximately ?27.14 crore per annum, comprising recurring expenditure of ?24.79 crore and non-recurring expenditure of ?2.35 crore.

Significance

The Bill marks a major restructuring of India’s tribunal administration. By centralising appointments, performance review, complaint inquiries and tribunal data management under a dedicated Commission, it aims to reduce vacancies, improve institutional accountability and reinforce the independence and effectiveness of the tribunal system. The legislation will come into force on dates to be notified by the Central Government after completing the parliamentary and constitutional process. National Tribunals Commission to oversee appointments, performance and functioning of major tribunals



14 Aug 2026