CII Calls for Centralised Oversight Mechanism for Indian Tribunals

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A Transformational Step in Justice Delivery

The Confederation of Indian Industry (CII) has strongly advocated for the establishment of a centralised oversight mechanism for tribunals in India. According to the industry body, such a reform would significantly enhance the responsiveness, efficiency, and transparency of India's quasi-judicial system. This step, CII suggests, is essential for boosting regulatory credibility, improving the ease of doing business, and strengthening investor confidence.

Role and Relevance of Tribunals

Tribunals play a crucial role in India's justice delivery framework. They are quasi-judicial bodies that adjudicate on complex and specialised matters in areas such as labour, environment, taxation, company law, and public services. Unlike traditional courts, tribunals are designed to provide speedy and expert resolution of domain-specific disputes.

Currently, over 16 central tribunals operate under different ministries, directly impacting critical sectors of the Indian economy. For instance, the National Company Law Tribunal (NCLT) handles corporate law matters under the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016. Its decisions have direct implications on corporate debt resolution, investor protection, and financial system stability.

Fragmented Administration and Absence of Oversight

Despite their significance, Indian tribunals currently suffer from fragmented administrative control, with different ministries and departments managing them independently. This decentralised setup has led to policy inconsistencies, lack of standardisation, and functional inefficiencies.

One of the major shortcomings, as highlighted by CII, is the absence of a centralised body responsible for real-time performance monitoring, data tracking, capacity building, and independent grievance redressal. In contrast, the conventional court system benefits from the National Judicial Data Grid, which provides detailed real-time statistics on court functioning across India.

Pending Disputes and Economic Implications

The inefficiency of tribunal administration also has fiscal consequences. According to CII, as of 31 December 2024, a staggering Rs 6.7 trillion worth of tax disputes were pending before the Income Tax Appellate Tribunal (ITAT). This constituted 57% of all litigated direct tax amounts in the country.

Such a backlog not only strains the judicial machinery but also delays economic resolution, tying up valuable fiscal resources. Improving the functioning of tribunals is, therefore, essential for economic governance and ease of doing business.

Legislative Support and Proposed Structure

CII recommends that a centralised oversight mechanism should be backed by legislative amendments to the Tribunals Reforms Act, 2021. These amendments should clearly define the structure, scope, mandate, and responsibilities of the proposed central body.

Such an authority could be entrusted with the following key functions:

• Monitoring tribunal performance through real-time data

• Coordinating with Search-Cum-Selection Committees for appointments

• Capacity building and training of tribunal members

• Independent grievance redressal mechanisms

• Ensuring uniformity and coherence in tribunal operations across ministries

Judicial Endorsement and Past Recommendations

The demand for a centralised tribunal oversight body is not new. The Supreme Court of India had first proposed the idea in L. Chandra Kumar v. Union of India (1997). In this case, the Court observed that one of the primary reasons behind tribunal inefficiency was the lack of a supervisory authority. It even suggested that such a body could be set up under the Ministry of Law and Justice until a fully independent agency was constituted.

The idea was later reinforced in Madras Bar Association v. Union of India (2020), where the apex court directed the Union of India to establish a National Tribunals Commission at the earliest.

Additionally, the Law Commission of India in its 272nd Report (2017) also recommended the formation of a centralised oversight mechanism to address the chronic issues plaguing tribunals, including persistent vacancies, delayed appointments, and infrastructure gaps.

Addressing Persistent Challenges

While the Tribunals Reforms Act, 2021 sought to streamline the functioning of tribunals, the implementation gaps remain unresolved. The absence of real-time data, frequent vacancies, and lack of uniform standards continue to undermine tribunal efficacy.

CII argues that only a dedicated centralised institution can address these systemic issues, introduce evidence-based reforms, and enhance public trust in quasi-judicial bodies.

Conclusion: A Necessary Reform for Future-Ready Justice

In conclusion, CII’s recommendation for setting up a centralised oversight mechanism is a critical reform that aligns with India’s goal of creating a more efficient, credible, and investor-friendly regulatory environment. By bringing accountability, performance monitoring, and structural uniformity to tribunals, the government can not only ease the burden on the traditional judiciary but also unlock economic potential tied up in unresolved disputes.

A National Tribunals Commission is not just a policy recommendation — it is a long overdue necessity to realise the vision of future-ready justice delivery in India.

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