Central Oversight for Tribunals: CII's Call for Justice Reform

New Delhi, May 25 (PTI) Establishing a centralised oversight institution for tribunals would significantly enhance India's justice delivery system, making it more responsive and efficient, industry body CII said on Sunday.

This move would also boost regulatory credibility, improve ease of doing business, and increase investor confidence, Confederation of Indian Industry (CII) added.

To provide legislative backing to this exercise, suitable amendments may be introduced in the Tribunals Reforms Act, 2021, defining the mandate, structure, scope, and responsibilities, according to CII.

Such a central body could undertake functions like performance monitoring, data tracking, coordination with the Search-Cum-Selection Committees, capacity building, and independent grievance redressal, it suggested.

The industry lobby argued that the administrative control of tribunals is currently fragmented across various ministries and departments, leading to a lack of standardisation and functional inconsistencies.

Enhancing the efficiency of tribunals is critical for unlocking substantial fiscal resources tied up in disputes and improving the overall ease of doing business.

For instance, as of December 31, 2024, Rs 6.7 trillion was pending resolution at the Income Tax Appellate Tribunal (ITAT) alone, which constituted nearly 57 per cent of all ligated direct taxes amount in the country, it noted.

Such a high figure highlights the magnitude of matters being adjudicated by tribunals, and the far-reaching implications on investment climate and economic growth, the industry body said.

"While the government has sought to address challenges through the Tribunal Reforms Act, 2021, constraints such as persistent vacancies, delayed appointments, inadequate infrastructure, lack of performance monitoring, and ineffective grievance redressal mechanism continue to undermine tribunals' effectiveness and efficiency," it noted.

Tribunals are quasi-judicial bodies designed to adjudicate domain-specific disputes in areas like taxation, company law, environmental regulation and public service matters, among others. Originally envisioned as a complement to the conventional court system, tribunals aim to ease the burden on the judiciary while enabling faster, expert-led adjudication in technically complex matters.

Today, over 16 central tribunals operate under different ministries across key sectors of the economy. These bodies directly impact the rule of law, economic governance, and ease of doing business.

For example, the National Company Law Tribunal (NCLT) plays a pivotal role in the implementation of the Companies Act, 2013, and the Insolvency and Bankruptcy Code, 2016, central to corporate debt resolution, investor confidence, and financial stability.