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Supreme Court of India
Constitutional Law

Tribunal Rules 2017 Struck Down, Money Bill Question Referred to Larger Bench: Supreme Court in Rojer Mathew

Published: · NyayVidhan

A Constitution Bench struck down the Tribunal Rules, 2017 framed under Section 184 of the Finance Act, 2017, for diluting the judiciary's role in appointing tribunal members, and ordered fresh rules. It referred to a larger Bench whether Part XIV of the Finance Act could be passed as a Money Bill, and held, by majority, that Section 184 is not excessive delegation (Gogoi CJI, paras 123, 228-230).

Tribunal Rules 2017 Struck Down, Money Bill Question Referred to Larger Bench: Supreme Court in Rojer Mathew

Judgment Intelligence

Disposed Of
Rojer Mathew v. South Indian Bank Ltd. & Ors.
2019 INSC 1236
Civil Appeal No. 8588 of 2019 with Writ Petition (Civil) No. 267 of 2012 and connected matters
Court
Supreme Court of India
Date of Decision
13 November 2019
Bench
Chief Justice Ranjan Gogoi, Justice N.V. Ramana, Justice D.Y. Chandrachud, Justice Deepak Gupta and Justice Sanjiv Khanna
Relevant Acts & Sections
Finance Act, 2017 - Part XIV and Section 184; Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of Service of Members) Rules, 2017; Constitution of India - Articles 110, 226, 227, 323-A and 323-B
Final Outcome

Batch disposed of: the Tribunal Rules, 2017 struck down with directions for fresh Rules and interim appointments under the parent statutes; the Money Bill issue referred to a larger Bench (Gogoi CJI, paras 228-231).

Source Supreme Court of India, www.sci.gov.in — judgment dated 13.11.2019

Key holdings

  1. The Tribunal Rules, 2017 are struck down in their entirety (Gogoi CJI, para 228).
  2. Fresh Rules must give uniform service conditions and assured tenure (Gogoi CJI, para 228).
  3. Until then, appointments follow the parent statutes as before the Finance Act, 2017 (Gogoi CJI, para 229).
  4. The Money Bill question and Aadhaar-5's reading of Article 110 go to a larger Bench (Gogoi CJI, paras 123, 228).
  5. A Judicial Impact Assessment of tribunals is directed by mandamus (Gogoi CJI, para 228).

Case explainer by NyayVidhan: an account of this judgment and the law it laid down, not the court's text. The judgment itself is the authoritative version.

Brief Facts

Part XIV of the Finance Act, 2017, passed as a Money Bill, amended tribunal statutes, and Section 184 let the Centre frame rules on members' qualifications and service conditions (Gogoi CJI, paras 2, 150). The Madras Bar Association and others challenged it, and the Court noted that L. Chandra Kumar's direction for a single nodal agency had not been implemented (Gogoi CJI, paras 3, 5). The Attorney General contended that the dominant provisions fell within Article 110(1)(a) to (f) (Gogoi CJI, para 121). Eight issues were framed, from the Money Bill certification to direct appeals to the Supreme Court (Gogoi CJI, para 92).

Court's Findings

Judicial review of the Speaker's Money Bill certificate is limited, but the majority in K.S. Puttaswamy (Aadhaar-5) did not lay down how Article 110(1) is to be read, so its correctness needs a larger Bench (Gogoi CJI, paras 110, 122-123). Section 184 is not excessive delegation, as the binding decisions of this Court guide the delegate (Gogoi CJI, paras 143, 148). The Search-cum-Selection Committees in the Rules dilute the judiciary's role and are an executive encroachment (Gogoi CJI, paras 157-158). Short three-year tenures increase executive control over members (Gogoi CJI, para 175). A tribunal must have a dominant judicial character, and Supreme Court and High Court judges are not one class for the same post (Gogoi CJI, paras 165-166). Direct statutory appeals to the Supreme Court undermine tribunalisation (Gogoi CJI, paras 216-217). Article 226 jurisdiction is part of the basic structure and cannot be diluted (Gogoi CJI, para 222). Gupta J. held Section 184 excessive delegation as to qualifications (Gupta J., para 32). Chandrachud J. held Part XIV could not be a Money Bill, but agreed to the reference (Chandrachud J., para 103).

Legal Principle

Rules on the appointment and service of tribunal members must preserve the judiciary's role and the independence of tribunals as laid down in L. Chandra Kumar and the Madras Bar Association cases; rules that let the executive dominate selection are invalid (Gogoi CJI, paras 157-158, 228).

Precedents Relied Upon

  1. L. Chandra Kumar v. Union of India (1997) 3 SCC 261
    Relied Upon Discussed at ¶ 5, 156

    Tribunals are subject to High Court writ jurisdiction; a single nodal agency should administer them.

  2. R.K. Jain v. Union of India (1993) 4 SCC 119
    Relied Upon Discussed at ¶ 155

    Need for an independent system of appointment and administration of tribunals.

  3. Madras Bar Association v. Union of India (2014) 10 SCC 1
    Relied Upon Discussed at ¶ 170

    Persons appointed to a court under a new name must have the attributes of the judges they replace.

View all precedents (5)
  1. Supreme Court Advocates-on-Record Assn. v. Union of India (2016) 5 SCC 1
    Applied Discussed at ¶ 157-158

    Primacy of the judiciary and exclusion of executive control in judicial appointments.

  2. Justice K.S. Puttaswamy (Retd.) v. Union of India (Aadhaar-5) (2019) 1 SCC 1
    Referred To Discussed at ¶ 113, 122-123

    Its reading of Article 110 doubted and referred for consideration by a larger Bench.

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Court Judgments · 2 min read
Decided: November 13, 2019 Chief Justice Ranjan Gogoi, Justice N.V. Ramana, Justice D.Y...
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