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Tribunalisation in India: Delays, Overreach and Reforms

11 March 20251 min read
NATIONAL AFFAIRSTribunalisation inIndia: Delays,Overreach andReforms11 March 2025safalsetu.com

Why in the news

Tribunals were created to reduce pressure on courts, but the trend of tribunalisation has produced slow, overloaded bodies that repeat the courts’ own problems.

Key facts

  • A tribunal is a quasi-judicial body that settles administrative, tax and similar disputes outside the regular court system.
  • NCLAT merged with the Competition Appellate Tribunal (COMPAT) in 2017; it now hears Companies Act, IBC and competition matters, causing delays and lost competition expertise.
  • DRT, set up to speed loan recovery, holds 215,431 pending cases; recovery dropped to 9.2% in 2022-23.
  • APTEL has vacancies that hold up reforms in the power sector.
  • The AGR case, where the Supreme Court reversed a TDSAT ruling, shows how overturned decisions erode credibility.

Tribunal problems at a glance

Body or issueProblem
NCLATOverloaded after merger; slower resolution
DRTHuge backlog; poor recovery
APTELVacancies; delayed power sector reform
AppointmentsRetired judges and bureaucrats dominate; little technical expertise
OversightNo central regulatory authority
AppealsHigh Courts and Supreme Court often override tribunals (e.g. CAT cases under Articles 226/227)

Concerns

  • Delays create regulatory uncertainty, deterring investment in finance, energy and telecom.
  • Merging tribunals into courts has not helped; it adds to the judiciary’s load.
  • Post-retirement placements may lack accountability.

Way forward

  • Follow L. Chandra Kumar (1997) and create an independent oversight authority.
  • Form a National Administrative Appellate Tribunal for CAT and SAT appeals.
  • Introduce double-shift working (discussed in 2011) and use better case management and digitisation.
  • Appoint domain experts on merit, not only retired judges and bureaucrats.
  • Government must give tribunal reform priority.

Exam angle

  • COMPAT merged into NCLAT: 2017.
  • L. Chandra Kumar case: 1997; Law Commission 272nd Report: 2017.
  • Proposed body: National Administrative Appellate Tribunal.

Test yourself

1. Which tribunal merged with the Competition Appellate Tribunal (COMPAT) in 2017, leading to an overloaded docket?

NCLAT absorbed COMPAT in 2017 and now also hears competition cases.

2. What was the recovery rate of the Debt Recovery Tribunals in 2022-23, as cited in the notes on tribunalisation?

DRT recovery rates fell to just 9.2% in 2022-23.

3. Which Supreme Court case of 1997 is cited for recommending independent oversight of tribunals?

The notes link the oversight authority idea to the L. Chandra Kumar (1997) recommendations.