CII Urges Govt To Establish Centralised Oversight Mechanism For Tribunals

In a research note released on Sunday, CII suggested that suitable amendments may be introduced in the Tribunals Reforms Act, 2021, to provide legislative backing to this exercise.

According to CII, enhancing the efficiency of tribunals is critical for unlocking substantial fiscal resources tied up in disputes and improving the overall ease of doing business.

Source : Freepik

Apex business chamber CII has urged the Government to set up a centralised oversight mechanism to ensure uniformity, policy coherence, and improvement in the overall performance of tribunals that adjudicate a large volume of cases in critical areas such as labour, environment, and taxes.

In a research note released on Sunday, CII (Confederation of Indian Industry) suggested that suitable amendments may be introduced in the Tribunals Reforms Act, 2021, to provide legislative backing to this exercise.

"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," the note said.

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

CII said that the administrative control of tribunals is currently fragmented across various ministries and departments, leading to a lack of standardisation and functional inconsistencies. A key concern for tribunals is the absence of real-time performance statistics, which limits the scope for undertaking evidence-based reforms. In contrast, such statistics are readily available for the entire court system of the country on the 'National Judicial Data Grid', maintained by the e-committee of the Supreme Court.

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, the note said.

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, the note observed.

CII has also cited several Supreme Court judgments and expert recommendations, including the 272nd Report of the Law Commission of India (2017), all of which advocate for the creation of a centralised oversight mechanism for tribunals.

Establishing a centralised oversight institution for tribunals would be a transformational step towards making India's justice delivery system more responsive, efficient, and future-ready, directly contributing to boosting regulatory credibility, improving ease of doing business and enhancing investors' confidence, the CII added.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)