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SC strikes down Rules Governing Conduct of Tribunals introduced by Finance Bill, 2017 [Read Judgment]

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The Supreme Court in the case of Rojer Mathew v South Indian Bank Ltd. by has struck down Tribunal, Appellate Tribunals and other Authorities (Qualification and other Conditions of Service of Members) Rules, 2017 and directed the appointments in terms of respective statutes as existed before the enactment of the Finance Bill, 2017.

The constitutionality of Part XIV of the Finance Act, 2017 and the rules framed in consonance were in question along with the issue of whether it satisfies the test of a ‘money bill’ under Article 110 of the Constitution in the present petition. The Finance Act by was of its provisions has amended 25 central enactments which form the foundation for multiple Tribunals.

The Bench constituting of Justices Ranjan Gogoi, NV Ramana, Dr DY Chandrachud and Deepak Gupta as an interim relief struck down Tribunal, Appellate Tribunal and other Authorities (Qualification and other Conditions of Service of Members) Rules, 2017 and directed the appointments in terms of respective statutes as before the enactment of the Finance Bill, 2017 ruled on the basis of the following aspects majorly:

1) With respect to the composition of Search-cum-Selection Committees, it has been held that the manner whereby appointments of Member, Vice-President and President are predominantly made by nominees of the Central Government, the role of the judiciary is virtually absent. The scheme hence is in direct contravention to the doctrine of separation of powers and is in effect an encroachment by the executive on the judiciary.

2) With respect to the rules prescribing qualifications of members and presiding officers, the technical members are appointed without any adjudicatory experience in contravention to the legal position that judicial functions cannot be performed by technical members devoid of any adjudicatory experience.

To Read the full text of the Judgment CLICK HERE
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