Lecture 7

Administrative Tribunalst

Nothing is more remarkable in our present social and administrative

arrangements than the proliferation of
tribunals of
There is scarcely a new statute of social or economic many different kinds.
not add to the number. complexion which does
-Sir C.K. Allen
The proper tribunals for the determination of legal
arethe courts, and they are the disputes in this country
only tribunals which, by training and
experience and assisted by properly qualified advocates, are fitted for the
task.

-Lord Romer
Tribunals have certain characteristicswhich often give them advantages
overthe courts. These are
cheapness,
expedition and expert knowledge ofaccessibility,freedom
their particular
from technicality,
subject.
-The Franks Committee

1. General Synop sis

2. Definition 240 Authorities held tribunals:
3. Status 241 Illustrative cases . . 243
241
Constitutional recognition Authorities not held tribunals:
Administrative tribunals: 241
Illustrative cases 243
Misnomer 4. Historical development
243
Administrative
and courts tribunals
242 5. Reasons for the
growth of
administrative tribunals 244
Administrative tribunals
and
242 6. Administrative tribunal

lest.executive *authorities.. 242

4 7.
and court: Distinction ...
Administrative tribunal
245
and
. 242 executive
See, for authority: Distinction 247
Chap. 7, V.detailed
.
G. discus and case-law, Authors'
Kamachandran, Law of Writs, Vol. I Administrative
(20oo6) 435-5ol.
Law (2012)
Vast
Vnst exbnsvon
esp* aerbunals b
porct, tleip-cy
Tribunals
240
Lecture 7
Administrative
Pubue ww , neai,
a 247 17. Power of review ....
8. Characteristics
248 18. Doctrine of res judicata*** . 266
.......
.

9. Working oftribunals 249 19. Administrative tribunals: . 268

Industrial Tribunal
251 Whether bound by decisions
Sel tew Income Tax Tribunal
of Supreme Court and
Central Administrative

252 High Courts.

barpon Tribunal (CAT)...
Consumer Commission
254 20. Doctrine of
precedent....
.. .269
.. .

256 21. Doctrine of stare

dnhuaheel Bar Council... 257
decisis.....7
22. Contempt of administrative
10. Domestic tribunals.
257 tribunals.. ****
. . . *** .273
Meaning . **

257 23. Limitations. .

lypes. . 237 24. Franks Committee .274
Characteristics. . .
. 275
and statutory
2.5. Constitution (42nd Amendment)
Domestic tribunal
2588 Act.
tribunal: Distinction . . . . . .

26. Constitution (44th

. 275
11. Power to grant
interim relief. . . .
258 Amendment)
and Act . . . 2 7 7

Administrative tribunals
12. 27. Sampath Kumar v. Union
259
of natural justice..
. . .

principles of India . ..
Administrative tribunals and .. 277
13. 28. Post "Sampath Kumar"
and evidence. 260
rules of procedure 262 position. . . . .
14. Reasons for decisions
278
263 29. L. Chandra Kumar v. Union
15. Finality of decisions...
16. Decisions of tribunals
and ofIndia.... 279
. . . 265 30. Concluding remarks. . 282
judicialreview. . LD wv h
PA wslwaiwt Ale

1 . GENERAL Pdmnstalrt P naw

enavw mwwM

ayuu
e Today, and above ministerial tunctions, the executive performs
over
and quasi-judicial functions also. Governmental
many quasi-legislative
"functions have increased and even though according to traditionaltheory,
o erdun

thethefunction of adjudication of disputes is the exclusive jurisdiction of the

functions have come to
uchcal nuan Ordinary courts of law, in reality, many judicial
Ranluly (be pertormed by the executive, e.g. imposition of fine, levy ot penaity,
confiscation of goods, ete
Fhe traditional theory of "laissez faire" has been given up and
his

Oldhadliona
o
old "police state" has now become a "welfare state", and because
. radical change in the philosophy of the role to be played by theStatc functions,

functions haveexpanded. Today it exercises not only soverelg secu

but, to ensure social
progressive democratic State, it also seeks
as a
regulatesindustrialrela-
rity and social welfarefor the common masses. It r I S s u e s

enterprises. The
tions, exercises control over production, initiates for the
therefrom are not It is not possib
Stata arising issues. purely legal prob
ordinary courts of law to deal with all these socio-economi nage
For
exampleindustrial disputes between the workers and ofthe
Skati fo ment must be setted as early as possible. It is not only in thet not possir
however,

S o ug T r e s tothedisputes, but of the society at large It is, honeditious editiously,

ble tor an
Sotua eu ordinary court of law to decide the disputes expeAll the
the
sam

it has to
tunction, restrained by certain innate limita ons.

cied ale de pdn

Ju
 uaunl is an adw bod whut eA.die-

Status 241
acessary that such disputes shouldnotbe
atic manner. determined in
tribunals are, therefore,an arbitrary
ide various quasi-judicial Administrative
1ssues established aho h
in place of ordinary courts of law.
2. DEFINITION

t nOSsible to define the word "tribunal"

ing to the dictionary, precisely and scientifically.
h "tribunal means
iudge or judges sit in a court, "a court of"a seat or a bench upon
a

werv wide, including even the justice". But this mean

ordinary courts of law;
ninistrative law, this expression is limited to whereas, in
other than ordinary courts of law. adjudicating authorities
Ln Durga Shankar Mehta v. Raghuraj
defined "tribunal" in the following words: Singh?, the Supreme Court
The exDession Tribunal as used in Article
thing as Court but includes, within its ambit, 136
does
not mean the
all same
adjudicating bodies, pro-
vided they are constituted by the state and are invested with judicial as distin-
guished from administrative or executive functions.3
In Bharat Bank Ltd. v. Employees"', the
Supreme Court observed that
though tribunals clad in many of the trappings of a court and
are

they exercise quasi-judicial functions, they are not though

full-fledged courts.
Thus, a tribunal is an adjudicating body which decides controversies
between the parties and exercises judicial powers as distinguished from
purely administrative functions and thus possesses some of the trappings
ot a court, but not all.

3. STATUS

a) Constitutional recognition
The status of tribunals has been recognised by the Constitution. Article 136
tne Constitution empowers the Supreme Court to grant special leave
appeal trom any judgment, decree, determination, sentence or order
4sSed or made by any tribunal in India. Likewise, Article 2271enables
g h Court to exercise power of superintendence over all tr1bunals A T
g u t the
territories over which it exercises jurisdiction.
1. Webster's h

1530-1531.SCN
2. AIR
World Dictionary (1972) 1517; Concise Oxford Dictionary, (2002), c
A
Ibid,954
AIR 522.520: (1955) I SCR 267.
AIR
5o SC 188: A1 dedt
. angma, 1950 SCR 459;
(1977)4 9; see also, All Party Hill Leaders' Conference v. Capt.

. P.N. Sharma, 4 SCC 161: AIR 1977 SC 2155; Associated Cement Companies
v. L.aks
AIR 1965 SC I595: (1965)
2 SCR Sugar Mills Ltd.
366; Jaswant
mi Chand,
btaff Union, AIR 1963 SC 677: I963 Supp (1) SCR 242; Rohtas lndustries Ltd.
l1976)1
.See, tor detailed ) 2 SCC 82: AIR
1976 SC 425.
discuss1or
Cussion, Lectur 9-
MiRE hed
otnd e
 Tribunals
Administrative
242 Lecture 7

(42nd) Amendment Act, ra76,

Articles
By the Constitution Articles.
been inserted by which Parliament has 323-A and
323-B have oeen autho
constitute administrative tribunals for settlement of
specified therein.6 disputesautand
horised.
adnut
M l
cation of matters a

tribunals: Misnomer
(b) Administrative
According to Wade', the expression "Administrative Tribunals
leading for various reasons. First, every tribunal is constitnted als" is mi
of Parliament and not by government.|Second, decisions of suchbytrian A Acr
are judicial rather than administrative. A tribunal reaches tribuna
Cnes a fnd
fact, applies, law/to such fact and decides legal questions nding of Dunas
not onthe basis of executive policy. Third, all tribunals doobjectivelv
yand
and
casesin which government is a party. Some tribunals adjudicate with
(O between two private parties, e.g. disputes between landlords and tes
yutes
employers and employees, etc. Fourth, such tribunals are and tenants
"They are in no way subject to administrative interterence asindepende
decide any particular case." to how
ow tth
M.P. Jain", therefore, suggests that is
as "tribunals"
it better to designate these bodis
by discarding the word "administrative".
c) Administrative tribunals and courts
(d) Administrative tribunals and
executive authorities!0
(e) Test
A tribunal is an
adjudicating
disputes does not ipso facto makeauthority. But the power of adjudication ot
the body a "tribunal". In order to be
tribunal, it is essential that such
power of
from an agreement adjudication must der
from a statute and not be
a
"Domestic Tribunal" which between the parties. Hent,
is a private
between the parties and designated body up by the agreeit
set
nal. On the
other hand, Rent as"tribunal" is really not a tr
can be said to be tribunals Control Authority or Statutory A itrator
Thus, the basic test of though
not described as
sucn. of
or Article
227 of the
a
tribunal within the meaning
other than a Constitution is that "it is an Ari uthority
statute or a
court) vested with the
judicial adjudica sral nder
statutory rule"11 powerof the
6. See, tor detailed
Wade & discussion, "Constitution (42nd
Law (8th Forsyth, Administrative Law (2009) Amendment) A 275.

8. Treatise onEdn.) 375-376. 770, see also,

Administrative Law, Vol. I
.See, "Administrative
10.
11.
See, tribunal and court:(2o07) 648-655
"Administrative tribunal and executiveDistinction",
Bharat Bank and 245
Mills Ltd. Ltd. authority:
LaksbmiEmployees, AIR 1950 SC 188: Distinction, 4
v. SCR JaswantSugr
v.

Chand, AIR 1963 1950

963 SC 677, 685: I963
Supp (7) SC
242
 '

Historical development 243

Authorin
held tribunals: Illustrative cases
Applyingthea above test, let us consider the position of some
The following authorities have been held tribunals of the author-
ities.
Article 227:
within the mean
ing of
1.ElectionTribunal
2. Industrial Tribunal
3. Revenue Tribunal
Control Authority
4.5. Rent
Custom Authorities
6. Commissioner for Religious Endowments
7. Panchayat court

8. Custodian ot Evacuee Property

9. Payment of Wages Authority
1o. Statutory arbitrator

l Authorities not held tribunals: Illustrative cases

On the other hand, the following authorities are held not tribunals under
Article 227:
L. Domestic tribunal
2. Conciliation officer
3. Military tribunal
4. Private arbitrator
5. Legislative Assembly
6. Registrar acting as a taxing officer
7. Custom officer
8. Judges Enquiry Committee
9. Advisory Board under Preventive Detention Laws
under
Ppropriate government exercising power to make reterence
the Industrial
Disputes Act.
4. HISTORICAL DEVELOPMENT

tis no doubt true that the rapid growth of administrative tribunals is a

of the But in the past, there were tribu-
nals. According to 2oth century.
Ralscature even
mmissioners of Customs
and Excise were
ghven u Wadel?, Com Tax Tribunal was
than three centuries ago.
established in powers
more
establich
the 18th century.

1ated Cement Com AIR 1965 SC I595, I6o8-1609:

1965) 2SCR 36 mpanies Ltd. v. P.N. Sharma, v. Capt. W.A. Sangma, (1977)
Conference
Al Party Hill Leaders'
0 AIR 1977 SC 2155, 2161-2162.
.WadoI, 172:
orsyth, ministrative Law (2009) 77I.
 Tribunals

A d m i n i s t r a t i v e

Lecture 7
244

Wars I and I1,

several tribunals were
atedUnder
create
under various
After World legislations. Today rative tribunals dea
administrative

and
beneficent
decide a wide range of disputes
welfare etween individuals and individuah with
and their gOvernments.
well as between subjects
as

FOR THE GROWTH

OF ADMINISTRATIVE
5. REASONS
TRIBUNALS

According to Dicey's theory of the rule of law, ordinary law of tha

must be administered by ordinary law courts. Fie was opposed land
establishment of administrative tribunals. According to the claceio.
sical
ory and the doctrine ot separation ot powers, the function of decidio
disputes between the parties belonged to ordinary courts of law. But. cidine
discussed above, the governmental functions have increased and ordia
courts of law are not in a position to meet the situation and solve the
plex problems arising in the changed socio-economic context.
com
Administrative tribunals are established for the following reasons:
I. Increasing governmental functions and activities overloaded court
with cases that they were unable to deal with
of administrative tribunals has etfectively. The system
Coul
vation of ordinary judicial
positively contributed to the preser
system.
2. The traditional judicial system proved inadequate to
tle all the disputes requiring resolution. It was slow, decide and s
Complex, cóstly, inexper.
to
formalistic, already overburdened, and it was not possine
expect speedy disposal of even very important matters,
putes between employers and employees, lockout, strikes, etc.e8,I
burning problems cannot be solved merely by literally
the provisIons of any interpre
other factors that statute, but require consideration ot van
could not be
Therefore, Industrial Tribunals and labour courts accomplished by the courh
wnich possessed the technique and expertise to were est COm
plex problems. handle tu
Courts of law deal with cases which come up before them by a
Dnaudes
ing settled legal
modern principles and by adopting objective standa
be decidedsociety, however, complex questions can
cannor

ars They
T h e ya e

solved byobjective legal principles, pure

on
to be ubli

keeping in mind policy con ons and Pthaf

interest.
direction.Administrative tribunals can play
in
effective role
4.
play an
a"

lraditional courts are howledgeofla

in
modern manned by persons hav ecialisa

tion and administration, manany time, questions

expertise
ons of
of SP a
h e n e e

is necessary arise.
over and above
rise. legal knowledge.
Knowledge Insteadsubjec
in a particular ofa "one n a n
 Administrative tribunal and court:
Distinction 245
court, a whroad based membership" or a "mixed
panel" of admin-
istrative
tribunal may better solve
problems.
Thedministrative
authorities can avoid
nal rather than a theoretical and technicalities. They take
legalistic approach. The
a functional

judiciary is conservativ rigid and

traditional
technical.
It is not
possible for the courts of law to decide the
without
cases
and technicality. On the other hand, administrative tribunals formality
tribunals are
not
not
bound by the rules of evidence and procedure and they can take
view of the matter to
a practical
6. Administrative deCide.complex
horities can take problems.e.g. licens-
preventive measures,
ng rate-fixing, etc. Unlike regular courts of law,
tnwait for parties to come before them with they In have
do not
disputes. many
eases, these preventive actions may prove to be more
effective and
useful than punishing a person after he has committed a breach of
any legal provision.
7. Administrative authorities can take etfective steps for enforcement
of the aforesaid préventive measures, e.g.
suspension, revocation or
cancellation of licences, destruction of contaminated articles, etc.
which are not generally available through the
law.
ordinary courts of
8. In ordinary courts of
law, the decisions-are given after hearing the
parties and on the basis of the evidence on record. T'his procedure
S not
appropriate in deciding matters by the administrative author-
Ties where wide discretion
is conferred on them and the decisions
may be given on the basis of the departmental policy and other
releyant factor_.
ometimes, the disputed questions are technical in nature and the
o n a l judiciary cannot be expected to appreciate and decide
n the other hand, administrative authorities are usually
by.experts who can deal with and solve these problems,
10. eg.problems relating to atomic energy, gas, electricity, etc.
Administrative
more tribunals do their work
sess
SS
rapidly, more eaply, more efficiently than ordinary courts... pos-
greater technical
wledge and fewer prejudices against gov-
ernment.. give greate
e greater heed to the social interests involved.. decide
Isputes with nscious effort at embodied in
the legislation. furthering social policy

ADMINISTRATIVE
a adaministra
niAare constirve
VE TRIBUNAL AND COURT: DISTINCTIONN
tribunal is similar to court in certain aspects. Both
a
of
tituted
hiutedby invested with judicial powers
and have
nd ent
the State
nallyexistence.
finally decide
Thus, they adjudicating
are
bodies. They deal
the rights
disputes between parties which affect
 Tribunals
A d m i n i s t r a t i v e

Lecture 7
246 Court in Associate
As observea Dy Supreme The ed emen
Cement
of subiects. Sharma", and the funda
"the basic
fundamental fea
Ltd. v. P.N.
Compa
ture which is common to both the courts and the tribunals is that
Companies they
at they
discharge judicial functions annd exercise judicial powers which erently
State".
in sovereign
vest
a
be forgotten that an administ
But at the same time, it must notdistinction between a c rt" and
rative
The line of and a
tribunal is not a court. t
c a s e s is
indeed fine though real.All courts are trib
some
"tribunal" in not necessarily be true
converse need
nals but the of the trappings ofa court, but not all., and
A possesses some
tribunal
must be distinguished:
therefore, both

of law is a part of the traditional judicial system, Wher

I. A court

powers are
derived from the State and the body deals with
judicial the other hand, an adminis.
king's justice it is called "court".{On
a
a statute and invested with
trative tribunal is an agency created by
it is a part and parcel of
judicial powers. Primarily and essentially, executive as well as
the executive branch of the State, exercising administrative tribunals
states, Greene"
judicial functions. As Lord
perform hybrid functions.
to try all suits of
2. Whereas ordinary civil courts have judicial power
a civil nature, excepting those whose cognizance is either expressly
or impliedly barred\ tribunals have power to try cases in special

matters statutorily conferred.

mere lack of general jurisdiction to try all casesof a civilnature
The
does not necessarily lead to an inference that the forum is a tribu-
limitea
nal and not a court. A court can also be constituted with
jurisdiction.
the
4 ordinary courts of law are independent of executive
Judges of
of service, etc. On tue
respect of their tenure, terms and conditions in te
are entirely
other hand, members of administrative tribunals
hands of the government in respect of those matters n law
S. A court of law is generally presided over by an officer traned
Dut the president or a member of a tribunal may not DE Ld
well in law..
6. In a court of law, a judge must be an npartial arbiter and he can
d, an
not decide a
he is interested) On the other han
matter in which
ded by
administrative tribunal may be party to the dispute to De
it.
uraj
Singh,

13. AIR 1965 SC

AIR 1954 SC
1595,
520: (1955)
1599: (1965) 2 SCR 366; Durga Shankar Mehtales Ltd.
Unie
SCR 267;
Eng88.
90S874: 1963 Supp (1) SCR 625; Lafarge Umiam Minins
1
P)
Ltd. v.

India, (2011) SCC 338.

7
177

4.
8.Johnson
LT 455.
o Co.
(Builders) Ltd. v. Minister of Health, (1947)**
 Characteristics 247

7. A court of law is bound by all the rules of evidence and procedure

but an administrative tribunal is not bound by those rules unless the
relevant statute imposes such an obligation.
R. A court must decide all the questions objectively on the basis of the
evidence and materials produced before it, but an administrative
tribunal may decide the questions taking into account the depart-
mental policy or expediency and in that sense, the decision may be
ubjective rather than objective. "The real distinction is that the
courts have an air of detachment."
9. While a court of law is bound by precedents, principles of res judi-
cataand estoppel,. an administrative tribunal is/not strictly bound
by them.
10. A court of law can decide the vires of a legislation, while an admin-
istrative tribunal cannot do so.17

7. ADMINISTRATIVE TRIBUNAL AND EXECUTIVE

AUTHORITY: DISTINCTION
Administrative tribunal is notlan executive body or administrative depart-
the powers con-
ment of the government. The functions entrusted to and
ferred on an administrative tribunal are quasi-judicial and not purely
administrative in nature. It cannot delegate its quasi-judicial functions to
other authority or official. It cannot give decisions without giving an
opportunity of being heard to the parties or without observing the prin-
ciples of natural justice. An administrative tribunal is bound to act judi-
cially. It must record findings of facts, apply legal rules to them correctly
and give its decisions. Even when the discretion is conferred on it, the
same must be exercised judicially and in accordance with well-established ub-
principles of law. The prerogative writs of certiorari and prohibition are

available against the decisions of administrative tribunals. "They are

scheme
ministrative only because they are part of an administrative
r which a Minister is responsible to Parliament, and because the reasons
administrative reasons."1
prererring them to the ordinary courts are

8. CHARACTERISTICS a l l Hee
The following are the characteristics of an administrative tribunal:!°

15. See, for detailed discussion, and rules of procedure and

"Administrative tribunals
evidend , 260.
T
16. lbid.
17. Bho SCR 459; Dhulabhai
No Juddel
AIR 1950 SC 188, 206: 1950
.State ofaLa.v. Employees,
of M.P., AIR L. Chandra Kumarv.
Union of
Ae
India, (1997) 1969SC 78: (1968) 3 SCR 662;
18. 3 SCC 261: AIR 1997 SC I125.
19. Wade
Fra & Forsyth Administrative Law (2009) 770-778.
Aeport, 1957; Cmnd. 218, para. 40.
Unaauleuumal
 Administrative Tribunals
248 Lecture 7

A n administrative tribunal is the creation of a statute and thus, it

has a statutory origin.

2. It has some of the trappings of a court but not all.
. An administrative tribunal is entrusted with the judicial powers of
the State and thus performs judicial and quasi-judicialfunctions,. as
distinguished from pure administrative or executive functions and
is bound to act judicially.
Even with regard to procedural matters,
an administrative tribunal
4.
possesses powers of
a court, e.g. to summon
witnesses, to adminis-
of documents, etc.
ter oath, to compel production
tribunal is not bound by strict rules of
evidence
5. An administrative
and procedure.
6. The decisions of most of the tribunals are in fact judicial rather
than administrative inasmuch as they have to record findings of
facts objectively and then to apply the law to them without regard
to executive policy. Though the discretion is conferred on them, it is
to be exercised objectively and judicially.
7. Most of the administrative
tribunals are not concerned exclusively
with the cases in which government is a party; they also decide
disputes between two private parties, e.g. Election Tribunal, Rent
Tribunal, Industrial Tribunal, etc. On the other hand, the Income
Tax Tribunal always decides disputes between the government and
the assessees.
8. Administrative tribunals are independent and they are not subject
to any administrative interference in the discharge of their judicial
or quasi-judicial functions.
9. The prerogative writs of certiorari and prohibition are available
against the decisions of administrative tribunals.
Thus, taking into account the functions being performed and the pow
ers being exercised by administrative tribunals we may say that they are
neither exclusively judicial nor exclusively administrative bodies, but are
partly administrative and partly judicial authorities.

9. WORKING OF TRIBUNAILS
There are a number of administrative tribunals in India. For exam
ple, Industrial Tribunals, Labour Courts, established under various
industrial laws, Railway Rates Tribunal established under the Indian
Railways Act, Election Tribunals established under the Representation
of the People Act, Mines Tribunals established under the Indian Mines
Act, Rent Controller appointed under the Rent Acts, Workmens
Compensation Commissioners appointed under the Workmen's
Compensation Act, etc.
 249
Working of tribunals

Let us study the actual working of some of the tribunals to understana

the constitution of the tribunals, the procedure adopted by them and their
powers and duties.

(a) Industrial Tribunal

The Industrial Iribunalwas set up under the Industrial Disputes Act, 1947
It can be constituted by the Central Government if an industrial dispute
relates or in any way concerns the Central Government, but where the
Indian Government has no such direct interest, the tribunal may be con-
stituted by the appropriate Government".
The Industrial Tribunal may consist of/one or more members, and
they can be appointed by the Central Government/ot)by the "appropriate
Government', as the case may be. Where such tribunal consists of two
or more members, one of them will be appointed as the Chairman of the
tribunal. There may be a one-man tribunal also. The Chairman of the tri-
bunal should possess judicial qualifications, viz. 1)he or she is or has been
a judge of the High Court; or 2) he or she is or has been a District Judge;
or 3) he or she is qualified for appointment as a judge of the High Court.
With regard to members other than the Chairman, the conditions are
that they should possess such qualifications as may be prescribed. Where
an industrial dispute affecting any banking or insurance company is
referred to the tribunal, one of the members in the opinion of the Central
overnment or "appropriate Government" should possess special know
edgeof banking or insurance, as the case may be
The jurisdiction ofthe tribunal extends to any îndustrial dispute, such-
as a dispute between'émployers and their workmen or between workmen
andworkmen "connected with the employment or non-employment or
he terms of employment or with the conditions of laboúr of any person
The procedure to be followed by the Industrial Tribunal is prescribed
by the Act and the rules made thereunder. The tribunal has to act judi-
Cially as it is a quasi-judicial authority. It has some of the trappings of a
Court. It has to apply the law and also the principles of justice, equity and
g0od conscience.20 The tribunal is vested with_powers of a civil court,
and it can enforce attendance of any person and examine him on oath,
Compel the production of documents, issue commission tor examination
ofwitnesses, and such enquiry and investigation shall be deemed to be a
Judicial proceeding within the meaning of Sections 193 and 228 of the
Penal Code, 1860 (IPC). Every member of the tribunal shall be deemed to
DE a public servant" within the meaning of Section 21 IPC.
At the same time, the tribunal has to keep in view that it deals with
special types of disputes and it should not merely entorce contractual

20. Niemla Textile Finishing Mills Ltd. v. Second Punjab Tribunal, AIR 1957 SC 329:
I957 SCR 335.
250 Lecture 7 Administrative Tribunals

obligations. It should prevent unfair labour practices and victimisation

and restore industrial peace by
ensuring the salutary principle of collec
tive bargaining.2
Though the function of the tribunal is to adjudicate on industrial dis
putes, it has only some ot the trappings of the court, but not all. It is not
bound by the strict rules of procedure and can take decisions by exer-
cising discretion also. Since its object is to do social justice, "to a large
extent" it is free from the restrictions of technical considerations
imposed
on ordinary law courts.
All the same, the industrial tribunal is a quasi-judicial authority dis-
charging quasi-judicial functions and is not purely an administrative
body. Therefore, its adjudication must be on the basis of "fairness and
justness. It has to act within the limits of the Industrial Disputes Act.
Social justice divorced from the legal principles applicable to the case on
hand is not permissible.23 It has a power to adjudicate and not to arbi-
trate. It can decide the dispute on the basis of the pleadings and has no
power to reach a conclusion without any evidence on record. Though
discretion is conferred on it, the same must be exercised judiciously. It has
to hold the proceedings in public. It should follow fair procedure such as
notice, hearing, etc. and must decide disputes fairly, independently and
impartially.
The tribunal's awards are published in the Government Gazette. On
due publication, the award becomes final. It is required to be signed by
all the members of the tribunal. If it is not signed by all the members, the
same is illegal and inoperative.*
Thus, the proceedings conducted by the Industrial Tribunal are judicial
proceedings and the decisions and awards are subject to the writ jurisdic-
tion of the High Court under Article 226 of the Constitution. The tribu-
nal is also subject to the supervisory jurisdiction of the High Court under
Article 227 of the Constitution. Article 136 of the Constitution vests tne
Supreme Court with discretion to entertain appeals against the orders
of tribunals by granting special leave.25 But having regard to the nature
of
powers of the Supreme Court under Article 136, the Supreme Court
is slow in exercising such discretion and it interferes only in exceptiona
cases.26

21. Lloyds Bank Ltd. v. Indian Staff Asn., AlR 1956 SC 746.
22. Bengal Chemical o Pharmnaceutical Works Ltd. v. Employees, AIR 1959 S 05
1959 Supp (2) SCR 136.
23. J.K. Iron & Steel Co. Ltd. v. Mazdoor Union, AIR 1956 SC 231: (1955) 2 SCR 139
United Commercial Bans
24. Lloyds Bank Ltd. v. Indian Staff Ass., AIR 1956 SC 746;
Ltd. v. Workmen, AlR 1951 SC 230: 1951 SCR 380.
See also, L. Chandra Kumar v. Union of India, (1997) S21
3 AIR 1997 SC 1125
2, AlR 1963 5o9: (1963) 3 SCR 540;
26. Express Newspapers (P) Ltd. v. Workers, 188: 1950 S K 459.
Dnarat Bank Lid. v. Employees, AIR 19so SC
 Working of tribunals 251
(b) Income Tax Tribunal
The Income Tax Appellate Tribunal ITAT) is constituted under the
The Income
Income Tax Act, 1961. Jt consists of
members as the Central as
many judicial and accountant
have held, at least tor Govern1 thinks fit. A judicial member must
ten years a judicial post or must have been a
member ot the Central
LegalServices (not below
Grade III) for at least
three years or must have been in practice advocate for at least ten
as an
vears. An accountant
member,must)be a Chartered Accountant under the
Chartered Açcountants Act, 1949 and must have practised as such, for
10 years ormust have served as Asst. Commissioner for at
least three
vears.Appoïntments are made by the Central Government. The
of the tribunal shall be appointed from amongst the judicial Chairman
members.
The conditions of service of the members are regulated by the President
of India in exercise of powers conferred by the proviso to Article 309 of
the Constitution. ,The tribunal sits in Benches in various cities, such as
Ahmedabad, Allahabad, Bombay, Calcutta, Delhi, Madras, etc. The tri-
bunal functions under the control of the Ministry of Law and not under
theMinistry of Finance. This ensures independence of judgment by its
members and inspires confidence in the assessees.
Appeals can be hled betore the tribunal by an aggrieved party against
orders passed by the Appellate Asst. Commissioner, Inspecting Asst.
Commissioner or Commissioner within a period of 60 days. The tribunal
shalldecide the matter only after giving both the parties to the appeal
an opportunity of being heard. If the parties do not appear at the time
of hearing, the appeal may be adjourned or heard ex parte. The assessee
is entitled to appear before the tribunal personally or through an author-
ised agent including a lawyer. The tribunal is not governed by the rules
of evidence applicable to the courts of law and is empowered to regulate
its own procedure. It gives oral hearing to the parties and passes appro
priate orders. The decisions may be unanimous or by a majority opinion.
If there is equal division, the members state the points of ditference and
the President will refer the matter for hearing to one or more other memn-
bers. The matter will then be decided by a majority of all the members
who have heard it. The order passed by the tribunal must be in writing
will be communicated to the
and signed by the members of the Bench. It
of Income Tax.
assessee as well as to the Commissioner
are deemed to be judicial proceed-
The proceedings before the tribunal
witnesses, entorcement of attend-
Ings. It has the power of summoning
production of documents and issue of
ance, discovery and inspection,
powers ot a civil court under the Code
Commissions, as it has been givenIt c a n
of Civil Procedure, 1908 (CPC). order prosecutjon) of persons who
produce false evidence or
fabricate such and they may be pun-
evidence

also take appropriate actions for its contempt.

Ished under the IPC. It may
books or account. The proceedings of the
It may impound and retain
252 Lecture 7 Administrative Tribunals

tribunal are not open to public and there is no provision l o l puDIca-

tion of its decisions. Of
course, there are various private tax journals
reporting such decision, e.g. Taxation, Current Tax Reports, laxation
Law Reporter, etc.
The decisions of the tribunal on
questions of fact are final. An appeal
is provided by the Act against the decision
of the tribunal on a substantial
question of law to the High Court.28 Such appeal shall be heard by not
less than two judges of the High Court and shall be decided in
with the opinion of such judges or of the
accordance
majority.29 From the judgment of
the High Court, an appeal lies to the Supreme Court in a case in which
the
High Court certifies it to be a fit case for appeal to the Supreme Court.30
An aggrieved party may also invoke the
jurisdiction of the Supreme Court
under Article 136 of the Constitution.3

(c) Central Administrative Tribunal (CAT)

In exerci_e of the power conferred by clause (I) of Article
323-A of
the Constitution as inserted by the Constitution
(42nd Amendment)
Act, 197632, Parliament enacted the Administrative Tribunals Act, 1985,
"to provide tor the adjudication or trial by Administrative Tribunals of
disputes and complaints with respect to recruitment and conditions of
service of persons appointed to public services and posts". The Act was
amended twice in 1986 and in 1987.
The Central Government was authorised to
establish a Central
Administrative Tribunal (CAT) with Benches to deal
with seryice disputes
arising between the Central Government and its servants to the exclusion
of all courts, except the Supreme Court, or an Industrial Tribunal, Labour
Court or other authorities constituted under the Industrial Disputes.
Act, 1947, or "any other corresponding law for the time being in force".
Each tribunal consists of a Chairman, a number of Vice-Chairman
and other members of two
categories: I) judicial, and 2) administrative.
Every Bench should consist of at least two members, a judicial as well as
an administrative. ***

27. Sree Meenakshi Mills Ltd. v.

CIT, AIR 1957 SC 49: 1956 SCR 691; CIT v. Indian
Woollen Textiles Mills, AIR 1964 SC 735: (1964) 5 SCR 427; India Cements
CIT, AIR 1966 SC Io53: (1966) 2 SCR
Ltd. v.
Sri Meenakshi Mills Ltd., AIR
445 CIT v.
I967 SC 819: (1967) 1 SCR 934; Karam Chand Thapar o Bros. (P) Ltd. v. CIT,
972) 4 SCC 124: AIR 1971 SC 1590; Anil Kumar Roy Choudhury v. CIT, (1976) 4
SCC 776: AIR 1976 SC 772.
28. S. 260-A, Income Tax Act, 1961. See, for detailed discussion of substantial question
of law, Authors' Civil Procedure (2013) 538-544; see also, Authors Code of Civil
Procedure, Vol. II (Lawyers' Edn.) 388-404
29. S. 260-B, Income Tax Act.
30. S. 261, Income Tax Act.
31. See, for detailed discussion, Lecture 9.
32. See also, "Constitution (42nd Amendment) Act", 275.
 tribunals 253
Working of

is not qualified to be
A nerson appointed as the Chairman unless, ne or

che I)
she is or
Is has been a High Court judge, or 2) has held the office
or has of Vice-
Chairmanfor two years. Provisions have also been made for appointment
Vice-Chairman and members of the tribunal (judicial and administra-
otive). The
The Chief Justice-of India has.to be.consultedbefore appointing the
ive).
Chairman, VicVice-Chairman or a member. visions have been made as
be
to jurisdiction, powers authority of the tribunal and procedure to
and

followed. 'The provisións of the Act had been given overriding ettect
over

all other laws.

High
Section 28 of the Act excluded jurisdiction of all courts (including
the Constitution).
Courts) except the Supreme Court (under Article 136 of of Section 28,
(t may, however,
be stated that though in the marginal note not been
it had
Article 136 has been mentioned, in the body of the section, been
referred to. It may also be stated that Article 32
had neither reterred
note nor in the body of Section 28). It(saves jurisdic-
to in the marg1nal constituted
Court or other authorities
tion of Industrial Tribunal, Labour
other corresponding
eitherunder the Industrial Disputes Act, 1947 any
or

law for the time being in force.

clause (2)(d) of Article 323-A
of the
It may further be stated that
Constitution excluded the jurisdiction
of all courts, except the jurisdic-
to the disputes
under Article 136, "with respect
tion of the Supreme Court
or complaints
referred to in clause (1)".
Act was challenged before the Supreme
The constitutional validity of the Kumar). The
v. Union of Indiass (Sampath
Court in S.P. Sampath Kumar the Supreme Court
related to the abolition of the jurisdiction of
challenge Courts under Articles 226
and 227 of
under Article 32 as also of High
the Constitution. Court under Article 32 is
the Supreme
As far as the jurisdiction of Assembly by
Constituent
debate in the
concerned, referring to the described as "soul" and "heart"
of
DrAmbedkar wherein the provision was Article 323-A(2)(d)
Court held that though
the Constitution, the Supreme
under Article 32 and the original
authorised exclusion of jurisdiction a m e n d m e n t jurisdiction under

Section 28 provided for it, by

Act had in
untouched.
Article 32 has been left
in respect of original
both under Article 32
The Act thus s a v e s jurisdiction appeals against deci-
under Article r36 for entertaning
proceedings as also leave. Judicial review by the Apex
on grant of
special
sions of the Tribunals (emphasis supplied)
intact.*
Court has thus been left
Articles 226 and 227, the
Courts under
of High
Kegarding jurisdiction
it was c o n t e n t e d by the petitioner
view. Though
Court took narrow" the head "Sampath
dee, Tor t n i s case, under

5.
1987 SC 386.
SCC AIR
(1987) I 124:

Union of India", 277. (T987) 1 D124, 137: AIR 1987 SC 386, 394
umar v.
v. Union of India,
34.
S.P. Sampath Kumar
Misra J).
per Ranganath
254 Lecture 7 Administrative Tribunals

that judicial review was a fundamental feature or basic structure of the

Constitution and the bar of the jurisdiction of the High Court under
Articles 226 and 227 of the Constitution as contained in Section 28 of
the Act was not sustainable, the contention was negatived by the court.
In
L. Chandra Kumar v. Union of1ndiaso (Chandra Kumar), however,
seven-judge Bench of the Supreme Court overruled Samnpath Kumar"
CASE PILOT
and upheld the contention that the jurisdiction conferred on High Courts
under Articles 226 and 227 of the Constitution was "a part of inviolable
basic structure and essential attribute" which could not be curtailed or
truncated by Parliament.
It thus took more than a decade for the
Supreme Court in accepting an
obvious legal position, upholding the judicial
supremacy of High Courts
over tribunals, restoring their
majesty and recognising the doctrine of
judicial review as the "basic feature" of the Constitution.
The legal position after Chandra Kumar'5 is that CAT exercises
original
jurisdiction under the Act. A party aggrieved by a decision of such tribu-
nal can invoke the jurisdiction of the High Court under Articles 226 and
227 of the Constitution. Only thereatter, a person aggrieved by the order
of the High Court may approach the Supreme Court under Article 136 of
the Constitution.

(d) Consumer Commission

With a view to providing better
protection of the interests of consumers,
Parliament enacted the Consumer Protection Act,
with "Consumer Protection Councils". 39
1986. Chapter II deals
Chapter III provides for the
establishment of Consumer Disputes Redressal
known as "District Ferum", at State
Agencies at district level,
and at national level, known as
level, known as "State
Commission
"National
of the Act are in addition to and not in
Commission". The provisions
other law for the time being in force. derogation
of the provisions of any
The National Commission consists of
the President, who is.or has been
a
judge of the Supreme Court, to be appointed by the Central
after consultation with the Chief Government
bers of ability,
Justice of India and four other mem-
integrity and standing and having adequate knowledge or
experience, or having shown capacity in dealing with problems relating
to economics,
law, commerce, accountancy, industry, public affairs or
administration. One of them should be a woman.

35. Ibid, SCC 135: AIR 394.

36. (1997) 3 SCC 261: AIR 1997 SC
1125. See, tor detailed
Chandra Kumar v. Union of India", 279.
discussion of this case, "L.
37. S.P. Sampath Kumar v. Union
38. L. Chandra Kumar v. Union
of India, (1987) ISCI24: AIR 1987 SC a9e
39. LDA v. M.K.
of India, (1997)3 S 26I: AIR 1997 SC
Gupta, (1994) 1 SCC 243: AIR 1994 SC 787. i125.
 Working of tribunals 233

A State Commission consists of the President, who is or has been a

dee of aa Hig
udge of High Court to be appointed by the State Government after con-
arion with the Chief Justice of the High Court and two other members
of ability, integrity and standing and having adeauate knowledge or expe-
rience, or having shown capacity in dealing with problems to economics,
law, commerce, accountancY, industry, public affairs or administration.
p u b l i c affairs or administration.
One of
One of themshould be a woman.
A District Forum consists of the President, who is or has been or1s
Qualified to be a District Judge and two other members of ability, integ-
riy and standing and having adequate knowledge or experience, or hav-
ing shown capacity 1n dealing with problems relating to economics, law,
commerce, accountancy, industry, public affairs or administration. One
of them should be a woman.
The National Commission can entertain complaints where the value
of goods or services rendered or compensation claimed exceeds rupees
one crore. It has power to hear appeals against orders made by any State
Commission,so also it has revisional jurisdiction over State Commission.
The State Commission can entertain complaints where the value ot the
goods or services rendered or compensation claimed exceeds z 20 lakhs
but does not exceed rupees one crore. It has also appellate and revisional
powers over the orders made or actions taken by a District Forum.
The District Forum can entertain complaints where the value of the
goods or services rendered or compensation claimed does not exceed z20
lakhs.
The Act also makes provisions to be followed by the Commissions in
dealing with consumer disputes, fling of appeals, enforcement of orders,
etc. It also grants protection to members of such Commissions for
actions taken by them in good faith.
The Act aims to protect economic interest of a consumer and is a mile-
stonein history of socio-economic legislation. The provisions of the Act,
therefore, should be construed liberally in favour of consumers to achieve
tne purpose of enactment as a "social benefit oriented legislation".""
In Ashish Handa v. Chief Justice of High Court
of PoH",an "impor-
ant question" of law relating to an appointment of the President of State
Commission came up for consideration betore the Supreme Court.
It was contended by the petitioner that
appointment of A, a retired
dge of the Punjab and Haryana High Court as the President of the State
Commission, was not made in accordance with law. In that case, the State
uovernment initiated the proposal tor hlling up the post of President by
mentioning the name of A which was approved by the Chief Justice.

40. Chap. 3
41. S. 28.
SCC 243: AIR 1994 SC 787.
LDA v. M.K. Gupta, (1994) 1SC
43. (1996) 3 SCC 45: AIR 1996 1308.
256 Lecture 7 Administrative Tribunals

of
Registrar the
Though in the light of the affidavit-in-reply by the Chiet Justice had
High Court that before approving the name of A, the
not interfere with
also considered other names, the Supreme Court did
of the President
the appointment of A but observed that the appointment
same manner as
of National and State Commission must be made in the
is followed for appointment of judges of the Supreme Court and High
Courts. It is for the Chief Justice of the High Court to initiate the proposal
and to mention the name approved by him for appointment instead of the
Chief Justice only approving the name suggested by the State GOvernment.
"That would give greater credibility to the appointment made".*
[It may be recalled that about 5o years ago, the Franks Committee
had emphasised and recommended that the Chairmen of tribunals should
be appointed by the Lord Chancellor. "Unless this was done there was
always a risk of the members of the public getting an impression that the
tribunal was made up of 'Ministry men'"]*3

(e) Bar Council

The Advocates Act, 1961 provides for the establishment of Bar Council
at the State level and also at the Centre. The Bar Council enforces disci
pline in the legal profession. When the State Bar Council "has reason t
believe" either on an application by a party or suo motu, that an advo-
cate has committed misconduct, it may refer the case to a disciplinary
committee. The disciplinary committee will enquire into the matter and
if it finds that there is a prima facie case of misconduct, it will fix a date
of hearing, give notice to the advocate concerned as also to the Advocate
General of the State. It will follow the procedure laid down in the Act and
the rules, and make an appropriate order, punishing the advocate it the
case is proved.
An order passed by the Disciplinary Committee of
is appealable to the Bar
the State Bar Counc1
Council
ot India."
of the Bar Council of India may hear the
The Disciplinary Committee
appeal and may pass "such
order as it deems fit". Thus, the appellate power is of
very wide import.
A further appeal lies to the Supreme (Court
against an order by passed
44. Ibid, SCC 148: AIR 1310-13II (per.J.S. Verma J). In
Tanwar v. State of H.P., (20o5) 2
a
subsequent decision [AshoR
104: AIR 2005 SC 614). the Constitution
Bench observed that Ashish Hanaa should not
be read,
insisting upon to follow the proceaure TOr appointment ofunderstood or construed as

Art. 217, Constitution.

a
High Court iudge under
45. See, for detailed discussion about the Report, "Franks Commniss.
46. S. 37; see also, Adi Pherozshah Gandhi v. H.M. Seervai. ( tee, 275.
SC 385; Bar Council o f Maharashtra v. M.V. Dabholkar 2 SCC 484: AIR 1971

SC 2092; Nandlal Khodidas Barot v. Bar Council of Guia23CC 702: AIR 1975
AlR 1981 SC 477.
CASE PILOT 47. Narendra Singh v. Chhotey Singh, (1983) 4 SCC131: AlR
AIR 19R 1983 SC 990.