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Tribunal Reforms Bill 2026 targets greater independence and transparency

4 min read
Tribunal Reforms Bill 2026 targets greater independence and transparency

Parliament has passed the Tribunals Reforms Bill, 2026, which repeals the Tribunals Reforms Act, 2021 and sets up a National Tribunals Commission (NTC) to handle selections, performance review and complaints for 16 central tribunals, including the Income-tax Appellate Tribunal, CESTAT, NCLAT, the Securities Appellate Tribunal and the Debts Recovery Tribunals. According to the PIB factsheet "Reforming India's Tribunal System" dated 12 August 2026, the Bill is the government's response to the Supreme Court's ruling in Madras Bar Association v. Union of India, (2026) 2 SCC 1, which struck down provisions of the 2021 Act and directed the creation of an independent National Tribunals Commission.

The Bill was piloted by the Ministry of Law and Justice. The PRS Legislative Research bill tracker records that it was introduced in the Lok Sabha on 10 August 2026 and passed by the Rajya Sabha on 11 August 2026. The stated aim is to strengthen the independence and transparency of tribunals, which was also the focus of early reports on the Bill.

The National Tribunals Commission

  • Chairperson: a former Supreme Court judge or a former Chief Justice of a High Court.
  • Judicial members: two, drawn from former Chief Justices or judges of High Courts.
  • Technical members: two, each with at least 25 years of experience in public administration, finance, law, accountancy, banking, management or technology.
  • Tenure: five years or until the age of 70, whichever is earlier.
  • Functions: conducting selections through search-cum-selection committees, monitoring tribunal performance and preparing annual reports, supervising inquiries into complaints against members, and maintaining a National Tribunals Data Grid.
  • Accountability: the Comptroller and Auditor-General will audit the Commission's accounts, and the audit reports go to Parliament.

How tribunal members will be selected

Selection of a tribunal chairperson will be made by a committee headed by the NTC Chairperson, with a technical member of the Commission, a retired High Court Chief Justice, a Secretary to the Government, two empanelled experts and the Commission's Secretary as a non-voting member. For tribunal members, the committee is headed by a judicial member of the NTC, with a technical member, a retired High Court judge, a Government Secretary and two empanelled experts, and again the Commission Secretary without a vote.

The committee will recommend one name per vacancy and one name for the waiting list. Recommendations must be sent within three days, and the government must make the appointment within three months. Tribunal members will hold office for five years or until the age of 67, whichever is earlier; tribunal chairpersons for five years or until 70.

Tribunals covered

The factsheet lists the tribunals covered, including the Income-tax Appellate Tribunal, the Customs, Excise and Service Tax Appellate Tribunal, the National Company Law Appellate Tribunal, the Securities Appellate Tribunal, the Debts Recovery Tribunals and Appellate Tribunal, the Central Administrative Tribunal, the Telecom Disputes Settlement and Appellate Tribunal, the Appellate Tribunal for Electricity, the Armed Forces Tribunal, the National Green Tribunal, the Railway Claims Tribunal, the National Consumer Disputes Redressal Commission and the Industrial Tribunal.

What it means for tax and corporate practitioners

For CAs, CSs and advocates who appear before ITAT, CESTAT, NCLAT or SAT, the provisions on appointments matter most. The fixed three-month deadline for appointment after a recommendation, and the waiting-list name for each vacancy, are aimed at filling benches faster. The NTC's annual performance reports and the Data Grid should also make information on pendency and disposal more accessible.

Updated on 27 September 2026: Added the PIB factsheet and PRS bill tracker; replaced general commentary with the Bill's actual provisions on the National Tribunals Commission, selection committees, tenure, the tribunals covered and its passage by Parliament in August 2026.

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