Finance Act provisions/ Rules on Tribunals challenged in two more High Courts – Delhi and Punjab & Haryana

The provisions of Finance Act, 2017 and the Rules framed thereunder relating to tribunals have been challenged in two more High Courts – Delhi High Court and Punjab & Haryana High Court..Both the High Courts have issued notice in the matter. This would mean that at least six courts in the country – five High courts and the Supreme Court – are seized of the challenge to the controversial provisions..Delhi High Court.This petition has been filed by Employees Provident Fund Appellate Tribunal Bar Association, through advocates Rajiv Shukla (Managing Partner) and Shubham S Saxena (Principal Associate), of Justitia Law Offices..The petitioner has challenged Sections 158, 159 and 184 of the Finance Act, 2017..Besides, Rules 4, 7 and 8 of Tribunal, Appellate Tribunal & Other Authorities (Qualifications, Experience and Other Conditions of Service of Members) Rules 2017 have also been challenged, on the ground that Union of India has unconstitutionally usurped the powers and duties of Judiciary and encroached upon its exclusive domain..It is the petitioner’s argument that the recently introduced amendments vide section(s) 156-189 of the Finance Act, 2017 which aim at merger of several Tribunals and Appellate Tribunals across the nation, slyly confers upon the Central Government, the powers of selection, appointment and removal etc. of Chairpersons/ Presiding Officers and other members of these Tribunals. The petitioner has argued that same impinges upon independence of Judiciary and are in stark violation of Article 50 of Constitution of India which provides for separation of powers..A Bench of Acting Chief Justice Gita Mittal and Justice and C Hari Shankar issued notice to the Ministry of Finance, Ministry of Labour and Employment and Ministry of Law and Justice..Punjab & Haryana High Court.This petition has been filed by Surinder Sheoran, a practicing lawyer and former President of the Armed Forces Tribunal Bar Association, Chandigarh..In a petition filed through advocate Vikas Chathrath, Sheroan has challenged The Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of Service of Members) Rules, 2017 insofar as they relate to the Armed Forces Tribunal (AFT)..Sheoran has submitted that the impugned Rules besides, besides being a direct onslaught on the independence of AFT, take over entire mechanism of functioning of the tribunal, including the appointments and conditions of service of Members, including their removal and reappointment. It, therefore, effectively place the tribunal totally in the grip of the Ministry of Defence which is the first opposite party in every lis before the said tribunal thereby threatening the concept of separation of powers and the confidence of the litigants and public in the institution..The petitioner has contended that the Rules run contrary to the Supreme Court judgments in L Chandra Kumar v. Union of India and Union of India v. R Gandhi..Further, the petition points out that while the Supreme Court had directed a tenure of 5 to 7 years for Members to ensure stability, the rules have decreased it from the existing 4 years to 3 years. The rules have also introduced a new clause wherein any person with experience in business, economics, commerce, finance, accountancy etc can become a Member of the AFT while a similar clause was specifically struck down in R Gandhi’s case..The petition also highlights the new clause which allows AFT Members to take up employment with the Government after retirement, something which was specifically barred by Section 11 of the AFT Act..A Bench of Justices Mahesh Grover and Raj Shekhar Attri issued notice to the Centre and posted the case for hearing on August 31..The provisions on Finance Act relating to Tribunals have been challenged in various High Courts starting with Madras High Court. Besides Madras, Bombay and Gujarat High Courts and the Supreme Court have also issued notice in similar petitions.