Union Ministry of Finance prescribed for uniform norms for appointment and service of the chairperson and tribunal members.Earlier the minimum tenure of Chairperson and members of tribunal should be 5 years, which is now made to 4 years
This bill inserts a new provision, sub-section (11) in Section 184 of the Finance Act, 2017. This clearly states that the new rule overrides previous judgement.Rules titled ‘Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of Service of Members) Rules, 2020’ are made in exercise of powers under Section 184 of the Finance Act 2017.
Supreme Court in Madras Bar Association v. Union of India 2010 also known as R Gandhi judgment examined the Constitutional validity of Chapters 1B and 1C of the Companies Act, 1956 providing for the constitution of National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT).
The court held that “The term of office of three years shall be changed to a term of seven or five years subject to eligibility for appointment for one more term,” the Court had ruled in that case.In case Rojer Mathew v. South Indian Bank validity of Finance Act, 2017 was examined with section 184 of the Act.
Court upheld Section 184 of the Finance Act but struck down the rules due to short period of service.The rules were further challenged in Supreme Court by the Madras Bar Association.
The bill amends the Cinematograph Act, 1952, the Customs Act, 1962, the Airports Authority of India Act, 1994, the Trade Marks Act, 1999 and the Protection of Plant Varieties and Farmers’ Rights Act, 2001 and certain other Acts.
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