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Article 323B of the Indian Constitution: Tribunals for other matters

Part: XIVA
Shorthand Notes: Tribunals for specific non-administrative matters; Parliament/State Legislature can establish based on subject; list of matters included; courts' jurisdiction can be excluded except SC/HC review.

Article 323B of the Indian Constitution, introduced along with Article 323A by the 42nd Amendment Act of 1976, provides a constitutional framework for the establishment of tribunals for matters other than administrative issues. While Article 323A focuses exclusively on administrative tribunals, Article 323B empowers the appropriate Legislature (either Parliament or a State Legislature) to constitute tribunals to adjudicate or try disputes, complaints, or offences related to a specific list of subjects.

This provision aims to reduce the burden on the regular court system by creating specialized forums for certain categories of disputes, ensuring faster disposal and offering expert knowledge in complex areas like taxation, land reforms, and elections.

Original Text

323B. Tribunals for other matters.

(1) The appropriate Legislature may, by law, provide for the adjudication or trial by tribunals of any disputes, complaints, or offences with respect to all or any of the matters specified in clause (2) with respect to which such Legislature has power to make laws.

(2) The matters referred to in clause (1) are the following, namely:—

(a) levy, assessment, collection and enforcement of any tax;

(b) foreign exchange, import and export across customs frontiers;

(c) industrial and labour disputes;

(d) land reforms by way of acquisition of any estate as defined in article 31A or of any rights therein or the extinguishment or modification of any such rights or by way of ceiling on agricultural land or in any other way;

(e) ceiling on urban property;

(f) elections to either House of Parliament or the House or either House of the Legislature of a State, but excluding the matters referred to in article 329 and article 329A;

(g) production, procurement, supply and distribution of foodstuffs and other essential goods;

(h) rent, its regulation and control and tenancy issues including the rights, title and interest of landlords and tenants;

(i) such other matters as may be specified by Parliament by law.

(3) A law made under clause (1) may—

(a) provide for the establishment of a hierarchy of tribunals;

(b) specify the jurisdiction, powers and authority which may be exercised by each of such tribunals;

(c) provide for the procedure (including provisions as to limitation and rules of evidence) to be followed by the said tribunals;

(d) exclude the jurisdiction of all courts except the jurisdiction of the Supreme Court under article 136 with respect to all or any of the matters falling within the jurisdiction of the said tribunals;

(e) provide for the transfer to each such tribunal of any cases pending before any court or other authority immediately before the establishment of such tribunal as would have been within the jurisdiction of such tribunal if the relevant law had been in force when such cases were instituted;

(f) contain such supplemental, incidental and consequential provisions (including provisions as to fees) as the appropriate Legislature may deem necessary for the effective functioning of, and for the quick disposal of cases by, and the enforcement of the orders of, such tribunals.

(4) The provisions of this article shall have effect notwithstanding anything in any other provision of this Constitution or in any other law for the time being in force.

Explanation.—In this article, “appropriate Legislature”, in relation to any matter, means Parliament or the Legislature of a State empowered to make laws with respect to such matter.

Detailed Explanation

Article 323B grants constitutional recognition and power for establishing tribunals beyond the realm of administrative service matters. It is structured into four clauses and an explanation.

Clause (1) is the enabling provision. It permits the “appropriate Legislature” to enact a law providing for the adjudication or trial of disputes, complaints, or offences related to any of the matters listed in clause (2). The crucial condition is that the said Legislature must have the power to make laws on those specific matters as per the distribution of legislative powers under the Constitution (Union List, State List, Concurrent List).

Clause (2) enumerates the specific categories of matters for which tribunals can be constituted. These include vital areas like taxation, foreign exchange regulation, import and export, industrial and labour disputes, land reforms, ceiling on urban property, election disputes (excluding matters reserved for the Election Commission or already specified), matters related to essential goods, and rent and tenancy rights. Clause (2)(i) allows Parliament to specify other matters by law, providing flexibility to add more subjects in the future.

Clause (3) outlines the potential contents of a law made under clause (1). Such a law may establish a hierarchy of tribunals, specify their exact jurisdiction, powers, and authority, and lay down the procedure they must follow, including rules regarding limitation periods and evidence. Significantly, clause (3)(d) originally permitted the exclusion of the jurisdiction of all courts, except the Supreme Court’s power under Article 136 (Special Leave Petition). This clause also allows for the transfer of pending cases from courts to the newly established tribunals and includes provisions for effective functioning and enforcement of tribunal orders.

Clause (4) provides that the provisions of Article 323B override any other conflicting provision in the Constitution or any other law in force at the time, emphasizing its constitutional authority.

The Explanation clarifies that “appropriate Legislature” means Parliament when dealing with matters in the Union List or Concurrent List where Parliament has legislative power, and a State Legislature when dealing with matters in the State List or Concurrent List where the State Legislature has legislative power.

Unlike Article 323A which mandates the establishment of Administrative Tribunals specifically for service matters under the Union or a State, Article 323B is a more general provision allowing the creation of various tribunals for different specific subjects. The choice of the appropriate Legislature depends on the subject matter itself.

Detailed Notes

  • Part XIVA of the Constitution: Inserted by the Constitution (Forty-second Amendment) Act, 1976.
  • Subject: Tribunals for matters other than those covered by Article 323A (administrative service matters).
  • Enabling Power: Grants power to the “appropriate Legislature” to establish these tribunals.
  • Appropriate Legislature: Defined in the Explanation; Parliament for Union/Concurrent List subjects; State Legislature for State/Concurrent List subjects (where it has power).
  • Purpose: To allow for the establishment of specialized tribunals for quicker and expert adjudication of specific disputes, thereby reducing the burden on ordinary courts.
  • Scope: Allows tribunals for adjudication/trial of disputes, complaints, or offences.
  • Specified Matters (Clause 2):
    • Taxation (levy, assessment, collection, enforcement).
    • Foreign exchange, import/export.
    • Industrial and labour disputes.
    • Land reforms (acquisition, extinguishment/modification of rights, ceiling).
    • Ceiling on urban property.
    • Elections to Parliament/State Legislature (excluding matters under Art. 329/329A).
    • Foodstuffs and other essential goods (production, supply, distribution).
    • Rent, its regulation/control, and tenancy rights.
    • Other matters specified by Parliament by law.
  • Contents of Enabling Law (Clause 3): A law made under 323B(1) can provide for:
    • Hierarchy of tribunals.
    • Jurisdiction, powers, and authority of tribunals.
    • Procedure (including limitation and evidence rules).
    • Exclusion of court jurisdiction (originally intended to exclude all courts except SC under Art. 136).
    • Transfer of pending cases from courts/authorities.
    • Incidental provisions for effective functioning.
  • Override Clause (Clause 4): Article 323B provisions override conflicting provisions in the Constitution or other laws.
  • Difference from Article 323A:
    • Subjects: 323A is only for administrative service matters; 323B is for specific non-administrative matters listed in Clause (2).
    • Legislative Competence: Under 323A, only Parliament can make the law; under 323B, the appropriate Legislature (Parliament or State Legislature) can make the law depending on the subject matter’s entry in the Lists.
    • Number/Type: 323A envisages Administrative Tribunals (CAT, SATs); 323B allows for various specialized tribunals based on subject (e.g., NGT, ITAT, CESTAT - some existed before 323B but draw constitutional support/framework from it).

Additional Comments

  • The initial intent behind Article 323B, particularly Clause 3(d), was to completely exclude the jurisdiction of High Courts over these tribunals.
  • This exclusion was challenged and subsequently addressed by the Supreme Court in the landmark case of L. Chandra Kumar vs. Union of India (1997).
  • The Supreme Court held that the power of judicial review vested in the High Courts (under Articles 226 and 227) and the Supreme Court (under Article 32) is a basic feature of the Constitution and cannot be ousted by constitutional amendments like Articles 323A or 323B.
  • The Court ruled that tribunals established under Articles 323A and 323B would function as courts of first instance for the specified matters.
  • However, their decisions would be subject to the supervisory and writ jurisdiction of the respective High Courts within whose territorial limits the tribunal falls.
  • An appeal against a High Court’s decision would lie with the Supreme Court under Article 136.
  • This judgment effectively reined in the power to exclude judicial review by High Courts, ensuring access to constitutional remedies against tribunal decisions.
  • Examples of tribunals established under the spirit or framework of Article 323B include the National Green Tribunal (NGT), Income Tax Appellate Tribunal (ITAT), Customs, Excise and Service Tax Appellate Tribunal (CESTAT), though some specific tribunals might predate the article but are aligned with its principles.

Summary

Article 323B, added by the 42nd Amendment, empowers Parliament or State Legislatures to establish tribunals for the adjudication of disputes concerning specific matters other than administrative service issues. The matters listed include taxation, foreign exchange, land reforms, elections, and essential goods, among others, depending on the legislative competence of the appropriate Legislature. A law creating such tribunals can define their composition, jurisdiction, and procedure and originally allowed for excluding court jurisdiction, except for the Supreme Court’s power under Article 136. However, the Supreme Court’s ruling in L. Chandra Kumar established that the judicial review power of High Courts under Articles 226 and 227 remains intact and cannot be excluded by laws made under Article 323B. Tribunals act as the initial forum, and their decisions are subject to review by the High Courts.
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