Administrative Tribunals, Public Corporations, and Lokpal notes — Unit 5

The traditional civil courts in India are notoriously slow, bogged down by strict rules of the CPC and Evidence Act. To handle specialized disputes (like taxation, environment, service matters) quickly, the government created Administrative Tribunals.

⇒What is an Administrative Tribunal?

It is an agency created by a statute, vested with judicial powers to adjudicate disputes. It sits somewhere between a purely administrative body and a traditional court. (e.g., Income Tax Appellate Tribunal - ITAT, National Green Tribunal - NGT).

⇒Advantages

• Speed and Cheapness: They are not bound by the strict CPC; they follow natural justice, making procedures faster.
• Expertise: They have technical members (e.g., NGT has environmental scientists sitting as judges alongside legal members) which traditional courts lack.

During the 1976 Emergency, the 42nd Amendment inserted Part XIV-A into the Constitution, explicitly authorizing the creation of tribunals.

⇒Article 323A (Administrative Tribunals)

Empowers Parliament to establish tribunals specifically for adjudicating disputes related to the recruitment and conditions of service of government employees. (This led to the creation of CAT - Central Administrative Tribunal).

⇒Article 323B (Tribunals for other matters)

Empowers both Parliament and State Legislatures to set up tribunals for other specific matters like Taxation, Foreign Exchange, Land Reforms, Rent Control, and Elections.

The original drafting of Art 323A and 323B contained a dangerous clause: they allowed Parliament to completely exclude the writ jurisdiction of the High Courts (Art 226) for matters handled by these tribunals. This meant appeals from CAT would go straight to the Supreme Court, bypassing High Courts.

⇒The Supreme Court's Landmark Ruling

In L. Chandra Kumar v. Union of India, a 7-judge bench struck down this exclusion. The SC held:

• The power of Judicial Review vested in the High Courts (Art 226) and Supreme Court (Art 32) is part of the Basic Structure of the Constitution.
• Therefore, no constitutional amendment or statute can bypass the High Courts.
• Tribunals (like CAT) will act as courts of first instance. But their decisions will ALWAYS be subject to scrutiny by a Division Bench of the respective High Court via writ petition.

With the rise of the Welfare State, the government entered business and commerce (airlines, banking, insurance, mining). Government departments were too slow for business, so they created "Public Corporations."

⇒What is a Public Corporation?

It is an autonomous body corporate created by a specific statute passed by Parliament/State Legislature. It combines the power of the government with the flexibility and initiative of a private enterprise. (e.g., LIC, ONGC, RBI, Damodar Valley Corporation).

⇒Key Features

• It is a separate legal entity (can sue and be sued in its own name).
• Its employees are NOT civil servants (they don't get Art 311 protection).
• It has financial autonomy (does not depend on the annual budget for day-to-day operations).

This is a massive constitutional question. If a Public Corporation is considered the "State" under Article 12, then citizens can file Writ Petitions against it for violating Fundamental Rights (e.g., arguing that LIC's employment rules violate Article 14 equality). If it is not the "State," it's just a private company, and writs cannot be filed against it.

⇒The Ajay Hasia Test

In Ajay Hasia v. Khalid Mujib, the Supreme Court laid down tests to determine if a body is an "instrumentality or agency" of the State:

• If the entire share capital is held by the Govt.
• If the financial assistance from the Govt is so massive as to meet almost all its expenses.
• If the corporation enjoys a state-conferred monopoly.
• If there is deep and pervasive State control over its management.
• If the functions of the corporation are of public importance and closely related to governmental functions.

Using these tests, most major statutory public corporations (LIC, ONGC, SBI) are treated as "State" under Article 12, making them subject to Writ Jurisdiction.

Since they handle thousands of crores of public money, they cannot be totally unchecked.

⇒1. Parliamentary Control

Parliament controls them through debates, questions during Question Hour, and most importantly, through the Committee on Public Undertakings (COPU) which scrutinizes their performance.

⇒2. Government/Executive Control

The parent Ministry has the power to appoint/remove the Chairman and Board of Directors. The Ministry can also issue binding policy directives to the corporation in the "public interest."

⇒3. Judicial Control

As discussed, since they are "State" under Art 12, their actions are subject to judicial review under Art 32/226 for violating fundamental rights or acting ultra vires their founding statute.

Courts can check illegalities, but what about maladministration, rudeness, delay, and corruption by ministers/bureaucrats where no specific law is broken?

⇒The Swedish Invention

The institution of Ombudsman was created in Sweden in 1809. It is an independent, high-level public official responsible to the Parliament, appointed to investigate citizens' complaints against government officials.

⇒Features of Ombudsman

• Independent of the executive.
• Investigates complaints of corruption, delay, or abuse of power.
• Can also initiate investigations suo motu (on its own).
• Usually cannot quash orders, but submits public reports recommending action, relying on public pressure.

After decades of demand and the massive 2011 India Against Corruption movement, India enacted the Lokpal and Lokayuktas Act to investigate corruption at the highest levels.

⇒Structure

• Lokpal: For the Center.
• Lokayukta: For the States (Act mandates states to set up their own).

⇒Composition of Lokpal

Consists of a Chairperson (usually a former Chief Justice or SC Judge) and a maximum of 8 members (50% must be judicial members). To ensure diversity, 50% must be from SC/ST/OBC/Minorities/Women.

⇒Who can it investigate?

The Lokpal has a very wide jurisdiction covering:

• The Prime Minister (with certain safeguards regarding matters of national security, foreign affairs, etc., requiring a 2/3rd majority of the Lokpal bench to initiate inquiry).
• Current and former Cabinet Ministers and Members of Parliament.
• Group A, B, C, and D officers of the Central Government.
• Directors/officers of Societies/Trusts heavily funded by the government or foreign contributions.

⇒Powers

The Lokpal has an Inquiry Wing and a Prosecution Wing. It can direct the CBI to investigate. Cases referred by Lokpal to CBI cannot be transferred without Lokpal's approval. It has powers to confiscate assets acquired through corruption during the pendency of proceedings.

Another mechanism to investigate administrative failures or major public disasters (e.g., riots, train accidents, mega-scams).

⇒Purpose

The Government can appoint a Commission (usually headed by a retired judge) "for the purpose of making an inquiry into any definite matter of public importance."

⇒Nature of Power

A Commission of Inquiry is NOT a court. It has the powers of a civil court for summoning witnesses and demanding documents, but its final report is merely recommendatory. It cannot pass a binding judgment or send anyone to jail. The government is free to accept or reject its findings (though it must table the report in Parliament with an action taken report).

The most powerful weapon in the hands of citizens against administrative secrecy.

⇒The Philosophy

Democracy requires an informed citizenry. Transparency cures maladministration. The RTI Act gives citizens a statutory right to access information held by "Public Authorities."

⇒Key Features

• Public Information Officers (PIO): Must respond to requests within 30 days (48 hours if it concerns life/liberty).
• Exemptions (Section 8): Information affecting national security, foreign relations, cabinet papers, or privacy of individuals can be denied.
• Information Commissions: Independent bodies at State (SIC) and Central (CIC) levels to hear appeals and impose heavy fines on PIOs who deny information without cause.

The CVC is the apex vigilance institution in India, free of control from any executive authority, created to advise and guide Central Government agencies in the field of vigilance.

⇒Role and Functions

It was given statutory status by the CVC Act, 2003. Its main role is to exercise superintendence over the functioning of the CBI (Delhi Special Police Establishment) in corruption cases under the Prevention of Corruption Act.

It also reviews the progress of investigations conducted by the CBI and advises government departments on disciplinary proceedings against corrupt officials.

⇒Summary of Master Concepts

• Tribunals (Art 323A/B): Created for speed and expertise. L. Chandra Kumar case proved they cannot bypass High Court writ jurisdiction.
• Public Corporations: Autonomous Govt entities. Treated as "State" under Art 12 (Ajay Hasia test) for enforcing Fundamental Rights.
• Lokpal: Apex ombudsman for corruption involving PM, Ministers, and MPs.
• Commissions of Inquiry: Fact-finding bodies; reports are only recommendatory, not binding judgments.
• RTI & CVC: Statutory tools for transparency and internal vigilance.

⇒University Exam Tips for this Unit (Premium Advice)

• L. Chandra Kumar Case: This is the most critical case in this unit. If asked about Administrative Tribunals, you must explain that while they reduce the burden of courts, they are subordinate to the High Courts' Basic Structure power of judicial review.
• Are Public Corporations 'State'? A classic long question. Always cite the 5-point test laid down in the Ajay Hasia case to explain when a corporation becomes an instrumentality of the State.
• Lokpal Jurisdiction: Examiners often ask if the Prime Minister is under the Lokpal. The answer is YES, but with specific procedural safeguards regarding national security.