Govt working on proposal to ban arbitration by tribunal members

Terms and conditions of Income Tax Apellate Tribunal for appointment of tribunal members prohibits arbitration

PTI | May 3, 2010



The government is working on a proposal to stop chairmen and members of various tribunals from working as arbitrators while in office, the Rajya Sabha was informed today.

"A proposal is under consideration wherein persons functioning as chairmen, presidents, vice-presidents and members (of tribunals) are stopped from giving such advice in arbitration work," law minister M Veerappa Moily said in a written reply.

He said the terms and conditions of appointment of chairmen and members of Income Tax Appellate Tribunal, which is administered by the law ministry, prohibits them to undertake any arbitration (out of court settlement governed by rules of alternative dispute resolution system) work while being part of the tribunal.

Sources in the law ministry said the proposal is being worked out and will be taken to the union cabinet for approval shortly.

The proposal bars such members and chairpersons from working as arbitrators while in office. As of now, some of them are reported to be working as arbitrators in various cases.

There are at least 21 tribunals which are regulated by Acts, Rules and Regulations governed by various union ministries.

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