Union of India (UOI) vs. R. Gandhi and Ors., (2010)11SCC1

Union of India (UOI) vs. R. Gandhi and Ors., (2010)11SCC1

Union of India (UOI) vs. R. Gandhi and Ors., (2010)11SCC1

Union of India (UOI) vs. R. Gandhi and Ors., (2010)11SCC1

Constitution – Legislative Competence of Parliament for creation of Tribunals – Entries 77, 78, 79 and Entries 43, 44 read with Entry 95 of List I, Item 11A read with Entry 46 of List III of the Seventh Schedule – Whether Parliament have the legislative competence to vest intrinsic judicial functions that have been traditionally performed by the High Courts for nearly a century in any Tribunal outside the Judiciary – Held, legislature has the power to create Tribunals with reference to specific enactments and confer jurisdiction on them to decide disputes in regard to matters arising from such special enactments which includes companies Act – Therefore, it cannot be said that legislature has no power to transfer judicial functions traditionally performed by Courts to Tribunals – Legislative competence of Parliament to provide for creation of courts and Tribunals can be traced to Entries 77, 78, 79 and Entries 43, 44 read with Entry 95 of List I, Item 11A read with Entry 46 of List III of the Seventh Schedule.

Constitution – Violation of Doctrine of separation of power – Whether the constitution of the National Company Law Tribunal and transferring the entire company jurisdiction to it, is violative of the doctrine of separation of powers and independence of the Judiciary which are parts of the basic structure of the Constitution – Held, Legislature has the competence to make laws providing which disputes will be decided by courts and which disputes will be decided by Tribunals subject to constitutional limitations and in view the principles of Rule of Law and separation of powers – In the present case, the creation of National Company Law Tribunal and National Company Law Appellate Tribunal and vesting in them, the powers and jurisdiction exercised by the High Court in regard to company law matters, are not unconstitutional – Various provisions of Chapters IB and IC of the Act which are defective and unconstitutional, being in breach of basic principles of Rule of Law, Separation of Powers and Independence of the Judiciary to be made operational by making suitable amendments by the Government
Ratio Decidendi:
“Legislature has the power to create Tribunals with reference to specific enactments including companies Act but such constitution must not be violative of the doctrine of separation of powers and independence of the Judiciary which are parts of the basic structure of the Constitution.”

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