Supreme Court Dismisses Appeal Challenging Abolition of Odisha Administrative Tribunal — Power to Abolish SATs Upheld Under General Clauses Act and Article 323-A. The Court held that the Union Government has the power to abolish a State Administrative Tribunal established under the Administrative Tribunals Act, 1985, and the notification dated 2 August 2019 is valid.

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Case Note & Summary

The Supreme Court dismissed an appeal against the Orissa High Court judgment upholding the abolition of the Odisha Administrative Tribunal (OAT). The OAT was established on 4 July 1986 under Section 4(2) of the Administrative Tribunals Act, 1985, following a request from the State of Odisha. In 2015, the State of Odisha requested the Union Government to abolish the OAT, citing the impact of the Supreme Court's decision in L. Chandra Kumar v. Union of India (1997) 3 SCC 261, which held that the jurisdiction of High Courts under Articles 226 and 227 could not be excluded, thereby rendering the tribunal's objective of speedy justice unfulfilled and increasing litigation costs. The Union Government issued a notification on 2 August 2019 abolishing the OAT. The appellants, including employees and associations, challenged the abolition before the Orissa High Court, which dismissed the writ petitions. The Supreme Court framed several issues: whether the writ petitions were maintainable before the High Court; whether Article 323-A precludes abolition; whether Section 21 of the General Clauses Act applies; whether the notification violates Article 14; whether natural justice was violated; whether the government became functus officio; whether the notification was valid despite not being expressed in the name of the President; whether abolition violates access to justice; whether the state took advantage of its own wrong; and whether a judicial impact assessment was required. The Court held that the writ petitions were maintainable as the abolition affected service conditions. It held that Article 323-A does not preclude abolition, and Section 21 of the General Clauses Act applies, giving the power to abolish. The notification was not arbitrary or violative of Article 14, as it was based on legitimate considerations. Natural justice was not required as abolition is a policy decision. The government did not become functus officio. The notification was valid despite not being in the President's name as it was published in the Gazette. Abolition did not violate access to justice as the High Court's jurisdiction remains. The state did not take advantage of its own wrong. No judicial impact assessment was required. The appeal was dismissed.

Headnote

A) Administrative Law - Power to Abolish Tribunal - Section 21 General Clauses Act, 1897 - Article 323-A Constitution of India - The power to establish includes the power to abolish unless there is a contrary intention. Section 21 of the General Clauses Act applies to notifications issued under the Administrative Tribunals Act, 1985, and the Union Government has the power to abolish the Odisha Administrative Tribunal. (Paras 32-46)

B) Constitutional Law - Article 323-A - Abolition of State Administrative Tribunal - Article 323-A does not preclude the Union Government from abolishing SATs. The provision empowers Parliament to provide for adjudication by tribunals but does not mandate their perpetual existence. (Paras 25-31)

C) Constitutional Law - Article 14 - Reasonableness of Abolition - The notification dated 2 August 2019 is not violative of Article 14. The decision to abolish the OAT was based on legitimate considerations including the impact of L. Chandra Kumar judgment and financial burden, and is not arbitrary. (Paras 47-55)

D) Administrative Law - Natural Justice - Principles of natural justice do not require a hearing before abolition of a tribunal. The abolition is a legislative or executive policy decision, not a quasi-judicial act. (Paras 56-57)

E) Administrative Law - Functus Officio - The Union Government did not become functus officio after establishing the OAT. The power to establish includes the power to abolish, and the government can revisit its decision. (Paras 58-60)

F) Constitutional Law - Access to Justice - Abolition of OAT does not violate fundamental right of access to justice. Service matters can be adjudicated by the High Court under Articles 226 and 227, and the Supreme Court under Article 136. (Paras 67-69)

G) Administrative Law - Judicial Impact Assessment - Failure to conduct a judicial impact assessment does not vitiate the decision to abolish the OAT. Such assessment is not a legal requirement. (Paras 71-73)

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Issue of Consideration

Whether the Union Government has the power to abolish a State Administrative Tribunal established under the Administrative Tribunals Act, 1985, and whether the notification dated 2 August 2019 abolishing the Odisha Administrative Tribunal is valid.

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Final Decision

The Supreme Court dismissed the appeal, upholding the Orissa High Court judgment and the validity of the notification dated 2 August 2019 abolishing the Odisha Administrative Tribunal.

Law Points

  • Power to abolish includes power to establish
  • Section 21 General Clauses Act applies to administrative orders
  • Article 323-A does not preclude abolition
  • No violation of Article 14
  • No violation of natural justice
  • No functus officio
  • Notification valid despite not in President's name
  • No violation of access to justice
  • No judicial impact assessment required
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Case Details

2023 LawText (SC) (3) 58

Civil Appeal No. 52385 of 2022 (arising from IA No. 52385 of 2022)

2023-03-21

Dr. Dhananjaya Y Chandrachud, CJI

Orissa Administrative Tribunal Bar Association

Union of India & others

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Nature of Litigation

Civil appeal against Orissa High Court judgment upholding abolition of Odisha Administrative Tribunal

Remedy Sought

Appellants sought to set aside the notification dated 2 August 2019 abolishing the OAT and to restore the tribunal

Filing Reason

Challenge to the constitutional validity and legality of the abolition of the Odisha Administrative Tribunal

Previous Decisions

Orissa High Court dismissed writ petitions challenging the abolition on 7 June 2021

Issues

Whether the writ petitions before the Orissa High Court were maintainable Whether Article 323-A precludes the Union Government from abolishing SATs Whether Section 21 of the General Clauses Act applies to the notification establishing the OAT Whether the notification dated 2 August 2019 is violative of Article 14 of the Constitution Whether principles of natural justice were violated Whether the Union Government became functus officio after establishing the OAT Whether the notification is valid despite not being expressed in the name of the President Whether abolition violates the fundamental right of access to justice Whether the State Government took advantage of its own wrong Whether failure to conduct a judicial impact assessment vitiates the decision

Submissions/Arguments

Appellants argued that the abolition was arbitrary, violative of Article 14, and that the government had no power to abolish the tribunal Respondents argued that the power to establish includes the power to abolish under Section 21 of the General Clauses Act, and the decision was based on legitimate considerations

Ratio Decidendi

The power to establish a tribunal under the Administrative Tribunals Act includes the power to abolish it, by virtue of Section 21 of the General Clauses Act, 1897, and Article 323-A of the Constitution does not preclude such abolition. The decision to abolish must be based on legitimate considerations and is subject to judicial review on grounds of arbitrariness, but in this case, the decision was valid.

Judgment Excerpts

The power to establish includes the power to abolish unless there is a contrary intention. Article 323-A does not preclude the Union Government from abolishing SATs. The notification dated 2 August 2019 is not violative of Article 14 of the Constitution. The principles of natural justice have not been violated. The Union Government did not become functus officio after establishing the OAT. The abolition of the OAT is not violative of the fundamental right of access to justice. The failure of the Union Government to conduct a judicial impact assessment before abolishing the OAT does not vitiate its decision.

Procedural History

The Odisha Administrative Tribunal was established on 4 July 1986. On 16 September 2015, the State of Odisha requested the Union Government to abolish the OAT. The Union Government issued a notification on 2 August 2019 abolishing the OAT. Writ petitions were filed before the Orissa High Court challenging the abolition, which were dismissed on 7 June 2021. The present appeal was filed before the Supreme Court against that judgment.

Acts & Sections

  • Administrative Tribunals Act, 1985: 4, 14, 15, 28, 29, 3(q)
  • General Clauses Act, 1897: 21
  • Constitution of India: Article 323A, Article 323B, Article 14, Article 136, Article 226, Article 227, Article 32
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