(1) The Chairperson or other Member of the Appellate Tribunal may, by notice in writing under his hand addressed to the Central Government, resign his office:
Provided that the Chairperson or other Member shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.
(2) The Central Government may, in consultation with the Chief Justice of India, remove from office the Chairperson or other Member of the Appellate Tribunal, who—
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or
(c) has become physically or mentally incapable of acting as Chairperson or other Member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as Chairperson or other Member; or
(e) has so abused his position as to render his continuance in office prejudicial to the public interest.
(3) No Chairperson or other Member shall be removed from his office under clause (d) or clause (e) of sub-section (2) except by an order made by the Central Government on the ground of proved misbehaviour or incapacity after an inquiry made by a Judge of the Supreme Court in which such Chairperson or other Member had been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges.
Legal Commentary & Landmark Judgments: Section 117
Section 117 of the Act prescribes the procedure for the resignation and removal of the Chairperson or Members of the Appellate Tribunal, providing that removal can be effected only after a formal inquiry by a Supreme Court Judge on grounds of proven misbehavior or incapacity.
The rigorous removal threshold under Section 117 ensures that APTEL judges can fearlessly set aside politically motivated state government tariff orders or executive directions without fear of administrative reprisal.