In a 4:1 verdict, a five-judge Constitutional bench declared as "unconstitutional" the law that created a National Judicial Appointments Commission of six people, including members of the government and the opposition and two eminent persons.

The judges ruled that the independence of the judiciary is a basic structure of the Constitution and cannot be tampered with.

The court said the two decades-old system of judges being appointed or transferred by a collegium - a group of five senior judges - would continue.

The top court also said it would consider suggestions to improve the collegium system on November 3.

"The verdict is a setback for Parliament," said union minister Ravi Shankar Prasad. Law Minister Sadananda Gowda said : "The will of the people has been brought to the court. The law was completely supported in Parliament so it had the 100% support of the people."

Petitions filed by a Supreme Court advocates' group among others argued that the law demolished the independence of the judiciary by giving the government a big role in the selection of judges.

During arguments before the Constitution bench, the government's top lawyer, Attorney General Mukul Rohatgi had said that many underserving persons were appointed as judges and there was no accountability.

The National Judicial Appointments Commission was to have six members - the Chief Justice of India, the two most senior judges of the Supreme Court, two eminent persons, and the Law Minister. The two eminent Indians would be chosen by the Chief Justice, the PM and the leader of the largest opposition party in the Lok Sabha.

Days after the appointments panel was put in place, the Chief Justice of India, HL Dattu, wrote to Prime Minister Narendra Modi that he would not be a part of it until the Supreme Court decides on its validity.

The National Judicial Appointments Commission was passed in Parliament and notified by the government even as the Constitution bench was hearing petitions challenging it.