Doctrine of Necessity Principle

February 3, 2023

The post of Chairman of the Competition Commission of India has been vacant since the retirement of Mr.Ashok Kumar Gupta in October 2022. Also, currently, there are only 2 members in the CCI. There are many mergers and acquisitions pending before the commission waiting for its approval. To attend to the pending matter, the Commission is to create a Quorum of three members using the Doctrine of Necessity Principle.

What is the Doctrine of Necessity Principle?

The extra-constitutional actions are generally referred to Doctrine of Necessity. Under this, an administrative authority can get power to bring back stability. Take the case of CCI for example. Though certain decisions and approvals need the consideration of the Chairman, the CCI is using the principle to clear the pending files. Keeping the mergers and acquisitions waiting for approval slows down the economic growth of the country. Therefore, quick action is required here. And so, the CCI is invoking the Doctrine of Necessity Principle.

Legal justifications for CCI actions

Section 15 of the Competition Act says that no act of CCI shall be invalid due to vacancies. The CCI is using this legal provision to adopt the Doctrine of Necessity Principle.

« Previous Post Next Post »