Section 56 of CA, 2002 : Section 56: Power Of Central Government To Supersede Commission

Explanation using Example

Imagine a situation where the Competition Commission of India (CCI), which is responsible for enforcing The Competition Act, 2002, faces a severe natural disaster like an earthquake that damages its offices and disrupts its operations. Due to this, the CCI is unable to function normally and carry out its duties, such as investigating anti-competitive practices or mergers that could harm the market.

In this scenario, the Central Government may step in under Section 56(1)(a) of The Competition Act, 2002, if it believes that the CCI is unable to perform due to circumstances beyond its control. The Government would issue a notification to temporarily supersede the Commission and take over its functions, which could include completing pending investigations or approving urgent mergers that are critical for the economy.

The notification would last for a period not exceeding six months, as per the Act, and before issuing it, the Government would give the CCI a chance to present its case against the supersession. If the Government proceeds with the supersession, the CCI's Chairperson and members would have to vacate their offices, and the Government would assume all powers of the CCI until it is reconstituted.

After the supersession period, the Central Government is required to reconstitute the CCI with new appointments, and the actions taken during the supersession, along with the reasons for it, must be reported to Parliament.