Association of Indian Laboratories (‘AOIL’) Vs National Accreditation Board for Testing and Calibration Laboratories (‘NABL’) (Competition Commission of India)
The Central Information Commission (CCI) has dismissed allegations against the National Accreditation Board for Testing and Calibration Laboratories (NABL), ruling that its directive requiring accredited labs to align with specific legal structures does not constitute an abuse of dominant position under the Competition Act, 2002.
The case, brought forth by the Association of Indian Laboratories (AOIL) against NABL, revolved around a circular issued by NABL mandating accredited labs operating as sole proprietors to transition to alternative legal entities such as One Person Company (OPC), Limited Liability Partnership (LLP), Company, Society/Trust, or Government by a specified deadline.
AOIL contended that this directive was discriminatory, favored larger entities, and posed significant challenges for smaller entrepreneurs. They argued that many accredited labs were micro and small enterprises established under sole proprietorship due to ease of setup, and transitioning to other legal forms would be economically unviable and operationally burdensome.
However, the CCI’s analysis found no grounds to intervene with NABL’s directive. In a previous case, the Commission had already addressed similar allegations against the same circular and concluded that the directive was in line with ISO/IEC 17025:2017 requirements, which mandate certain organizational structures for labs seeking accreditation. The directive aimed to enhance accountability, corporate governance, and compliance with legal and financial obligations, thereby reinforcing trust and confidence in accredited lab services.
