23

Competition Act, 2002

1. Introduction
Given the fact that the structure of world economy and trade has taken rapid strides and
undergone vast changes, India has been taking adequate steps for integrating itself with
the new changes and challenges thereby market functioning, positioning becomes
effective and competitive. In this regard, Government constituted a High Level Committee
on Competition Policy and Law on 15.9.1999 under the Chairmanship of Mr. S.V.S.
Raghavan, to recommend a legislative framework relating to Competition Law including
mergers and demergers.
The Committee submitted its report on 22 nd May 2000. The Government, after considering
the report and suggestions from various organizations, institutions and general public,
introduced the Competition Bill in the Parliament. This Bill became an Act i.e., the
Competition Act, 2002 after receiving assent from the President on 13 th January 2003 and
all the sections of the Act have already come into force by virtue of separate Government
notifications. This Act extends to the whole of India except the State of Jammu and
Kashmir.
Object behind the enactment of the Competition Act, 2002
An Act, keeping in view of the economic development of the country, was laid down to
provide for an establishment of a commission with the following object:

to prevent practices having adverse effect on competition

to promote and sustain competition in markets

to protect the interests of consumers

to ensure freedom of trade carried on by other participants in markets in India

and -for matters connected therewith or incidental thereto

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What is Competition?
A broad definition of
Competition is “a
situation in a market in
which firms or sellers
independently stride for
the buyers’ patronage in
order to achieve a
particular business
objective, for example
profit, sales or market
share” (World Bank,
1999). A pre-requisite for
a good competition is
trade, trade is the
unrestricted liberty of
every man to buy, sell
and barter, when, where
and how, of whom and to
whom he pleases.
For a free market to be in existence the handicap is that for a given distribution of income
of those who can pay the highest price will most be able to purchase the goods regardless
their relative needs. However, the real culprit is income distribution system and not the
competitive system. In an unregulated free market, in certain circumstances it could be of
greater benefit to the owner to withhold goods from market in order to extract a higher
price. Despite the efforts to regulate prices which have been unsuccessful, the caution in
a free market as compared to the problems in an unregulated market can be overcome by
posturing competition by which the interest of the consumer can be protected.
Competition Policy and Law
The Competition Policy is regarded as genus, of which, the Competition Law is specie.
Competition Law provides necessary powers to the Competition Commission to enforce and
implement the Competition Policy. The central economic goal of the Competition Policy is the
preservation and promotion of the competitive process. It is a symbolic process, which
encourages efficiency in the production and allocation of goods and services over a period of
time through its effects on innovation and adjustment to technological change. In conditions of
effective competition, competitors will be having equal opportunities to compete for their own
economic interest and therefore the quality of their outputs and resource deployment will be
given top priority in order to sustain and succeed in the market by meeting consumers’
demand at the lowest possible cost.
Main Ingredients of Competition Law
The focus of the law is towards the following areas affecting competition namely:

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 Competition Act, 2002 23.3

Prohibition of certain agreements, which are considered to be anti-competitive in nature.

Such agreements [namely tie in arrangements, exclusive dealings (supply and distribution),
refusal to deal and resale price maintenance] shall be presumed as anti-competitive if they
cause or are likely to cause an appreciable adverse effect on competition within India.

Prohibition of Abuse of dominant position

by imposing unfair or discriminatory conditions or limiting and restricting production of goods or

services or indulging in practices resulting in denial of market access or through in any other
mode are prohibited.

Regulation of combinations

which cause or are likely to cause an appreciable adverse affect on competition within the
relevant market in India is also considered to be void.

2. Definitions
Acquisition [Section 2(a)]
"Acquisition" means, directly or indirectly, acquiring or agreeing to acquire—
(i) shares, voting rights or assets of any enterprise; or
(ii) control over management or control over assets of any enterprise;

Agreement [Section 2(b)]

"Agreement" includes any arrangement or understanding or action in concert,—
(i) whether or not, such arrangement, understanding or action is formal or in writing; or
(ii) whether or not such arrangement, understanding or action is intended to be
enforceable by legal proceedings.
The objective of the Competition Policy is to promote efficiency and maximising the
welfare of nation and to create a business environment, which promotes healthy market
competition. An agreement which prohibits an enterprise or person or their association for
entering into an agreement in respect of production, supply, distribution, storage,
acquisition or control of goods or services, which causes or is likely to cause an
appreciable adverse affect on competition. Such agreements entered in contravention of
the above are void. These agreements are presumed to have an appreciable adverse
affect on competition.

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 23.4 Corporate and Allied Laws

Example
An understanding has been reached among the manufacturers of cement to control the
price of cement, but the understanding is not in writing and it is also not intended to be
enforced by legal proceedings.
Examine whether the above understanding can be considered as an ‘Agreement’ with the
meaning of Section 2(b) of the Competition Act, 2002.

Answer

Agreement
‘Agreement’ includes any arrangement or understanding or action in concert:
(i) Whether or not, such arrangement, understanding or action is formal or in writing or
(ii) Whether or not such arrangement, understanding or action is intended to be
enforceable by legal proceedings. [Section 2(b)].
In view of the above definition of ‘agreement’, an understanding reached by the cement
manufacturers to control the price of cement will be an ‘agreement’ within the meaning of
section 2(b) of the Competition Act, 2002 even though the understanding is not in writing
and it is not intended to be enforceable by legal proceedings.

Agreements

horizontal agreements vertical agreements

Agreements may be horizontal agreements and vertical agreements.

Horizontal agreements refer to agreements among competitors and vertical agreements
refer to an actual or potential relationship of buying or selling to each other. Horizontal
agreements relating to prices, quantities, bids and market sharing are particularly anti-
competitive. Vertical agreements like tie in arrangements; exclusive supply/distribution
agreements and refusal to deal are also generally anti-competitive. Section 3 of the
Competition Act, 2002 regulates and prohibits all types of agreements, which have the
effect to restrict competition, and prevent those, which have such likely effect.
Here, horizontal agreements are those agreements among competitors operating at the
same level in the economic process i.e. enterprises engaged in the same activity.
Example: The agreements between producers or between wholesellers or between
retailers, dealing in similar kind of products.

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Vertical agreements are those agreements between Non-competiting undertakings

operating at different levels of manufacturing and distribution process.
Example: The agreements between manufacturers of components, manufacturers of
products, between producers and whole-sellers or between producers, whole-sellers and
retailers.
Horizontal agreements are agreements between two or more enterprises that are at the
same stage of the production chain and in the same market. Horizontal agreements and
membership of cartels lead to unreasonable restrictions of competition and may be
presumed to have an appreciable adverse effect on competition.
Vertical agreements are agreements between enterprises that are at different stages or
levels of the production chain and therefore in different markets. An example of this would
be an agreement between a producer and a distributor. This includes, Tie in
arrangements, Exclusive Supply Agreements, Exclusive Distribution Agreements, Refusal
to Deal and Resale Price Maintenance (RPM).

Appellate Tribunal [Section 2 (ba)]

It means the National Company Law Appellate Tribunal referred to in sub-section (1) of
section 53A.

Cartel [Section 2(c)]

"Cartel" includes an association of producers,
sellers, distributors, traders or service providers
who, by agreement amongst themselves, limit,
control or attempt to control the production,
distribution, sale or price of, or, trade in goods or
provision of services.
The term cartel like agreement has been given an
inclusive meaning. Thus, an association for the
welfare of the trade or formed for any other
purpose not mentioned in the aforesaid definition
will not be a cartel.
It is only when an association, by agreement amongst themselves, limits control or attempts to
control the production, distribution, sale or price of, or, trade in goods or provision of services,
that it will be a cartel.

Example
The orange producers of Nagpur have formed an association to control the production of
oranges. Examine whether it will be considered as a cartel within the meaning of Section
2(c) of the Competition Act, 2002.

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 23.6 Corporate and Allied Laws

Answer
As per section 2(c) of the Competition Act, 2002 the term “cartel” includes an association
of producers, sellers, distributors, traders or service providers who, by agreement
amongst themselves, limit, control, or attempt to control the production, distribution, sale
or price of, or, trade in goods or provision of services.
The term “cartel” has an inclusive meaning. Thus an association formed to control the
production of oranges is within the aforesaid definition of a cartel. Hence the association of
orange producers of Nagpur will be considered as a cartel under the provisions of the Act.

Chairperson [Section 2(d)]

"Chairperson" means the Chairperson of the Commission appointed under sub-section (1)
of section 8;

Commission [Section 2(e)]

"Commission" means the Competition Commission of India established under sub-section
(1) of section 7;

Consumer [Section 2(f)]

"Consumer" means any person who—
(i) buys any goods for a consideration which
has been paid or promised or partly paid
and partly promised, or under any system
of deferred payment and includes any user
of such goods other than the person who
buys such goods for consideration paid or
promised or partly paid or partly promised,
or under any system of deferred payment
when such use is made with the approval
of such person, whether such purchase of
goods is for resale or for any commercial
purpose or for personal use;
(ii) hires or avails of any services for a consideration which has been paid or promised
or partly paid and partly promised, or under any system of deferred payment and
includes any beneficiary of such services other than the person who hires or avails of
the services for consideration paid or promised, or partly paid and partly promised, or
under any system of deferred payment, when such services are availed of with the
approval of the first-mentioned person whether such hiring or availing of services is
for any commercial purpose or for personal use;
It is noteworthy that the definition of consumer is substantially the same has given to the
expression under section 2(d) of the Consumer Protection Act, 1986. The difference is

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 Competition Act, 2002 23.7

that under clause (i), in the Competition Act, it uses the words “whether such purchase of
goods is for the resale or for any commercial purpose or for personal use” in places of the
words “but does include a person who obtains such goods for resale or for any
commercial purpose”, as in the Consumer Protection Act. Likewise, in clause (ii), the
words used in the Competition Act are “whether such hiring or availing of services is for
any commercial purpose or for personal use” in place of the words “but does not include a
person who avails of such services for any commercial purpose” as in the Consumer
Protection Act. Thus, the interpretation of “consumer” in the Consumer Protection Act will
be the same as in Competition Act. In the latter Act, “consumer” will also include a person
who purchases goods for resale or for any commercial purpose or for personal use.

Example
Examine with reference to the relevant provisions of the Competition Act, 2002 the
following:
Whether a person purchasing goods not for personal use, but for resale can be
considered as a ‘consumer.’

Answer
Consumer: The term ‘consumer’ is defined in section 2(f) of Competition Act, 2002.
Accordingly, ‘consumer’ means any person who buys any goods for a consideration, which
has been paid or promised or partly paid and partly promised, whether such purchase of
goods is for resale or for any commercial purpose or for personal use.
Hence, it is not necessary that a person must purchase the goods for personal use in
order to be considered as a ‘consumer’ under Competition Act, 2002. Even a person
purchasing goods for resale or for any commercial purpose will also be considered as a
‘consumer’ within the meaning of Section 2(f) of the Competition Act, 2002.

Director General [Section 2(g)]

"Director General" means the Director General appointed under sub-section (1) of section 16(1)
and includes any Additional, Joint, Deputy or Assistant Directors General appointed under that
section;

Enterprise [Section 2(h)]

"Enterprise" means a person or a department of the Government, who or which is, or has
been, engaged in any activity, relating to the production, storage, supply, distribution,
acquisition or control of articles or goods, or the provision of services, of any kind, or in
investment, or in the business of acquiring, holding, underwriting or dealing with shares,
debentures or other securities of any other body corporate, either directly or through one
or more of its units or divisions or subsidiaries, whether such unit or division or subsidiary
is located at the same place where the enterprise is located or at a different place or at
different places, but does not include any activity of the Government relatable to the

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sovereign functions of the Government including all activities carried on by the

departments of the Central Government dealing with atomic energy, currency, defence
and space.
For the purposes of this clause,—
(a) "activity" includes profession or occupation;
(b) "article" includes a new article and "service" includes a new service;
(c) "unit" or "division", in relation to an enterprise, includes—
(i) a plant or factory established for the production, storage, supply, distribution,
acquisition or control of any article or goods;
(ii) any branch or office established for the provision of any service;
Here, the Department of Central Government is also considered as an enterprise. Hence,
it can sue and sued by others as a juristic person for its right and legal remedies.
However, such Central Government Departments having sovereign functions of the
Government, which include activities relating to atomic energy, currency, defence and
space, are excluded from the definition of an enterprise.

Goods [Section 2(i)]

"Goods" means goods as defined in the Sale of Goods Act, 1930 and includes—
(A) products manufactured, processed or mined;
(B) debentures, stocks and shares after allotment;
(C) in relation to goods supplied, distributed or controlled in India, goods imported into
India;
Section 2(7) of the Sale of Goods Act, 1930 defines goods as “every kind of movable
property other than actionable claims and money; and include stock and shares, growing
crops, grass and things attached to or forming part of the land which are agreed to be
severed before sale or under the contract of sale”.

Example
ABC Ltd. made an initial public offer of certain number of equity shares. Examine whether
these shares can be considered as ‘Goods’ under the Competition Act, 2002 before
allotment.

Answer
Section 2(i) of Competition Act, 2002 defines ‘goods’ as follows:
‘Goods’ means goods as defined the Sale of Goods Act, 1930 and includes –
(a) products manufactured, processed or mined;
(b) debentures, stock and shares after allotment;

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 Competition Act, 2002 23.9

(c) in relation to goods supplied, distributed or controlled in India, goods imported into
India.
Hence, debentures and shares can be considered as ‘goods’ within the meaning of
section 2(i) of Competition Act, 2002 only after allotment and not before allotment.

Member [Section 2(j)]

"Member" means a Member of the Commission appointed under sub-section (1) of section
8 and includes the Chairperson;

Notification [Section 2(k)]

"Notification" means a notification published in the Official Gazette;

Person [Section 2(l)]

"Person" includes—
(i) an individual;
(ii) a Hindu Undivided Family;
(iii) a company;
(iv) a firm;
(v) an association of persons or a body of individuals, whether incorporated or not, in India
or outside India;
(vi) any corporation established by or under any Central, State or Provincial Act or a Government
company as defined in section 617 of the Companies Act, 1956 (1 of 1956);
(vii) any body corporate incorporated by or under the laws of a country outside India;
(viii) a co-operative society registered under any law relating to cooperative societies;
(ix) a local authority;
(x) every artificial judicial person, not falling within any of the preceding sub-clauses;

Practice [Section 2(m)]

"Practice" includes any practice relating to the carrying on of any trade by a person or an
enterprise;

Prescribed [Section 2(n)]

"Prescribed" means prescribed by rules made under this Act;

Price [Section 2(o)]

"Price", in relation to the sale of any goods or to the performance of any services,
includes every valuable consideration, whether direct or indirect, or deferred, and includes

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any consideration, which in effect relates to the sale of any goods or to the performance
of any services although ostensibly relating to any other matter or thing;

Public financial institution [Section 2(p)]

"Public financial institution" means a public financial institution specified under section 4A
of the Companies Act, 1956 and includes a State Financial, Industrial or Investment
Corporation;

Regulations [Section 2(q)]

"Regulations" means the regulations made by the Commission under section 64;

Relevant Market [Section 2(r)]

"Relevant Market" means the market, which may be determined by the Commission with
reference to the relevant product market or the relevant geographic market or with
reference to both the markets;
It includes all interchangeable or substitutable goods or services of all competitors. The
determination of the relevant market is a crucial aspect.

Relevant Geographic Market [Section 2(s)]

"Relevant Geographic Market" means a market comprising the area in which the
conditions of competition for supply of goods or provision of services or demand of goods
or services are distinctly homogenous and can be distinguished from the conditions
prevailing in the neighbouring areas;
The Relevant Geographic Market is not broad in sense. It could be drawn as narrowly as
one metropolitan area or as broad as the nation as a whole. It is the geographic area in
which a sole supplier of the product could profitably increase its price without causing
outside suppliers to sell in that particular area.
It is an area in which the sellers of particular product or service providers operate. This
type of market may be local, national, or international. It involves identification of
geographical areas within which competition take place.

Relevant Product Market [Section 2(t)]

"Relevant Product Market" means a market comprising all those products or services
which are regarded as interchangeable or substitutable by the consumer, by reason of
characteristics of the products or services, their prices and intended use;

Service [Section 2(u)]

"Service" means service of any description which is made available to potential users and
includes the provision of services in connection with business of any industrial or
commercial matters such as banking, communication, education, financing, insurance, chit

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 Competition Act, 2002 23.11

funds, real estate, transport, storage, material treatment, processing, supply of electrical
or other energy, boarding, lodging, entertainment, amusement, construction, repair,
conveying of news or information and advertising;

Shares [Section 2(v)]

"Shares" means shares in the share capital of a company carrying voting rights and
includes—
(i) any security which entitles the holder to receive shares with voting rights;
(ii) stock except where a distinction between stock and share is expressed or implied;

Statutory Authority [Section 2(w)]

"Statutory authority" means any authority, board, corporation, council, institute, university
or any other body corporate, established by or under any Central, State or Provincial Act
for the purposes of regulating production or supply of goods or provision of any services
or markets therefor or any matter connected therewith or incidental thereto;

Trade [Section 2(x)]

"Trade" means any trade, business, industry, profession or occupation relating to the
production, supply, distribution, storage or control of goods and includes the provision of any
services;

Turnover [Section 2(y)]

"Turnover" includes value of sale of goods or services;

Words and Expressions [Section (z)]

"Words and Expressions" used but not defined in this Act and defined in the Companies
Act, 1956 shall have the same meanings respectively assigned to them in that Act.

3. Prohibition of certain agreements, abuse of dominant position

and regulation of combinations
1. Anti competitive agreements [Section 3]
It shall not be lawful for any enterprise or association of enterprises or person or
association of persons to 'enter' into an agreement in respect of production, supply,
storage, distribution, acquisition or control of goods or provision of services, which causes
or is likely to cause an appreciable adverse effect on competition within India. All such
agreements entered into in contravention of the aforesaid prohibition shall be void.
Any agreement entered into between enterprises or associations of enterprises or persons
or associations of persons or between any person and enterprise or practice carried on, or
decision taken by, any association of enterprises or association of persons, including

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 23.12 Corporate and Allied Laws

cartels, engaged in identical or similar trade of goods or provision of services, shall be

presumed to have an appreciable adverse effect on competition, which—
(a) directly or indirectly determines purchase or sale prices;
(b) limits or controls production, supply, markets, technical development, investment or
provision of services;
(c) shares the market or source of production or provision of services by way of
allocation of geographical area of market, or type of goods or services, or number of
customers in the market or any other similar way;
(d) directly or indirectly results in bid rigging or collusive bidding.
However, any agreement entered into by way of joint ventures, if such agreement
increases efficiency in production, supply, distribution, storage, acquisition or control of
goods or provision of services, shall not be considered to be an anti-competitive
agreement.
Bid-rigging
"Bid rigging" means any agreement, between enterprises or persons engaged in identical or
similar production or trading of goods or provision of services, which has the effect of
eliminating or reducing competition for bids or adversely affecting or manipulating the process
for bidding.
Agreement at different stages in different markets
Any agreement amongst enterprises or persons at different stages or levels of the
production chain in different markets, in respect of production, supply, distribution,
storage, sale or price of, or trade in goods or provision of services shall be a void
agreement if it causes or is likely to cause an appreciable adverse effect on competition in
India including—
(a) tie-in arrangement - includes any agreement requiring a purchaser of goods, as a
condition of such purchase, to purchase some other goods;
(b) exclusive supply agreement - includes any agreement restricting in any manner the
purchaser in the course of his trade from acquiring or otherwise dealing in any goods
other than those of the seller or any other person;
(c) exclusive distribution agreement- includes any agreement to limit, restrict or withhold the
output or supply of any goods or allocate any area or market for the disposal or sale of the
goods;
(d) refusal to deal - includes any agreement which restricts, or is likely to restrict, by any
method the persons or classes of persons to whom goods are sold or from whom goods
are bought;
(e) resale price maintenance - includes any agreement to sell goods on condition that
the prices to be charged on the resale by the purchaser shall be the prices stipulated

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by the seller unless it is clearly stated that prices lower than those prices may be
charged.
Restriction of rights under some Acts
Nothing contained in this section shall restrict the right of any person to restrain any
infringement of, or to impose reasonable conditions, as may be necessary for protecting
any of his rights which have been or may be conferred upon him under—
(a) the Copyright Act, 1957;
(b) the Patents Act, 1970;
(c) the Trade and Merchandise Marks Act, 1958 or the Trade Marks Act, 1999;
(d) the Geographical Indications of Goods (Registration and Protection) Act, 1999;
(e) the Designs Act, 2000;
(f) the Semi-conductor Integrated Circuits Layout-Design Act, 2000;
Prohibition of export of rights
Nothing contained in this section shall restrict the right of any person to export goods from
India to the extent to which the agreement relates exclusively to the production, supply,
distribution or control of goods or provision of services for such export.
Vide Notification S.O. 1933(E) 16th June 2017, in exercise of the powers conferred by
clause (a) of section 54 of the Competition Act, 2002, the Central Government, in public
interest, hereby exempts the Vessels Sharing Agreements of Liner Shipping Industry from the
provisions of section 3 of the said Act, for a period of one year with effect from the 20th June,
2017, in respect of carriers of all nationalities operating ships of any nationality from any
Indian port provided such agreements do not include concerted practices involving fixing of
prices, limitation of capacity or sales and the allocation of markets or customers. During the
said period of one year, the Director General, Shipping, Ministry of Shipping, Government of
India shall monitor such agreements and for which, the persons responsible for operations of
such ships in India shall file copies of existing Vessels Sharing Agreements or Vessels
Sharing Agreements to be entered into with applicability during the said period along with
other relevant documents within thirty days of the publication of this notification in the Official
Gazette or within ten days of signing of such agreements, whichever is later, with the Director
General, Shipping.
2. Abuse of dominant position [Section 4]
Sub-section (1), prohibits abuse of dominant position by any enterprise or group. There
shall be abuse of dominant position if an enterprise or a group, -
(a) directly or indirectly, imposes unfair or discriminatory—
(i) condition in purchase or sale of goods or services; or
(ii) price in purchase or sale (including predatory price) of goods or service, or

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"predatory price" means the sale of goods or provision of services, at a price which
is below the cost, as may be determined by regulations, of production of the goods or
provision of services, with a view to reduce competition or eliminate the competitors.
The unfair or discriminatory condition in purchase or sale of goods or service referred
to in sub-clause (i) and unfair or discriminatory price in purchase or sale of goods
(including predatory price) or service referred to in sub-clause (ii) shall not include
such discriminatory condition or price which may be adopted to meet the competition;
or
(b) limits or restricts—
(i) production of goods or provision of services or market therefor; or
(ii) technical or scientific development relating to goods or services to the prejudice
of consumers; or
(c) indulges in practice or practices resulting in denial of market access in any manner;
or
(d) makes conclusion of contracts subject to acceptance by other parties of
supplementary obligations which, by their nature or according to commercial usage,
have no connection with the subject of such contracts; or
(e) uses its dominant position in one relevant market to enter into, or protect, other
relevant market.
Dominant position means a position of strength, enjoyed by an enterprise, in the
relevant market, in India, which enables it to—
(i) operate independently of competitive forces prevailing in the relevant market; or
(ii) affect its competitors or consumers or the relevant market in its favour.
3. Combination [Section 5]
The acquisition of one or more enterprises by one or more persons or merger or
amalgamation of enterprises shall be a combination of such enterprises and persons or
enterprises, if—
(a) any acquisition where—
(i) the parties to the acquisition, being the acquirer and the enterprise, whose
control, shares, voting rights or assets have been acquired or are being
acquired jointly have,—
(A) either, in India, the assets of the value of more than rupees one thousand
crores or turnover more than rupees three thousand crores; or
(B) in India or outside India, in aggregate, the assets of the value of more than
five hundred million US dollars, including at least rupees five hundred
crores in India, or turnover more than fifteen hundred million US dollars,
including at least rupees fifteen hundred crores in India; or

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(ii) the group, to which the enterprise whose control, shares, assets or voting rights
have been acquired or are being acquired, would belong after the acquisition,
jointly have or would jointly have,—
(A) either in India, the assets of the value of more than rupees four thousand
crores or turnover more than rupees twelve thousand crores; or
(B) in India or outside India, in aggregate, the assets of the value of more than
two billion US dollars, including at least rupees five hundred crores in
India, or turnover more than six billion US dollars, including at least rupees
fifteen hundred crores in India; or
(b) acquiring of control by a person over an enterprise when such person has already
direct or indirect control over another enterprise engaged in production, distribution
or trading of a similar or identical or substitutable goods or provision of a similar or
identical or substitutable service, if—
(i) the enterprise over which control has been acquired along with the enterprise
over which the acquirer already has direct or indirect control jointly have,—
(A) either in India, the assets of the value of more than rupees one thousand
crores or turnover more than rupees three thousand crores; or
(B) in India or outside India, in aggregate, the assets of the value of more than
five hundred million US dollars, including at least rupees five hundred
crores in India, or turnover more than fifteen hundred million US dollars,
including at least rupees fifteen hundred crores in India; or
(ii) the group, to which enterprise whose control has been acquired, or is being
acquired, would belong after the acquisition, jointly have or would jointly have,—
(A) either in India, the assets of the value of more than rupees four thousand
crores or turnover more than rupees twelve thousand crores; or
(B) in India or outside India, in aggregate, the assets of the value of more than
two billion US dollars, including at least rupees five hundred crores in
India, or turnover more than six billion US dollars, including at least rupees
fifteen hundred crores in India; or
(c) any merger or amalgamation in which—
(i) the enterprise remaining after merger or the enterprise created as a result of the
amalgamation, as the case may be, have,—
(A) either in India, the assets of the value of more than rupees one thousand
crores or turnover more than rupees three thousand crores; or
(B) in India or outside India, in aggregate, the assets of the value of more than
five hundred million US dollars, including at least rupees five hundred
crores in India, or turnover more than fifteen hundred million US dollars,
including at least rupees fifteen hundred crores in India; or

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(ii) the group, to which the enterprise remaining after the merger or the enterprise
created as a result of the amalgamation, would belong after the merger or the
amalgamation, as the case may be, have or would have,—
(A) either in India, the assets of the value of more than rupees four thousand
crores or turnover more than rupees twelve thousand crores; or
(B) in India or outside India, in aggregate, the assets of the value of more than
two billion US dollars, including at least rupees five hundred crores in
India, or turnover more than six billion US dollars, including at least rupees
fifteen hundred crores in India.
Explanation.—For the purposes of this section,—
(a) “control” includes controlling the affairs or management by—
(i) one or more enterprises, either jointly or singly, over another enterprise or
group;
(ii) one or more groups, either jointly or singly, over another group or
enterprise;
(b) “group” means two or more enterprises which, directly or indirectly, are in a position
to—
(i) exercise twenty-six per cent or more of the voting rights in the other enterprise;
or
(ii) appoint more than fifty per cent of the members of the board of directors in the
other enterprise; or
(iii) control the management or affairs of the other enterprise;
(c) the value of assets shall be determined by taking the book value of the assets as
shown, in the audited books of account of the enterprise, in the financial year
immediately preceding the financial year in which the date of proposed merger falls,
as reduced by any depreciation, and the value of assets shall include the brand
value, value of goodwill, or value of copyright, patent, permitted use, collective mark,
registered proprietor, registered trade mark, registered user, homonymous
geographical indication, geographical indications, design or layout-design or similar
other commercial rights, if any, referred to in sub-section (5) of section 3.
Vide Notification dated 8 th January 2013, in exercise of the powers conferred by clause
(a) of section 54 of the Competition Act, 2002, the Central Government exempts a banking
company in respect of which the Central Government has issued a notification under
section 45 of the Banking Regulation Act, 1949, from the application of the provisions of
sections 5 and 6 of the Competition Act, 2002, in public interest for a period of five years
from the date of publication of this notification in the Official Gazette.
Vide Notification dated 27th March, 2017, in exercise of the powers conferred by clause
(a) of section 54 of the Competition Act, 2002,

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 Competition Act, 2002 23.17

(1) the Central Government, hereby exempts the enterprises being parties to ––
(a) any acquisition referred to in clause (a) of section 5 of the Competition Act;
(b) acquiring of control by a person over an enterprise when such person has
already direct or indirect control over another enterprise engaged in production,
distribution or trading of a similar or identical or substitutable goods or provision
of a similar or identical or substitutable service, referred to in clause (b) of
section 5 of the Competition Act; and
(c) any merger or amalgamation, referred to in clause (c) of section 5 of the
Competition Act,
Where the value of assets being acquired, taken control of, merged or amalgamated
is not more than rupees three hundred and fifty crores in India or turnover of not
more than rupees one thousand crores in India, from the provisions of section 5 of
the said Act for a period of five years from the date of publication of this notification
in the official gazette.
2. Where a portion of an enterprise or division or business is being acquired, taken
control of, merged or amalgamated with another enterprise, the value of assets of the
said portion or division or business and or attributable to it, shall be the relevant
assets and turnover to be taken into account for the purpose of calculating the
thresholds under section 5 of the Act.
The value of the said portion or division or business shall be determined by taking the
book value of the assets as shown, in the audited books of accounts of the enterprise or
as per statutory auditor’s report where the financial statement have not yet become due to
be filed, in the financial year immediately preceding the financial year in which the date of
the proposed combination falls, as reduced by any depreciation, and the value of assets
shall include the brand value, value of goodwill, or value of copyright, patent, permitted
use, collective mark, registered proprietor, registered trade mark, registered user,
homonymous geographical indication, geographical indications, design or layout- design
or similar other commercial rights, if any, referred to in sub-section (5) of section 3. The
turnover of the said portion or division or business shall be as certified by the statutory
auditor on the basis of the last available audited accounts of the company.
In exercise of the powers conferred by clause (a) of section 54 of the Competition Act,
2002, the Central Government, in public interest, hereby rescinds the notification of the
Government of India in the Ministry of Corporate Affairs, S.O. 674(E), dated the 4 th March,
2016, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii),
dated the 4 th March, 2016, except as respects things done or omitted to be done before
such rescission.
Gist of combination given in section 5: Any acquisition, merger or amalgamation that
meets the jurisdictional thresholds, as provided in Section 5 of the Competition Act, 2002
(“Act”), is a “combination” for the purpose of the Act. The thresholds relate to the assets

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and turnover of the parties to the combination, i.e., target enterprise and acquirer (or
acquirer group) / merging parties (or the group to which merged entity would belong).

At present, thresholds prescribed under the Act (as enhanced by the Central
Government vide its Notification No. S.O. 675(E) dated March 4, 2016) are as under:

Assets Turnover
Enterprise India > INR 2000 crore OR > INR 6000 crore
level
Worldwide (with >USD 1 bn >USD 3 bn
India component) with at least with at least
INR 1000 crore in INR 3000 crore in
India India
OR
Group India > INR 8000 crore OR > INR 24000 crore
Level
Worldwide (with > USD 4 bn > USD 12 bn
India component) with at least with at least
INR 1000 crore in INR 3000 crore in
India India
4. Regulation of combinations [Section 6]
As per this section, no person or enterprise shall enter into a combination which causes or
is likely to cause an appreciable adverse effect on competition within the relevant market
in India and such a combination shall be void. [Sub-section 1].
Any person or enterprise, who or which proposes to enter into a combination shall give
notice to the Commission, in the form as may be specified, and the fee which may be
determined, by regulations, disclosing the details of the proposed combination, within 30
days of—
(a) approval of the proposal relating to merger or amalgamation, referred to in section
5(c), by the board of directors of the enterprises concerned with such merger or
amalgamation, as the case may be;
(b) execution of any agreement or other document for acquisition referred to in section
5(a) or acquiring of control referred to in section 5(b).[Sub-section 2]
No combination shall come into effect until 210 days have passed from the day on which
the notice has been given to the Commission or the Commission has passed orders under
section 31, whichever is earlier. [Sub-section 2A]
The Commission shall, after receipt of notice, deal with such notice in accordance with the
provisions contained in sections 29, 30 and 31. [Sub-section 3].
The provisions of this section shall not apply to share subscription or financing facility or any
acquisition, by a public financial institution, foreign institutional investor, bank or venture

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capital fund, pursuant to any covenant of a loan agreement or investment agreement. [Sub-
section 4].
The public financial institution, foreign institutional investor, bank or venture capital fund,
shall, within seven days from the date of the acquisition, file, in the form as may be
specified by regulations, with the Commission the details of the acquisition including the
details of control, the circumstances for exercise of such control and the consequences of
default arising out of such loan agreement or investment agreement, as the case may be.
[Sub-section 5].
"Foreign institutional investor" has the same meaning as assigned to it in clause (a) of
the Explanation to section 115AD of the Income-tax Act, 1961, which is as under:
The expression "Foreign Institutional Investor" means such investor as the Central
Government may, by notification in the official gazette specify in this behalf.
"Venture capital fund" has the same meaning as assigned to it in clause (b) of the
Explanation to clause (23 FB) of section 10 of the Income-tax Act, 1961, which is as
follows:
"venture capital fund" means such fund-
(i) operating under a trust deed registered under the provisions of the Registration Act,
1908 or operating as a venture capital scheme made by the Unit Trust of India
established under the Unit Trust of India Act, 1963;
(ii) which has been granted a certificate of registration under the Securities and
Exchange Board of India Act, 1992 and regulations made thereunder;
(iii) which fulfils the conditions as may be specified, with the approval of the Central
Government, by the Securities and Exchange Board of India, by notification in the
Official Gazette, in this behalf;"
In exercise of the powers conferred by clause (a) of section 54 of the Competition Act,
2002, the Central Government vide Notification No. S.O. 93(E) dated 8 th January, 2013
exempts a banking company from the application of the provisions of sections 5 and 6 of
the Competition Act, 2002, in public interest for a period of five years from the date of
publication of this notification in the official gazette.
Vide Notification S.O. 2039(E), dated 29th June 2017, in exercise of the powers conferred
by clause (a) of section 54 of the Competition Act, 2002, the Central Government, in public
interest, hereby exempts every person or enterprise who is a party to a combination as
referred to in section 5 of the said Act from giving notice within thirty days mentioned in sub-
section (2) of section 6 of the said Act, subject to the provisions of sub-section (2A) of section
6 and section 43A of the said Act, for a period of five years from the date of publication of this
notification in the Official Gazette.
Vide Notification S.O. 2561(E) dated 10 th August, 2017, in exercise of the powers
conferred by clause (a) of section 54 of the Competition Act, 2002, the Central
Government, in public interest, hereby exempts the Regional Rural Banks in respect of
which the Central Government has issued a notification under sub-section (1) of section

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23A of the Regional Rural Banks Act, 1976, from the application of provisions of sections
5 and 6 of the Competition Act, 2002 for a period of five years from the date of publication
of this notification in the Official Gazette.
Vide Notification S.O. 2828(E) dated 30th August, 2017, in exercise of the powers conferred
by clause (a) of Section 54 of the Competition Act, 2002 , the Central Government in the
public interest hereby exempts, all cases of reconstitution, transfer of the whole or any part
thereof and amalgamation of nationalized banks, under the Banking Companies (Acquisition
and Transfer of Undertakings) Act, 1970 and the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1980, from the application of provisions of Sections 5 and 6 of
the Competition Act, 2002 for a period of ten years from the date of publication of this
notification in the Official Gazette.
S.O. 3714(E) dated 22nd November, 2017, in exercise of the powers conferred by clause
(a) of Section 54 of the Competition Act, 2002, the Central Government in the public
interest hereby exempts all cases of combinations under section 5 of the Act involving the
Central Public Sector Enterprises (CPSEs) operating in the Oil and Gas Sectors under the
Petroleum Act, 1934 and the rules made thereunder or under the Oilfields (Regulation and
Development) Act, 1948 and the rules made thereunder, along with their wholly or partly
owned subsidiaries operating in the Oil and Gas Sectors, from the application of the
provisions of sections 5 and 6 of the Act, for a period of five years from the date of
publication of this notification in the Official Gazette.
4. Competition Commission of India
Establishment of Commission [Section 7]
Section 7 provides for the establishment of the Competition Commission of India. The
Commission shall be a body corporate by the aforesaid name having perpetual succession
and a common seal with power to acquire, hold and dispose of property and to contract
and shall sue or be sued.
The place of head office of the Commission shall be decided by the Central Government.
Further, the Commission may establish offices at other places in India.
Composition of Commission [Section 8]
The Commission shall consist of the Chairperson and not less than two and not more than
six other Members, to be appointed by the Central Government.
The Chairperson and every other Member shall be a person of ability, integrity and
standing and who has special knowledge of, and such professional experience of not less
then 15 years in international trade, economics, business, commerce, law, finance,
accounting, management, industry, public affairs or competition matters, including
competition law and policy, which in the opinion of the Central Government, may be useful
to the Commission.
The Chairperson and other members shall be whole time members.

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 Competition Act, 2002 23.21

Selection Committee for Chairperson and other Members of the commission

[Section 9]
The Chairperson and other Members of the Commission shall be appointed by the Central
Government from a panel of names recommended by a Selection Committee consisting of –
(a) the Chief Justice of India or his nominee ---- Chairperson;
(b) the Secretary in the Ministry of Corporate Affairs ---- Member;
(c) the Secretary in the Ministry of Law and Justice ---- Member;
(d) two experts of repute who have special knowledge of, and ---- Members.
professional experience in international trade, economics,
business, commerce, law, finance, accountancy,
management, industry, public affairs or competition
matters including competition law and policy.
The term of the Selection Committee and the manner of selection of panel of names shall
be such as may be prescribed.
Term of office of Chairperson and other Members [Section 10]
The Chairperson and every other Member shall hold office for a term of five years from
the date on which he enters upon his office and shall be eligible for re-appointment.
However, no Chairperson or other Member shall hold office as such after he has attained
the age of sixty-five years.
As per sub-section 2, any vacancy caused by the resignation or removal of the
Chairperson or any other Member under section 11 or by death or otherwise shall be filled
by fresh appointment in accordance with the provisions of sections 9.
The Chairperson and every other Member shall, before entering upon his office, make and
subscribe to an oath of office and of secrecy in such form, manner and before such
authority, as may be prescribed. [sub-section 3]
In the event of the occurrence of a vacancy in the office of the Chairperson by reason of
his death, resignation or otherwise, the senior-most Member shall act as the Chairperson,
until the date on which a new Chairperson, appointed in accordance with the provisions of
this Act to fill such vacancy, enters upon his office. [Sub-section 4]
When the Chairperson is unable to discharge his functions owing to absence, illness or any
other cause, the senior-most Member shall discharge the functions of the Chairperson until
the date on which the Chairperson resumes the charge of his functions. [Sub-section 5]
Example
Hon’ble Justice Mr. HCJ, a retired High Court Judge, attained the Age 61 years on 31 st
December, 2004. The Central Government appointed him as the Chairperson of the
Competition Commission of India with effect from 1 st January, 2005. You are required to
state, with reference to the provisions of the Competition Act, 2002, the term for which he
may be appointed as Chairperson of the Competition Commission of India. Whether he

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can be reappointed as such and till when he can remain as Chairperson of the
Competition Commission of India?
Answer
According to section 10(1) of the Competition Act, 2002, the Chairperson and every other
Member shall hold office as such for a term of five years from the date on which he enters
upon his office and shall be eligible for re-appointment.
Provided that no Chairperson or other Member shall hold office as such after he has
attained the age of sixty five years.
Based on the above provisions of the Competition Act, 2002, it can be concluded that
Hon’ble retired Justice Mr. HCJ can be appointed as the Chairperson of the Competition
Commission of India by the Central Government initially for a period of five years and he
can also be re-appointed after his initial term of five years is over. But since he shall be
attaining the age of 65 years as on 31 st December, 2008, he will have to step down from
the post on his attaining the age of 65 years.
Resignation, removal and suspension of Chairperson and other members [Section 11]
The Chairperson or any other Member may, by notice in writing under his hand addressed
to the Central Government, resign his office.
However, the Chairperson or a 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. [Sub-section 1]
As per Sub-section 2, the Central Government may, by order, remove the Chairperson or
any other Member from his office if such Chairperson or Member, as the case may be,—

(a) is, or at any time has been, adjudged as an insolvent; or

(b) has engaged at any time, during his term of office, in any paid employment, or

(c) has been convicted of an offence which, in the opinion of the Central
Government, involves moral turpitude; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his
functions as a Member; or

(e) has so abused his position as to render his continuance in office prejudicial to
the public interest; or

(f) has become physically or mentally incapable of acting as a Member.

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According to Sub-section 3, no Member shall be removed from his office on the ground
specified in clause (d) or clause (e) of sub-section 2, unless the Supreme Court, on a
reference being made to it in this behalf by the Central Government, has, on an inquiry, held
by it in accordance with such procedure as may be prescribed in this behalf by the Supreme
Court, reported that the Member, ought on such ground or grounds to be removed.
Restriction on employment of Chairperson and other Members in certain cases
[Section 12]
The Chairperson and other Members shall not for a period of two years from the date on
which they cease to hold office, accept any employment in, or be connected with the
management or administration of, any enterprise which has been a party to a proceeding
before the Commission.
However, nothing contained in this section shall apply to any employment under the
Central Government or a State Government or local authority or in any statutory authority
or any corporation established by or under any Central, State or Provincial Act or a
Government company as defined in section 617 of the Companies Act, 1956.
Administrative powers of Chairperson [Section 13]
The Chairperson shall have the powers of general superintendence, direction and control
in respect of all administrative matters of the Commission. The Chairperson may also
delegate such of his powers relating to administrative matters of the Commission, as he
may think fit, to any other Member or officer of the Commission.
Salary and allowances and other terms and conditions of service of Chairperson
and other Members [Section 14]
The salary, and the other terms and conditions of service, of the Chairperson and other
Members, including travelling expenses, house rent allowance and conveyance facilities,
sumptuary allowance (expenses of living) and medical facilities shall be such as may be
prescribed and the same shall not be varied to their disadvantage after their appointment.
Vacancy, etc. not to invalidate proceedings of Commission [Section 15]
Any act or proceeding of the Commission shall not be invalidated merely on the ground of:
(a) any vacancy in, or any defect in the constitution of, the Commission; or
(b) any defect in the appointment of a person acting as a Chairperson or as a Member;
or
(c) any irregularity in the procedure of the Commission not affecting the merits of the
case.
Appointment of Director General, etc. [Section 16]
The Central Government may, by notification, appoint a Director General for the purposes
of assisting the Commission in conducting inquiry into contravention of any of the
provisions of this Act and for performing such other functions as are, or may be, provided
by or under this Act.

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The number of other Additional, Joint, Deputy or Assistant Directors General or such
officers or other employees in the office of Director General and the manner of
appointment of such Additional, Joint, Deputy or Assistant Directors General or such
officers or other employees shall be such as may be prescribed.
Every Additional, Joint, Deputy and Assistant Directors General or such officers or other
employees, shall exercise his powers, and discharge his functions, subject to the general
control, supervision and direction of the Director General.
The salary, allowances and other terms and conditions of service of the Director General
and Additional, Joint, Deputy and Assistant Directors General or, such officers or other
employees, shall be such as may be prescribed.
The Director General and Additional, Joint, Deputy and Assistant Directors General or
such officers or other employees, shall be appointed from amongst persons of integrity
and outstanding ability and who have experience in investigation, and knowledge of
accountancy, management, business, public administration, international trade, law or
economics and such other qualifications as may be prescribed.
Secretary and officers and other employees of Commission [Section 17]
The Commission may appoint a Secretary and such officers and other employees as
it considers necessary for the efficient performance of its functions under this Act.
The salaries and allowances payable to, and other terms and conditions of service of the
Secretary and officers and other employees of the Commission and the number of such
officers and other employees shall be such as may be prescribed.
The Commission may engage, in accordance with the procedure specified by regulations,
such number of experts and professionals of integrity and outstanding ability, who have
special knowledge of, and experience in, economics, law, business or such other
disciplines related to competition, as it deems necessary to assist the Commission in the
discharge of its functions under this Act.

5. Duties, Powers and Functions of Commission

Duties of Commission [Section 18]
Duty of the to eliminate practices having adverse effect on competition,
Commission

to promote and sustain competition in markets in India,

to protect the interests of consumers and

to ensure freedom of trade carried on by other participants in markets in

India.

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The Commission may for the purpose of discharging its duties or performing its functions
under this Act, enter into any memorandum or arrangement, with the prior approval of the
Central Government, with any agency of any foreign country.
Inquiry into certain agreements and dominant position of enterprise [Section 19]
The Commission is empowered to inquire into any alleged contravention of the provisions
contained in section 3(1) or section 4(1) either on its own motion or on:—
(a) receipt of any information in such manner and accompanied by such fee as may be
determined by regulations, from any person, consumer or their association or trade
association; or
(b) a reference made to it by the Central Government or a State Government or a
statutory authority.
Powers and Functions of the Commission
1. Appreciable Adverse effect: The Commission shall, while determining whether an
agreement has an appreciable adverse effect on competition, have due regard to all
or any of the following factors, namely:—
(a) creation of barriers to new entrants in the market;
(b) driving existing competitors out of the market;
(c) foreclosure of competition by hindering entry into the market;
(d) accrual of benefits to consumers;
(e) improvements in production or distribution of goods or provision of services;
(f) promotion of technical, scientific and economic development by means of
production or distribution of goods or provision of services.
2. Dominant position of enterprise: The Commission shall, while inquiring whether an
enterprise enjoys a dominant position or not, have due regard to all or any of the
following factors, namely:—
(a) market share of the enterprise;
(b) size and resources of the enterprise;
(c) size and importance of the competitors;
(d) economic power of the enterprise including commercial advantages over competitors;
(e) vertical integration of the enterprises or sale or service network of such
enterprises;
(f) dependence of consumers on the enterprise;
(g) monopoly or dominant position whether acquired as a result of any statute or by
virtue of being a Government company or a public sector undertaking or
otherwise;

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(h) entry barriers including barriers such as regulatory barriers, financial risk, high
capital cost of entry, marketing entry barriers, technical entry barriers,
economies of scale, high cost of substitutable goods or service for consumers;
(i) countervailing buying power;
(j) market structure and size of market;
(k) social obligations and social costs;
(/) relative advantage, by way of the contribution to the economic development, by
the enterprise enjoying a dominant position having or likely to have an
appreciable adverse effect on competition;
(m) any other factor which the Commission may consider relevant for the inquiry.
(3) Relevant Market: For determining whether a market constitutes a "relevant market"
for the purposes of this Act, the Commission shall have due regard to the "relevant
geographic market'' and "relevant product market".
(4) Relevant Geographic Market: The Commission shall, while determining the
"relevant geographic market", have due regard to all or any of the following factors,
namely:—
(a) regulatory trade barriers;
(b) local specification requirements;
(c) national procurement policies;
(d) adequate distribution facilities;
(e) transport costs;
(f) language;
(g) consumer preferences;
(h) need for secure or regular supplies or rapid after-sales services.
(5) Relevant Product Market: While determining the "relevant product market", the
Commission shall have due regard to all or any of the following factors, namely:—
(a) physical characteristics or end-use of goods;
(b) price of goods or service;
(c) consumer preferences;
(d) exclusion of in-house production;
(e) existence of specialised producers;
(f) classification of industrial products.
Inquiry into combination by Commission [Section 20]
The Commission may, upon its own knowledge or information relating to acquisition

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referred to in section 5(a) or acquiring of control referred to in section 5(b) or merger or

amalgamation referred to in section 5(c), inquire into whether such a combination has
caused or is likely to cause an appreciable adverse effect on competition in India.
Further, the Commission shall not initiate any inquiry after the expiry of one year from the
date on which such combination has taken effect.
The Commission shall, on receipt of a notice under section 6(2) inquire whether a
combination referred to in that notice or reference has caused or is likely to cause an
appreciable adverse effect on competition in India.
Notwithstanding anything contained in section 5, the Central Government shall, on the
expiry of a period of two years from the date of commencement of this Act and thereafter
every two years, in consultation with the Commission, by notification, enhance or reduce,
on the basis of the wholesale price index or fluctuations in exchange rate of rupee or
foreign currencies, the value of assets or the value of turnover, for the purposes of that
section.
The Ministry of Corporate Affairs vide Notification No. S.O. 480(E) dated 4 th March, 2011
enhanced on the basis of the wholesale price index, the value of assets and the value of
turnover, by fifty percent for the purposes of Section 5 of the Competition Act, 2002.
For the purposes of determining whether a combination would have the effect of or is
likely to have an appreciable adverse effect on competition in the relevant market, the
Commission shall have due regard to all or any of the following factors, namely:—
(a) actual and potential level of competition through imports in the market;
(b) extent of barriers to entry into the market;
(c) level of combination in the market;
(d) degree of countervailing power in the market;
(e) likelihood that the combination would result in the parties to the combination being
able to significantly and sustainably increase prices or profit margins;
(f) extent of effective competition likely to sustain in a market;
(g) extent to which substitutes are available or are likely to be available in the market;
(h) market share, in the relevant market, of the persons or enterprise in a combination,
individually and as a combination;
(i) likelihood that the combination would result in the removal of a vigorous and effective
competitor or competitors in the market;
(j) nature and extent of vertical integration in the market;
(k) possibility of a failing business;
(l) nature and extent of innovation;
(m) relative advantage, by way of the contribution to the economic development, by any
combination having or likely to have appreciable adverse effect on competition;

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(n) whether the benefits of the combination outweigh the adverse impact of the
combination, if any.
Reference by statutory authority [Section 21]
It provides that in the course of a proceeding before any statutory authority an issue is
raised by any party that any decision which such statutory authority has taken or proposes
to take is or would be, contrary to any of the provisions of this Act, then such statutory
authority may make a reference in respect of such issue to the Commission.
Also any statutory authority may suo motu make such a reference to the Commission.
On receipt of a reference the Commission shall give its opinion, within sixty days of receipt of
such reference, to such statutory authority which shall consider the opinion of the Commission
and thereafter, give its findings recording reasons therefor on the issues referred to in the said
opinion.
Reference by Commission [Section 21 A]
Where in the course of a proceeding before the Commission an issue is raised by any
party that any decision which, the Commission has taken during such proceeding or
proposes to take, is or would be contrary to any provision of this Act whose
implementation is entrusted to a statutory authority, then the Commission may make a
reference in respect of such issue to the statutory authority.
The Commission may, suo motu, make such a reference to the statutory authority.
On receipt of a reference the statutory authority shall give its opinion, within sixty days of
receipt of such reference, to the Commission which shall consider the opinion of the
statutory authority, and thereafter give its findings recording reasons therefore on the
issues referred to in the said opinion.
Meetings of Commission [Section 22]
The Commission shall meet at such times and places, and shall observe such rules and
procedure in regard to the transaction of business at its meetings as may be provided by
regulations.
The Chairperson, if for any reason, is unable to attend a meeting of the Commission, the
senior-most Member present at the meeting, shall preside at the meeting.
All questions which come up before any meeting of the Commission shall be decided by a
majority of the Members present and voting, and in the event of an equality of votes, the
Chairperson or in his absence, the Member presiding, shall have a second or/casting vote
provided that the quorum for such meeting shall be three Members.
Procedure for inquiry under Section 19 [Section 26]
This section lays down the detailed procedure for any inquiry initiated suo motu by the
Commission and various complaints and references referred to in section 19 of the Act.
The detailed procedure is as follows:

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 Competition Act, 2002 23.29

(1) On receipt of a reference from the Central Government or a State Government or a

statutory authority or on its own knowledge or information received under section 19,
if the Commission is of the opinion that there exists a prima facie case, it shall direct
the Director General to cause an investigation to be made into the matter.
If the subject matter of an information received is, in the opinion of the Commission,
substantially the same as or has been covered by any previous information received,
then the new information may be clubbed with the previous information.
(2) Where on receipt of a reference from the Central Government or a State
Government or a statutory authority or information received under section 19, the
Commission is of the opinion that there exists no prima facie case, it shall close the
matter forthwith and pass such orders as it deems fit and send a copy of its order to
the Central Government or the State Government or the statutory authority or the
parties concerned, as the case may be.
(3) The Director General shall, on receipt of direction submit a report on his findings
within such period as may be specified by the Commission.
(4) The Commission may forward a copy of the report to the parties concerned.
In case the investigation is caused to be made based on reference received from the
Central Government or the State Government or the statutory authority, the
Commission shall forward a copy of the report to the Central Government or the
State Government or the statutory authority, as the case may be.
(5) If the report of the Director General recommends that there is no contravention of the
provisions of this Act, the Commission shall invite objections or suggestions from the
Central Government or the State Government or the statutory authority or the parties
concerned, as the case may be, on such report of the Director General.
(6) If, after consideration of the objections and suggestions if any, the Commission
agrees with the recommendation of the Director General, it shall close the matter
forthwith and pass such orders as it deems fit and communicate its order to the
Central Government or the State Government or the statutory authority or the parties
concerned, as the case may be.
(7) If, after consideration of the objections or suggestions if any, the Commission is of
the opinion that further investigations is called for, it may direct further investigation
in the matter by the Director General or cause further inquiry to be made by in the
matter or itself proceed with further inquiry in the matter in accordance with the
provisions of this Act.
(8) If the report of the Director General recommends that there is contravention of any of
the provisions of this Act, and the Commission is of the opinion that further inquiry is
called for, it shall inquire into such contravention in accordance with the provisions of
this Act.

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Orders by Commission after inquiry into agreements or abuse of dominant position

[Section 27]
Where after inquiry the Commission finds that any agreement referred to in section 3 or
action of an enterprise in a dominant position, is in contravention of section 3 or section 4,
as the case may be, it may pass all or any of the following orders, namely:—
(a) direct any enterprise or association of enterprises or person or association of
persons, as the case may be, involved in such agreement, or abuse of dominant
position, to discontinue and not to re-enter such agreement or discontinue such
abuse of dominant position, as the case may be;
(b) impose such penalty, as it may deem fit which shall be not more than ten per cent. of
the average of the turnover for the last three preceding financial years, upon each of
such person or enterprises which are parties to such agreements or abuse.
In case any agreement referred to in section 3 has been entered into by a cartel,
the Commission may impose upon each producer, seller, distributor, trader or
service provider included in that cartel, a penalty of up to three times of its profit for
each year of the continuance of such agreement or ten per cent. of its turnover for
each year of the continuance of such agreement, whichever is higher.
(c) Omitted
(d) direct that the agreements shall stand modified to the extent and in the manner as
may be specified in the order by the Commission;
(e) direct the enterprises concerned to abide by such other orders as the Commission
may pass and comply with the directions, including payment of costs, if any:
(f) Omitted
(g) pass such other order or issue such directions as it may deem fit.
While passing orders under this section, if the Commission comes to a finding, that an
enterprise in contravention to section 3 or section 4 of the Act is a member of a group as
defined in clause (b) of the Explanation to section 5 of the Act, and other members of
such a group are also responsible for, or have contributed to, such a contravention, then it
may pass orders, under this section, against such members of the group.
Division of enterprise enjoying dominant position [Section 28]
The Commission, may, notwithstanding anything contained in any other law for the time
being in force, by order in writing, direct division of an enterprise enjoying dominant
position to ensure that such enterprise does not abuse its dominant position. The order
may provide for all or any of the following matters, namely:—
(a) the transfer or vesting of property, rights, liabilities or obligations;
(b) the adjustment of contracts either by discharge or reduction of any liability or
obligation or otherwise;
(c) the creation, allotment, surrender or cancellation of any shares, stocks or securities;

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(d) Omitted.
(e) the formation or winding up of an enterprise or the amendment of the memorandum
of association or articles of association or any other instruments regulating the
business of any enterprise;
(f) the extent to which, and the circumstances in which, provisions of the order affecting
an enterprise may be altered by the enterprise and the registration thereof;
(g) any other matter which may be necessary to give effect to the division of the
enterprise.
Notwithstanding anything contained in any other law for the time being in force or in any
contract or in any memorandum or articles of association, an officer of a company who
ceases to hold office as such in consequence of the division of an enterprise shall not be
entitled to claim any compensation for such cesser.
Procedure for investigation of combination [Section 29]
(1) Notice to parties: Where the Commission is of the prima-facie opinion that a
combination is likely to cause, or has caused an appreciable adverse effect on
competition within the relevant market in India, it shall issue a notice to show cause
to the parties to combination calling upon them to respond within thirty days of the
receipt of the notice, as to why investigation in respect of such combination should
not be conducted.
After receipt of the response of the parties to the combination under sub- section (1),
the Commission may call for a report from the Director General and such report shall
be submitted by the Director General within such time as the Commission may direct.
(2) Directions to parties to publish details: The Commission, if it is prima facie of the
opinion that the combination has, or is likely to have, an appreciable adverse effect
on competition, it shall, within seven working days from the date of receipt of the
response of the parties to the combination, or the receipt of the report from the
Director General whichever is later direct the parties to the said combination to
publish details of the combination within ten working days of such direction, in such
manner, as it thinks appropriate, for bringing the combination to the knowledge or
information of the public and persons affected or likely to be affected by such
combination. [Sub-section 2].
(3) Invitation to affected party: The Commission may invite any person or member of
the public, affected or likely to be affected by the said combination, to file his written
objections, if any, before the Commission within fifteen working days from the date
on which the details of the combination were published.
(4) Additional information: The Commission may, within fifteen working days from the
expiry of the period specified before, call for such additional or other information as it
may deem fit from the parties to the said combination.

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 23.32 Corporate and Allied Laws

The additional or other information called for by the Commission shall be furnished
by the parties to the combination within fifteen days from the expiry of the above
specified period.
After receipt of all information and within a period of forty-five working days from the
expiry of the period for additional information, the Commission shall proceed to deal
with the case of accordance within the provisions contained in Section 31.
Procedure in case of notice under sub-section 2 of section 6 [Section 30]
Where any person or enterprise has given a notice under 6(2), the Commission shall
examine such notice and form its prime facie opinion and proceed as per provisions
contained in Section 29.
Orders of Commission on certain combinations [Section 31]
The Commission can issue orders on certain combinations.
(1) Approval of combination: Where the Commission is of the opinion that any
combination does not, or is not likely to, have an appreciable adverse effect on
competition, it shall, by order, approve that combination including the combination in
respect of which a notice has been given of section 6(2). [Sub-section 1]
(2) Direction: Where the Commission is of the opinion that the combination has, or is
likely to have an appreciable adverse effect on competition, it shall direct that the
combination shall not take effect. [Sub-section 2]
(3) Modification: Where the Commission is of the opinion that the combination has, or
is likely to have, an appreciable adverse effect on competition but such adverse
effect can be eliminated by suitable modification to such combination, it may propose
appropriate modification to the combination, to the parties to such combination. [Sub-
section 3]
The parties, who accept the modification proposed by the Commission under sub-
section (3), shall carry out such modification within the period specified by the
Commission. [Sub-section 4]
If the parties to the combination, who have accepted the modification, fail to carry out
the modification within the period specified by the Commission, such combination
shall be deemed to have an appreciable adverse effect on competition and the
Commission shall deal with such combination in accordance with the provisions of
this Act. [Sub-section 5]
(4) Amendment to modification: If the parties to the combination do not accept the
modification proposed by the Commission under sub-section (3), such parties may,
within thirty working days of the modification proposed by the Commission, submit
amendment to the modification proposed by the Commission under that sub-section.
[Sub-section (6)]
If the Commission agrees with the amendment submitted by the parties under sub-
section (6), it shall, by order, approve the combination. [Sub-section 7]

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 Competition Act, 2002 23.33

If the Commission does not accept the amendment submitted under sub-section (6),
then, the parties shall be allowed a further period of thirty working days within which
such parties shall accept the modification proposed by the Commission under Sub-
section (3). [Sub-section 8]
(5) Consequence of non-acceptance of the modification: If the parties fail to accept
the modification proposed by the Commission within thirty working days as referred
above or within a further period of thirty working days referred to in sub-section (8)
the combination shall be deemed to have an appreciable adverse effect on
competition and be dealt with in accordance with the provisions of this Act. [Sub-
section 9]
As per Sub-section 10 where the Commission has directed under sub-section (2) that
the combination shall not take effect or the combination is deemed to have an
appreciable adverse effect on competition under sub-section (9), then, without
prejudice to any penalty which may be imposed or any prosecution which may be
initiated under this Act, the Commission may order that
(a) the acquisition referred to in clause (a) of section 5; or
(b) the acquiring of control referred to in clause (b) of section 5; or
(c) the merger or amalgamation referred to in clause (c) of section 5,
shall not be given effect to. The Commission may however, if it considers
appropriate, frame a scheme to implement its order.
(6) Deemed approval by Commission: If the Commission does not, on the expiry of a
period of 210 days from the date of notice given to the Commission referred to in
section 29(2), pass an order or issue direction in accordance with the provisions of
sub-section (1) or (2) or (7), the combination shall be deemed to have been approved
by the Commission. For the purpose of determining the period of 210 days specified
in this sub-section, the period of thirty working days specified in sub-section (6) and
a further period of thirty working days specified in sub-section (8) shall be excluded.
Where any extension of time is sought by the parties to the combination, the period
of ninety working days shall be reckoned after deducting the extended time granted
at the request of the parties. [Sub-section 11 & 12]
(7) Consequence of a combination declared void by Commission: Where the
Commission has ordered a combination to be void, the acquisition or acquiring of
control or merger or amalgamation referred to in section 5, shall be dealt with by the
authorities under any other law for the time being in force as if such acquisition or
acquiring of control or merger or amalgamation had not taken place and the parties
to the combination shall be dealt with accordingly. [Sub-section 13]
As per Sub-section 14, nothing contained in this Chapter shall affect any proceeding
initiated or which may be initiated under any other law for the time being in force.

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Acts taking place outside India but having an effect on competition in India [Section 32]
The Commission shall, notwithstanding that,—
(a) an agreement referred to in section 3 has been entered into outside India; or
(b) any party to such agreement is outside India; or
(c) any enterprise abusing the dominant position is outside India; or
(d) a combination has taken place outside India; or
(e) any party to combination is outside India; or
(f) any other matter or practice or action arising out of such agreement or dominant
position or combination is outside India;
have power to inquire in accordance with the provisions contained in sections 19, 20, 26,
29 and 30 the Act into such agreement or abuse of dominant position or combination if
such agreement or dominant position or combination has, or is likely to have, an
appreciable adverse effect on competition in the relevant market in India and pass such
orders as it may deem fit in accordance with the provisions of this Act.
Power to issue interim orders [Section 33]
Where during an inquiry, the Commission is satisfied that an act in contravention of sub-
section (1) of section 3 or sub-section (1) of section 4 or section 6 has been committed
and continues to be committed or that such act is about to be committed, the Commission
may, by order, temporarily restrain any party from carrying on such act until the
conclusion of such inquiry or until further orders, without giving notice to such party,
where it deems it necessary.
Appearance before Commission [Section 35]
A person or an enterprise or the Director General may either appear in person or
authorise one or more chartered accountants or company secretaries or cost accountants
or legal practitioners or any of his or its officers to present his or its case before the
Commission.
Power of Commission to regulate its own procedure [Section 36]
In the discharge of its functions, the Commission shall be guided by the principles of
natural justice and, subject to the other provisions of this Act and of any rules made by
the Central Government, the Commission shall have the powers to regulate its own
procedure.
The Commission shall have, for the purposes of discharging its functions under this Act,
the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908,
while trying a suit, in respect of the following matters, namely:-
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents;

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 Competition Act, 2002 23.35

(c) receiving evidence on affidavit;

(d) issuing commissions for the examination of witnesses or documents;
(e) requisitioning, subject to the provisions of sections 123 and 124 of the Indian
Evidence Act, 1872, any public record or document or copy of such of record or
document from any office.
The Commission may call upon such experts, from the field of economics, commerce,
accountancy, international trade or from any other discipline as it deems necessary to
assist the Commission in the conduct of any inquiry by it.
The Commission may direct any person:
(a) to produce before the Director General or the Secretary or an officer authorized by it,
such books, or other documents in the custody or under the control of such person
so directed as may be specified or described in the direction, being documents
relating to any trade, the examination of which may be required for the purposes of
this Act;
(b) to furnish to the Director General or the Secretary or any other officer authorized by
it, as respects the trade or such other information as may be in his possession in
relation to the trade carried on by such person, as may be required for the purposes
of this Act.
Rectification of orders [Section 38]
With a view to rectifying any mistake apparent from the record, the Commission may
amend any order passed by it under the provisions of this Act. [sub-section (1)]
Subject to the other provisions of this Act, the Commission may make—
(a) an amendment under sub-section (1) of its own motion;
(b) an amendment for rectifying any such mistake which has been brought to its notice
by any party to the order.
However, the Commission shall not, while rectifying any mistake apparent from record,
amend substantive part of its order passed under the provisions of this Act.
Execution of orders of Commission imposing monetary penalty [Section 39]
If a person fails to pay any monetary penalty imposed on him under this Act, the
Commission shall proceed to recover such penalty, in such manner as may be specified
by the regulations.
In a case where the Commission is of the opinion that it would be expedient to recover the
penalty imposed under this Act in accordance with the provisions of the Income-tax Act,
1961, it may make a reference to this effect to the concerned income-tax authority under
that Act for recovery of the penalty as tax due under the said Act.
Where a reference has been made by the Commission under sub-section (2) for recovery of
penalty, the person upon whom the penalty has been imposed shall be deemed to be the

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 23.36 Corporate and Allied Laws

assessee in default under the Income Tax Act, 1961 and the provisions contained in sections
221 to 227, 228A, 229, 231 and 232 of the said Act and the Second Schedule to that Act and
any rules made there under shall, in so far as may be, apply as if the said provisions were the
provisions of this Act and referred to sums by way of penalty imposed under this Act instead of
to income-tax and sums imposed by way of penalty, fine, and interest under the Income–tax
Act, 1961 and to the Commission instead of the Assessing Officer.
Explanation 1: Any reference to sub-section (2) or sub-section (6) of section 220 of the
Income-tax Act, 1961, in the said provisions of that Act or the rules made thereunder shall
be construed as references to sections 43 to 45 of this Act.

Explanation 2: The Tax Recovery Commissioner and the Tax Recovery Officer referred to
in the Income-tax Act, 1961 shall be deemed to be the Tax Recovery Commissioner and
the Tax Recovery Officer for the purposes of recovery of sums imposed by way of penalty
under this Act and reference made by the Commission under sub-section (2) would
amount to drawing of a certificate by the Tax Recovery Officer as far as demand relating
to penalty under this Act.

Explanation 3 Any reference to appeal in Chapter XVIID and the Second Schedule to the
Income-tax Act, 1961, shall be construed as a reference to appeal before the Competition
Appellate Tribunal under section 53B of this Act.

The court to which the order is so sent shall execute the order as if it were a decree or
order sent to it for execution.

6. Duties of Director General

Director General to investigate contravention [Section 41]
The Director General shall, when so directed by the Commission, assist the Commission
in investigating into any contravention of the provisions of this Act or any rules or
regulations made thereunder. The Director General shall have all the powers as are
conferred upon the Commission under section 36(2). Without prejudice to this power, the
provisions of sections 240 and 240A of the Companies Act, 1956, so far as may be, shall
apply to an investigation made by the Director General or any other person investigating
under his authority, as they apply to an inspector appointed under that Act.
For the purposes of this section,
(a) the words “the Central Government” under section 240 of the Companies Act, 1956
shall be construed as “the Commission”;
(b) the word “Magistrate” under section 240A of the Companies Act, 1956 shall be
construed as “the Chief Metropolitan Magistrate, Delhi”.

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 Competition Act, 2002 23.37

7. Penalties
Contravention of orders of Commission [Section 42]
The Commission may cause an inquiry to be made into compliance of its orders or
directions made in exercise of its powers under the Act. If any person, without reasonable
cause, fails to comply with the orders or directions of the Commission issued under
sections 27, 28, 31, 32, 33, 42A and 43A of the Act, he shall be punishable with fine which
may extend to rupees one lakh for each day during which such non-compliance occurs,
subject to a maximum of rupees ten crore, as the Commission may determine.
If any person does not comply with the orders or directions issued, or fails to pay the fine
imposed under sub-section (2), he shall, without prejudice to any proceeding under
section 39, be punishable with imprisonment for a term which may extend to three years,
or with fine which may extend to rupees twenty-five crore, or with both, as the Chief
Metropolitan Magistrate, Delhi may deem fit.
The Chief Metropolitan Magistrate, Delhi shall not take cognizance of any offence under
this section save on a complaint filed by the Commission or any of its officers authorized
by it.
Compensation in case of contravention of orders of Commission [Section 42A]
Without prejudice to the provisions of this Act, any person may make an application to the
Appellate Tribunal for an order for the recovery of compensation from any enterprise for
any loss or damage shown to have been suffered, by such person as a result of the said
enterprise violating directions issued by the Commission or contravening, without any
reasonable ground, any decision or order of the Commission issued under sections 27,
28, 31, 32 and 33 or any condition or restriction subject to which any approval, sanction,
direction or exemption in relation to any matter has been accorded, given, made or
granted under this Act or delaying in carrying out such orders or directions of the
Commission.
Penalty for failure to comply with directions of Commission and Director General
[Section 43]
If any person fails to comply with a direction given by
(a) the Commission under of section 36(2) and (4); or
(b) the Director General while exercising powers referred to in section 41(2)
the Commission may impose on such person a penalty of rupees one lakh for each day
during which such failure continues, subject to a maximum of rupees one crore.
Power to impose penalty for non-furnishing of information on combinations
[Section 43A]
If any person or enterprise fails to give notice to the Commission under sub- section(2) of
section 6, the Commission shall impose on such person or enterprise a penalty which may

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extend to one per cent of the total turnover or the assets, whichever is higher, of such a
combination.
Penalty for making false statement or omission to furnish material information
[Section 44]
If any person, being a party to a combination
(a) makes a statement which is false in any material particular, or knowing it to be false;
or
(b) omits to state any material particular knowing it to be material,
such person shall be liable to a penalty which shall not be less than rupees fifty lakhs but
which may extend to rupees one crore, as may be determined by the Commission.
Penalty for offences in relation to furnishing of information [Section 45]
Without prejudice to the provisions of section 44, if a person, who furnishes or is required
to furnish under this Act any particulars, documents or any information,
(a) makes any statement or furnishes any document which he knows or has reason to
believe to be false in any material particular; or
(b) omits to state any material fact knowing it to be material; or
(c) wilfully alters, suppresses or destroys any document which is required to be
furnished as aforesaid,
such person shall be punishable with fine which may extend to rupees one crore as may
be determined by the Commission. Without prejudice to the above provisions, the
Commission may also pass such other order as it deems fit.
Power to impose lesser penalty [Section 46]
The Commission may, if it is satisfied that any producer, seller, distributor, trader or
service provider included in any cartel, which is alleged to have violated section 3, has
made a full and true disclosure in respect of the alleged violations and such disclosure is
vital, impose upon such producer, seller, distributor, trader or service provider a lesser
penalty as it may deem fit, than leviable under this Act or the rules or the regulations.
However, lesser penalty shall not be imposed by the Commission in cases where report of
investigation directed under section 26 has been received before making such disclosure.
Further, lesser penalty shall be imposed by the Commission only in respect of a producer,
seller, distributor, trader or service provider included in the cartel, who first made the full,
true and vital disclosures under this section.
Lesser penalty shall not be imposed by the Commission if the person making the
disclosure does not continue to cooperate with the Commission till the completion of the
proceedings before the Commission.
The Commission may, if it is satisfied that such producer, seller, distributor, trader or
service provider included in the cartel had in the course of proceedings,

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 Competition Act, 2002 23.39

(a) not complied with the condition on which the lesser penalty was imposed by the
Commission; or
(b) had given false evidence; or
(c) the disclosure made is not vital and thereupon such producer, seller, distributor,
trader or service provider may be tried for the offence with respect to which the
lesser penalty was imposed and shall also be liable to the imposition of penalty to
which such person has been liable, had lesser penalty not been imposed.
Crediting sums realised by way of penalties to Consolidated Fund of India
[Section 47]
All sums realised by way of penalties under this Act shall be credited to the Consolidated
Fund of India.
Contravention by companies [Section 48]
Where a person committing contravention of any of the provisions of this Act or of any
rule, regulation, order made or direction issued thereunder is a company, every person
who, at the time the contravention was committed, was in charge of, and was responsible
to the company for the conduct of the business of the company, as well as the company,
shall be deemed to be guilty of the contravention and shall be liable to be proceeded
against and punished accordingly.
Nothing contained in this sub-section shall render any such person liable to any
punishment if he proves that the contravention was committed without his knowledge or
that he had exercised all due diligence to prevent the commission of such contravention.
Where a contravention of any of the provisions of this Act or of any rule, regulation, order
made or direction issued thereunder has been committed by a company and it is proved
that the contravention has taken place with the consent or connivance of, or is attributable
to any neglect on the part of, any director, manager, secretary or other officer of the
company, such director, manager, secretary or other officer shall also be deemed to be
guilty of that contravention and shall be liable to be proceeded against and punished
accordingly.
For the purposes of this section,—
(a) "company" means a body corporate and includes a firm or other association of
individuals: and
(b) "director", in relation to a firm, means a partner in the firm.

8. Competition Advocacy
Competition advocacy [Section 49]
The Central Government may, in formulating a policy on competition (including review of
laws related to competition) or any other matter, and a State Government may, in
formulating a policy on competition or on any other matter, as the case may be, make a

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reference to the Commission for its opinion on possible effect of such policy on
competition and on the receipt of such a reference, the Commission shall, within sixty
days of making such reference, give its opinion to the Central Government, or the State
Government, as the case may be, which may thereafter take further action as it deems fit.
The opinion given by the Commission under sub-section (1) shall not be binding upon the
Central Government or the State Government; as the case may be, in formulating such
policy.
The Commission shall take suitable measures for the promotion of competition advocacy,
creating awareness and imparting training about competition issues.

9. Finance, Accounts and Audit

Grants by Central Government [Section 50]
The Central Government may, after due appropriation made by Parliament by law in this
behalf, make to the Commission grants of such sums of money as the Government may
think fit for being utilised for the purposes of this Act.
Constitution of Fund [Section 51]
There shall be constituted a fund to be called the "Competition Fund" and there shall be
credited thereto—
(a) all Government grants received by the Commission;
(b) Omitted;
(d) the fees received under this Act;
(e) the interest accrued on the amounts referred to in clauses (a) and (c).
The Fund shall be applied for meeting:—
(a) the salaries and allowances payable to the Chairperson and other Members and the
administrative expenses including the salaries, allowances and pension payable to
the Director General, Additional, Joint, Deputy or Assistant Directors General, the
Registrar and officers and other employees of the Commission;
(b) the other expenses of the Commission in connection with the discharge of its
functions and for the purposes of this Act.
The Fund shall be administered by a committee of such Members of the Commission as
may be determined by the Chairperson.
The committee shall spend monies out of the Fund for carrying out the objects for which
the Fund has been constituted.
Accounts and Audit [Section 52]
The Commission shall maintain proper accounts and other relevant records and prepare
an annual statement of accounts in such form as may be prescribed by the Central
Government in consultation with the Comptroller and Auditor-General of India.

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 Competition Act, 2002 23.41

The accounts of the Commission shall be audited by the Comptroller and Auditor-General of
India at such intervals as may be specified by him and any expenditure incurred in connection
with such audit shall be payable by the Commission to the Comptroller and Auditor-General of
India.
However, the orders of the Commission, being matters appealable to the Appellate
Tribunal or Supreme Court, shall not be subject to audit under this section.
The Comptroller and Auditor-General of India and any other person appointed by him in
connection with the audit of the accounts of the Commission shall have the same rights,
privileges and authority in connection with such audit as the Comptroller and Auditor-
General of India generally has, in connection with the audit of the Government accounts
and, in particular, shall have the right to demand the production of books, accounts,
connected vouchers and other documents and papers and to inspect any of the offices of
the Commission.
The accounts of the Commission as certified by the Comptroller and Auditor-General of
India or any other person appointed by him in this behalf together with the audit report
thereon shall be forwarded annually to the Central Government and that Government shall
cause the same to be laid before each House of Parliament.
Furnishing of returns, etc., to Central Government [Section 53]
The Commission shall furnish to the Central Government at such time and in such form
and manner as may be prescribed or as the Central Government may direct, such returns
and statements and such particulars in regard to any proposed or existing measures for
the promotion of competition advocacy, creating awareness and imparting training about
competition issues, as the Central Government may, from time to time, require.
The Commission shall prepare once in every year, in such form and at such time as may
be prescribed, an annual report giving a true and full account of its activities during the
previous year and copies of the report shall be forwarded to the Central Government.
A copy of the report received shall be laid, as soon as may be after it is received, before
each House of Parliament.

10. Appellate Tribunal

Appellate Tribunal [Section 53A]
The National Company Law Appellate Tribunal constituted under section 410 of the
Companies Act, 2013 shall, on and from the commencement of Part XIV of Chapter VI of
the Finance Act, 2017, be the Appellate Tribunal for the purposes of this Act and the said
Appellate Tribunal shall—
(a) hear and dispose of appeals against any direction issued or decision made or order
passed by the Commission under sub-sections (2) and (6) of section 26, section 27,
section 28, section 31, section 32, section 33, section 38, section 39, section 43,
section 43A, section 44, section 45 or section 46 of this Act; and

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 23.42 Corporate and Allied Laws

(b) adjudicate on claim for compensation that may arise from the findings of the
Commission or the orders of the Appellate Tribunal in an appeal against any finding
of the Commission or under section 42A or under sub-section (2) of section 53Q of
this Act, and pass orders for the recovery of compensation under section 53N of this
Act.
Appeal to Appellate Tribunal [Section 53B]
The Central Government or the State Government or a local authority or enterprise or any
person, aggrieved by any direction, decision or order referred to in clause (a) of section
53A may prefer an appeal to the Appellate Tribunal.
Every appeal under sub-section (1) shall be filed within a period of sixty days from the
date on which a copy of the direction or decision or order made by the Commission is
received by the Central Government or the State Government or a local authority or
enterprise or any person referred to in that sub-section and it shall be in such form and be
accompanied by such fee as may be prescribed.
The Appellate Tribunal may entertain an appeal after the expiry of the said period of sixty
days if it is satisfied that there was sufficient cause for not filing it within that period.
On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the
parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks
fit, confirming, modifying or setting aside the direction, decision or order appealed
against.
The Appellate Tribunal shall send a copy of every order made by it to the Commission and
the parties to the appeal.
The appeal filed before the Appellate Tribunal under sub-section (1) shall be dealt with by
it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal
within six months from the date of receipt of the appeal.
Awarding compensation [Section 53N]
Without prejudice to any other provisions contained in this Act, the Central Government or
a State Government or a local authority or any enterprise or any person may make an
application to the Appellate Tribunal to adjudicate on claim for compensation that may
arise from the findings of the Commission or the orders of the Appellate Tribunal in an
appeal against any findings of the Commission or under section 42A or under sub-section
(2) of section 53Q of the Act, and to pass an order for the recovery of compensation from
any enterprise for any loss or damage shown to have been suffered, by the Central
Government or a State Government or a local authority or any enterprise or any person as
a result of any contravention of the provisions of Chapter II, having been committed by
enterprise.
Every application made under sub-section (1) shall be accompanied by the findings of the
Commission, if any, and also be accompanied with such fees as may be prescribed.

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 Competition Act, 2002 23.43

The Appellate Tribunal may, after an inquiry made into the allegations mentioned in the
application made under sub-section (1), pass an order directing the enterprise to make
payment to the applicant, of the amount determined by it as realisable from the enterprise
as compensation for the loss or damage caused to the applicant as a result of any
contravention of the provisions of Chapter II having been committed by such enterprise.
The Appellate Tribunal may obtain the recommendations of the Commission before
passing an order of compensation.
Where any loss or damage referred to in sub-section (1) is caused to numerous persons
having the same interest, one or more of such persons may, with the permission of the
Appellate Tribunal, make an application under that sub-section for and on behalf of, or for
the benefit of, the persons so interested, and thereupon, the provisions of rule 8 of Order
1 of the First Schedule to the Code of Civil Procedure, 1908, shall apply subject to the
modification that every reference therein to a suit or decree shall be construed as a
reference to the application before the Appellate Tribunal and the order of the Appellate
Tribunal thereon.
Explanation: For the removal of doubts, it is hereby declared that—
(a) an application may be made for compensation before the Appellate Tribunal only
after either the Commission or the Appellate Tribunal on appeal under clause (a) of
sub-section (1) of section 53A of the Act, has determined in a proceeding before it
that violation of the provisions of the Act has taken place, or if provisions of section
42A or sub-section (2) of section 53Q of the Act are attracted.
(b) enquiry to be conducted under sub-section (3) shall be for the purpose of
determining the eligibility and quantum of compensation due to a person applying for
the same, and not for examining afresh the findings of the Commission or the
Appellate Tribunal on whether any violation of the Act has taken place.
Procedures and powers of Appellate Tribunal [Section 53 O]
The Appellate Tribunal shall not be bound by the procedure laid down in the Code of Civil
Procedure, 1908, but shall be guided by the principles of natural justice and, subject to
the other provisions of this Act and of any rules made by the Central Government, the
Appellate Tribunal shall have power to regulate its own procedure including the places at
which they shall have their sittings. The Appellate Tribunal shall have, for the purposes of
discharging its functions under this Act, the same powers as are vested in a civil court
under the Code of Procedure, 1908 while trying a suit in respect of the following matters,
namely:-
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavit;
(d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872,
requisitioning any public record or document or copy of such record or document
from any office;

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 23.44 Corporate and Allied Laws

(e) issuing commissions for the examination of witnesses or documents;

(f) reviewing its decisions;
(g) dismissing a representation for default or deciding it exparte;
(h) setting aside any order of dismissal of any representation for default or any order
passed by it ex parte;
(i) any other matter which may be prescribed.
Every proceedings before the Appellate Tribunal shall be deemed to be judicial
proceedings within the meaning of sections 193 and 228, and for the purposes of section
196, of the Indian Penal Code and the Appellate Tribunal shall be deemed to be a civil
court for the purposes of section 195 and Chapter XXVI of the Code or Criminal
Procedure, 1973.
Execution of orders of Appellate Tribunal (Section 53P)
Every order made by the Appellate Tribunal shall be enforced by it in the same manner as
if it were a decree made by a court in a suit pending therein, and it shall be lawful for the
Appellate Tribunal to send, in case of its inability to execute such order, to the court within
the local limits of whose jurisdiction,-
(a) in the case of an order against a company, the registered office of the company is
situated; or
(b) in the case of an order against any other person, place where the person concerned
voluntarily resides or carries on business or personally works for gain, is situated.
The Appellate Tribunal may also transmit any order made by it to a civil court having local
jurisdiction and such civil court shall execute the order as if it were a decree made by that court.
Contravention of orders of Appellate Tribunal [Section 53Q]
Without prejudice to the provisions of this Act, if any person contravenes, without any
reasonable ground, any order of the Appellate Tribunal, he shall be liable for a penalty of
not exceeding rupees one crore or imprisonment for a term up to three years or with both
as the Chief Metropolitan Magistrate, Delhi may deem fit.
The Chief Metropolitan Magistrate, Delhi shall not take cognizance of any offence punishable
under this sub-section, save on a complaint made by an officer authorized by the Appellate
Tribunal.
Without prejudice to the provisions of this Act, any person may make an application to the
Appellate Tribunal for an order for the recovery of compensation from any enterprise for
any loss or damage shown to have been suffered, by such person as a result of the said
enterprise contravening, without any reasonable ground, any order of the Appellate
Tribunal or delaying in carrying out such orders of the Appellate Tribunal.
Right to legal representation [Section 53S]
A person preferring an appeal to the Appellate Tribunal may either appear in person or

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 Competition Act, 2002 23.45

authorize one or more chartered accountants or company secretaries or cost accountants

or legal practitioners or any of its officers to present his or its case before the Appellate
Tribunal.
The Central Government or a State Government or a local authority or any enterprise
preferring an appeal to the Appellate Tribunal may authorize one or more chartered
accountants or company secretaries or cost accountants or legal practitioners or any of its
officers to act as presenting officers and every person so authorized may present the case
with respect to any appeal before the Appellate Tribunal.
The Commission may authorize one or more chartered accountants or company
secretaries or cost accountants or legal practitioners or any of its officers to act as
presenting officers and every person so authorized may present the case with respect to
any appeal before the Appellate Tribunal.
Appeal to Supreme Court [Section 53T]
The Central Government or any State Government or the Commission or any statutory
authority or any local authority or any enterprise or any person aggrieved by any decision or
order of the Appellate Tribunal may file an appeal to the Supreme Court within sixty days from
the date of communication of the decision or order of the Appellate Tribunal to them.
The Supreme court may, if it is satisfied that the applicant was prevented by sufficient
cause from filing the appeal within the said period, allow it to be filed after the expiry of
the said period of sixty days.
Power to Punish for contempt [Section 53U]
The Appellate Tribunal shall have, and exercise, the same jurisdiction, powers and
authority in respect of contempt of itself as a High Court has and may exercise and, for
this purpose, the provisions of the Contempt of Courts Act, 1971 shall have effect subject
to modifications that,-
(a) the reference therein to a High Court shall be construed as including a reference to
the Appellate Tribunal;
(b) the references to the Advocate-General in section 15 of the said Act shall be
construed as a reference to such Law Officer as the Central Government may,
by notification, specify in this behalf.

11. Miscellaneous
Power to exempt [Section 54]
The Central Government may, by notification, exempt from the application of this Act, or
any provision thereof, and for such period as it may specify in such notification—
(a) any class of enterprises if such exemption is necessary in the interest of security of
the State or public interest;

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 23.46 Corporate and Allied Laws

(b) any practice or agreement arising out of and in accordance with any obligation
assumed by India under any treaty, agreement or convention with any other country
or countries;
(c) any enterprise which performs a sovereign function on behalf of the Central
Government or a State Government.
In case an enterprise is engaged in any activity including the activity relatable to the
sovereign functions of the Government, the Central Government may grant exemption
only in respect of activity relatable to the sovereign functions.
Power of Central Government to issue directions [Section 55]
Without prejudice to the foregoing provisions of this Act, the Commission shall, in exercise
of its powers or the performance of its functions under this Act, be bound by such
directions on questions of policy, other than those relating to technical and administrative
matters, as the Central Government may give in writing to it from time to time.
However, the Commission shall, as far as practicable, be given an opportunity to express
its views before any direction is given under this sub-section.
The decision of the Central Government whether a question is one of policy or not shall
be final.
Power of Central Government to supersede Commission [Section 56]
As per sub-section (1), if at any time the Central Government is of the opinion—
(a) that on account of circumstances beyond the control of the Commission, it is unable
to discharge the functions or perform the duties imposed on it by or under the
provisions of this Act; or
(b) that the Commission has persistently made default in complying with any direction
given by the Central Government under this Act or in the discharge of the functions
or performance of the duties imposed on it by or under the provisions of this Act and
as a result of such default the financial position of the Commission or the
administration of the Commission has suffered; or
(c) that circumstances exist which render it necessary in the public interest so to do,
the Central Government may, by notification and for reasons to be specified therein,
supersede the Commission for such period, not exceeding six months, as may be
specified in the notification.
Before issuing any such notification, the Central Government shall give a reasonable
opportunity to the Commission to make representations against the proposed
supersession and shall consider representations, if any, of the Commission. Sub-section
(2) provides that upon the publication of a notification under sub-section (1) superseding
the Commission,—
(a) the Chairperson and other Members shall as from the date of supersession, vacate
their offices as such;

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 Competition Act, 2002 23.47

(b) all the powers, functions and duties which may, by or under the provisions of this Act,
be exercised or discharged by or on behalf of the Commission shall, until the
Commission is reconstituted under sub-section (3), be exercised and discharged by
the Central Government or such authority as the Central Government may specify in
tins behalf;
(c) all properties owned or controlled by the Commission shall, until the Commission is
reconstituted under sub-section (3), vest in the Central Government.
According to Sub-section (3), on or before the expiration of the period of supersession
specified in the notification issued under subsection (1), the Central Government shall
reconstitute the Commission by a fresh appointment of its Chairperson and other
Members and in such case any person who had vacated his office under clause (a) of
sub-section (2) shall not be deemed to be disqualified for re-appointment.
Sub-section (4) provides that the Central Government shall cause a notification issued
under sub-section (1) and a full report of any action taken under this section and the
circumstances leading to such action to be laid before each House of Parliament at the
earliest.
Restriction on disclosure of information [Section 57]
No information relating to any enterprise, being an information which has been obtained
by or on behalf of the Commission or the Appellate Tribunal for the purposes of this Act,
shall, without the previous permission in writing of the enterprise, be disclosed otherwise
than in compliance with or for the purposes of this Act or any other law for the time being
in force.
Chairperson, Members, Director General, Registrar, officers and other employees,
etc. of Commission to be public servants [Section 58]
The Chairperson and other Members and the Director General, Additional, Joint, Deputy
or Assistant Directors General and Secretary and officers and other employees of the
Commission and the Chairperson, Members, officers and other employees of the
Appellate Tribunal shall be deemed, while acting or purporting to act in pursuance of any
of the provisions of this Act, to be public servants within the meaning of section 21 of the
Indian Penal Code.
Protection of action taken in good faith [Section 59]
No suit, prosecution or other legal proceedings shall lie against the Central Government
or Commission or any officer of the Central Government or the Chairperson or any
Member or the Director-General, Additional, Joint, Deputy or Assistant Directors General
or Secretary or officers or other employees of the Commission or the Chairperson,
Members, officers and other employees of the Appellate Tribunal for anything which is in
good faith done or intended to be done under this Act or the rules or regulations made
thereunder.

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 23.48 Corporate and Allied Laws

Act to have overriding effect [Section 60]

The provisions of this Act shall have effect notwithstanding anything inconsistent
therewith contained in any other law for the time being in force.
Exclusion of jurisdiction of civil courts [Section 61]
This section provides that no civil court shall have jurisdiction to entertain any suit or
proceeding in respect of any matter which the Commission or the Appellate Tribunal is
empowered by or under this Act to determine and no injunction shall be granted by any
court or other authority in respect of any action taken or to be taken in pursuance of any
power conferred by or under this Act.
Application of other laws not barred [Section 62]
This section seeks to provide that the provisions of this legislation shall be in addition to,
and not in derogation of, the provisions of any other law for the time being in force.
Power to make rules [Section 63]
The Central Government may, by notification, make rules to carry out the provisions of this
Act.
In particular, and without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:-—
(a) the term of the selection committee and the manner of selection of panel of names under
section 9(2);
(b) the form and manner in which and the authority before whom the oath of office and of
secrecy shall be made and subscribed to under sub-section (3) of section 10;
(c) Omitted
(d) the salary and the other terms and conditions of service including travelling expenses,
house rent allowance and conveyance facilities, sumptuary allowance and medical
facilities to be provided to the Chairperson and other Members under sub-section (1) of
section 14;
(da) the number of Additional, Joint, Deputy or Assistant Directors General or such officers or
other employees in the office of Director General and the manner in which such
Additional, Joint, Deputy or Assistant Directors General or such officers or other
employees may be appointed under sub-section (1A) of section 16;
(e) the salary, allowances and other terms and conditions of service of the Director General,
Additional, Joint, Deputy or Assistant Directors General or such officers or other
employees under sub-section (3) of section 16;
(f) the qualifications for appointment of the Directors-General, Additional, Joint, Deputy or
Assistant Directors-General or such officers or other employees under sub-section (4) of
section 16;

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 Competition Act, 2002 23.49

(g) the salaries and allowances and other terms and conditions of service of the Secretary
and officers and other employees payable, and the number of such officers and
employees under sub-section (2) of section 17;
(h) Omitted
(i) Omitted
(j) Omitted
(k) the form in which the annual statement of accounts shall be prepared under sub-section
(1) of section 52;
(l) the time within which and the form and manner in which the Commission may furnish
returns, statements and such particulars as the Central Government may require under
sub-section (1) of section 53;
(m) the form in which and the time within which the annual report shall be prepared under
sub-section (2) of section 53;
(ma) the form in which an appeal may be filed before the Appellate Tribunal under sub-section
(2) of section 53B and the fees payable in respect of such appeal;
(mb) to (md) Omitted
(me) the fee which shall be accompanied with every application made under sub-section (2) of
section 53N;
(mf) the other matters under clause (i) of sub-section (2) of section 53-O in respect of which
the Appellate Tribunal shall have powers under the Code of Civil Procedure, 1908 (5 of
1908) while trying a suit;
(n) the manner in which the monies transferred to the Competition Commission of India
or the Appellate Tribunal shall be dealt with by the Commission or the Appellate Tribunal,
as the case may be, under the fourth proviso to sub-section (2) of section 66;
(o) any other matter which is to be, or may be, prescribed, or in respect of which provision is
to be, or may be, made by rules.
Every notification issued under sub-section (3) of section 20 and section 54 and every rule
made under this Act by the Central Government shall be laid, as soon as may be after it is
made, before each House of Parliament, while it is in session, for a total period of thirty days
which may be comprised in one session, or in two or more successive sessions, and if, before
the expiry of the session immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the notification or rule, or both
Houses agree that the notification should not be issued or rule should not be made, the
notification or rule shall thereafter have effect only in such modified form or be of no effect, as
the case may be; so, however, that any such modification or annulment shall be without
prejudice to the validity of anything previously done under that notification or rule, as the case
may be.

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 23.50 Corporate and Allied Laws

Power to make regulations [Section 64]

The Commission may, by notification, make regulations consistent with this Act and the rules
made thereunder to carry out the purposes of this Act.
In particular, and without prejudice to the generality of the foregoing provisions, such
regulations may provide for all or any of the following matters, namely:—
(a) the cost of production to be determined under clause (b) of the Explanation to section 4;
(b) the form of notice as may be specified and the fee which may be determined under sub-
section (2) of section 6;
(c) the form in which details of the acquisition shall be filed under sub-section (5) of
Section 6;
(d) the procedures to be followed for engaging the experts and professionals under sub-
section (3) of section 17;
(e) the fee which may be determined under clause (a) of sub-section (1) of section 19;
(f) the rules of procedure in regard to the transaction of business at the meetings of the
Commission under sub-section (1) of section 22;
(g) the manner in which penalty shall be recovered under sub-section (1) of section 39;
(h) any other matter in respect of which provision is to be, or may be, made by regulations.
Every regulation made under this Act shall be laid, as soon as may be after it is made, before
each House of Parliament, while it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if, before the expiry of
the session immediately following the session or the successive sessions aforesaid, both
Houses agree in making any modification in the regulation, or both Houses agree that the
regulation should not be made, the regulation shall thereafter have effect only in such modified
form or be of no effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done under that
regulation.
Power to remove difficulties [Section 65]
If any difficulty arises in giving effect to the provisions of this Act, the Central Government
may, by order published in the Official Gazette, make such provisions, not inconsistent with
the provisions of this Act as may appear to it to be necessary for removing the difficulty.
However, no such order shall be made under this section after the expiry of a period of two
years from the commencement of this Act.
Every order made under this section shall be laid, as soon as may be after it is made, before
each House of Parliament.
Repeal and saving [Section 66]
The Monopolies and Restrictive Trade Practices Act, 1969 is hereby repealed and the
Monopolies and Restrictive Trade Practices Commission established under section 5(1) of the

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 Competition Act, 2002 23.51

said Act shall stand dissolved.

The repeal of the Monopolies and Restrictive Trade Practices Act, 1969 shall, however, not
affect
(a) the previous operation of the Act so repealed or anything duly done or suffered
thereunder; or
(b) any right, privilege, obligation or liability acquired, accrued or incurred under the Act so
repealed; or
(c) any penalty, confiscation or punishment incurred in respect of any contravention under
the Act so repealed; or
(d) any proceeding or remedy in respect of any such right, privilege, obligation, liability,
penalty, confiscation or punishment as aforesaid, and any such proceeding or remedy
may be instituted, continued or enforced, and any such penalty, confiscation or
punishment may be imposed or made as if that Act had not been repealed.
On the dissolution of the Monopolies and Restrictive Trade Practices Commission, the person
appointed as the Chairman of the Monopolies and Restrictive Trade Practices Commission
and every other person appointed as Member and Director General of Investigation and
Registration, Additional, Joint, Deputy, or Assistant Directors General of Investigation and
Registration and any officer and other employee of that Commission and holding office as
such immediately before such dissolution shall vacate their respective offices and such
Chairman and other Members shall be entitled to claim compensation not exceeding three
months' pay and allowances for the premature termination of term of their office or of any
contract of service.
The Director General of Investigation and Registration, Additional, Joint, Deputy or Assistant
Directors General of Investigation and Registration or any officer or other employee who has
been, immediately before the dissolution of the Monopolies and Restrictive Trade Practices
Commission appointed on deputation basis to the Monopolies and Restrictive Trade Practices
Commission, shall, on such dissolution, stand reverted to his parent cadre, Ministry or
Department, as the case may be.
The Director-General of Investigation and Registration, Additional, Joint, Deputy or Assistant
Directors General of Investigation and Registration or any officer or other employee who has
been, immediately before the dissolution of the Monopolies and Restrictive Trade Practices
Commission, employed on regular basis by the Monopolies and Restrictive Trade Practices
Commission, shall become, on and from such dissolution, the officer and employee,
respectively, of the Competition Commission of India or the Appellate Tribunal, in such
manner as may be specified by the Central Government, with the same rights and privileges
as to pension, gratuity and other like matters as would have been admissible to him if the
rights in relation to such Monopolies and Restrictive Trade Practices Commission had not
been transferred to, and vested in, the Competition Commission of India or the Appellate
Tribunal, as the case may be, and shall continue to do so unless and until his employment in
the Competition Commission of India or the Appellate Tribunal, as the case may be, is duly
terminated or until his remuneration, terms and conditions of employment are duly altered by
the Competition Commission of India or the Appellate Tribunal, as the case may be.

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 23.52 Corporate and Allied Laws

Notwithstanding anything contained in the Industrial Disputes Act, 1947 or in any other law for
the time being in force, the transfer of the services of any Director General of Investigation
and Registration, Additional, Joint, Deputy or Assistant Directors General of Investigation and
Registration or any officer or other employee, employed in the Monopolies and Restrictive
Trade Practices Commission, to the Competition Commission of India or the Appellate
Tribunal, as the case may be, shall not entitle such Director General of Investigation and
Registration, Additional, Joint, Deputy or Assistant Directors General of Investigation and
Registration or any officer or other employee any compensation under this Act or any other
law for the time being in force and no such claim shall be entertained by any court, tribunal or
other authority.
Where the Monopolies and Restrictive Trade Practices Commission has established a
provident fund, superannuation, welfare or other fund for the benefit of the Director General of
Investigation and Registration, Additional, Joint, Deputy or Assistant Directors General of
Investigation and Registration or the officers and other employees employed in the
Monopolies and Restrictive Trade Practices Commission, the monies relatable to the officers
and other employees whose services have been transferred by or under this Act to the
Competition Commission of India or the Appellate Tribunal, as the case may be, shall, out of
the monies standing on the dissolution of the Monopolies and Restrictive Trade Practices
Commission to the credit of such provident fund, superannuation, welfare or other fund, stand
transferred to, and vest in, the Competition Commission of India or the Appellate Tribunal as
the case may be, and such monies which stand so transferred shall be dealt with by the said
Commission or the Tribunal, as the case may be, in such manner as may be prescribed.
All cases pertaining to monopolistic trade practices or restrictive trade practices pending
(including such cases, in which any unfair trade practice has also been alleged), before the
Monopolies and Restrictive Trade Practices Commission shall, on the commencement of the
Competition (Amendment) Act, 2009 referred to in the proviso to sub- section (1) stand
transferred to the Appellate Tribunal and shall be adjudicated by the Appellate Tribunal in
accordance with the provisions of the repealed Act as if that Act had not been repealed.
All cases pertaining to unfair trade practices other than those referred to in clause (x) of sub-
section (1) of section 36A of the Monopolies and Restrictive Trade Practices Act, 1969 and
pending before the Monopolies and Restrictive Trade Practices Commission immediately
before the commencement of the Competition (Amendment) Act, 2009 shall stand transferred
to the National Commission constituted under the Consumer Protection Act, 1986 and the
National Commission shall dispose of such cases as if they were cases filed under that Act.
Further that all the cases relating to the unfair trade practices pending, before the National
Commission under this sub-section, on or before the date on which the Competition
(Amendment) Bill, 2009 receives the assent of the President, shall, on and from that date,
stand transferred to the Appellate Tribunal and be adjudicated by the Appellate Tribunal in
accordance with the provisions of the repealed Act as if that Act had not been repealed.
The National Commission may, if it considers appropriate, transfer any case transferred to it
under this sub-section, to the concerned State Commission established under section 9 of the
Consumer Protection Act, 1986 and that State Commission shall dispose of such case as if it
was filed under that Act.

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 Competition Act, 2002 23.53

All cases pertaining to unfair trade practices referred to in clause (x) of sub-section (1) of
section 36A of the Monopolies and Restrictive Trade Practices Act, 1969 and pending before
the Monopolies and Restrictive Trade Practices Commission shall, on the commencement of
the Competition (Amendment) Act, 2009 referred to in the proviso to sub- section (1) stand
transferred to the Appellate Tribunal and the Appellate Tribunal shall dispose of such cases as
if they were cases filed under that Act. For the removal of doubts, it is hereby declared that all
cases referred to in this sub-section, sub-section (4) and sub-section (5) shall be deemed to
include all applications made for the losses or damages under section 12B of the Monopolies
and Restrictive Trade Practices Act, 1969 as it stood before its repeal.
All investigations or proceedings, other than those relating to unfair trade practices, pending
before the Director General of Investigation and Registration on or before the commencement
of this Act shall, on such commencement, stand transferred to the Competition Commission of
India, and the Competition Commission of India may conduct or order for conduct of such
investigation or proceedings in the manner as it deems fit.
All investigations or proceedings, relating to unfair trade practices, other than those referred to
in clause (x) of sub-section (1) of section 36A of the Monopolies and Restrictive Trade
Practices Act, 1969 and pending before the Director General of Investigation and Registration
on or before the commencement of this Act shall, on such commencement, stand transferred
to the National Commission constituted under the Consumer Protection Act, 1986 and the
National Commission may conduct or order for conduct of such investigation or proceedings in
the manner as it deems fit.
All investigations or proceedings relating to unfair trade practices referred to in clause (x) of
subsection (1) of section 36A of the Monopolies and Restrictive Trade Practices Act, 1969 and
pending before the Director General of Investigation and Registration on or before the
commencement of this Act shall, on such commencement, stand transferred to the
Competition Commission of India and the Competition Commission of India may conduct or
order for conduct of such investigation in the manner as it deems fit. Further, that ail
investigations or proceedings, relating to unfair trade practices pending before the National
Commission, on or before the date on which the Competition (Amendment) Bill, 2009 receives
the assent of the President shall, on and from that date, stand transferred to the Appellate
Tribunal and the Appellate Tribunal may conduct or order for conduct of such investigation or
proceedings in the manner as it deems fit. All cases or proceedings pending before the
Monopolies and Restrictive Trade Practices Commission shall abate.
The mention of the particular matters referred to in sub-sections (3) to (8) shall not be held to
prejudice or affect the general application of section 6 of the General Clauses Act, 1897 with
regard to the effect of repeal.

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