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The
Competition Act, 20021
(Competition Act, 2002)

[Act 12 of 2003 as amended by Act 9 of 2023 and updated as of 31st

August 2023]
[13th January, 2003]

CONTENTS

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement

2. Definitions

CHAPTER II

PROHIBITION OF CERTAIN AGREEMENTS, ABUSE OF DOMINANT

POSITION AND REGULATION OF COMBINATIONS

3. Anti-competitive agreements

4. Abuse of dominant position

5. Combination

6. Regulation of combinations

6-A. Open offers, etc

CHAPTER III

COMPETITION COMMISSION OF INDIA

7. Establishment of Commission

8. Composition of Commission

RULES 9. Selection Committee for Chairperson and Members of

Commission

10. Term of office of Chairperson and other Members

11. Resignation, removal and suspension of Chairperson and other

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Members

12. Restriction on employment of Chairperson and other Members

13. Administrative powers of Chairperson

14. Salary and allowances and other terms and conditions of

services of Chairperson and other Members

15. Vacancy, etc., not to invalidate proceedings of Commission

16. Appointment of Director General, etc

17. Appointment of Secretary, experts, professionals and officers

and other employees of Commission

CHAPTER IV

DUTIES, POWERS AND FUNCTIONS OF COMMISSION

18. Duties and functions of Commission

19. Inquiry into certain agreements and dominant position of

enterprise

20. Inquiry into combination by Commission

21. Reference by statutory authority

21-A. Reference by Commission

22. Meetings of Commission

23. Distribution of business of Commission amongst Benches

24. Procedure for deciding a case where Members of a Bench differ

in opinion

25. Jurisdiction of Bench

26. Procedure for inquiry under Section 19

27. Orders by Commission after inquiry into agreements or abuse

of dominant position

28. Division of enterprise enjoying dominant position

29. Procedure for investigation of combinations

29-A. Issue of statement of objections by Commission and

proposal of modifications
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30. Procedure in case of notice under sub-section (2) of Section 6

HAR CHEEZ NAHI 31. Orders of Commission on [* * *] combinations

32. Acts taking place outside India but having an effect on

competition in India

ACCHE SE 33. Power to issue interim orders

WHY OMMITED? 34. Power to award compensation (Omitted)

35. Appearance before Commission

36. Power of Commission to regulate its own procedure

37. Review of orders of Commission

38. Rectification of orders

39. Execution of orders of Commission imposing monetary penalty

40. Appeal

CHAPTER V

DUTIES OF DIRECTOR GENERAL

41. Director General to investigate contraventions

CHAPTER VI

PENALTIES

42. Contravention of orders of Commission

42-A. Compensation in case of contravention of orders of

Commission

43. Penalty for failure to comply with directions of Commission

and Director General

43-A. Power to impose penalty for non-furnishing of information

on combination

44. Penalty for making false statement or omission to furnish

material information

45. Penalty for contraventions in relation to furnishing of

information

46. Power to impose lesser penalty

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47. Crediting sums realised by way of penalties and recovery of

legal costs by the Commission to Consolidated Fund of India

48. Contravention by companies

48-A. Settlement

48-B. Commitment

48-C. Revocation of the settlement or commitment order and

penalty

CHAPTER VII

COMPETITION ADVOCACY

49. Competition advocacy

CHAPTER VIII

FINANCE, ACCOUNTS AND AUDIT

50. Grants by Central Government

51. Constitution of Fund

52. Accounts and audit

53. Furnishing of returns, etc., to Central Government

CHAPTER VIII-A

APPELLATE TRIBUNAL

53-A. Appellate Tribunal

53-B. Appeal to Appellate Tribunal

53-C. Composition of Appellate Tribunal

53-D. Qualifications for appointment of Chairperson and Members

of Appellate Tribunal

53-E. Selection Committee

53-F. Term of office of Chairperson and Members of Appellate

Tribunal

53-G. Terms and conditions of service of Chairperson and

Members of Appellate Tribunal
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53-H. Vacancies

53-I. Resignation of Chairperson and Members of Appellate

Tribunal

53-J. Member of Appellate Tribunal to act as its Chairperson in

certain cases

53-K. Removal and suspension of Chairperson and Members of

Appellate Tribunal

53-L. Restriction on employment of Chairperson and other

Members of Appellate Tribunal in certain cases

53-M. Staff of Appellate Tribunal

53-N. Awarding compensation

53-O. Procedure and powers of Appellate Tribunal

53-P. Execution of orders of Appellate Tribunal

53-Q. Contravention of orders of Appellate Tribunal

53-R. Vacancy in Appellate Tribunal not to invalidate acts or

proceedings

53-S. Right to legal representation

53-T. Appeal to Supreme Court

53-U. Power to punish for contempt

CHAPTER IX

MISCELLANEOUS

54. Power to exempt

55. Power of Central Government to issue directions

56. Power of Central Government to supersede Commission

57. Restriction on disclosure of information

58. Chairperson, Members, Director General, Secretary, officers

and other employees, etc., to be public servants

59. Protection of action taken in good faith

59-A. Compounding of certain offences

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60. Act to have overriding effect

61. Exclusion of jurisdiction of civil courts

62. Application of other laws not barred

63. Power to make rules

64. Power to make regulations

64-A. Process of issuing regulations

64-B. Commission to issue guidelines

65. Power to remove difficulties

66. Repeal and saving

———

Competition Act, 2002

[Act 12 of 2003 as amended by Act 9 of 2023] [13th January,
2003]
An Act to provide, keeping in view of the economic development of the
country, for the establishment of a Commission to prevent practices
having adverse effect on competition, to promote and sustain
competition in markets, to protect the interests of consumers and to
ensure freedom of trade carried on by other participants in markets, in
India, and for matters connected therewith or incidental thereto
Be it enacted by Parliament in the Fifty-third Year of the Republic of
India as follows:—
► Object.—The rationale of free market economy is that the competitive
offers of different suppliers allow the buyers to make the best purchase. The
motivation of each participant in a free market economy is to maximise self-
interest but the result is favourable to society.
The main objective of competition law is to promote economic efficiency using
competition as one of the means of assisting the creation of market responsive to
consumer preferences. The advantages of perfect competition are threefold :
allocative efficiency, which ensures the effective allocation of resources;
productive efficiency, which ensures that costs of production are kept at a
minimum; and dynamic efficiency, which promotes innovative practices. These
factors by and large have been accepted all over the world as the guiding
principles for effective implementation of competition law, Competition
Commission of India v. SAIL, (2010) 10 SCC 744.
► Applicability.—Provision of Act are attracted only when agreement is
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entered into between parties concerned after grant of licence when application for
licence is still pending Competition Act will have no application, P.G. Narayanan v.
Union of India, (2005) 3 CTC 582.
Mixed disputed questions of fact and law under the Monopolies and Restrictive
Trade Practices Act, or the Competition Act, 2002 are not to be gone into in detail
in the discretionary writ jurisdiction, T.N. Coop. Milk Producer's Federation Ltd.
v. Triad Trading Services Ltd., (2010) 4 LW 289 (Mad) (DB).
Statement of Objects and Reasons.—In the pursuit of
globalisation, India has responded by opening up its economy,
removing controls and resorting to liberalisation. The natural corollary
of this is that the Indian market should be geared to face competition
from within the country and outside. The Monopolies and Restrictive
Trade Practices Act, 1969 has become obsolete in certain respects in
the light of international economic developments relating more
particularly to competition laws and there is a need to shift our focus
from curbing monopolies to promoting competition.
2. The Central Government constituted a High Level Committee on
Competition Policy and Law. The Committee submitted its report on the
22nd May, 2000 to the Central Government. The Central Government
consulted all concerned including the trade and industry associations
and the general public. The Central Government after considering the
suggestions of the trade and industry and the general public decided to
enact a law on Competition.
3. The Competition Bill, 2001 seeks to ensure fair competition in
India by prohibiting trade practices which cause appreciable adverse
effect on competition in markets within India and, for this purpose,
provides for the establishment of a quasi-judicial body to be called the
Competition Commission of India (hereinafter referred to as CCI) which
shall also undertake competition advocacy for creating awareness and
imparting training on competition issues.
4. The Bill also aims at curbing negative aspects of competition
through the medium of CCI. CCI will have a Principal Bench and
Additional Benches and will also have one or more Mergers Benches. It
will look into violations of the Act, a task which could be undertaken by
the Commission based on its own knowledge or information or
complaints received and references made by the Central Government,
the State Governments or statutory authorities. The Commission can
pass orders for granting interim relief or any other appropriate relief
and compensation or an order imposing penalties, etc. An appeal from
the orders of the Commission shall lie to the Supreme Court. The
Central Government will also have powers to issue directions to the
Commission on policy matters after considering its suggestions as well
as the power to supersede the Commission if such a situation is
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warranted.
5. The Bill also provides for investigation by the Director-General for
the Commission. The Director-General would be able to act only if so
directed by the Commission but will not have any suo moto powers for
initiating investigations.
6. The Bill confers power upon the CCI to levy penalty for
contravention of its orders, failure to comply with its directions, making
of false statements or omission to furnish material information, etc. The
CCI can levy upon an enterprise a penalty of not more than ten per
cent of its average turn-over for the last three financial years. It can
also order division of dominant enterprises. It will also have power to
order demerger in the case of mergers and amalgamations that
adversely affect competition.
7. The Bill also seeks to create a fund to be called the Competition
Fund. The grants given by the Central Government, costs realised by
the Commission and application fees charged will be credited into this
Fund. The pay and allowances and the other expenses of the
Commission will also be borne out of this Fund. The Bill provides for
empowering the Comptroller and Auditor-General of India to audit the
accounts of the Commission. The Central Government will be required
to lay the annual accounts of the Commission, as audited by the
Comptroller and Auditor-General and also the annual report of the
Commission before both the Houses of Parliament.
8. The Bill aims at repealing the Monopolies and Restrictive Trade
Practices Act, 1969 and the dissolution of the Monopolies and
Restrictive Trade Practices Commission. The Bill provides that the cases
pending before the Monopolies and Restrictive Trade Practices
Commission will be transferred to the CCI except those relating to
unfair trade practices which are proposed to be transferred to the
relevant for a established under the Cosnsumer Protection Act, 1986.
9. The Bill seeks to achieve the above objectives.
Statement of Objects and Reasons of Amendment Act 39 of
2007.—The Competition Act was enacted in 2002 keeping in view the
economic developments that have resulted in opening up of the Indian
economy, removal of controls and consequent economic liberalisation
which required that the Indian market be geared to face competition
from within the country and outside. The Competition Act, 2002
provided for the establishment of a Commission to prevent practices
having adverse effect on competition, to promote and sustain
competition in markets, to protect the interests of consumers and to
ensure freedom of trade carried on by other participants in markets, in
India, and for matters connected therewith or incidental thereto.
2. The Competition Commission of India (CCI) was established on
the 14th October, 2003 but could not be made functional due to filing
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of a writ petition before the Hon'ble Supreme Court. The Hon'ble

Supreme Court delivered its judgment on the 20th January, 2005.
While disposing of the writ petition, the Hon'ble Supreme Court
observed that “if an expert body is to be created as submitted on behalf
of the Union of India consistent with what is said to be the international
practice, it might be appropriate for the respondents to consider the
creation of two separate bodies, one with expertise that is advisory and
regulatory and the other adjudicatory. This followed up by an appellate
body as contemplated by the proposed amendment, can go a long way,
in meeting the challenge sought to be raised in this writ petition based
on the doctrine of separation of powers recognised by the Constitution.
Any way, it is for those who are concerned with the process of
amendment to consider that aspect. It cannot be gainsaid that the
Commission as now contemplated, has a number of adjudicatory
functions as well”. The Hon'ble Supreme Court left open all questions
regarding the validity of the Competition Act, 2002 including Rule 3 of
the Competition Commission of India (Selection of Chairperson and
Other Members of the Commission) Rules, 2003.
3. The Competition (Amendment) Bill, 2006, inter alia, seeks to
make the following amendments to the Competition Act so as to
address various legal issues and to make the CCI fully operational on a
sustainable basis, namely—
(a) to provide that CCI would be an expert body which will function
as a market regulator for preventing anti-competitive practices in
the country and it would also have advisory and advocacy
functions in its role as a regulator;
(b) to omit the provisions relating to adjudication of disputes
between two or more parties by the CCI and to provide for
investigation through the Director General in case there exist a
prima facie case relating to anti-competitive agreements or abuse
of dominant position under the Competition Act, 2002 and
conferring power upon the CCI to pass orders on completion of an
inquiry and impose monetary penalties and in doing so the CCI
would work as a collegium and its decisions would be based on
simple majority;
(c) to provide for establishment of the Competition Appellate
Tribunal (CAT), which shall be a three-member quasi-judicial
body headed by a person who is or has been a retired Judge of
the Supreme Court or the Chief Justice of a High Court and
selection of the Chairperson and other Members of CAT to be
made by a Selection Committee headed by the Chief Justice of
the Supreme Court of India or his nominee, and having
Secretaries of Ministries of Company Affairs and Law as its
members;
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(d) to provide for hearing and disposing of appeals by the CAT

against any direction issued or decision made or order passed by
the CCI;
(e) to provide for adjudication by CAT of claims on compensation and
passing of orders for the recovery of compensation from any
enterprise for any loss or damage suffered as a result of any
contravention of the provisions of the Competition Act, 2002;
(f) to provide for implementation of the orders of the CAT as a
decree of a civil court;
(g) to provide for filing of appeal against the orders of the CAT to the
Supreme Court;
(h) to confer powers to sectoral regulators to make suo motu
reference to CCI on competition issues, in addition to the present
provision of making reference, when such request is made by any
party in a dispute before it.
4. The Bill also aims at continuation of the Monopolies and
Restrictive Trade Practices Commission (MRTPC) till two years after
constitution of CCI, for trying pending cases under the Monopolies and
Restrictive Trade Practices Act, 1969 after which it would stand
dissolved. The Bill also provides that MRTPC would not entertain any
new cases after the CCI is duly constituted. Cases still remaining
pending after this two year period, would be transferred to CAT or the
National Commission under the Consumer Protection Act, 1986
depending on the nature of cases.
5. The Bill seeks to achieve the above objectives.
Statement of Objects and Reasons of Amendment Act 39 of
2009.—The Competition Act, 2002 was enacted in 2002 keeping in
view the economic developments that resulted in opening up of the
Indian economy, removal of controls and consequent economic
liberalisation which required that the Indian economy be enabled to
allow competition in the market from within the country and outside. It
was subsequently amended in 2007. The Competition Act, 2002, inter
alia, provides for the following, namely—
(A) establishment of the Competition Commission of India, which
shall be an expert body and would function as a market regulator
for preventing and regulating anti-competitive practices in the
country in accordance with the provisions of the Act and it would
also have advisory and advocacy functions in its role as a
regulator which can also impose a penalty in certain cases
specified in the Act;
(B) establishment of the Competition Appellate Tribunal, which shall
be a three member quasi-judicial body headed by a person who is
or has been a Judge of the Supreme Court or the Chief Justice of a
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High Court to hear and dispose of appeals against any direction

issued or decision made or order passed by the Competition
Commission and to adjudicate claims on compensation and for
passing of orders for the recovery of compensation from any
enterprise for any loss or damage suffered as a result of any
contravention of the provisions of the Act.
2. Sub-section (1) of Section 66 of the Act provides for repeal of the
Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) and
dissolution of the Monopolies and Restrictive Trade Practices
Commission (MRTPC) established thereunder. However, the MRTPC was
allowed to continue under the said sub-section to exercise jurisdiction
and powers under the repealed Act for a period of two years from the
date of the commencement of this Act in respect of all cases or
proceedings filed before the commencement of this Act.
3. Sub-section (3) of Section 66 of the Act, inter alia, provides that
all cases pertaining to monopolistic trade practices or restrictive trade
practices and sub-section (5) of Section 66 of the Act provides that all
cases pertaining to unfair trade practices referred to in clause (x) of sub
-section (1) of Section 36-A of the MRTP Act, pending before the MRTPC
shall, after the expiry of two years referred to in sub-section (1) of
Section 66 stand transferred to the Appellate Tribunal, and, be
adjudicated by the Appellate Tribunal in accordance with the provisions
of the repealed Act.
4. Sub-section (4) of Section 66 of the Act, inter alia, provides that
all cases pertaining to unfair trade practices other than those referred
to in clause (x) of sub-section (1) of Section 36-A of the MRTP Act
before the MRTPC shall, on or before the expiry of two years 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.
5. Section 66 of the Act was brought in force on the 1st September,
2009. The post of Chairperson of the MRTPC was vacant on the said
date and there were only two Members in the said Commission out of
five Members. Both Members in the said Commission demitted their
office on the day of the 14th September, 2009 and on the day of the
1st October, 2009 respectively on completion of their tenure. Efforts
were made to fill up the posts but were of no avail. The MRTPC became
non-functional and a gap was created for the disposal of the cases
pending with the Commission. On the other hand, the Competition
Appellate Tribunal established under the Competition Act, 2002 was not
having adequate workload.
6. As both the Houses of Parliament were not in session and the
President was satisfied that the circumstances existed which rendered
it necessary for her to take immediate action, the Competition
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(Amendment) Ordinance, 2009 was promulgated on the 14th October,

2009 so as to transfer immediately the cases pending with the
Monopolies and Restrictive Trade Practices Commission to the
Competition Appellate Tribunal and National Commission from the date
of issue of the Ordinance.
7. Since the National Commission expressed its inability to accept
the transfer of cases and also the investigations or proceedings as
many of the cases were not covered by the definition of ‘consumer’
under the Consumer Protection Act, 1986 and due to lack of
investigating machinery with them, certain further amendments are
proposed to Section 66 of the Act which, inter alia, contains that—
(i) all the cases 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 be adjudicated by the Appellate Tribunal in
accordance with the provisions of the repealed Act as if that Act
had not been repealed;
(ii) all 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 in
the manner as it deems fit.
8. The Bill seeks to replace the aforesaid Ordinance with the above
amendments.
Chapter I
PRELIMINARY
1. Short title, extent and commencement.—(1) This Act may be
called the Competition Act, 2002.
(2) It extends to the whole of India except the State of Jammu and
Kashmir* .
(3) It shall come into force on such date as the Central Government
may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different
provisions of this Act and any reference in any such provision to the
commencement of this Act shall be construed as a reference to the
coming into force of that provision.
“Section 1 enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
NOTIFICATIONS
(1)
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Ministry of Corporate Affairs, Noti. No. S.O. 2228(E), dated May 18th,
2023, published in the Gazette of India, Extra., Part II, Section 3(ii),
dated 19th May, 2023, p. 2, No. 2134
G.S.R. 2228(E).—In exercise of the powers conferred by sub-
section (2) of Section 1 of the Competition (Amendment) Act, 2023 (9
of 2023), the Central Government hereby appoints the 18th day of May,
2023 as the date on which the provisions of the following sections of
the said Act shall come into force, namely:—
Serial Sections
Number
(1) Sections 1 to 5 (both inclusive);
(2) Sections 9 to 11 (both inclusive);
(3) Sections 13 to 18 (both inclusive);
(4) Section 19 (except clause f );
(5) Sections 25 to 27 (both inclusive);
(6) Section 29;
(7) Sections 31 to 32 (both inclusive);
(8) Sections 36 and 37;
(9) Section 39;
(10) Sections 41 to 44 (both inclusive);
(11) Section 45 (except 64B).

(2)
Ministry of Corporate Affairs, Noti. No. S.O. 4672(E), dated October
26th, 2023, published in the Gazette of India, Extra., Part II, Section 3
(ii), dated 26th October, 2023, p. 1, No. 4486
G.S.R. 4486(E).—In exercise of the powers conferred by sub-
section (2) of Section 1 of the Competition (Amendment) Act, 2023 (9
of 2023), the Central Government hereby appoints the 26th October,
2023 as the date on which Section 45, in so far as it relates to Section
64B and the entries relating thereto, of the said Act shall come into
force.
2. Definitions.—In this Act, unless the context otherwise requires,—
(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;
“Clause (a) enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
(b) “agreement” includes any arrangement or understanding or
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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;
“Clause (b) enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
2
[(ba) “Appellate Tribunal” means the National Company Law
Appellate Tribunal referred to in sub-section (1) of Section 53-
A;]
(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;
“Clause (c) enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
(d) “Chairperson” means the Chairperson of the Commission
appointed under sub-section (1) of Section 8;
“Clause (d) enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
(e) “Commission” means the Competition Commission of India
established under sub-section (1) of Section 7;
“Clause (e) enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
3 [(ea) “commitment” means the commitment referred to in
Section 48-B;]
(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
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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;
“Clause (f) enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
► Consumer.—Consumer is the one who purchases goods for private use or
consumption, Mogan Stanley Mutual Fund v. Kartick Das, (1994) 4 SCC 225.
Consumer includes also the beneficiary for whose benefit the services are
hired or availed of, R.P.F. Commr. v. Shiv Kumar Joshi, (2000) 1 SCC 98.
(g) “Director General” means the Director General appointed
under sub-section (1) of Section 16 and includes any
Additional, Joint, Deputy or Assistant Directors General
appointed under that section;
“Clause (g) enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
(h) “enterprise” means 4 [a person or a department of the
Government, including units, divisions, subsidiaries, who or
which is, or has been, engaged in any economic 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, but does not include any activity of the
Government relatable to the 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;].
“Clause (h) enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt., 24-9-2003.”
Explanation.—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;
► Expression “enterprise”.—When Union of India has entered into a
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concession agreement under its public private partnership policy, Railway was
performing a commercial activity and rendering services for a charge, prior to the
entering into agreement which was being performed. Union of India was also
carrying out an activity i.e. running the Railways, which also has commercial
angle and was capable of being carried out by entities other than the State as in
the various other developed countries. It is not an inalienable function of the State.
Union of India, covered by the definition of “enterprise”, Union of India v.
Competition Commission of India, (2012) 115 AIC 454 (Del).
(i) “goods” means goods as defined in the Sale of Goods Act,
1930 (8 of 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;
“Clause (i) enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
(j) “Member” means a Member of the Commission appointed
under sub-section (1) of Section 8 and includes the
Chairperson;
“Clause (j) enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
(k) “notification” means a notification published in the Official
Gazette;
“Clause (k) enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
5 [(ka) “party” includes a consumer or an enterprise or a person or
an information provider, or a consumer association or a trade
association, or the Central Government or any State
Government or any statutory authority, as the case may be,
and shall include an enterprise or a person against whom any
inquiry or proceeding is instituted; and any enterprise or
person impleaded by the Commission to join the proceedings;]
(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 6
[clause (45) of Section 2 of the Companies Act, 2013] (7 [18
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of 2013]);
(vii) any body corporate incorporated by or under the laws of a
country outside India;
(viii) a cooperative society registered under any law relating to
cooperative societies;
(ix) a local authority;
(x) every artificial juridical person, not falling within any of the
preceding sub-clauses;
“Clause (l) enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
(m) “practice” includes any practice relating to the carrying on of
any trade by a person or an enterprise;
“Clause (m) enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
(n) “prescribed” means prescribed by rules made under this Act;
“Clause (n) enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
(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 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;
► Price.—Money consideration for resale is ‘price’, Gopalkrishna Pillai v.
K.M. Mani, (1984) 2 SCC 83.
8
[(p) “public financial institution” means public financial
institution as defined in clause (72) of Section 2 of the
Companies Act, 2013 (18 of 2013) and includes a State
Financial Corporation, State Industrial Corporation or State
Investment Corporation;]
(q) “regulations” means the regulations made by the Commission
under Section 64;
(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;
(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;
9 [(t) “relevant product market” means a market comprising of all
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those products or services—

(i) which are regarded as inter-changeable or substitutable by
the consumer, by reason of characteristics of the products or
services, their prices and intended use; or
(ii) the production or supply of, which are regarded as
interchangeable or substitutable by the supplier, by reason
of the ease of switching production between such products
and services and marketing them in the short term without
incurring significant additional costs or risks in response to
small and permanent changes in relative prices;]
(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 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;
10
[(ua) “settlement” means the settlement referred to in Section
48-A;]
“Clause (o) to (u) enforced w.e.f. 19-6-2003 vide Noti. No.
S.O. 715(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9
-2003.”
► Service.—The word ‘service’ has variety of meanings. It may mean any
benefit or any act resulting in promoting interest or happiness. It may be
contractual, professional, public, domestic, legal, statutory, etc. The concept of
service thus is very wide. How it should be understood and what it means depends
on the context in which it has been used in an enactment, Lucknow Development
Authority v. M.K. Gupta, (1994) 1 SCC 243.
► ‘Any’ : Meaning of.—The word ‘any’ dictionarily means ‘one or some or
all.’ In Black's Law Dictionary it is explained thus, “word ‘any’ has a diversity of
meaning and may be employed to indicate ‘all’ or ‘every’ as well as ‘some’ or ‘one’
and its meaning in a given statute depends upon the context and the subject-
matter of the statute”, Lucknow Development Authority v. M.K. Gupta, (1994) 1
SCC 243.
► ‘Potential’ : Meaning of.—The word ‘potential’ is again very wide. In
Oxford Dictionary it is defined as ‘capable of coming into being, possibility’. In
Black's Law Dictionary it is defined as ‘existing in possibility but not in act.
Naturally and probably expected to come into existence at some future time,
though not now existing; for example, the future product of grain or trees already
planted, or the successive future instalments or payments on a contract or
engagement already made.’ In other words service which is not only extended to
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actual users but those who are capable of using it are covered in the definition,
Lucknow Development Authority v. M.K. Gupta, (1994) 1 SCC 243.
(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;
(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;
(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;
(y) “turnover” includes values of sale of goods or services;
(z) words and expressions used but not defined in this Act and
defined in 11 [the Companies Act, 2013] (12 [18 of 2013]) shall
have the same meanings respectively assigned to them in that
Act.
► Interpretation of Statute.—Judicial interpretation of words and
expressions of one statute can be a guide for the interpretation of same words and
expressions in the other statute, Jagatram Ahuja v. CGT, (2000) 8 SCC 249.
► Agreement.—The definition of “agreement” under Section 2(b) is not
exhaustive, and any arrangement or understanding or even action in concert is
termed as “agreement”. Further, such arrangement or understanding may be
formal or informal or oral and it is not necessary that the same be reduced in
writing or it be intended to be enforceable by legal proceedings, CCI v.
Coordination Committee of Artistes & Technicians of W.B. Film &Television,
(2017) 5 SCC 17
Chapter II
PROHIBITION OF CERTAIN AGREEMENTS, ABUSE OF DOMINANT
POSITION AND REGULATION OF COMBINATIONS
Prohibition of agreements
3. Anti-competitive agreements.—(1) No enterprise or association of
enterprises or person or association of persons shall enter into any
agreement in respect of production, supply, distribution, storage,
acquisition or control of goods or provision of services, which causes or
is likely to cause an appreciable adverse effect on competition within
India.
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(2) Any agreement entered into in contravention of the provisions

contained in sub-section (1) shall be void.
(3) 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 cartels,
engaged in identical or similar trade of goods or provision of services,
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,
shall be presumed to have an appreciable adverse effect on
competition:
Provided that nothing contained in this sub-section shall apply to
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:
[Provided further that an enterprise or association of enterprises or
13

a person or association of persons though not engaged in identical or

similar trade shall also be presumed to be part of the agreement under
this sub-section if it participates or intends to participate in the
furtherance of such agreement.]
Explanation.—For the purposes of this sub-section “bid rigging”
means any agreement, between enterprises or persons referred to in
sub-section (3) 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.
(4) 14 [Any other agreement amongst enterprises or persons
including but not restricted to 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, including—
(a) tie-in arrangement;
(b) exclusive 15 [dealing] agreement;
(c) exclusive distribution agreement;
(d) refusal to deal;
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(e) resale price maintenance,

shall be an agreement in contravention of sub-section (1) if such
agreement causes or is likely to cause an appreciable adverse effect on
competition in India:
[Provided that nothing contained in this sub-section shall apply to
16

an agreement entered into between an enterprise and an end

consumer.]
Explanation.—For the purposes of this sub-section,—
17
[(a) “tie-in arrangement” includes any agreement requiring a
purchaser of goods or services, as a condition of such purchase,
to purchase some other distinct goods or services;]
18
[(b) “exclusive dealing agreement” includes any agreement
restricting in any manner the purchaser or the seller, as the
case may be, in the course of his trade from acquiring or selling
or otherwise dealing in any goods or services other than those
of the seller or the purchaser or any other person, as the case
may be;]
(c) “exclusive distribution agreement” includes any agreement to
limit, restrict or withhold the output or supply of any goods 19
[or services] or allocate any area or market for the disposal or
sale of the goods 20 [or services];
(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 21 [or services] are sold or from whom
goods 22 [or services] are bought;
(e) “resale price maintenance” 23 [includes, in case of any
agreement to sell goods or provide services, any direct or
indirect restriction] that the prices to be charged on the resale
by the purchaser shall be the prices stipulated by the seller
unless it is clearly stated that prices lower than those prices
may be charged;
(5) Nothing contained in this section shall restrict—
(i) 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 (14 of 1957);
(b) the Patents Act, 1970 (39 of 1970);
(c) the Trade and Merchandise Marks Act, 1958 (43 of 1958) or
the Trade Marks Act, 1999 (47 of 1999);
(d) the Geographical Indications of Goods (Registration and
Protection) Act, 1999 (48 of 1999);
(e) the Designs Act, 2000 (16 of 2000);
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(f) the Semi-conductor Integrated Circuits Layout-Design Act,

2000 (37 of 2000);
24
[(g) any other law for the time being in force relating to the
protection of other intellectual property rights.]
(ii) 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.
“Section 3 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
► Interpretation/Construction.—The term “process for bidding” used in the
Explanation to Section 3(3) would cover every stage starting from notice inviting
tender till the award of the contract and would also include all the intermediate
stages such as pre-bid clarification and bid notifications, Excel Crop Care Ltd. v.
CCI, (2017) 8 SCC 47.
An “agreement”, referred to in Section 3 of the Act has to relate to an
economic activity. Prohibition on the exhibition of dubbed serial on television
prevented the competing parties in pursuing their commercial activities. Further,
protection in the name of the language went against the interest of the competition,
depriving the consumers of exercising their choice, CCI v. Coordination
Committee of Artistes & Technicians of W.B. Film & Television, (2017) 5 SCC
17.
► Anti-competitive agreements, what are.—That a lease deed between the
claimant and the defendant according to which the claimant had to buy most of his
beer at list price from a specified supplier with the result that he was unable to
compete with “free” public houses in the area who were able to buy beer at lower,
discounted prices. Such agreements fall under the category of tie-in agreements
and hence void, Crehan v. Inntrepreneur Pub Co(CPC) (Office of Fair Trading
Intervening), [2007] 1 A.C. 333 : [2006] 3 WLR 148 : [2006] ICR 1344.
Claims for damages brought by consumers against firms that took part in
horizontal agreements in restraint of competition. There was a sufficient degree of
probability that the agreement could have an influence, direct or indirect and
actual or potential, on the sale of the insurance polices and so it is an anti-
competitive agreement, Manfredi v. Lloyd Adriatico Assicurazioni Spa, [2007]
Bus LR 188.
The plaintiff, a producer of luxury cosmetic good, operated with the European
Community a closed selective distribution network whose members were not
permitted to sell or obtain the plaintiff's products outside the network. The plaintiff
contracted with the defendant, who was not a part of the distribution network, for
distribution of the plaintiff's products in Russia, Ukraine and Slovenia. The
contracts provided that the product were to be marketed only in those countries,
and on subsequent discovery of certain of the products in the member states of
the Community, the plaintiff terminated the contracts and brought an action for
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damages. It was held that in similar circumstances the supplier would be liable for
entering into anti-competitive agreements, Yves Saint Laurent Parfums S.A. v.
Javico International A.G., [1999] QB 477 : [1998] 3 WLR 1200.
Contract involving an agreement which restricts or distorts competition and
causes loss to one party by restriction of such competition is anti-competitive
agreement. The aggrieved party in the above circumstances can claim damages
from the opposite party for the loss suffered, Courage Ltd V. Crehan, [2002] QB
507 : [2001] 3 WLR 1646 : [2002] ICR 457.
The Express Bus Agencies Association were found to be engaged in the fixing
prices of express bus tickets sold in Singapore for destinations in Malaysia and in
the fixing of the fuel and insurance charge. Price fixing was found to be anti-
competitive in nature as it restricted and distorted competition appreciably and
thus was termed as anti-competitive, hence illegal in the said case, Re Price
Fixing in Bus Services from Singapore to Malaysia and Southern Thailand,
[2009] SGCCS 2.
Quantas Airways and its subsidiaries entered into a Co-Operation Agreement
with Orangestar Investment Holdings and its subsidiaries. Through the co-
ordination of all elements of their airline businesses under the Agreement, the
parties were likely to engage into price fixing, allocating markets, joint purchasing,
joint selling and exchanging price and non-price information. The court opined that
a business entity “cannot justify restraining trade between itself and an
independently owned entity merely on the ground that it helped launch that entity,
by providing expert advice or seed capital.” Re Qantas Airways and Orangestar
Investment Holdings, [2007] SGCCS 2.
► Undeclared participation.—Mere undeclared participation in a cartel is not
an offence. A person should not be punished under a law which is not sufficiently
clear and certain to enable him to know what conduct is forbidden before he does
it, and no one should be punished for an act which is not clearly ascertainable
punishable when it was done. Since it is for the Parliament and not for the
judiciary to decide what conduct is to be treated as so unacceptable as to attract
criminal sanctions, any development of the law on price fixing necessary as a
result of a change in public perception had to be done by Parliament and not by
the judges, Norris v. Government of the United States of America, [2008] 2 WLR
673.
► Recovery of fine.—Claimant is entitled to recover the fine from the
employees and directors who caused it to engage in anti-competitive agreements.
Such a claim is not barred by public policy or by the principle of ex turpi
causanon oritur actio because Safeway is liable only as a result of the acts of its
employees and directors, Safeway Stores Ltd v. Twigger, [2010] Bus LR 974.
► Cartel formation.—Consumers/public should not bear unwarranted higher
electricity generation costs due to malpractices in award of government tender
and formation of cartel, B.S.N. Joshi & Sons Ltd. v. Ajoy Mehta, (2009) 3 SCC
458.
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► Collusive bidding.—Internationally, “collusive bidding” is not understood as

being different from “bid rigging”. Applying the principle of purposive
interpretation, even if Section 3(3) Explanation did not contain the expression
“collusive bidding” specifically, while interpreting Clause (d), it can be inferred that
“collusive bidding” relates to the process of bidding as well. Further, the two
expressions are to be interpreted using the principle of noscitur a sociis i.e. when
two or more words which are susceptible to analogous meanings are coupled
together, the words can take colour from each other, Excel Crop Care Ltd. v.
CCI, (2017) 8 SCC 47.
► Proof of collusive bidding.—In relation to tenders prior to 2009, it could
not be said that there was any violation of law, however, prior practice threw light
on the formation of cartel by the appellants. Even though appellants could not be
punished for tenders prior to Section 3 coming into effect, they were important in
finding out the mens rea of the appellants i.e. arriving at an agreement to enter
into collusive bidding, Excel Crop Care Ltd. v. CCI, (2017) 8 SCC 47.
► Enterprise/Association of enterprises barred from entering into anti-
competitive agreements.—The expression “enterprise” may refer to any entity,
regardless of its legal status or the way in which it was financed and may include
natural as well as legal persons. Any entity, regardless of its form, constitutes an
“enterprise” within the meaning of Section 3 of the Act when it engages in
economic activity. Economic activity is central to concept of Competition Law.
Hence, “enterprise/association of enterprises” must be found to be functionally
involved in economic activity in relevant market, regardless of its form. Economic
activity, as is generally understood, refers to any activity consisting of offering
products in a market regardless of whether the activities are intended to earn a
profit. An activity that has an exclusively social function and is based on the
principle of solidarity is not likely to be treated as carrying on an economic activity
so as to qualify the expressions used in Section 3. “Agreement” or “concerted
practice” is the means through which enterprise or association of enterprises or
person or association of persons restrict competition. These concepts translate
the objective of Competition Law to have economic operators determine their
commercial policy independently. Competition Law is aimed at frowning upon the
activities of those undertakings (whether natural persons or legal entities) who,
while undertaking their economic activities, indulge in practices which effect the
competition adversely or take advantage of their dominant position. Hence, entities
claiming to be trade unions and acting solely in their capacity as trade unions
would be beyond the purview of the Act. However, if even a trade union or its
constituent member(s) act in such a way that they take economic decisions in
similar or identical businesses to competing businesses in the relevant market (as
in the present case), not acting only as a trade union simpliciter, then trade
union/its constituent members, held, would fall within “enterprise/association of
enterprises” which attract umbrage of Section 3. In such cases, matter cannot be
brushed aside by merely giving it a cloak of trade unionism. For this reason, the
argument predicated on the right of trade union under Article 19 of the
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Constitution, would also not be available. Committee of Artistes and Technicians of

West Bengal Film and Television Investors (Committee), which prevented the
telecast of the dubbed serials on television, contended that it was in the nature of a
trade union, and not in the business of production, supply, distribution, storage,
acquisition or control of goods or provision of services, and could not be covered
within the scope of Section 3 of the Act. Held, said Committee, was an association
of enterprises (constituent members) and these members were engaged in
production, distribution and exhibition of films. Further, the constituent members of
the Committee and EIMPA (association of certain producers in Eastern India)
took decision relating to production or distribution or exhibition on behalf of the
members in the relevant market, and the decision of these two bodies reflected
collective intent of the members. Thus, said Committee and EIMPA, held, covered
within the ambit of Section 3, CCI v. Coordination Committee of Artistes&
Technicians of W.B. Film & Television, (2017) 5 SCC 17.
► Relevant market.—The purpose of defining “relevant market” is to assess,
with identifying in a systematic way, the competitive constraints that undertakings
face when operating in a market. Further, relevant product market comprises all
those products which are considered interchangeable or substitutable by buyers
because of the products' characteristics, prices and intended use and the relevant
geographic market comprises all those regions or areas where buyers would be
able or willing to find substitutes for the products in question. While identifying the
relevant market in a given case, CCI is required to look at evidence that is
available and relevant to the case at hand and to define the boundaries of the
relevant market as precisely as required by the circumstances of the case, CCI v.
Coordination Committee of Artistes & Technicians of W.B. Film & Television,
(2017) 5 SCC 17.
► Parallel pricing.—Parallelism is not applicable in bid cases, Excel Crop
Care Ltd. v. CCI, (2017) 8 SCC 47.
► Jurisdiction of CCI vis-à-vis lottery business.—Enquiry by CCI into bid
rigging, collusive bidding, and cartelisation in the tender process for appointment
of selling agents and distributors for lotteries, is permissible, CCI v. State of
Mizoram, (2022) 7 SCC 73.
Prohibition of abuse of dominant position
4. Abuse of dominant position.—25 [(1) No enterprise or group shall
abuse its dominant position.]
(2) There shall be an abuse of dominant position 26
[under sub-
section (1), if an enterprise or a group]—
(a) directly or indirectly, imposes unfair or discriminatory—
BI-PARTITE STUFF! (i) condition in purchase or sale of goods or service; or
(ii) price in purchase or sale (including predatory price) of
goods or service.
Explanation.—For the purposes of this clause, the unfair or
discriminatory condition in purchase or sale of goods or service
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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 27
[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 28 [in any manner]; or
(d) makes conclusion of contracts subject to acceptance by other
BI-PARTITE STUFF!
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.
Explanation.—For the purposes of this section, the expression—
(a) “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;
(b) “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.
29 [(c) “group” shall have the same meaning as assigned to it in
clause (b) of the Explanation to Section 5.]
“Section 4 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
► Dominant position, abuse of.—Claim that national butter supplier abusing
dominant position by reducing distributors from 20 to 4 excluding plaintiffs. So far
as bulk butter was concerned the defendants had a dominant position in England
and Wales, which was a substantial part of the common market, and that it was at
least arguable that by limiting their sales of bulk butter to 4 out of 20 distributors
and by refusing to supply butter to the plaintiffs they had been guilty of an abuse
of that dominant position, Garden Cottage Foods Ltd. v. Milk Marketing Board,
[1982] QB 1114 : [1982] 3 WLR 514.
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Dominant trader in United Kingdom map market planning to market own digital
images from “one-stop-shop” website used market power to gain competitive
advantage in related market which was held to be abuse of dominant position and
hence illegal, Getmapping plc v. Ordance Survey, [2003] ICR 1.
SISTIC used its dominant position in the market as it used to restrict even
promoters' choice of ticketing service provides and thus afforded the ability to
charge ticket buyers higher prices. Such an agreement was held to be an
exclusive agreement which restricted fair competition in the market. The Ticket
Sales Agreement with Promoter stated that:“SISTIC shall be the exclusive ticketing
agent for all ticketed events orgainsed by the Promoter during the fixed term.”
Therefore, SISTIC had a dominant position which it abused and this amounted to
anti-competitive practices, Re Abuse of a Dominant Position by SISTIC com Pte
Ltd, [2010] SGCCS 3.
Abuse of dominant position by cable operators' group by unlawful premature
termination of agreement with broadcaster of a TV channel resulting in denial to
broadcaster of market access, violative of Section 4(2)(c). Words “in any
manner” in Section 4(2)(c) of wide import and should be given natural meaning.
Once dominant position of the group made out on facts, question whether
broadcaster is in competition with the group irrelevant for purpose of application of
Section 4(2)(c), CCI v. Fast Way Transmission (P) Ltd., (2018) 4 SCC 316.
► Anti-competitive practices.—Enron Coal Services Ltd (ECSL) alleged that
they were victims of anti-competitive practices in relation to coal haulage on
certain rail routes. English Welsh & Scottish Railway Ltd abused its dominant
position in the market for coal haulage as it, without objective justification,
engaged into selective and discriminatory pricing practices which placed ECSL at
a competitive disadvantage. ECSL's claim was allowed, Enron Coal Services Ltd
(in liquidation) v. English Welsh & Scottish Railway Ltd, [2010] Bus LR 28.
The issue involved was over unfair pricing and margin squeeze abuses as well
as the assessment of costs and the amount of any payment in respect of costs.
The Water Services Regulation Authority had abused its dominant position by
imposing unfair prices and thus such impositions were held to be anti-competitive,
Albion Water Ltd v. Water Services Regulation Authority (formerly Director
General of Water Wervices), [2008] Bus LR 1655.
► Knowledge of error.—Company unwittingly published false statements in
travel brochure. On the discovery of error, the company took immediate steps to
inform customers of the error. Since the company was unaware at the time of
publication that the statement was false and since, upon discovering the error,
they had immediately taken all steps as could reasonably be expected of them to
prevent the statement being read by the complainant, there was no evidence upon
which an omission could be proved, Wings Ltd. v. Ellis, [1984] 1 WLR 731.
► Infringement of copyright.—The defendant company infringed the
copyright of the plaintiff and counterclaimed. In its counter-claim, defendant
alleged that the ownership and subsistence of copyright in the compilations, data
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and artistic works in plaintiff's directories are at dispute. The defendant in the
above case had abused its dominant position in the market which restricted fair
trade for the plaintiff and thus the defendant's arguments that plaintiff company
has no standing to bring a complain under the Competition Act is clearly nullified,
Global Yellow Pages Ltd v. Promedia Directories Pte Ltd, [2010] SGHC 97.
► Differential treatment.—Increase in effectiveness of public sector
enterprises (PSEs) cannot be done on a uniform policy without examination as to
whether such protection is necessary for a particular PSE. It has to be examined
individually as to whether any differential treatment is called for, Caterpillar India
(P) Ltd. v. Western Coal Fields Ltd., (2007) 11 SCC 32.
► Predatory pricing.—In this case, appellant Uber, was making losses in
respect of every trip, it was held that the same does not make any economic
sense other than pointing to Uber's intent to eliminate competition in market.
Further, based on the information on record, held, it would be very difficult to say
that there is no prima facie case under Section 26(1) as to infringement of
Section 4. Further, if in fact, a loss is made for trips made, Expln. (a)(ii) to
Section 4 would prima facie be attracted inasmuch as this would certainly affect
appellant's competitors in appellant's favour or relevant market in its favour.
Furthermore, insofar as “abuse” of dominant position is concerned, under Section
4(2)(a), so long as this dominant position, whether directly or indirectly, imposes
an unfair price in purchase or sale including predatory price of services, abuse of
dominant position also gets attracted. Hence, in this case, the order made by
Appellate Tribunal, not interfered with, Uber (India) Systems (P) Ltd. v. CCI,
(2019) 8 SCC 697.
Regulation of combinations
5. Combination.—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—
e) dekh (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
30 [(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 the enterprise whose control, shares,
assets or voting rights have been acquired or are being
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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
31 [(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]
e) dekh (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
32
[(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
33 [(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—
e) dekh
(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
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rupees one thousand crores or turnover more than rupees

three thousand crores; or
34
[(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 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
35
[(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 36 [India; or]]
37
[(d) value of any transaction, in connection with acquisition of
any control, shares, voting rights or assets of an enterprise,
merger or amalgamation exceeds rupees two thousand crore:
Provided that the enterprise which is being acquired, taken
control of, merged or amalgamated has such substantial
business operations in India as may be specified by
regulations.]
38
[(e) notwithstanding anything contained in clause (a) or clause
(b) or clause (c), where either the value of assets or turnover of
PRESUMPTION of non-AAEC CLAUSE
the enterprise being acquired, taken control of, merged or
amalgamated in India is not more than such value as may be
prescribed, such acquisition, control, merger or amalgamation,
shall not constitute a combination under Section 5.]
39 [Explanation.—For the purposes of this section,—
(a) “control” means the ability to exercise material influence, in
any manner whatsoever, over the management or affairs or
strategic commercial decisions by—
(i) one or more enterprises, either jointly or singly, over
another enterprise or group; or
(ii) one or more groups, either jointly or singly, over another
group or enterprise;
(b) “group” means two or more enterprises where one enterprise
is directly or indirectly, in a position to—
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(i) exercise twenty-six per cent. or such other higher

percentage as may be prescribed, 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) “turnover” means the turnover certified by the statutory
auditor on the basis of the last available audited accounts of
the company in the financial year immediately preceding the
financial year in which the notice is filed under sub-section (2)
or sub-section (4) of Section 6 and such turnover in India shall
be determined by excluding intra-group sales, indirect taxes,
trade discounts and all amounts generated through assets or
business from customers outside India, as certified by the
statutory auditor on the basis of the last available audited
accounts of the company in the financial year immediately
preceding the financial year in which the notice is filed under
sub-section (2) or sub-section (4) of Section 6;
(d) “value of transaction” includes every valuable consideration,
whether direct or indirect, or deferred for any acquisition,
merger or amalgamation;
(e) 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 combination
falls and if such financial statement has not yet become due to
be filed with the Registrar under the Companies Act, 2013 (18
of 2013) then as per the statutory auditor's report made on the
basis of the last available audited accounts of the company in
the financial year immediately preceding the financial year in
which the notice is filed under sub-section (2) or sub-section
(4) of Section 6, 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
under the laws provided in sub-section (5) of Section 3;
(f) 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 or turnover or value of
transaction as may be applicable, of the said portion or division
or business or attributable to it, shall be the relevant assets or
turnover or relevant value of transaction for the purpose of
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applicability of the thresholds under Section 5.]

“Section 5 enforced w.e.f. 1-6-2011 vide Noti. No. S.O. 479(E),
dt. 4-3-2011 as corrected by Noti. No. S.O. 1229(E), dt. 30-5-
2011.”
► Nature of transaction.—Structuring of transactions should not be to avoid
mandatory provisions of the Act, CCI v. Thomas Cook (India) Ltd., (2018) 6 SCC
549.
► Exemption.—Transaction which formed part of a single composite
combination, would not qualify for exemption in its independent and individual
capacity under notification (No. SO 482-E dt. 4-3-2011) issued under Section 54
(a), CCI v. Thomas Cook (India) Ltd., (2018) 6 SCC 549.
6. Regulation of combinations.—(1) No person or enterprise shall
enter into a combination which causes or is likely to cause an Sec. 20(4)

appreciable adverse effect on competition within the relevant market in

India and such a combination shall be void.
(2) Subject to the provisions contained in sub-section (1), any
person or enterprise, who or which proposes to enter into a
combination, 40 [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, 41 [after
any of the following, but before consummation of the combination]—
(a) approval of the proposal relating to merger or amalgamation,
referred to in clause (c) 42 [and clause (d)] of Section 5, 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 clause (a) 43 [and clause (d)] of Section 5 or
acquiring of control referred to in clause (b) of that section.
44
[Explanation.—For the purposes of this sub-section, “other
document” means any document, by whatever name called,
conveying an agreement or decision to acquire control, shares,
HOSTILE TAKEOVER SITUATION REQ.
voting rights or assets or if the acquisition is without the
consent of the enterprise being acquired, any document
executed by the acquiring enterprise, by whatever name called,
conveying a decision to acquire control, shares or voting rights
or where a public announcement has been made in accordance
with the provisions of the Securities and Exchange Board of
India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011 made under the Securities and Exchange
Board of India Act, 1992 (15 of 1992) for acquisition of shares,
voting rights or control such public document.]
[(2-A) No combination shall come into effect until 46 [one hundred
45

and fifty days] have passed from the day on which the notice has been
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given to the Commission under sub-section (2) or the Commission has

passed orders under Section 31, whichever is earlier.]
(3) The Commission shall, after receipt of notice under sub-section
(2), deal with such notice in accordance with the provisions contained
in 47 [Sections 29, 29-A, 30 and 31].
[(4) Notwithstanding anything contained in sub-sections (2-A) and
48

(3) and Section 43-A, if a combination fulfils such criteria as may be

prescribed and is not otherwise exempted under this Act from the
requirement to give notice to the Commission under sub-section (2),
then notice for such combination may be given to the Commission in
such form and on payment of such fee as may be specified by
regulations, disclosing the details of the proposed combination and
thereupon a separate notice under sub-section (2) shall not be required
to be given for such combination.]
[(5) Upon filing of a notice under sub-section (4) and
49

acknowledgement thereof by the Commission, the proposed

combination shall be deemed to have been approved by the
Commission under sub-section (1) of Section 31 and no other approval
shall be required under sub-section (2) or sub-section (2-A).
(6) If within the period referred to in sub-section (1) of Section 20, 1 YEAR
the Commission finds that the combination notified under sub-section
(4) does not fulfil the requirements specified under that sub-section or
the information or declarations provided are materially incorrect or
incomplete, the approval under sub-section (5) shall be void ab initio
and the Commission may pass such order as it may deem fit:
Provided that no such order shall be passed unless the parties to the
combination have been given an opportunity of being heard.
(7) Notwithstanding anything contained in this section and Section
43-A, upon fulfilment of such criteria as may be prescribed, certain
categories of combinations shall be exempted from the requirement to
comply with sub-sections (2), (2-A) and (4).
(8) Notwithstanding anything contained in sub-sections (4), (5), (6)
and (7)—
(i) the rules and regulations made under this Act on the matters
referred to in these sub-sections as they stood immediately
before the commencement of the Competition (Amendment)
Act, 2023 and in force at such commencement, shall continue
to be in force, till such time as the rules or regulations, as the
case may be, made under this Act; and
(ii) any order passed or any fee imposed or combination
consummated or resolution passed or direction given or
instrument executed or issued or thing done under or in
pursuance of any rules and regulations made under this Act
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shall, if in force at the commencement of the Competition

(Amendment) Act, 2023, continue to be in force, and shall
have effect as if such order passed or such fee imposed or such
combination consummated or such resolution passed or such
direction given or such instrument executed or issued or done
under or in pursuance of this Act.
(9) The provisions of this section shall not apply to share
subscription or financing facility or any acquisition, by a public financial
institution, foreign portfolio investor, bank or Category I alternative
investment fund, pursuant to any covenant of a loan agreement or
investment agreement.
Explanation.—For the purposes of this section, the expression—
(a) “Category I alternative investment fund” has the same
meaning as assigned to it under the Securities and Exchange
Board of India (Alternative Investment Funds) Regulations,
2012 made under the Securities and Exchange Board of India
Act, 1992 (15 of 1992);
(b) “foreign portfolio investor” has the same meaning as assigned
to it under the Securities and Exchange Board of India (Foreign
Portfolio Investors) Regulations, 2019 made under the
Securities and Exchange Board of India Act, 1992 (15 of
1992).]
“Section 6 enforced w.e.f. 1-6-2011 vide Noti. No. S.O. 479(E),
dt. 4-3-2011 as corrected by Noti. No. S.O. 1229(E), dt. 30-5-
2011.”
► Penalty for non-compliance with Section 6(2).—The proposal to enter
into combination was required to be notified to the Commission and the legislative
mandate was that the notification had to be made before entering into the
combination. Further, the intent being that the Commission has an opportunity to
assess whether the proposed combination would cause an appreciable adverse
effect on competition and in case combination was to be notified ex post facto for
approval, it would defeat the very intendment of the provisions of the Act, SCM
Solifert Ltd. v. CCI, (2018) 6 SCC 631.
[6-A. Open offers, etc.—Nothing contained in sub-section (2-A) of
50

section 6 and section 43-A shall prevent the implementation of an open

offer or an acquisition of shares or securities convertible into other
securities from various sellers, through a series of transactions on a
regulated stock exchange from coming into effect, if—
(a) the notice of the acquisition is filed with the Commission
within such time and in such manner as may be specified by
regulations; and
(b) the acquirer does not exercise any ownership or beneficial
rights or interest in such shares or convertible securities
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including voting rights and receipt of dividends or any other

distributions, except as may be specified by regulations, till the
Commission approves such acquisition in accordance with the
provisions of sub-section (2-A) of section 6 of the Act.
Explanation.—For the purposes of this section, “open offer” means an
open offer made in accordance with the Securities and Exchange Board
of India (Substantial Acquisition of Shares and Takeovers) Regulation,
2011 made under the Securities and Exchange Board of India Act,1992
(15 of 1992).]
Chapter III
COMPETITION COMMISSION OF INDIA
7. Establishment of Commission.—(1) With effect from such date as
the Central Government may, by notification, appoint, there shall be
established, for the purposes of this Act, a Commission to be called the
“Competition Commission of India”.
(2) The Commission shall be a body corporate by the name aforesaid
having perpetual succession and a common seal with power, subject to
the provisions of this Act, to acquire, hold and dispose of property, both
movable and immovable, and to contract and shall, by the said name,
sue or be sued.
(3) The head office of the Commission shall be at such place as the
Central Government may decide from time to time.
(4) The Commission may establish offices at other places in India.
“Section 7 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
[8. Composition of Commission.—(1) The Commission shall consist
51

of a Chairperson and not less than two and not more than six other
Members to be appointed by the Central Government.
(2) 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 than fifteen years in,
international trade, economics, business, commerce, law, finance,
accountancy, management, industry, 52 [technology,] public affairs or
competition matters, including competition law and policy, which in the
opinion of the Central Government, may be useful to the Commission.
(3) The Chairperson and other Members shall be whole-time
Members.]
► Appointment of mensem.—It cannot be gainsaid that the Commission as
now contemplated has a number of adjudicatory functions as well. If the
Commission is to be constituted as an expert body consistent with international
practice, it might be appropriate to consider the creation of two separate bodies,
one with expertise that is advisory and regulatory and the other adjudicatory. This
followed up by an appellate body would go a long way, Brahm Dutt v. Union of
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India, (2005) 2 SCC 431.

[9. Selection Committee for Chairperson and Members of
53

Commission.—(1) 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
professional experience in international trade, economics,
business, commerce, law, finance, accountancy, management,
industry, 54 [technology,] public affairs or competition matters
including competition law and policy Members.
(2) The term of the Selection Committee and the manner of selection
of panel of names shall be such as may be prescribed.]
10. Term of office of Chairperson and other Members.—(1) 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 reappointment:
[Provided that the Chairperson or other Members shall not hold
55

office as such after he has attained the age of sixty-five years.]

(2) A 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 8 and 9.
(3) 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.
(4) 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.
(5) 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.
“Section 10 enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
11. Resignation, removal and suspension of Chairperson and other
Members.—(1) The Chairperson or any other Member may, by notice in
writing under his hand addressed to the Central Government, resign his
office:
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Provided that 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.
(2) Notwithstanding anything contained in sub-section (1) 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.
(3) Notwithstanding anything contained in sub-section (2), no
Member shall be removed from his office on the ground specified in
clause (d) or clause (e) of that sub-section 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.
“Section 11 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
[12. Restriction on employment of Chairperson and other Members.
56

—(1) The Chairperson and other Members shall, for a period of two
years from the date on which they cease to hold office, not accept any
employment in or advise as a consultant, retainer or in any other
capacity whatsoever, or be connected with the management or
administration of—
(a) any enterprise which is or has been a party to a proceeding
before the Commission under this Act; or
(b) any person who appears or has appeared before the
Commission under Section 35.
(2) Notwithstanding anything contained in Section 35, the
Chairperson or any other Member after retirement or otherwise ceasing
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to be in service for any reason shall not represent for any person or
enterprise before the Commission:
Provided that 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 clause (45) of Section 2 of the
Companies Act, 2013 (18 of 2013).]
“Section 12 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
[13. Administrative powers of Chairperson.—The Chairperson shall
57

have the powers of general superintendence, direction and control in

respect of all administrative matters of the Commission:
Provided that the Chairperson may 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.]
14. Salary and allowances and other terms and conditions of services
of Chairperson and other Members.—(1) 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 and medical facilities shall be such as
may be prescribed.
(2) The salary, allowances and other terms and conditions of service
of the Chairperson or a Member shall not be varied to his disadvantage
after appointment.
“Section 14 enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
15. Vacancy, etc., not to invalidate proceedings of Commission.—No
act or proceeding of the Commission shall be invalid merely by reason
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.
“Section 15 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
16. Appointment of Director General, etc.—58 [(1) The 59 [Commission
may, with the prior approval of the Central Government], 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
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by or under this Act.

(1-A) 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.]
(2) Every Additional, Joint, Deputy and Assistant Directors General
or 60 [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.
(3) The salary, allowances and other terms and conditions of service
of the Director General and Additional, Joint, Deputy and Assistant
Directors General 61 [such officers or other employees,] shall be such as
may be prescribed.
(4) The Director General, and Additional, Joint, Deputy and Assistant
Directors General or 62 [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.
“Section 16 enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
[17. Appointment of Secretary, experts, professionals and officers
63

and other employees of Commission.—(1) 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.
(2) 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.
(3) 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.]
Chapter IV
DUTIES, POWERS AND FUNCTIONS OF COMMISSION
[18. Duties and functions of Commission.—Subject to the
64

provisions of this Act, it shall be the duty of the Commission to

eliminate practices having adverse effect on competition, promote and
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sustain competition, protect the interests of consumers and ensure

freedom of trade carried on by other participants, in markets in India:
Provided that 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:
Provided further that, the Commission may, for the purpose of
discharging its duties or performing its functions under this Act, enter
into any memorandum or arrangement with any statutory authority or
department of Government.]
“Section 18 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
19. Inquiry into certain agreements and dominant position of
enterprise.—(1) The Commission may inquire into any alleged
contravention of the provisions contained in sub-section (1) of Section
3 or sub-section (1) of Section 4 either on its own motion or on—
(a) 65 [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:
[Provided that the Commission shall not entertain an information or
66

a reference unless it is filed within three years from the date on which
the cause of action has arisen:
Provided further that an information or a reference may be
entertained after the period specified in the first proviso if the
Commission is satisfied that there had been sufficient cause for not
filing the information or the reference within such period after recording
its reasons for condoning such delay.]
(2) Without prejudice to the provisions contained in sub-section (1),
the powers and functions of the Commission shall include the powers
and functions specified in sub-sections (3) to (7).
(3) The Commission shall, while determining whether an agreement
has an appreciable adverse effect on competition under Section 3, 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 67
[* * *];
(d) 68
[benefits or harm] to consumers;
(e) improvements in production or distribution of goods or
provision of services; or
(f) promotion of technical, scientific and economic development
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by means of production or distribution of goods or provision of

services.
(4) The Commission shall, while inquiring whether an enterprise
enjoys a dominant position or not under Section 4, 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;
(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;
(l) relative advantage, by way of the contribution to the economic
development, by the enterprise enjoying a dominant position
having or likely to have appreciable adverse effect on
competition;
(m) any other factor which the Commission may consider relevant
for the inquiry.
(5) 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”.
(6) 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;
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(g) consumer preferences;

(h) need for secure or regular supplies or rapid after sales
services.
69
[(i) characteristics of goods or nature of services;]
70 [(j) costs associated with switching supply or demand to other
areas.]
(7) The Commission shall, while determining the “relevant product
market”, have due regard to all or any of the following factors, namely:
—
(a) physical characteristics or end-use of goods 71
[or the nature of
services];
(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.
72
[(g) costs associated with switching demand or supply to other
goods or services;]
73 [(h) categories of customers.]
“Section 19 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
► Jurisdictions of TRAI and CCI.—In this case, RJIL (new entrant into
telcom market) filed information before CCI alleging anti-competitive
agreement/cartel having been formed by three major telecom operators. Allegation
were made against the respondents i.e. Incumbent Dominant Operators (IDOs)
that they had through an anticompetitive agreement/cartel, limited the provision of
services by delaying or denying POIs to RJIL, with a view to block its entry in the
market. CCI took cognizance and came to a prima facie conclusion that a case
for investigation was made out and directed the Director General to cause
investigation in the case. The Supreme Court held that TRAI is, constituted for
orderly and healthy growth of telecommunication infrastructure apart from
protection of consumer interest and specific functions are assigned to TRAI,
amongst other, including ensuring technical compatibility and effective inter-
relationship between different service providers; ensuring compliance of licence
conditions by all service providers; and settlement of disputes between service
providers, and the purpose of CCI is to eliminate such practices which are having
adverse effect on the competition, to promote and sustain competition and to
protect the interest of the consumers and ensure freedom of trade, carried on by
other participants, in India. Further, Section 27 empowers CCI to pass certain
kinds of orders, stipulated in the said provision, after inquiry into the agreements
for abuse of dominant position and also it is within the exclusive domain of CCI to
find out as to whether a particular agreement will have appreciable adverse effect
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on competition within the relevant market in India. However, unless TRAI finds fault
with the IDOs on the jurisdictional aspects, i.e. whether IDOs were under any
obligation to provide POIs during test period, whether demand for POIs made by
RJIL were reasonable or not, whether there was any delay/denial in provisioning
of POIs etc., the matter cannot be taken further even if CCI has the jurisdiction to
deal with the complaints/information filed before it. In the present case, held,
balance is maintained by permitting TRAI in the first instance to deal with and
decide the jurisdictional aspects which can be more competently handled by it and
once that exercise is done and there are findings returned by TRAI which lead to
the prima facie conclusion that the IDOs have indulged in anti-competitive
practices, CCI can be activated to investigate the matter going by the criteria laid
down in the relevant provisions of the Competition Act and take it to its logical
conclusion, CCI v. Bharti Airtel Ltd., (2019) 2 SCC 521.
► Locus standi to give information to CCI for CCI to initiate proceedings.
—Contrasting the definition of “consumer” from “person”, held, the definition of
“person” in Section 2(l) of the Competition Act, is an inclusive one and is
extremely wide and includes individuals of all kinds and every artificial juridical
person. Further, consequent upon the substitution of the expression “receipt of a
complaint” with the expression “receipt of any information in such manner and” in
Section 19(1) of the Competition Act, held, whereas a complaint could be filed
only from a person who was aggrieved by a particular action, information may be
received from any person, obviously whether such person is or is not personally
affected and this is for the reason that the proceedings under the Competition Act
are proceedings in rem which affect the public interest. Further, a “person
aggrieved” must, in the context of the Competition Act, be understood widely and
not be constructed narrowly. When CCI performs inquisitorial, as opposed to
adjudicatory functions, the doors of approaching CCI and the appellate authority
i.e. NCLAT, must be kept wide open in public interest, so as to subserve the high
public purpose of the Competition Act, Samir Agrawal v. CCI (Cab Aggregators
Case), (2021) 3 SCC 136.
20. Inquiry into combination by Commission.—(1) The Commission
may, upon its own knowledge or information relating to acquisition
referred to in clause (a) of Section 5 or acquiring of control referred to
in clause (b) of Section 5 or merger or amalgamation referred in 74
[clause (c) of Section 5 or acquisition of any control, shares, voting
right or assets of an enterprise, merger or amalgamation referred to in
clause (d) of that section], inquire into whether such a combination has
caused or is likely to cause an appreciable adverse effect on
competition in India:
Provided that the Commission shall not initiate any inquiry under
this sub-section after the expiry of one year from the date on which
such combination has taken effect.
(2) The Commission shall, on receipt of a notice under sub-section
(2) of Section 6 75 [* * *] inquire whether a combination referred to in
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that notice or reference has caused or is likely to cause an appreciable

adverse effect on competition in India.
(3) 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, 76 [enhance or reduce by notification,
or keep at the same level, on the basis of the wholesale price index or
fluctuations in exchange rate of rupee or foreign currencies, or such
factors that in its opinion are relevant in this matter, the value of assets
or the value of turnover or value of transaction], for the purposes of
that section.
(4) 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 77 [concentration] 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;
(n) whether the benefits of the combination outweigh the adverse
impact of the combination, if any.
“Section 20 enforced w.e.f. 1-6-2011 vide Noti. No. S.O. 479
(E), dt. 4-3-2011 as corrected by Noti. No. S.O. 1229(E), dt. 30-5
-2011.”
21. Reference by statutory authority.—(1) Where in the course of a
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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:
[Provided that any statutory authority, may, suo motu, make a
78

reference to the Commission on any issue that involves any provision of

this Act or is related to promoting the objectives of this Act, as the case
may be.]
[(2) On receipt of a reference under sub-section (1), the
79

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.]
“Section 21 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
[21-A. Reference by Commission.—(1) Where in the course of a
80

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 81 [an
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:
[Provided that the Commission, may, suo motu, make a reference
82

to a statutory authority on any issue that involves provisions of an Act

whose implementation is entrusted to that statutory authority.]
(2) On receipt of a reference under sub-section (1), 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
therefor on the issues referred to in the said opinion.]
[22. Meetings of Commission.—(1) The Commission shall meet at
83

such times and such places, and shall observe such rules of procedure
in regard to the transaction of business at its meetings as may be
provided by regulations.
(2) 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.
(3) All questions which come up before any meeting of the
Commission shall be decided by a majority of the Members present and
voting, 84 [* * *]:
Provided that the quorum for such meeting shall be three Members.]
23. Distribution of business of Commission amongst Benches.—85 [*
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* *].
24. Procedure for deciding a case where Members of a Bench differ in
opinion.—86 [* * *]
25. Jurisdiction of Bench.—87 [* * *]
[26. Procedure for inquiry under Section 19.—(1) On receipt of a
88

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:
Provided that 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.
[(2-A) The Commission may not inquire into agreement referred to
89

in Section 3 or conduct of an enterprise or group under Section 4, if the

RES JUDICATA
same or substantially the same facts and issues raised in the
information received under Section 19 or reference from the Central
Government or a State Government or a statutory authority has already
been decided by the Commission in its previous order.]
(3) The Director General shall, on receipt of direction under sub-
section (1), submit a report on his findings within such period as may
be specified by the Commission.
[(3-A) If, after consideration of the report of the Director General
90

referred to in sub-section (3), the Commission is of the opinion that

further investigation is required, it may direct the Director General to
investigate further into the matter.]
[(3-B) The Director General shall, on receipt of direction under sub-
91

section (3-A), investigate the matter and submit a supplementary

report on his findings within such period as may be specified by the
Commission.]
(4) The Commission may forward a copy of the report referred to in
92
[sub-sections (3) and (3-B)] to the parties concerned:
Provided that in case the investigation is caused to be made based
on a reference received from the Central Government or the State
Government or the statutory authority, the Commission shall forward a
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copy of the report referred to in 93 [sub-sections (3) and (3-B)] 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 referred to in 94 [sub-sections
(3) and (3-B)] 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 or suggestions referred to
in sub-section (5), 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 referred to
in sub-section (5), if any, the Commission is of the opinion that further
investigation is called for, it may direct further investigation in the
matter by the Director General or cause further inquiry to be made 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 referred to in 95 [sub-sections
(3) and (3-B)] 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.]
96 [(9) Upon completion of the investigation or inquiry under sub-

section (7) or sub-section (8), as the case may be, the Commission
may pass an order closing the matter or pass an order under Section
27, 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:
Provided that before passing such order, the Commission shall issue
a show-cause notice indicating the contraventions alleged to have been
committed and such other details as may be specified by regulations
and give a reasonable opportunity of being heard to the parties
concerned.]
► Nature and Scope.—Order passed under Section 26(2) is final order
whereas order passed under Section 26(1) is not so, Competition Commission of
India v. SAIL, (2010) 10 SCC 744.
Section 26(1) excludes principles of natural justice and Relevant Regulations
also support this view. Moreover, function of Commission under Section 26(1) is
administrative and not adjudicatory, Competition Commission of India v. SAIL,
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(2010) 10 SCC 744.

► Nature of Commission's function.—Formation of opinion as to prima
facie existence of case under Section 26(1) must be substantiated by recording
minimum reasons while all other orders and decisions under Section 26 which are
not directions simpliciter but determine rights of parties should be well reasoned.
Moreover, Commission should write appropriate reasons on every issue while
passing an order under Sections 27 and 28, Competition Commission of India v.
SAIL, (2010) 10 SCC 744.
► Jurisdiction of CCI/DG.—The entire purpose of investigation is to cover all
necessary facts and evidence in order to see as to whether there are any anti-
competitive practices adopted by the persons complained against. Further, while
carrying out this investigation, if other facts also get revealed and are brought to
light, revealing that the “persons” or “enterprises” had entered into an agreement
that was prohibited by Section 3 which had appreciable adverse effect on the
competition, the DG would be well within his powers to include those as well in his
report, Excel Crop Care Ltd. v. CCI, (2017) 8 SCC 47.
27. Orders by Commission after inquiry into agreements or abuse of
dominant position.—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
CEASE & DESIST
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;
97
[(b) impose such penalty, as it may deem fit which shall be not
more than ten per cent. of the average of the turnover or
income, as the case may be, for the last three preceding
financial years, upon each of such person or enterprise which is
a party to such agreement or has abused its dominant position:
PENALTY
Provided that 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 or income, as the case may be,
for each year of the continuance of such agreement, whichever
is higher.
Explanation 1.—For the purposes of this clause, the expression
“turnover” or “income”, as the case may be, shall be
determined in such manner as may be specified by regulations.
Explanation 2.—For the purposes of this clause, “turnover”
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means global turnover derived from all the products and

services by a person or an enterprise.]
(c) 98
[* * *]
(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) 99 [* * *]
(g) pass such other 100 [order or issue such directions] as it may
deem fit:
101
[Provided that 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.]
“Section 27 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
► Exercise of power by Commission.—The powers conferred by the
legislature upon the Commission under Sections 27(d) and 31(3) are of wide
magnitude and of serious ramifications. These powers of the Commission, read
with the provisions mentioned earlier, certainly require issuance of certain
directions in order to achieve the object of the Act and to ensure its proper
implementation. Order 39 Rules 3 and 3-A CPC also have similar provisions,
Competition Commission of India v. SAIL, (2010) 10 SCC 744.
Commission can exercise said power only by a reasoned order after : (i)
applying its mind to existence of prima facie case and issuance of direction to
Director General for conducting investigation under Section 26(1), and (ii)
recording its due satisfaction as well as its view that it deemed necessary not to
give notice to the other side, and (iii) recording that material on record indicated
likelihood of irreparable and irretrievable damage or adverse effect on competition
in market. Moreover, in such cases post-decisional notice returnable within very
short period must be given to the other side. Further, said power has to be
exercised sparingly and under compelling and exceptional circumstances,
Competition Commission of India v. SAIL, (2010) 10 SCC 744.
► Imposition of penalty.—Two-step calculation for imposing the penalty
explained : Step 1 : Determination of relevant turnover, and Step 2 : Determination
of appropriate percentage of penalty based on aggravating and mitigating
circumstances. For Step 1, Authority should have regard to the entity's audited
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financial statements, in absence thereof, it may consider any other reliable

records reflecting the entity's relevant turnover or estimate the relevant turnover
based on the available information. For Step 2, the Commission may consider
appropriate percentage, as the case may be, by taking into consideration nature,
gravity, extent of the contravention, role played by the infringer, the duration of
participation, the intensity of participation, loss or damage suffered as a result of
such contravention, market circumstances in which the contravention took place,
nature of the product, market share of the entity, barriers to entry in the market,
nature of involvement of the company, bona fides of the company, profit derived
from the contravention, etc. However, such penalty should not be more than the
overall cap of 10% of the entity's relevant turnover, Excel Crop Care Ltd. v. CCI,
(2017) 8 SCC 47.
► Quantum of penalty.—The concept of total turnover may bring out very
inequitable results. When the agreement leading to contravention of Section 3
involves one product, there seems to be no justification for including other
products of an enterprise for the purpose of imposing penalty. More so when total
turnover of an enterprise may involve activities besides production and sale of
products, like rendering of services, etc. Even as per the doctrine of
“proportionality” court should lean in favour of “relevant turnover”. Penal provision
contained in Section 27 of the Act serves this purpose as it is aimed at achieving
the objective of punishing the offender and acts as deterrent to others and such a
purpose can adequately be served by taking into consideration the relevant
turnover, Excel Crop Care Ltd. v. CCI, (2017) 8 SCC 47.
28. Division of enterprise enjoying dominant position.—(1) The 102
[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.
(2) In particular, and without prejudice to the generality of the
foregoing powers, the order referred to in sub-section (1) 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;
(d) 103 [* * *]
(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,
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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.
(3) 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.
“Section 28 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
29. Procedure for investigation of combinations.—(1) Where the
Commission is of the 104 [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 105 [within fifteen days] of the receipt of the notice, as to why
investigation in respect of such combination should not be conducted.
[(1-A) After receipt of the response of the parties to the
106

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.]
[(1-B) The Commission shall, within thirty days of receipt of notice
107
PRIMA FACIE OPINION ON WHAT AND
WHEN? under sub-section (2) of Section 6, form its prima facie opinion referred
to in sub-section (1).]
(2) 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, 108 [within seven days] from the date of receipt of
the response of the parties to the combination 109 [or the receipt of the
report from Director General called under sub-section (1-A), whichever
is later], direct the parties to the said combination to publish details of
the combination 110 [within seven 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.
(3) 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 111 [within ten days]
from the date on which the details of the combination were published
under sub-section (2).
(4) The Commission may, 112 [within seven days] from the expiry of
the period specified in sub-section (3), call for such additional or other
information as it may deem fit from the parties to the said combination.
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(5) The additional or other information called for by the Commission

shall be furnished by the parties referred to in sub-section (4) 113
[within ten days] from the expiry of the period specified in sub-section
(4).
[(6) After receipt of all information, the Commission shall proceed
114

to deal with the case in accordance with the provisions contained in

Section 29-A or Section 31, as the case may be.]
[(7) Notwithstanding anything contained in this section, the
115

Commission may accept appropriate modifications offered by the

parties to the combination or suo motu propose modifications, as the
case may be, before forming a prima facie opinion under sub-section
(1).]
“Section 29 enforced w.e.f. 1-6-2011 vide Noti. No. S.O. 479
(E), dt. 4-3-2011 as corrected by Noti. No. S.O. 1229(E), dt. 30-5
-2011.”
[29-A. Issue of statement of objections by Commission and
116

proposal of modifications.—(1) Upon completion of the process under

Section 29, where the Commission is of the opinion that the
combination has, or is likely to have, an appreciable adverse effect on
competition, it shall issue a statement of objections to the parties
identifying such appreciable adverse effect on competition and direct
the parties to explain within twenty-five days of receipt of the
statement of objections, why such combination should be allowed to
take effect.
(2) Where the parties to the combination consider that such
appreciable adverse effect on competition can be eliminated by suitable
modification to such combination, they may submit an offer of
appropriate modification to the combination along with their
explanation to the statement of objections issued under sub-section (1)
in such manner as may be specified by regulations.
(3) If the Commission does not accept the modification submitted by
the parties under sub-section (2) it shall, within seven days from the
date of receipt of the proposed modifications under that sub-section,
communicate to the parties as to why the modification is not sufficient
to eliminate the appreciable adverse effect on competition and call
upon the parties to furnish, within twelve days of the receipt of the said
communication, revised modification, if any, to eliminate the
appreciable adverse effects on competition:
Provided that the Commission shall evaluate such proposal for
modification within twelve days from receipt of such proposal:
Provided further that the Commission may suo motu propose
appropriate modifications to the combination which may be considered
by the parties to the combination.]
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[30. Procedure in case of notice under sub-section (2) of Section

117

6.—Where any person or enterprise has given a notice under sub-

section (2) of Section 6, the Commission shall examine such notice and
form its prima facie opinion as provided in sub-section (1) of Section 29
and proceed as per provisions contained in that section.]
31. Orders of Commission on 118 [* * *] combinations.—(1) 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 119 [* * *] in respect of which a
notice has been given under sub-section (2) of Section 6:
[Provided that if the Commission does not form a prima facie
120

30 DAYS, NOT 150 opinion as provided under sub-section (1-B) of Section 29, the
combination shall be deemed to have been approved and no separate
order shall be required to be passed.]
(2) 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.
[(3) Where the Commission is of the opinion that any appreciable
121

adverse effect on competition that the combination has, or is likely to

have, can be eliminated by modification proposed by the parties or the
Commission, as the case may be, under sub-section (7) of Section 29
or sub-section (2) or sub-section (3) of Section 29-A, it may approve
the combination subject to such modifications as it thinks fit.]
[(4) Where a combination is approved by the Commission under
122

sub-section (3), the parties to the combination shall carry out such
modification within such period as may be specified by the
Commission.]
123
[(5) Where—
(a) the Commission has directed under sub-section (2) that the
combination shall not take effect; or
(b) the parties to the combination, fail to carry out the
modification within such period as may be specified by the
Commission under sub-section (4); or
(c) the Commission is of the opinion that the combination has, or
is likely to have, an appreciable adverse effect on competition
which cannot be eliminated by suitable modification to such
combination,
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 such combination shall not be given effect to, or be declared
void, or frame a scheme to be implemented by the parties to address
the appreciable adverse effect on competition, as the case may be.]
124
[(6) If no order is passed or direction issued by the Commission in
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accordance with the provisions of sub-section (1) or sub-section (2) or

sub-section (3) or sub-section (5), as the case may be, within a period
of one hundred and fifty days from the date of notice given to the
Commission under sub-section (2) of Section 6, the combination shall
be deemed to have been approved by the Commission.]
(7) 125
[* * *]
(8) 126
[* * *]
(9) 127
[* * *]
(10) 128
[* * *]
(11) 129
[* * *]
(12) 130
[* * *]
(13) 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.
(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.
“Section 31 enforced w.e.f. 1-6-2011 vide Noti. No. S.O. 479
(E), dt. 4-3-2011 as corrected by Noti. No. S.O. 1229(E), dt. 30-5
-2011.”
32. Acts taking place outside India but having an effect on
competition in India.—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 131 [in accordance with the provisions contained in
Sections 19, 20, 26, 132 [29, 29-A and 30] of 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 133 [and pass such orders as it may deem fit in accordance with
the provisions of this Act].
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“Section 32 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241

(E), dt. 15-5-2009.”
[33. Power to issue interim orders.—Where during an inquiry, the
134

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.]
► Interpretation/Construction.—The word “inquiry” occurring in Section 33
has not been defined in the Act, however, Regulation 18(2) explains what is
“inquiry”. Therefore, the law shall presume that an “inquiry” is commenced when
the Commission, in exercise of its powers under Section 26(1) of the Act, issues a
direction to the Director General. Once the regulations have explained “inquiry” it
will not be permissible to give meaning to this expression contrary to the statutory
explanation, Competition Commission of India v. SAIL, (2010) 10 SCC 744.
► Satisfaction and opinion of Commission.—Once the inquiry has begun,
then alone the Commission is expected to exercise its powers vested under
Section 33 of the Act. The satisfaction required to be recorded under Section 33
has to be understood differently from what is required while expressing a prima
facie view in terms of Section 26(1) of the Act. The former is a definite expression
of the satisfaction recorded by the Commission upon due application of mind
while the latter is a tentative view at that stage, Competition Commission of India
v. SAIL, (2010) 10 SCC 744.
34. Power to award compensation (Omitted).—135 [* * *]
35. Appearance before Commission.—136 [(1)] 137 [A party] 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.
Explanation.—For the purposes of this section,—
(a) “chartered accountant” means a chartered accountant as
defined in clause (b) of sub-section (1) of Section 2 of the
Chartered Accountants Act, 1949 (38 of 1949) and who has
obtained a certificate of practice under sub-section (1) of
Section 6 of that Act;
(b) “company secretary” means a company secretary as defined in
clause (c) of sub-section (1) of Section 2 of the Company
Secretaries Act, 1980 (56 of 1980) and who has obtained a
certificate of practice under sub-section (1) of Section 6 of that
Act;
(c) “cost accountant” means a cost accountant as defined in
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clause (b) of sub-section (1) of Section 2 of the Cost and

Works Accountants Act, 1959 (23 of 1959) and who has
obtained a certificate of practice under sub-section (1) of
Section 6 of that Act;
(d) “legal practitioner” means an advocate, vakil or an attorney of
any High Court, and includes a pleader in practice.
[(2) Without prejudice to sub-section (1), a party may call upon
138

experts from the fields of economics, commerce, international trade or

from any other discipline to provide an expert opinion in connection
with any matter related to a case.]
“Section 35 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
139 [36. Power of Commission to regulate its own procedure.—(1) 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.
(2) 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 (5 of 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) 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 (1 of 1872), any public
record or document or copy of such record or document from
any office.
(3) The Commission may call upon such experts, from the fields 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.
(4) The Commission may direct any person—
(a) to produce before the Director General or the Secretary or an
officer authorised 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
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officer authorised 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.]
37. Review of orders of Commission.—140 [* * *]
38. Rectification of orders.—(1) 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.
(2) 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.
Explanation.—For the removal of doubts, it is hereby declared that
the Commission shall not, while rectifying any mistake apparent from
record, amend substantive part of its order passed under the provisions
of this Act.
“Section 38 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
[39. Execution of orders of Commission imposing monetary
141

penalty.—(1) 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.
(2) 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 (43 of
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.
(3) 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 assessee in default under
the Income Tax Act, 1961 (43 of 1961) and the provisions contained in
Sections 221 to 227, 228-A, 229, 231 and 232 of the said Act and the
Second Schedule to that Act and any rules made thereunder 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 (43 of 1961), in the said
provisions of that Act or the rules made thereunder shall be construed
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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 (43 of 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 XVII-D and the
Second Schedule to the Income Tax Act, 1961 (43 of 1961), shall be
construed as a reference to appeal before the Competition Appellate
Tribunal under Section 53-B of this Act.]
40. Appeal.—142 [* * *].
Chapter V
DUTIES OF DIRECTOR GENERAL
41. Director General to investigate contraventions.—(1) 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.
(2) The Director General shall have all the powers as are conferred
upon the Commission under sub-section (2) of Section 36.
[(3) Without prejudice to sub-section (2), it shall be the duty of
143

all officers, other employees and agents of a party which are under
investigation—
(a) to preserve and to produce all information, books, papers,
other documents and records of, or relating to, the party which
are in their custody or power to the Director General or any
person authorised by it in this behalf; and
(b) to give all assistance in connection with the investigation to
the Director General.]
[(4) The Director General may require any person other than a
144

party referred to in sub-section (3) to furnish such information or

produce such books, papers, other documents or records before it or
any person authorised by it in this behalf if furnishing of such
information or the production of such books, papers, other documents
or records is relevant or necessary for the purposes of its investigation.
(5) The Director General may keep in his custody any information,
books, papers, other documents or records produced under sub-section
(3) or sub-section (4) for a period of one hundred and eighty days and
thereafter shall return the same to the person by whom or on whose
behalf the information, books, papers, other documents or records were
produced:
Provided that the information, books, papers, other documents or
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records may be called for by the Director General if they are needed
again for a further period of one hundred and eighty days by an order in
writing:
Provided further that the certified copies of the information, books,
papers, other documents or records, as may be applicable, produced
before the Director General may be provided to the party or person on
whose behalf the information, books, papers, other documents or
records are produced at their own cost.
(6) The Director General may examine on oath—
(a) any of the officers and other employees and agents of the
party being investigated; and
(b) with the previous approval of the Commission, any other
person,
in relation to the affairs of the party being investigated and may
administer an oath accordingly and for that purpose may require any of
those persons to appear before it personally.
(7) The examination under sub-section (6) shall be recorded in
writing and shall be read over to or by, and signed by, the person
examined and may thereafter be used in evidence against it.
(8) Where in the course of investigation, the Director General has
reasonable grounds to believe that information, books, papers, other
documents or records of, or relating to, any party or person, may be
destroyed, mutilated, altered, falsified or secreted, the Director General
may make an application to the Chief Metropolitan Magistrate, Delhi for
an order for seizure of such information, books, papers, other
documents or records.
(9) The Director General may make requisition of the services of any
police officer or any officer of the Central Government to assist him for
all or any of the purposes specified in sub-section (10) and it shall be
the duty of every such officer to comply with such requisition.
(10) The Chief Metropolitan Magistrate, Delhi may, after considering
the application and hearing from the Director General, by order,
authorise the Director General—
(a) to enter, with such assistance, as may be required, the place
or places where such information, books, papers, other
documents or records are kept;
(b) to search that place or places in the manner specified in the
order; and
(c) to seize information, books, papers, other documents or
records as it considers necessary for the purpose of the
investigation:
Provided that certified copies of the seized information, books,
papers, other documents or records, as the case may be, may be
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provided to the party or person from whose place or places such

documents have been seized at its cost.
(11) The Director General shall keep in his custody such information,
books, papers, other documents or records seized under this section for
such period not later than the conclusion of the investigation as it
considers necessary and thereafter shall return the same to the party or
person from whose custody or power they were seized and inform the
Chief Metropolitan Magistrate, of such return:
Provided that the Director General may, before returning such
information, books, papers, other documents or records take copies of,
or extracts thereof or place identification marks on them or any part
thereof.
(12) Save as otherwise provided in this section, every search or
seizure made under this section shall be carried out in accordance with
the provisions of the Code of Criminal Procedure, 1973 (2 of 1974,
relating to search or seizure made under that Code.]
145
[Explanation.—For the purposes of this section,—
(a) “agent”, in relation to any person, means any one acting or
purporting to act for or on behalf of such person, and includes
the bankers, and persons employed as auditors and legal
advisors, by such person;
(b) “officers”, in relation to any company or body corporate,
includes any trustee for the debenture holders of such company
or body corporate;
(c) any reference to officers and other employees or agents shall
be construed as a reference to past as well as present officers
and other employees or agents, as the case may be.]
“Section 41 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
► Blanket restraint order.—Section 41 of the Competition Act, 2002 which
refers to applicability of Section 240-A of the Companies Act, 1956 relates to
authorisation for both search and seizure. Blanket restraint order against
utilisation of seized documents for any purpose whatsoever, held, unwarranted,
CCI v. JCB (India) Ltd., (2020) 17 SCC 446.
Chapter VI
PENALTIES
[42. Contravention of orders of Commission.—(1) The Commission
146

may cause an inquiry to be made into compliance of its orders or

directions made in exercise of its powers under the Act.
(2) If any person, without reasonable cause, fails to comply with the
orders or directions of the Commission issued under 147 [Sections 6, 27,
28, 31, 32, 33, 42-A, 43, 43-A, 44 and 45 of the Act, he shall be liable
to a penalty] which may extend to rupees one lakh for each day during
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which such non-compliance occurs, subject to a maximum of rupees

ten crore, as the Commission may determine.
(3) If any person does not comply with the orders or directions
issued, or fails to 148 [pay the penalty 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:
Provided that 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 authorised by it.]
► Proof of mens rea.—The imposition of penalty under Section 43-A is on
account of breach of a civil obligation, and the proceedings are neither criminal
nor quasi-criminal. In the present case following the ruling in Hindustan Steel
Ltd., (1969) 2 SCC 627, wherein it was held that mens rea was not an essential
ingredient for contravention of the provision of a civil Act, held there was no
requirement of mens rea under Section 43-A or an intentional breach as an
essential element for levy of penalty, SCM Solifert Ltd. v. CCI, (2018) 6 SCC 631.
[42-A. Compensation in case of contravention of orders of
149

Commission.—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 150 [under Sections 6, 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.]
[43. Penalty for failure to comply with directions of Commission
151

and Director General.—If any person fails to comply, without reasonable

cause, with a direction given by—
(a) the Commission under sub-sections (2) and (4) of Section 36;
or
(b) the Director General while exercising powers referred to in sub
-section (2) of Section 41,
such person 152 [shall be liable to a penalty] which may extend to
rupees one lakh for each day during which such failure continues
subject to a maximum of rupees one crore, as may be determined by
the Commission.]
[43-A. Power to impose penalty for non-furnishing of information
153

on combination.—If any person or enterprise fails to give notice to the

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Commission under sub-section (2) or sub-section (4) of Section 6 or

contravenes sub-section (2-A) of Section 6 or submit information
pursuant to an inquiry under sub-section (1) of Section 20, the
Commission may impose on such person or enterprise, a penalty which
may extend to one per cent., of the total turnover or assets or the value
of transaction referred to in clause (d) of Section 5, whichever is higher,
of such a combination:
Provided that in case any person or enterprise has given a notice
under sub-section (4) of Section 6 and such notice is found to be void
ab initio under sub-section (6) of Section 6, then a notice under sub-
section (2) of Section 6 may be given by the acquirer or parties to the
combination, as may be applicable, within a period of thirty days of the
order of the Commission under sub-section (6) of that section and no
action under this section shall be taken by the Commission till the
expiry of such period of thirty days.]
44. Penalty for making false statement or omission to furnish
material information.—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 154 [rupees five crore], as
may be determined by the Commission.
“Section 44 enforced w.e.f. 1-6-2011 vide Noti. No. S.O. 1230
(E), dt. 30-5-2011.”
45. Penalty for 155 [contraventions] in relation to furnishing of
information.—156 [(1) Without prejudice to the provisions of 157 [sub-
section (6) of Section 6 and] 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 158 [liable to a penalty] which may extend to
rupees one crore as may be determined by the Commission.]
(2) Without prejudice to the provisions of sub-section (1), the
Commission may also pass such other order as it deems fit.
“Section 45 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
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► Appeal to Supreme Court.—Deposit of penalty amount, directed, and

undertaking re interest thereon directed to be filed, DLF Ltd. v. Competition
Commission of India, (2015) 13 SCC 560.
[46. Power to impose lesser penalty.—(1) The Commission may, if
159

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 may be
specified by regulations, than leviable under this Act or the rules or the
regulations made under this Act:
Provided that lesser penalty shall not be imposed by the Commission
in cases where the report of investigation directed under Section 26 has
been received before making of such disclosure:
Provided further that 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 has made the full, true and
vital disclosures under this section:
Provided also that lesser penalty shall not be imposed by the
Commission if the person making the disclosure does not continue to co
-operate with the Commission till the completion of the proceedings
before the Commission:
Provided also that 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,—
(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 contravention 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.
(2) The Commission may allow a producer, seller, distributor, trader
or service provider included in the cartel, to withdraw its application for
lesser penalty under this section, in such manner and within such time
as may be specified by regulations.
(3) Notwithstanding anything contained in sub-section (2), the
Director General and the Commission shall be entitled to use for the
purposes of this Act, any evidence submitted by a producer, seller,
distributor, trader or service provider in its application for lesser
penalty, except its admission.
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(4) Where during the course of the investigation, a producer, seller,

distributor, trader or service provider who has disclosed a cartel under
sub-section (1), makes a full, true and vital disclosure under sub-
section (1) with respect to another cartel in which it is alleged to have
violated Section 3, which enables the Commission to form a prima facie
opinion under sub-section (1) of Section 26 that there exists another
cartel, then the Commission may impose upon such producer, seller,
distributor, trader or service provider a lesser penalty as may be
specified by regulations, in respect of the cartel already being
investigated, without prejudice to the producer, seller, distributor,
trader or service provider obtaining lesser penalty under sub-section
(1) regarding the newly disclosed cartel.]
“Section 46 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
47. Crediting sums realised by way of penalties 160 [and recovery of
legal costs by the Commission] to Consolidated Fund of India.—All
sums realised by way of penalties 161 [and recovery of legal costs by the
Commission] under this Act shall be credited to the Consolidated Fund
of India.
“Section 47 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
[48.
162 Contravention by companies.—(1) 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 in contravention of this Act and unless otherwise
provided in this Act, the Commission may impose such penalty on such
persons, as it may deem fit which shall not be more than ten per cent.
of the average of the income for the last three preceding financial
years:
Provided that in case any agreement referred to in sub-section (3) of
Section 3 has been entered into by a cartel, the Commission may
unless otherwise provided in this Act, impose upon such persons
referred to in sub-section (1), a penalty of up to ten per cent. of the
income for each year of the continuance of such agreement.
(2) Nothing contained in sub-section (1) shall render any such
person liable to any penalty 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.
(3) Notwithstanding anything contained in sub-section (1), where a
contravention of any of the provisions of this Act or of any rule,
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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 officers
of the company, such director, manager, secretary or other officers shall
also be deemed to be in contravention of the provisions of this Act and
unless otherwise provided in this Act, the Commission may impose
such penalty on such persons, as it may deem fit which shall not be
more than ten per cent. of the average of the income for the last three
preceding financial years:
Provided that in case any agreement referred to in sub-section (3) of
Section 3 has been entered into by a cartel, the Commission may,
unless otherwise provided under this Act, impose upon such person a
penalty as it may deem fit which shall not exceed ten per cent. of the
income for each year of the continuance of such agreement.
Explanation.—For the purposes of this section,—
(a) “company” means a body corporate and includes a firm or
other association of individuals;
(b) “director”, in relation to a firm, means a partner in the firm;
(c) “income”, in relation to a person, shall be determined in such
manner as may be specified by regulations.]
“Section 48 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
[48-A. Settlement.—(1) Any enterprise, against whom any inquiry
163

has been initiated under sub-section (1) of Section 26 for contravention

of sub-section (4) of Section 3 or Section 4, may, for settlement of the
proceeding initiated for the alleged contraventions, submit an
application in writing to the Commission in such form and upon
payment of such fee as may be specified by regulations.
(2) An application under sub-section (1) may be submitted at any
time after the receipt of the report of the Director General under sub-
section (4) of Section 26 but prior to such time before the passing of an
order under Section 27 or Section 28 as may be specified by
regulations.
(3) The Commission may, after taking into consideration the nature,
gravity and impact of the contraventions, agree to the proposal for
settlement, on payment of such amount by the applicant or on such
other terms and manner of implementation of settlement and
monitoring as may be specified by regulations.
(4) While considering the proposal for settlement, the Commission
shall provide an opportunity to the party concerned, the Director
General, or any other party to submit their objections and suggestions,
if any.
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(5) If the Commission is of the opinion that the settlement offered

under sub-section (1) is not appropriate in the circumstances or if the
Commission and the party concerned do not reach an agreement on the
terms of the settlement within such time as may be specified by
regulations, it shall, by order, reject the settlement application and
proceed with its inquiry under Section 26.
(6) The procedure for conducting the settlement proceedings under
this section shall be such as may be specified by regulations.
(7) No appeal shall lie under Section 53-B against any order passed
by the Commission under this section.
(8) All settlement amounts, realised under this Act shall be credited
to the Consolidated Fund of India.]
164 [48-B.
Commitment.—(1) Any enterprise, against whom any
inquiry has been initiated under sub-section (1) of Section 26 for
contravention of sub-section (4) of Section 3 or Section 4, as the case
may be, may submit an application in writing to the Commission, in
such form and on payment of such fee as may be specified by
regulations, offering commitments in respect of the alleged
contraventions stated in the Commission's order under sub-section (1)
of Section 26.
(2) An offer for commitments under sub-section (1) may be
submitted at any time after an order under sub-section (1) of Section
26 has been passed by the Commission but within such time prior to
the receipt by the party of the report of the Director General under sub-
section (4) of Section 26 as may be specified by regulations.
(3) The Commission may, after taking into consideration the nature,
gravity and impact of the alleged contraventions and effectiveness of
the proposed commitments, accept the commitments offered on such
terms and the manner of implementation and monitoring as may be
specified by regulations.
(4) While considering the proposal for commitment, the Commission
shall provide an opportunity to the party concerned, the Director
General, or any other party to submit their objections and suggestions,
if any.
(5) If the Commission is of the opinion that the commitment offered
under sub-section (1) is not appropriate in the circumstances or if the
Commission and the party concerned do not reach an agreement on the
terms of the commitment, it shall pass an order rejecting the
commitment application and proceed with its inquiry under Section 26
of the Act.
(6) The procedure for commitments offered under this section shall
be such as may be specified by regulations.
(7) No appeal shall lie under Section 53-B against any order passed
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by the Commission under this section.]

[48-C. Revocation of the settlement or commitment order and
165

penalty.—If an applicant fails to comply with the order passed under

Section 48-A or Section 48-B or it comes to the notice of the
Commission that the applicant has not made full and true disclosure or
there has been a material change in the facts, the order passed under
Section 48-A or Section 48-B, as the case may be, shall stand revoked
and withdrawn and such enterprise shall be liable to pay legal costs
incurred by the Commission which may extend to rupees one crore and
the Commission may restore or initiate the inquiry in respect of which
the order under Section 48-A or Section 48-B was passed.]
Chapter VII
COMPETITION ADVOCACY
49. Competition advocacy.—166 [(1) The Central Government may, in
formulating a policy on competition (including review of laws related to
competition) or on 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 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.]
(2) The opinion given by the Commission under sub-section (1) shall
not be binding upon the Central Government 167 [or the State
Government, as the case may be,] in formulating such policy.
(3) The Commission shall take suitable measures 168 [* * *] for the
promotion of competition advocacy 169 [or culture], creating awareness
and imparting training about competition issues.
“Section 49 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
Chapter VIII
FINANCE, ACCOUNTS AND AUDIT
50. Grants by Central Government.—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.
“Section 50 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
51. Constitution of Fund.—(1) 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) 170 [* * *]
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(c) the fees received under this Act;

(d) the interest accrued on the amounts referred to 171
[clauses (a)
and (c)];
172 [(e) all sums received by the Commission from such other
sources as may be decided upon by the Government.]
(2) 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.
(3) The Fund shall be administered by a committee of such Members
of the Commission as may be determined by the Chairperson.
(4) The committee appointed under sub-section (3) shall spend
monies out of the Fund for carrying out the objects for which the Fund
has been constituted.
“Section 51 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
52. Accounts and audit.—(1) 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.
(2) 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.
Explanation.—For the removal of doubts, it is hereby declared that
the orders of the Commission, being matters appealable to the 173
[Appellate Tribunal or the Supreme Court], shall not be subject to audit
under this section.
(3) 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
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Commission.
(4) 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.
“Section 52 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
53. Furnishing of returns, etc., to Central Government.—(1) 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.
(2) The Commission shall prepare once 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.
(3) A copy of the report received under sub-section (2) shall be laid,
as soon as may be after it is received, before each House of Parliament.
“Section 53 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
174
[Chapter VIII-A
175
[APPELLATE TRIBUNAL]
[53-A. Appellate Tribunal.—The National Company Law Appellate
176

Tribunal constituted under Section 410 of the Companies Act, 2013 (18
of 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 177
[sub-section (6) of Section 6, sub-sections (2), (2-A), (6) and
(9) of Section 26], Section 27, Section 28, Section 31, Section
32, Section 33, Section 38, Section 39, Section 43, Section 43-
A, Section 44, Section 45 or Section 46 of this Act; and
(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 42-A or under sub-section (2) of Section 53-Q of
this Act, and pass orders for the recovery of compensation
under Section 53-N of this Act.]
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► Interpretation/Construction.—Expression “any” in Section 53-A(1)(a)

qualifies each of the three expressions “direction issued or decision made or
order passed” and not only “direction issued”. Only such directions, decisions or
orders of Competition Commission (CCI) as stated in Section 53-A(1)(a) and no
other are appealable, Competition Commission of India v. SAIL, (2010) 10 SCC
744.
► Necessary parties.—While non-joinder of necessary parties may prove
fatal, the non-joinder of proper parties may not be fatal to the proceedings, but
would certainly adversely affect interest of justice and complete adjudication of the
proceedings before the appropriate forum, Competition Commission of India v.
SAIL, (2010) 10 SCC 744.
In appeals arising from proceedings initiated suo motu by Commission,
Commission is necessary party whereas in other cases it would be proper party in
appeals before Appellate Tribunal. Apart from provisions of Competition Act and
Regulations framed thereunder, such right of Commission can be upheld by
applying principles of Order 1 Rule 10 CPC, Competition Commission of India v.
SAIL, (2010) 10 SCC 744.
53-B. Appeal to Appellate Tribunal.—(1) 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 53-A may prefer an appeal to the Appellate Tribunal.
(2) 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:
Provided that 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:
[Provided further that no appeal by a person, who is required to
178

pay any amount in terms of an order of the Commission, shall be

entertained by the Appellate Tribunal unless the appellant has
deposited twenty-five per cent. of that amount in the manner as
directed by the Appellate Tribunal.]
(3) 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.
(4) The Appellate Tribunal shall send a copy of every order made by
it to the Commission and the parties to the appeal.
(5) The appeal filed before the Appellate Tribunal under sub-section
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(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.
► Deposit of penalty amount.—Condition of pre-deposit of 10% of penalty
amount for entertaining appeal, imposed by Appellate Tribunal. upheld with the
modification that a separate account is opened in a nationalised bank and such
amount is kept in a short term fixed deposit in the name of the company, Ultra
Tech Cement Ltd. v. Competition Commission of India, (2018) 16 SCC 762.
► Imposition of pre-deposit condition for entertaining appeal.—Section
53-B does not impose any condition of pre-deposit for entertaining the appeal.
Further, the right to file the appeal and have the said appeal decided on merits, if
it is filed within the period of limitation, is conferred by the statute and that cannot
be taken away by imposing the condition of deposit. Further, Section 53-B(3)
specifically cast a duty upon the Appellate Tribunal to pass order on appeal, as it
thinks fit i.e. either confirming, modifying or setting aside the direction, decision
or order appealed against and it is to be done after giving an opportunity of
hearing to the parties to the appeal. Appellate Tribunal, which is the creature of a
statute, has to act within the domain prescribed by the law/statutory provision, B.
Himmatlal Agrawal v. CCI, (2018) 17 SCC 421.
53-C. Composition of Appellate Tribunal.—179 [* * *]
53-D. Qualifications for appointment of Chairperson and Members of
Appellate Tribunal.—180 [* * *]
53-E. Selection Committee.—181 [* * *]
53-F. Term of office of Chairperson and Members of Appellate
Tribunal.—182 [* * *]
53-G. Terms and conditions of service of Chairperson and Members
of Appellate Tribunal.—183 [* * *]
53-H. Vacancies.—184 [* * *]
53-I. Resignation of Chairperson and Members of Appellate Tribunal.
—185 [* * *]
53-J. Member of Appellate Tribunal to act as its Chairperson in
certain cases.—186 [* * *]
53-K. Removal and suspension of Chairperson and Members of
Appellate Tribunal.—187 [* * *]
53-L. Restriction on employment of Chairperson and other Members
of Appellate Tribunal in certain cases.—188 [* * *]
53-M. Staff of Appellate Tribunal.—189 [* * *]
53-N. Awarding compensation.—(1) 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 finding of
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the Commission or under Section 42-A or 190 [under sub-section (2) of

Section 53-Q or the orders of the Supreme Court in an appeal against
the findings of the Appellate Tribunal under Section 53-T or an order for
settlement passed under Section 48-A, 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 or as a result of order of settlement passed by
the Commission].
(2) Every application made under sub-section (1) shall be
accompanied by the findings of the Commission 191 [or Appellate
Tribunal or the Supreme Court, or an order for settlement], if any, and
also be accompanied with such fees as may be prescribed.
(3) 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:
Provided that the Appellate Tribunal may obtain the
recommendations of the Commission before passing an order of
compensation.
(4) 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 (5 of 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 53-A 192 [or the Supreme Court on appeal under
Section 53-T] 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 42-A or sub-section (2) of
Section 53-Q of the Act are attracted.
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(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 193 [or the Supreme Court,] on whether any
violation of the Act has taken place.
53-O. Procedure and powers of Appellate Tribunal.—(1) The
Appellate Tribunal shall not be bound by the procedure laid down in the
Code of Civil Procedure, 1908 (5 of 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.
(2) 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 Civil Procedure, 1908 (5 of 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 affidavits;
(d) subject to the provisions of Sections 123 and 124 of the
Indian Evidence Act, 1872 (1 of 1872), requisitioning any
public record or document or copy of such record or document
from any office;
(e) issuing commissions for the examination of witnesses or
documents;
(f) reviewing its decisions;
(g) dismissing a representation for default or deciding it ex parte;
(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.
(3) Every proceeding 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 (45 of
1860) and the Appellate Tribunal shall be deemed to be a civil court for
the purposes of Section 195 and Chapter XXVI of the Code of Criminal
Procedure, 1973 (2 of 1974).
► Unreasoned order.—Competition Commission as well as Competition
Appellate Tribunal are exercising very important quasi-judicial functions and their
orders can have far-reaching consequences. Hence, Commission as well as
Appellate Tribunal must pass orders supported by reasons, Rangi International
Ltd. v. Nova Scotia Bank, (2013) 7 SCC 160.
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53-P. Execution of orders of Appellate Tribunal.—(1) 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.
(2) Notwithstanding anything contained in sub-section (1), the
Appellate Tribunal may 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.
53-Q. Contravention of orders of Appellate Tribunal.—194 [(1) 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 contempt proceeding under Section 53-U.]
(2) 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.
53-R. Vacancy in Appellate Tribunal not to invalidate acts or
proceedings.—195 [* * *]
53-S. Right to legal representation.—(1) A person preferring an
appeal to the Appellate Tribunal may either appear in person or
authorise 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.
(2) The Central Government or a State Government or a local
authority or any enterprise preferring an appeal to the Appellate
Tribunal may authorise 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 authorised
may present the case with respect to any appeal before the Appellate
Tribunal.
(3) The Commission may authorise 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
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person so authorised may present the case with respect to any appeal
before the Appellate Tribunal.
Explanation.—The expressions “chartered accountant” or “company
secretary” or “cost accountant” or “legal practitioner” shall have the
meanings respectively assigned to them in the Explanation to Section
35.
53-T. Appeal to Supreme Court.—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:
Provided that 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.
53-U. Power to punish for contempt.—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
(70 of 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.]
Chapter IX
MISCELLANEOUS
54. Power to exempt.—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;
(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:
Provided that 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.
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“Section 54 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241

(E), dt. 15-5-2009.”
55. Power of Central Government to issue directions.—(1) 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:
Provided that the Commission shall, as far as practicable, be given
an opportunity to express its views before any direction is given under
this sub-section.
(2) The decision of the Central Government whether a question is
one of policy or not shall be final.
“Section 55 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
56. Power of Central Government to supersede Commission.—(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:
Provided that 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.
(2) 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;
(b) all the powers, functions and duties which may, by or under
the provisions of this Act, be exercised or discharged by or on
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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 this 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.
(3) On or before the expiration of the period of supersession
specified in the notification issued under sub-section (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.
(4) 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.
“Section 56 enforced w.e.f. 20-5-2009 vide Noti. No. S.O. 1241
(E), dt. 15-5-2009.”
57. Restriction on disclosure of information.—No information relating
to any enterprise, being an information which has been obtained by or
on behalf of 196 [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.
“Section 57 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
[58. Chairperson, Members, Director General, Secretary, officers
197

and other employees, etc., to be public servants.—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 (45 of 1860).]
59. Protection of action taken in good faith.—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 198 [the Secretary or officers or
other employees of the Commission or the Chairperson, Members,
officers and other employees of the Appellate Tribunal] for anything
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which is in good faith done or intended to be done under this Act or the
rules or regulations made thereunder.
“Section 59 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
[59-A.
199
Compounding of certain offences.—Notwithstanding
anything contained in the Code of Criminal Procedure, 1973 (2 of
1974), any offence punishable under this Act, not being an offence
punishable with imprisonment only or imprisonment and also with fine,
may either before or after the institution of any proceeding, be
compounded by the Appellate Tribunal or a court before which such
proceeding is pending.]
60. Act to have overriding effect.—The provisions of this Act shall
have effect notwithstanding anything inconsistent therewith contained
in any other law for the time being in force.
“Section 60 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
61. Exclusion of jurisdiction of civil courts.—No civil court shall have
jurisdiction to entertain any suit or proceeding in respect of any matter
which the 200 [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.
“Section 61 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
62. Application of other laws not barred.—The provisions of this Act
shall be in addition to, and not in derogation of, the provisions of any
other law for the time being in force.
“Section 62 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
63. Power to make rules.—(1) The Central Government may, by
notification, make rules to carry out the provisions of this Act.
“Sub-section (1) enforced w.e.f. 31-3-2003 vide Noti. No. S.O.
340(E), dt. 31-3-2003.”
(2) 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:—
201 (a) the value of the assets or turnover of the enterprise
acquired, taken control of, merged or amalgamated in India
under clause (e) of Section 5;
(ab) the percentage of voting rights higher than twenty-six per
cent. under sub-clause (i) of clause (b) of the Explanation to
Section 5;
(ac) the criteria of combinations under sub-section (4) of Section
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6;
(ad) the criteria under sub-section (7) of Section 6;]
202 [(203 [ae]) the term of the Selection Committee and the manner
of selection of panel of names under sub-section (2) of Section
9;]
(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;
“Clause (b) enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
(c) 204
[* * *]
(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;
“Clause (d) enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
205 [(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 (1-A) 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 206 [such officers or other
employees] under sub-section (3) of Section 16;
“Clause (e) enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
(f) the qualifications for appointment of the Director General,
Additional, Joint, Deputy or Assistant Directors General or 207
[such officers or other employees] under sub-section (4) of
Section 16;
“Clause (f) enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
(g) the salaries and allowances and other terms and conditions of
service of the 208 [Secretary] and officers and other employees
payable, and the number of such officers and employees under
sub-section (2) of Section 17;
“Clause (g) enforced w.e.f. 31-3-2003 vide Noti. No. S.O. 340
(E), dt. 31-3-2003.”
(h) 209
[* * *]
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(i) 210
[* * *]
(j) 211 [* * *]
(k) the form in which the annual statement of accounts shall be
prepared under sub-section (1) of Section 52;
“Clause (k) enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
(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;
“Clause (l) enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
(m) the form in which and the time within which the annual
report shall be prepared under sub-section (2) of Section 53;
“Clause (m) enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
212
[(ma) the form in which an appeal may be filed before the
Appellate Tribunal under sub-section (2) of Section 53-B and
the fees payable in respect of such appeal;
(mb) 213 [* * *]
(mc) 214 [* * *]
(md) 215
[* * *]
(me) the fee which shall be accompanied with every application
made under sub-section (2) of Section 53-N;
(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]
216 [(mg) the form of the publication of guidelines under sub-
section (5) of Section 64-B;]
217 [(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.
“Clause (o) enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
(3) 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
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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.
► Rule making power.—Where the Act conferred rule-making power for
carrying out the provisions of the chapter, held, rules could not be so framed as
not to carry out the purpose of the chapter or to be in conflict with, Laghu Udyog
Bharati v. Union of India, (1999) 6 SCC 418.
Conferment of rule-making power by an Act does not enable the rule-making
authority to make a rule which travels beyond the scope of the enabling Act or
which is inconsistent therewith or repugnant thereto, ADM (Rev.) Delhi Admn. v.
Siri Ram, (2000) 5 SCC 451.
64. Power to make regulations.—(1) The Commission may, by
notification, make regulations consistent with this Act and the rules
made thereunder to carry out the purposes of this Act.
(2) 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;
218
[(c) the manner of determination of substantial business
operations in India under clause (d) of Section 5;]
219 (ca) the form and fee for notice for combination under sub-
section (4) of Section 6;
(cb) the time and manner for filing notice of acquisition under
clause (a) of Section 6-A;
(cc) the manner and circumstance in which the acquirer may
exercise the ownership or beneficial right or interest in shares
or convertible securities including voting right and receipt of
dividends or any other distributions as an exception under
clause (b) of Section 6-A;]
220 [(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-
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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;
221
[(fa) other details to be indicated in the show-cause notice
under sub-section (9) of Section 26;
(fb) the manner of determining turnover or income under the 222

[Explanation I] to clause (b) of Section 27;

(fc) the manner in which modification may be proposed by parties
to the combination to the Commission under sub-section (2) of
Section 29-A;]
(g) the manner in which penalty shall be recovered under sub-
section (1) of Section 39;
223
[(ga) the lesser penalty to be imposed on producer, seller,
distributor, trader or service provider under sub-section (1) of
Section 46;
(gb) the manner and time for withdrawal of application for lesser
penalty under sub-section (2) of Section 46;
(gc) the lesser penalty to be imposed on producer, seller,
distributor, trader or service provider under sub-section (4) of
Section 46;
(gd) the manner of determining income under clause (c) of
Explanation to Section 48;
(ge) the form of application and fee under sub-section (1), the
time under sub-section (2), the terms and manner of
implementations and monitoring under sub-section (3) and the
procedure for conducting settlement proceedings under sub-
section (6) of Section 48-A;
(gf) the form of application and fee under sub-section (1), the
time under sub-section (2), the terms and manner of
implementations and monitoring under sub-section (3) and the
procedure for commitments offered under sub-section (6) of
Section 48-B;
(gg) the other details to be published along with draft regulations
and the period for inviting public comments under clause (a) of
Section 64-A;]
(h) any other matter in respect of which provision is to be, or may
be, made by regulations.]
(3) 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
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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.
“Section 64 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
► Nature of Regulations.—Regulations deemed to have statutory sanction
and force if they play an essential and integral role in their sphere of operation,
G.B. Pant University of Agriculture & Technology v. State of U.P., (2000) 7 SCC
109 : 2000 SCC (L&S) 884.
[64-A. Process of issuing regulations.—The Commission shall
224

ensure transparency while making regulations under Section 64, by—

(a) publishing draft regulations along with such other details as
may be specified on its website and inviting public comments
for a specified period prior to issuing regulations;
(b) publishing a general statement of its response to the public
comments, not later than the date of notification of the
regulations;
(c) periodically reviewing such regulations:
Provided that if the Commission is of the opinion that certain
regulations are required to be made or existing regulations are required
to be amended urgently in public interest or the subject matter of the
regulation relates solely to the internal functioning of the Commission,
it may make regulations or amend the existing regulations, as the case
may be, without following the provisions stated in this section recording
the reason, for doing so.]
[64-B. Commission to issue guidelines.—(1) The Commission may
225

publish guidelines on the provisions of this Act or the rules and

regulations made thereunder either on a request made by a person or
on its own motion.
(2) Guidelines issued under sub-section (1) shall not be construed
as determination of any question of fact or law by the Commission, its
Members or officers and shall not be binding on the Commission, its
Members or officers.
(3) Without prejudice to anything contained in sub-section (1), the
Commission shall publish guidelines as to the appropriate amount of
any penalty for any contravention of provision of this Act.
(4) While imposing penalty under clause (b) of Section 27 or under
Section 43-A or Section 48 for any contravention of provision of this
Act, the Commission shall consider the guidelines under sub-section
(3) and provide reasons in case of any divergence from such guidelines.
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(5) The guidelines under sub-sections (1) and (3) shall be published
in such form as may be prescribed.]
65. Power to remove difficulties.—(1) 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:
Provided that no such order shall be made under this section after
the expiry of a period of two years from the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as
may be after it is made, before each House of Parliament.
“Section 65 enforced w.e.f. 19-6-2003 vide Noti. No. S.O. 715
(E), dt. 19-6-2003 as corrected by S.O. 1098(E), dt. 24-9-2003.”
66. Repeal and saving.—226 [(1) The Monopolies and Restrictive Trade
Practices Act, 1969 (54 of 1969) is hereby repealed and the Monopolies
and Restrictive Trade Practices Commission established under sub-
section (1) of Section 5 of the said Act (hereafter referred to as the
repealed Act) shall stand dissolved:
227
[* * *]
(1-A) The repeal of the Monopolies and Restrictive Trade Practices
Act, 1969 (54 of 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.]
(2) 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
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term of their office or of any contract of service:

Provided that 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:
[Provided further that the Director General of Investigation and
228

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.]
Provided also that notwithstanding anything contained in the
Industrial Disputes Act, 1947 (14 of 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 229 [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:
Provided also that where the Monopolies and Restrictive Trade
Practices Commission has established a provident fund,
superannuation, welfare or other fund for the benefit of the Director
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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 230 [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,
231 [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.]
[(3) All cases pertaining to monopolistic trade practices or
232

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, 233 [on the commencement
of the Competition (Amendment) Act, 2009], 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.]
[Explanation.—For the removal of doubts, it is hereby declared
234

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 12-B of the Monopolies and Restrictive
Trade Practices Act, 1969 (54 of 1969), as it stood before its repeal;]
(4) Subject to the provisions of sub-section (3), all cases pertaining
to unfair trade practices other than those referred to in clause (x) of
sub-section (1) of Section 36-A of the Monopolies and Restrictive Trade
Practices Act, 1969 (54 of 1969) and pending before the Monopolies
and Restrictive Trade Practices Commission 235 [immediately before the
commencement of the Competition (Amendment) Act, 2009, shall, on
such commencement] stand transferred to the National Commission
constituted under the Consumer Protection Act, 1986 (68 of 1986) and
the National Commission shall dispose of such cases as if they were
cases filed under that Act:
Provided that 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 (68 of 1986) and that State
Commission shall dispose of such case as if it was filed under that Act:
[Provided further that all the cases relating to the unfair trade
236

practices pending, before the National Commission under this sub-

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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.]
[(5) All cases pertaining to unfair trade practices referred to in
237

clause (x) of sub-section (1) of Section 36-A of the Monopolies and

Restrictive Trade Practices Act, 1969 (54 of 1969) and pending before
the Monopolies and Restrictive Trade Practices Commission shall, 238 [on
the commencement of the Competition (Amendment) Act, 2009], stand
transferred to the Appellate Tribunal and the Appellate Tribunal shall
dispose of such cases as if they were cases filed under that Act.]
(6) 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.
(7) All investigations or proceedings, relating to unfair trade
practices other than those referred to in clause (x) of sub-section (1) of
Section 36-A of the Monopolies and Restrictive Trade Practices Act,
1969 (54 of 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 (68
of 1986) and the National Commission may conduct or order for
conduct of such investigation or proceedings in the manner as it deems
fit.
[Provided that all investigations or proceedings, relating to unfair
239

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.]
(8) All investigations or proceedings relating to unfair trade practices
referred to in clause (x) of sub-section (1) of Section 36-A of the
Monopolies and Restrictive Trade Practices Act, 1969 (54 of 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.
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(9) Save as otherwise provided under sub-sections (3) to (8), all

cases or proceedings pending before the Monopolies and Restrictive
Trade Practices Commission shall abate.
(10) 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 (10 of 1897)
with regard to the effect of repeal.
NOTIFICATIONS
(1)
Ministry of Finance (Deptt. of Company Affairs), Noti. No. S.O. 1198(E),
dated October 14, 2003, published in the Gazette of India, Extra., Part
II, Section 3(ii), dated 14th October, 2003, p. 1, No. 943
In exercise of the powers conferred by sub-section (1) read with sub
-section (3) of Section 7 of the Competition Act, 2002 (12 of 2003), the
Central Government hereby establishes, with effect from 14th October,
2003, the Competition Commission of India having its head office at
New Delhi.
(2)
Ministry of Corporate Affairs, Noti. No. S.O. 1240(E), dated May 15,
2009, published in the Gazette of India, Extra., Part II, Section 3(ii),
dated 15th May, 2009, p. 1, No. 770
In exercise of the powers conferred by Section 53-A of the
Competition Act, 2002 (12 of 2003), the Central Government
establishes, with effect from 15th May, 2009, the Competition Appellate
Tribunal having its headquarters at Delhi.
(3)
Ministry of Corporate Affairs, Noti. No. S.O. 480(E), dated March 4,
2011, published in the Gazette of India, Extra., Part II, Section 3(ii),
dated 4th March, 2011, p. 1, No. 412
In exercise of the powers conferred by sub-section (3) of Section 20
of the Competition Act, 2002 (12 of 2003), the Central Government in
consultation with the Competition Commission of India, hereby
enhance, on the basis of the wholesale price index, the value of assets
and the value of turnover, by fifty per cent for the purposes of Section 5
of the said Act.
(4)
Ministry of Corporate Affairs, Noti. No. S.O. 673(E), dated March 4,
2016, published in the Gazette of India, Extra., Part II, Section 3(ii),
dated 4th March, 2016, p. 1, No. 582
In exercise of the powers conferred by clause (a) of Section 54 of the
Competition Act, 2002 (12 of 2003), the Central Government, in public
interest, hereby exempts the ‘Group’ exercising less than fifty per cent
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of voting rights in other enterprise from the provisions of Section 5 of

the said Act for a period of five years with effect from the date of
publication of this notification in the Official Gazette.
(5)
Ministry of Corporate Affairs, Noti. No. S.O. 989(E), dated March 27,
2017, published in the Gazette of India, Extra., Part II, Section 3(ii),
dated 29th March, 2017, p. 3, No. 881
In exercise of the powers conferred by clause (a) of Section 54 of the
Competition Act, 2002 (12 of 2003), 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 4th March,
2016, published in the Gazette of India, Extraordinary, Part II, Section
3, sub-section (ii), dated the 4th March, 2016, except as respects
things done or omitted to be done before such rescission.
(6)
Ministry of Corporate Affairs, Noti. No. S.O. 93(E), dated January 8,
2013, published in the Gazette of India, Extra., Part II, Section 3(ii),
dated 8th January, 2013, p. 1, No. 89
In exercise of the powers conferred by clause (a) of Section 54 of the
Competition Act, 2002 (12 of 2003), the Central Government hereby
exempts a banking company in respect of which the Central
Government has issued a notification under Section 45 of the Banking
Regulation Act, 1949 (10 of 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.
(7)
Ministry of Finance (Deptt. of Revenue) (Central Board of Direct Taxes),
Noti. No. S.O. 530(E), dated February 19, 2016, published in the
Gazette of India, Extra., Part II, Section 3(ii), dated 19th February,
2016, p. 2, No. 452
In exercise of the powers conferred by clause (46) of Section 10 of
the Income Tax Act, 1961 (43 of 1961), the Central Government
hereby notifies for the purpose of the said clause, the Competition
Commission of India, a Commission established under sub-section (1)
of Section 7 of the Competition Act, 2002 (12 of 2003), in respect of
the following specified income arising to the said Commission,
namely—
(a) amount received in the form of Government grants;
(b) fees received under the Competition Act, 2002; and
(c) interest accrued on Government grants and interest accrued on
fees received under the Competition Act, 2002.
2. This notification shall be effective subject to the following
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conditions, namely—
(i) the Competition Commission of India does not engage in any
commercial activity;
(ii) the activities and the nature of the specified income of the
Competition Commission of India shall remain unchanged
throughout the financial year; and
(iii) the Competition Commission of India shall file return of income
in accordance with clause (g) of sub-section (4-C) of Section 139
of the Income Tax Act, 1961.
3. This notification shall be applicable for the specified income of the
Competition Commission of India for the Financial Years 2016-2017 to
2020-2021.
(8)
Ministry of Corporate Affairs, Noti. No. S.O. 646(E), dated March 2,
2016, published in the Gazette of India, Extra., Part II, Section 3(ii),
dated 3rd March, 2016, p. 2, No. 557
In exercise of the powers conferred by clause (a) of Section 54 of the
Competition Act, 2002 (12 of 2003), 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 from the date of publication of this notification in the
Official Gazette, 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.
(9)
Ministry of Corporate Affairs, Noti. No. S.O. 675(E), dated March 4,
2016, published in the Gazette of India, Extra., Part II, Section 3(ii),
dated 4th March, 2016, p. 1, No. 583
In exercise of the powers conferred by sub-section (3) of Section 20
of the Competition Act, 2002 (12 of 2003), the Central Government in
consultation with the Competition Commission of India, hereby
enhances, on the basis of the wholesale price index, the value of assets
and the value of turnover, by hundred per cent for the purposes of
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Section 5 of the said Act, from the date of publication of this

notification in the Official Gazette.
(10)
Ministry of Corporate Affairs, Noti. No. S.O. 988(E), dated March 27,
2017, published in the Gazette of India, Extra., Part II, Section 3(ii),
dated 29th March, 2017, p. 2, No. 881
In exercise of the powers conferred by clause (a) of Section 54 of the
Competition Act, 2002 (12 of 2003), the Central Government, in public
interest, 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 240 [ten 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
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company.
(11)
Ministry of Corporate Affairs, Noti. No. S.O. 989(E), dated March 27,
2017, published in the Gazette of India, Extra., Part II, Section 3(ii),
dated 29th March, 2017, p. 3, No. 881
In exercise of the powers conferred by clause (a) of Section 54 of the
Competition Act, 2002 (12 of 2003), 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 4th March,
2016, published in the Gazette of India, Extraordinary, Part II, Section
3, sub-section (ii), dated the 4th March, 2016, except as respects
things done or omitted to be done before such rescission.
(12)
Ministry of Corporate Affairs, Noti. No. S.O. 1034(E), dated March 11,
2020, published in the Gazette of India, Extra., Part II, Section 3(ii),
dated 11st March, 2020, p. 1, No. 929
In exercise of the powers conferred by clause (a) of Section 54 of the
Competition Act, 2002 (12 of 2003), the Central Government hereby
exempts a Banking Company in respect of which the Central
Government has issued a notification under Section 45 of the Banking
Regulation Act, 1949 (10 of 49), 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.
———
1. Received the assent of the President on January 13, 2003 and published in the Gazette of
India, Extra., Part II, Section 1, dated 14th January, 2003, pp. 1-29, No. 12.

* Now made applicable to the U.T. of Jammu and Kashmir and the U.T. of Ladakh [Vide S.O.
3912(E), dt. 30-10-2019 (w.e.f. 30-10-2019).]

2. Subs. by Act 7 of 2017, S. 171(a) (w.e.f. 26-5-2017). Earlier, inserted by Act 39 of 2007,
S. 2 (w.e.f. 12-10-2007). Prior to substitution it read as:
‘(ba) “Appellate Tribunal” means the Competition Appellate Tribunal established under
sub-section (1) of Section 53-A;’

3. Ins. by Act 9 of 2023, S. 3(a) (w.e.f. 18-5-2023).

4. Subs. by Act 9 of 2023, S. 3(b) (w.e.f. 18-5-2023). Prior to substitution it read as:
“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 of subsidiaries, whether such unit or division or subsidiary is located at
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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 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”

5. Ins. by Act 9 of 2023, S. 3(c ) (w.e.f. 18-5-2023).

6. Subs. for “Section 617 of the Companies Act, 1956” by Act 9 of 2023, S. 3(d) (w.e.f. 18-5-
2023).

7. Subs. for “1 of 1956” by Act 9 of 2023, S. 2(b) (w.e.f. 18-5-2023).

8. Subs. by Act 9 of 2023, S. 3(e) (w.e.f. 18-5-2023). Prior to substitution it read as:
‘(p) “public financial institution” means a public financial institution specified under
Section 4-A of the Companies Act, 1956 and includes a State Financial, Industrial or
Investment Corporation;’

9. Subs. by Act 9 of 2023, S. 3(f) (w.e.f. 18-5-2023). Prior to substitution it read as:
‘(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;’

10. Ins. by Act 9 of 2023, S. 3(g) (w.e.f. 18-5-2023).

11.
Subs. for “the Companies Act, 1956” by Act 9 of 2023, S. 2(a) (w.e.f. 18-5-2023).

12.
Subs. for “1 of 1956” by Act 9 of 2023, S. 2(b) (w.e.f. 18-5-2023).

13. Ins. by Act 9 of 2023, S. 4(a) (w.e.f. 18-5-2023).

14. Subs. for “Any agreement amongst enterprises or persons” by Act 9 of 2023, S. 4(b)(i)
(w.e.f. 18-5-2023).

15.
Subs. for “supply” by Act 9 of 2023, S. 4(b)(ii) (w.e.f. 18-5-2023).

16.
Ins. by Act 9 of 2023, S. 4(b)(iii) (w.e.f. 18-5-2023).

17. Subs. by Act 9 of 2023, S. 4(b)(iv)(i) (w.e.f. 18-5-2023). Prior to substitution it read as:
‘(a) “tie-in arrangement” includes any agreement requiring a purchaser of goods, as a
condition of such purchase, to purchase some other goods;’

18. Subs. by Act 9 of 2023, S. 4(b)(iv)(i) (w.e.f. 18-5-2023). Prior to substitution it read as:
‘(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;’

19. Ins. by Act 9 of 2023, S. 4(b)(iv)(ii) (w.e.f. 18-5-2023).

20. Ins. by Act 9 of 2023, S. 4(b)(iv)(ii) (w.e.f. 18-5-2023).

21.
Ins. by Act 9 of 2023, S. 4(b)(iv)(iii) (w.e.f. 18-5-2023).

22. Ins. by Act 9 of 2023, S. 4(b)(iv)(iii) (w.e.f. 18-5-2023).

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23. Subs. for “includes any agreement to sell goods on condition” by Act 9 of 2023, S. 4(b)(iv)
(iv) (w.e.f. 18-5-2023).

24. Ins. by Act 9 of 2023, S. 4(c ) (w.e.f. 18-5-2023).

25. Subs. by Act 39 of 2007, S. 3 (w.e.f. 20-5-2009).

26. Subs. for “under sub-section (l), if an enterprise” by Act 39 of 2007, S. 3 (w.e.f. 20-5-
2009).

27. Subs. for “discriminatory condition or price” by Act 9 of 2023, S. 5 (w.e.f. 18-5-2023).

28. Ins. by Act 39 of 2007, S. 3 (w.e.f. 20-5-2009).

29. Ins. by Act 39 of 2007, S. 3 (w.e.f. 20-5-2009).

30. Subs. by Act 39 of 2007, S. 4 (w.e.f. 1-6-2011). Prior to substitution it read as:
“(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”

31. Subs. by Act 39 of 2007, S. 4 (w.e.f. 1-6-2011). Prior to substitution it read as:
“(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”

32.
Subs. by Act 39 of 2007, S. 4 (w.e.f. 1-6-2011). Prior to substitution it read as:
“(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”

33. Subs. by Act 39 of 2007, S. 4 (w.e.f. 1-6-2011). Prior to substitution it read as:
“(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”

34. Subs. by Act 39 of 2007, S. 4 (w.e.f. 1-6-2011). Prior to substitution it read as:
“(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”

35.
Subs. by Act 39 of 2007, S. 4 (w.e.f. 1-6-2011). Prior to substitution it read as:
“(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”

36.
Subs. for “India.” by Act 9 of 2023, S. 6(A) (w.e.f. the date to be notified).
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37.
Ins. by Act 9 of 2023, S. 6(B) (w.e.f. the date to be notified).

38. Ins. by Act 9 of 2023, S. 6(B) (w.e.f. the date to be notified).

39. Subs. by Act 9 of 2023, S. 6(C) (w.e.f. the date to be notified). Prior to substitution it
read as:
“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.”

40.
Subs. for “may, at his or its option” by Act 39 of 2007, S. 5 (w.e.f. 1-6-2011).

41. Subs. for “within thirty days of” by Act 9 of 2023, S. 7(a)(i) (w.e.f. the date to be
notified).

42. Ins. by Act 9 of 2023, S. 7(a)(ii) (w.e.f. the date to be notified).

43.
Ins. by Act 9 of 2023, S. 7(a)(iii) (w.e.f. the date to be notified).

44. Ins. by Act 9 of 2023, S. 7(a)(iv) (w.e.f. the date to be notified).

45. Ins. by Act 39 of 2007, S. 5 (w.e.f. 1-6-2011).

46.
Subs. for “two hundred and ten days” by Act 9 of 2023, S. 7(b) (w.e.f. the date to be
notified).

47. Subs. for “Sections 29, 30 and 31” by Act 9 of 2023, S. 7(c ) (w.e.f. the date to be
notified).

48. Subs. by Act 9 of 2023, S. 7(d) (w.e.f. the date to be notified). Prior to substitution it
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read as:
“(4) 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 capital fund, pursuant to any covenant of a loan agreement or
investment agreement.”

49. Subs. by Act 9 of 2023, S. 7(d) (w.e.f. the date to be notified). Prior to substitution it
read as:
“(5) The public financial institution, foreign institutional investor, bank or venture capital
fund, referred to in sub-section (4), 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.
Explanation.—For the purposes of this section, the expression—

(a) “foreign institutional investor” has the same meaning as assigned to it in clause (a) of
the Explanation to Section 115-AD of the Income Tax Act, 1961 (43 of 1961);

(b) “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 (43 of
1961).”

50.
Ins. by Act 9 of 2023, S. 8 (w.e.f. the date to be notified).

51. Subs. by Act 39 of 2007, S. 6 (w.e.f. 12-10-2007).

52. Ins. by Act 9 of 2023, S. 9 (w.e.f. 18-5-2023).

53.
Subs. by Act 39 of 2007, S. 7 (w.e.f. 12-10-2007).

54. Ins. by Act 9 of 2023, S. 10 (w.e.f. 18-5-2023).

55. Subs. by Act 39 of 2007, S. 8 (w.e.f. 12-10-2007).

56.
Subs. by Act 9 of 2023, S. 11 (w.e.f. 18-5-2023). Prior to substitution it read as:
“12. Restriction on employment of Chairperson and other Members in certain cases.—
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 connected with the
management or administration of, any enterprise which has been a party to a proceeding
before the Commission under this Act:
Provided that 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 (1 of 1956).”

57. Subs. by Act 39 of 2007, S. 10 (w.e.f. 20-5-2009).

58. Subs. by Act 39 of 2007, S. 11 (w.e.f. 12-10-2007).

59. Subs. for “Central Government may, by notification” by Act 9 of 2023, S. 12 (w.e.f. 18-7-
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2023).

60. Subs. for “such other advisers, consultants and officers” by Act 39 of 2007, S. 11 (w.e.f.
12-10-2007).

61. Subs. for “such other advisers, consultants and officers” by Act 39 of 2007, S. 11 (w.e.f.
12-10-2007).

62. Subs. for “such other advisers, consultants and officers” by Act 39 of 2007, S. 11 (w.e.f.
12-10-2007).

63. Subs. by Act 39 of 2007, S. 12 (w.e.f. 12-10-2007).

64. Subs. by Act 9 of 2023, S. 13 (w.e.f. 18-5-2023). Prior to substitution it read as:
“18. Duties of Commission.—Subject to the provisions of this Act, it shall be the duty of
the Commission to eliminate practices having adverse effect on competition, promote and
sustain competition, protect the interests of consumers and ensure freedom of trade
carried on by other participants, in markets in India:
Provided that 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.”

65.
Subs. for “receipt of a complaint” by Act 39 of 2007, S. 13 (w.e.f. 20-5-2009).

66. Ins. by Act 9 of 2023, S. 14(a) (w.e.f. 18-5-2023).

67. The words “by hindering entry into the market” omitted by Act 9 of 2023, S. 14(b)(i)
(w.e.f. 18-5-2023).

68. Subs. for “accrual of benefits” by Act 9 of 2023, S. 14(b)(ii) (w.e.f. 18-5-2023).

69. Ins. by Act 9 of 2023, S. 14(c ) (w.e.f. 18-5-2023).

70.
Ins. by Act 9 of 2023, S. 14(c ) (w.e.f. 18-5-2023).

71. Ins. by Act 9 of 2023, S. 14(d)(i) (w.e.f. 18-5-2023).

72. Ins. by Act 9 of 2023, S. 14(d)(ii) (w.e.f. 18-5-2023).

73.
Ins. by Act 9 of 2023, S. 14(d)(ii) (w.e.f. 18-5-2023).

74. Subs. for “clause (c ) of that section” by Act 9 of 2023, S. 15(a) (w.e.f. 18-5-2023).

75.
Omitted by Act 39 of 2007, S. 14 (w.e.f. 1-6-2011). Prior to omission it read as:
“or upon receipt of a reference under sub-section (1) of Section 21”.

76. Subs. by Act 9 of 2023, S. 15(b) (w.e.f. 18-5-2023). Prior to substitution it read as:
“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”

77. Subs. for “combination” by Act 9 of 2023, S. 15(c ) (w.e.f. 18-5-2023).

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78. Subs. by Act 9 of 2023, S. 16 (w.e.f. 18-5-2023). Prior to substitution it read as:
“Provided that any statutory authority, may, suo motu, make such a reference to the
Commission.”

79. Subs. by Act 39 of 2007, S. 15 (w.e.f. 20-5-2009).

80. Ins. by Act 39 of 2007, S. 16 (w.e.f. 20-5-2009).

81. Subs. for “this Act” by Act 9 of 2023, S. 17(a) (w.e.f. 18-5-2023).

82.
Subs. by Act 9 of 2023, S. 17(b) (w.e.f. 18-5-2023). Prior to substitution it read as:
“Provided that the Commission, may, suo motu, make such a reference to the statutory
authority.”

83. Subs. by Act 39 of 2007, S. 17 (w.e.f. 12-10-2007).

84. The words “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” omitted by Act 9 of 2023, S. 18
(w.e.f. 18-5-2023).

85. Omitted by Act 39 of 2007, S. 18 (w.e.f. 12-10-2007). Prior to omission it read as:
“23. Distribution of business of Commission amongst Benches.—(1) Where any Benches
are constituted, the Chairperson may, from time to time, by order, make provisions as to
the distribution of the business of the Commission amongst the Benches and specify the
matters, which may be dealt with by each Bench.
(2) If any question arises as to whether any matter falls within the purview of the
business allocated to a Bench, the decision of the Chairperson thereon shall be final.
(3) The Chairperson, may—

(i) transfer a Member from one Bench to another Bench; or

(ii) authorise the Members of one Bench to discharge also the functions of the Members
of other Bench:
Provided that the Chairperson shall transfer, with the prior approval of the Central
Government, a Member from one Bench situated in one city to another Bench situated in
another city.
(4) The Chairperson may, for the purpose of securing that any case or matter which,
having regard to the nature of the questions involved, requires or is required in his opinion
or under the rules made by the Central Government in this behalf, to be decided by a
Bench composed of more than two Members, issue such general or special orders as he
may deem fit.”.

86. Omitted by Act 39 of 2007, S. 18 (w.e.f. 12-10-2007). Prior to omission it read as:
“24. Procedure for deciding a case where Members of a Bench differ in opinion.—If the
Members of a Bench differ in opinion on any point, they shall state the point or points on
which they differ, and make a reference to the Chairperson who shall either hear the
point or points himself or refer the case for hearing on such point or points by one or
more of the other Members and such point or points shall be decided according to the
opinion of the majority of the Members who have heard the case, including those who
first heard it.”
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87. Omitted by Act 39 of 2007, S. 18 (w.e.f. 12-10-2007). Prior to omission it read as:
“25. Jurisdiction of Bench.—An inquiry shall be initiated or a complaint be instituted or a
reference be made under this Act before a Bench within the local limits of whose
jurisdiction—

(a) the respondent, or each of the respondents, where there are more than one, at the
time of the initiation of inquiry or institution of the complaint or making of reference,
as the case may be, actually and voluntarily resides, or carries on business, or
personally works for gain; or

(b) any of the respondents, where there are more than one, at the time of the initiation
of the inquiry or institution of complaint or making of reference, as the case may be,
actually and voluntarily resides or carries on business or personally works for gain
provided that in such case either the leave of the Bench is given, or the respondents
who do not reside, or carry on business, or personally work for gain, as aforesaid,
acquiesce in such institution; or

(c ) the cause of action, wholly or in part, arises.

Explanation.—A respondent, being a person referred to in sub-clause (iii) or sub-clause
(vi) or sub-clause (vii) or sub-clause (viii) of clause (l) of Section 2, shall be deemed to
carry on business at its sole or principal place of business in India or at its registered
office in India or where it has also a subordinate office at such place.”

88. Subs. by Act 39 of 2007, S. 19 (w.e.f. 20-5-2009).

89. Ins. by Act 9 of 2023, S. 19(a) (w.e.f. 18-5-2023).

90.
Ins. by Act 9 of 2023, S. 19(b) (w.e.f. 18-5-2023).

91. Ins. by Act 9 of 2023, S. 19(b) (w.e.f. 18-5-2023).

92. Subs. for “sub-section (3)” by Act 9 of 2023, S. 19(c ) (w.e.f. 18-5-2023).

93.
Subs. for “sub-section (3)” by Act 9 of 2023, S. 19(c ) (w.e.f. 18-5-2023).

94.
Subs. for “sub-section (3)” by Act 9 of 2023, S. 19(d) (w.e.f. 18-5-2023).

95. Subs. for “sub-section (3)” by Act 9 of 2023, S. 19(e) (w.e.f. 18-5-2023).

96.
Ins. by Act 9 of 2023, S. 19(f) (w.e.f. the date to be notified).

97. Subs. by Act 9 of 2023, S. 20 (w.e.f. the date to be notified). Prior to substitution it read
as:
“(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:
Provided that 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
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year of the continuance of such agreement, whichever is higher.”

98. Omitted by Act 39 of 2007, S. 20 (w.e.f. 20-5-2009). Prior to omission it read as:
“(c ) award compensation to parties in accordance with the provisions contained in
Section 34;”

99.
Omitted by Act 39 of 2007, S. 20 (w.e.f. 20-5-2009). Prior to omission it read as:
“(f) recommend to the Central Government for the division of an enterprise enjoying
dominant position;”

100. Subs. for “order” by Act 39 of 2007, S. 20 (w.e.f. 20-5-2009).

101.
Ins. by Act 39 of 2007, S. 20 (w.e.f. 20-5-2009).

102. Subs. by Act 39 of 2007, S. 21 (w.e.f. 20-5-2009). Prior to substitution it read as:
“Central Government, on recommendation under clause (f) of section 27”.

103.
Omitted by Act 39 of 2007, S. 21 (w.e.f. 20-5-2009). Prior to omission it read as:
“(d) the payment of compensation to any person who suffered any loss due to dominant
position of such enterprise;”

104. Ins. by Act 39 of 2007, S. 22 (w.e.f. 1-6-2011).

105.
Subs. for “within thirty days” by Act 9 of 2023, S. 21(a) (w.e.f. the date to be notified).

106. Ins. by Act 39 of 2007, S. 22 (w.e.f. 1-6-2011).

107. Ins. by Act 9 of 2023, S. 21(b) (w.e.f. the date to be notified).

108.
Subs. for “within seven working days” by Act 9 of 2023, S. 21(c )(i) (w.e.f. the date to be
notified).

109.
Ins. by Act 39 of 2007, S. 22 (w.e.f. 1-6-2011).

110. Subs. for “within ten working days” by Act 9 of 2023, S. 21(c )(ii) (w.e.f. the date to be
notified).

111.
Subs. for “within fifteen working days” by Act 9 of 2023, S. 21(d) (w.e.f. the date to be
notified).

112. Subs. for “within fifteen working days” by Act 9 of 2023, S. 21(e) (w.e.f. the date to be
notified).

113. Subs. for “within fifteen days” by Act 9 of 2023, S. 21(f) (w.e.f. the date to be notified).

114.
Subs. by Act 9 of 2023, S. 21(g) (w.e.f. the date to be notified). Prior to substitution it
read as:
“(6) After receipt of all information and within a period of forty-five working days from
the expiry of the period specified in sub-section (5), the Commission shall proceed to deal
with the case in accordance with the provisions contained in Section 31.”

115. Ins. by Act 9 of 2023, S. 21(g) (w.e.f. the date to be notified).

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116.
Ins. by Act 9 of 2023, S. 22 (w.e.f. the date to be notified).

117. Subs. by Act 39 of 2007, S. 23 (w.e.f 1-6-2011).

118. The words “certain” omitted by Act 9 of 2023, S. 23(a) (w.e.f. the date to be notified).

119.
The words “including the combination” omitted by Act 9 of 2023, S. 23(b) (w.e.f. the
date to be notified).

120.
Ins. by Act 9 of 2023, S. 23(c ) (w.e.f. the date to be notified).

121. Subs. by Act 9 of 2023, S. 23(d) (w.e.f. the date to be notified). Prior to substitution it
read as:
“(3) 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.”

122.
Subs. by Act 9 of 2023, S. 23(d) (w.e.f. the date to be notified). Prior to substitution it
read as:
“(4) 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.”

123.
Subs. by Act 9 of 2023, S. 23(d) (w.e.f. the date to be notified). Prior to substitution it
read as:
“(5) If the parties to the combination, who have accepted the modification under sub-
section (4), 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.”

124. Subs. by Act 9 of 2023, S. 23(d) (w.e.f. the date to be notified). Prior to substitution it
read as:
“(6) 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.”

125.
Omitted by Act 9 of 2023, S. 23(e) (w.e.f. the date to be notified). Prior to omission it
read as:
“(7) If the Commission agrees with the amendment submitted by the parties under sub-
section (6), it shall, by order, approve the combination.”

126. Omitted by Act 9 of 2023, S. 23(e) (w.e.f. the date to be notified). Prior to omission it
read as:
“(8) 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).”
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127. Omitted by Act 9 of 2023, S. 23(e) (w.e.f. the date to be notified). Prior to omission it
read as:
“(9) If the parties fail to accept the modification proposed by the Commission within
thirty working days referred to in sub-section (6) 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.”

128. Omitted by Act 9 of 2023, S. 23(e) (w.e.f. the date to be notified). Prior to omission it
read as:
“(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:

Provided that the Commission may, if it considers appropriate, frame a scheme to
implement its order under this sub-section.”

129. Omitted by Act 9 of 2023, S. 23(e) (w.e.f. the date to be notified). Prior to omission it
read as:
“(11) If the Commission does not, on the expiry of a period of two hundred and ten
days from the date of notice given to the Commission under sub-section (2) of Section 6,
pass an order or issue direction in accordance with the provisions of sub-section (1) or
sub-section (2) or sub-section (7), the combination shall be deemed to have been
approved by the Commission.
Explanation.—For the purposes of determining the period of two hundred and ten
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.”

130. Omitted by Act 9 of 2023, S. 23(e) (w.e.f. the date to be notified). Prior to omission it
read as:
“(12) 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.”

131.
Ins. by Act 39 of 2007, S. 25 (w.e.f. 20-5-2009).

132. Subs. for “29 and 30” by Act 9 of 2023, S. 24 (w.e.f. the date to be notified).

133. Ins. by Act 39 of 2007, S. 25 (w.e.f. 20-5-2009).

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134. Subs. by Act 39 of 2007, S. 26 (w.e.f. 20-5-2009).

135. Omitted by Act 39 of 2007, S. 27 (w.e.f. 12-10-2007). Prior to omission it read as:
“34. Power to award compensation.—(1) Without prejudice to any other provisions
contained in this Act, any person may make an application to the Commission 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 any contravention of the provisions of
Chapter II, having been committed by such enterprise.
(2) The Commission 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.
(3) 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 Commission, 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 (5 of 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 Commission and the order of the
Commission thereon.

136. Renumbered by Act 9 of 2023, S. 25 (w.e.f. 18-5-2023).

137. Subs. for “A person or an enterprise” by Act 9 of 2023, S. 25(a) (w.e.f. 18-5-2023).

138. Ins. by Act 9 of 2023, S. 25(b) (w.e.f. 18-5-2023).

139.
Subs. by Act 39 of 2007, S. 29 (w.e.f. 12-10-2007).

140. Omitted by Act 39 of 2007, S. 30 (w.e.f. 12-10-2007). Prior to omission it read as:
“37. Review of orders of Commission.—Any person aggrieved by an order of the
Commission from which an appeal is allowed by this Act but no appeal has been preferred,
may, within thirty days from the date of the order, apply to the Commission for review of
its order and the Commission may make such order thereon as it thinks fit:
Provided that the Commission may entertain a review application after the expiry of the
said period of thirty days, if it is satisfied that the applicant was prevented by sufficient
cause from preferring the application in time:
Provided further that no order shall be modified or set aside without giving an
opportunity of being heard to the person in whose favour the order is given and the
Director General where he was a party to the proceedings.”

141. Subs. by Act 39 of 2007, S. 31 (w.e.f. 20-5-2009).

142. Omitted by Act 39 of 2007, S. 32 (w.e.f. 12-10-2007). Prior to omission it read as:
“40. Appeal.—Any person aggrieved by any decision or order of the Commission may file
an appeal to the Supreme Court within sixty days from the date of communication of the
decision or order of the Commission to him on one or more of the grounds specified in
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Section 100 of the Code of Civil Procedure, 1908 (5 of 1908):

Provided that the Supreme Court may, if it is satisfied that the appellant was prevented
by sufficient cause from filing the appeal within the said period, allow it to be filed within
a further period not exceeding sixty days:
Provided further that no appeal shall lie against any decision or order of the Commission
made with the consent of the parties.”

143 Subs. for sub-section (3) by Act 9 of 2023, S. 26(a) (w.e.f. 18-5-2023). Prior to
substitution it read as:
“(3) Without prejudice to the provisions of sub-section (2), Sections 240 and 240-A of
the Companies Act, 1956 (1 of 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.”

144
Ins. by Act 9 of 2023, S. 26(a) (w.e.f. 18-5-2023).

145
Subs. by Act 9 of 2023, S. 26(b) (w.e.f. 18-5-2023). Prior to substitution it read as:
‘Explanation.—For the purposes of this section,—

(a) the words “the Central Government” under Section 240 of the Companies Act, 1956 (1
of 1956) shall be construed as “the Commission”;

(b) the word “Magistrate” under Section 240-A of the Companies Act, 1956 (1 of 1956)
shall be construed as “the Chief Metropolitan Magistrate, Delhi.”’

146. Subs. by Act 39 of 2007, S. 34 (w.e.f. 20-5-2009).

147. Subs. for “Sections 27, 28, 31, 32, 33, 42-A and 43-A of the Act, he shall be punishable
with fine” by Act 9 of 2023, S. 27(a) (w.e.f. 18-5-2023).

148. Subs. for “pay the fine imposed under sub-section (2)” by Act 9 of 2023, S. 27(b) (w.e.f.
18-5-2023).

149. Ins. by Act 39 of 2007, S. 35 (w.e.f. 20-5-2009).

150. Subs. for “under Sections 27” by Act 9 of 2023, S. 28 (w.e.f. the date to be notified).

151. Subs. by Act 39 of 2007, S. 36 (w.e.f. 20-5-2009).

152. Subs. for “shall be punishable with fine” by Act 9 of 2023, S. 29 (w.e.f. 18-5-2023).

153. Subs. by Act 9 of 2023, S. 30 (w.e.f. the date to be notified). Prior to substitution it read
as:
“43-A. Power to impose penalty for non-furnishing of information on combinations.—If
any person or enterprise who 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 extend to one per cent of the total turnover or the assets, whichever is higher, of
such a combination.”

154. Subs. for “rupees one crore” by Act 9 of 2023, S. 31 (w.e.f. 18-5-2023).

155. Subs. for “offences” by Act 9 of 2023, S. 32(a) (w.e.f. 18-5-2023).

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156.
Subs. by Act 39 of 2007, S. 38 (w.e.f. 20-5-2009).

157.
Ins. by Act 9 of 2023, S. 32(b)(i) (w.e.f. 18-5-2023).

158. Subs. for “punishable with fine” by Act 9 of 2023, S. 32(b)(ii) (w.e.f. 18-5-2023).

159.
Subs. by Act 9 of 2023, S. 33 (w.e.f. the date to be notified). Prior to substitution it read
as:
“46. Power to impose lesser penalty.—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:
Provided that lesser penalty shall not be imposed by the Commission in cases where the
report of investigation directed under Section 26 has been received before making of such
disclosure.
Provided further that 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 has
made the full, true and vital disclosures under this section:
Provided also that 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.
Provided also that 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,

(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 have been liable, had lesser penalty not been
imposed.”

160. Ins. by Act 9 of 2023, S. 34 (w.e.f. the date to be notified).

161. Ins. by Act 9 of 2023, S. 34 (w.e.f. the date to be notified).

162.
Subs. by Act 9 of 2023, S. 35 (w.e.f. the date to be notified). Prior to substitution it read
as:
“48. Contravention by companies.—(1) 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
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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:
Provided that 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.
(2) Notwithstanding anything contained in sub-section (1), 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.
Explanation.—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.”

163. Ins. by Act 9 of 2023, S. 35 (w.e.f. the date to be notified).

164.
Ins. by Act 9 of 2023, S. 35 (w.e.f. the date to be notified).

165.
Ins. by Act 9 of 2023, S. 35 (w.e.f. the date to be notified).

166. Subs. by Act 39 of 2007, S. 40 (w.e.f. 12-10-2007).

167. Ins. by Act 39 of 2007, S. 40 (w.e.f. 12-10-2007).

168.
The words “, as may be prescribed,” omitted by Act 39 of 2007, S. 40 (w.e.f. 12-10-
2007).

169. Ins. by Act 9 of 2023, S. 36 (w.e.f. 18-5-2023).

170. Omitted by Act 39 of 2007, S. 41 (w.e.f. 12-10-2007). Prior to omission it read as:
“(b) the monies received as costs from parties to proceedings before the Commission;”

171.
Subs. for “clauses (a) to (c )” by Act 39 of 2007, S. 41 (w.e.f. 12-10-2007).

172. Ins. by Act 9 of 2023, S. 37 (w.e.f. 18-5-2023).

173.
Subs. for “Supreme Court” by Act 39 of 2007, S. 42 (w.e.f. 12-10-2007).

174. Ins. by Act 39 of 2007, S. 43 (w.e.f. 12-10-2007 for S. 53-A, 20-12-2007 for Ss. 53-C to
53-M and 20-5-2009 for S. 53-B, S. 53-N, S. 53-O, S. 53-P, S. 53-Q, S. 53-R, S. 53-S, S.
53-T and S. 53-U).

175. Subs. for “COMPETITION APPELLATE TRIBUNAL” by Act 7 of 2017, S. 171(b) (w.e.f. 26-5-
2017).

176.
Subs. by Act 7 of 2017, S. 171(c ) (w.e.f. 26-5-2017). Prior to substitution it read as:
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“53-A. Establishment of Appellate Tribunal.—(1) The Central Government shall, by

notification†, establish an Appellate Tribunal to be known as Competition Appellate
Tribunal,—

(a) to 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 43-A, Section 44, Section 45 or Section 46 of this Act;

(b) 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 finding of
the Commission or under Section 42-A or under sub-section (2) of Section 53-Q of
this Act, and pass orders for the recovery of compensation under Section 53-N of this
Act.
(2) The Headquarter of the Appellate Tribunal shall be at such place as the Central
Government may, by notification, specify.”

177. Subs. for “sub-sections (2) and (6) of Section 26” by Act 9 of 2023, S. 38 (w.e.f. the
date to be notified).

178.
Ins. by Act 9 of 2023, S. 39 (w.e.f. 18-5-2023).

179. Omitted by Act 7 of 2017, S. 171(d) (w.e.f. 26-5-2017). Prior to omission it read as:
“53-C. Composition of Appellate Tribunal.—The Appellate Tribunal shall consist of a
Chairperson and not more than two other Members to be appointed by the Central
Government.”

180.
Omitted by Act 7 of 2017, S. 171(d) (w.e.f. 26-5-2017). Prior to omission it read as:
“53-D. Qualifications for appointment of Chairperson and Members of Appellate
Tribunal.—(1) The Chairperson of the Appellate Tribunal shall be a person, who is, or has
been a Judge of the Supreme Court or the Chief Justice of a High Court.
(2) A Member of the Appellate Tribunal shall be a person of ability, integrity and
standing having special knowledge of, and professional experience of not less than twenty
-five years in, competition matters, including competition law and policy, international
trade, economics, business, commerce, law, finance, accountancy, management,
industry, public affairs, administration or in any other matter which in the opinion of the
Central Government, may be useful to the Appellate Tribunal.”

181.
Omitted by Act 7 of 2017, S. 171(d) (w.e.f. 26-5-2017). Prior to omission it read as:
“53-E. Selection Committee.—(1) The Chairperson and Members of the Appellate
Tribunal 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.

(2) The term of the Selection Committee and the manner of selection of panel of names
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shall be such as may be prescribed.”

182. Omitted by Act 7 of 2017, S. 171(d) (w.e.f. 26-5-2017). Prior to omission it read as:
“53-F. Term of office of Chairperson and Members of Appellate Tribunal.—The
Chairperson or a Member of the Appellate Tribunal 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 of the Appellate Tribunal shall hold office
as such after he has attained,—

(a) in the case of the Chairperson, the age of sixty-eight years;

(b) in the case of any other Member of the Appellate Tribunal, the age of sixty-five
years.”

183. Omitted by Act 7 of 2017, S. 171(d) (w.e.f. 26-5-2017). Prior to omission it read as:
“53-G. Terms and conditions of service of Chairperson and Members of Appellate
Tribunal.—(1) The salaries and allowances and other terms and conditions of service of
the Chairperson and other Members of the Appellate Tribunal shall be such as may be
prescribed.
(2) The salaries, allowances and other terms and conditions of service of the
Chairperson and other Members of the Appellate Tribunal shall not be varied to their
disadvantage after their appointment.”

184. Omitted by Act 7 of 2017, S. 171(d) (w.e.f. 26-5-2017). Prior to omission it read as:
“53-H. Vacancies.—If, for any reason other than temporary absence, any vacancy
occurs in the office of the Chairperson or a Member of the Appellate Tribunal, the Central
Government shall appoint another person in accordance with the provisions of this Act to
fill the vacancy and the proceedings may be continued before the Appellate Tribunal from
the stage at which the vacancy is filled.”.

185. Omitted by Act 7 of 2017, S. 171(d) (w.e.f. 26-5-2017). Prior to omission it read as:
“53-I. Resignation of Chairperson and Members of Appellate Tribunal.—The Chairperson
or a Member of the Appellate Tribunal may, by notice in writing under his hand addressed
to the Central Government, resign his office:
Provided that the Chairperson or a Member of the Appellate Tribunal 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.”.

186. Omitted by Act 7 of 2017, S. 171(d) (w.e.f. 26-5-2017). Prior to omission it read as:
“53-J. Member of Appellate Tribunal to act as its Chairperson in certain cases.—(1) In
the event of the occurrence of any vacancy in the office of the Chairperson of the
Appellate Tribunal by reason of his death or resignation, the senior-most Member of the
Appellate Tribunal shall act as the Chairperson of the Appellate Tribunal 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.
(2) When the Chairperson of the Appellate Tribunal is unable to discharge his functions
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owing to absence, illness or any other cause, the senior-most Member or, as the case
may be, such one of the Members of the Appellate Tribunal, as the Central Government
may, by notification, authorise in this behalf, shall discharge the functions of the
Chairperson until the date on which the Chairperson resumes his duties.”.

187.
Omitted by Act 7 of 2017, S. 171(d) (w.e.f. 26-5-2017). Prior to omission it read as:
“53-K. Removal and suspension of Chairperson and Members of Appellate Tribunal.—(1)
The Central Government may, in consultation with the Chief Justice of India, remove from
office the Chairperson or any other Member of the Appellate Tribunal, who—

(a) has been adjudged 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 become physically or mentally incapable of acting as such Chairperson or other
Member of the Appellate Tribunal; or

(e) has acquired such financial or other interest as is likely to affect prejudicially his
functions as such Chairperson or Member of the Appellate Tribunal; or

(f) has so abused his position as to render his continuance in office prejudicial to the
public interest.
(2) Notwithstanding anything contained in sub-section (1), no Chairperson or a Member
of the Appellate Tribunal shall be removed from his office on the ground specified in
clause (e) or clause (f) of sub-section (1) except by an order made by the Central
Government after an inquiry made in this behalf by a Judge of the Supreme Court in which
such Chairperson or Member had been informed of the charges against him and given a
reasonable opportunity of being heard in respect of those charges.”.

188.
Omitted by Act 7 of 2017, S. 171(d) (w.e.f. 26-5-2017). Prior to omission it read as:
“53-L. Restriction on employment of Chairperson and other Members of Appellate
Tribunal in certain cases.—The Chairperson and other Members of the Appellate Tribunal
shall not, for a period of two years from the date on which they cease to hold office,
accept any employment in, or connected with the management or administration of, any
enterprise which has been a party to a proceeding before the Appellate Tribunal under
this Act:
Provided that 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 (1 of 1956).”

189. Omitted by Act 7 of 2017, S. 171(d) (w.e.f. 26-5-2017). Prior to omission it read as:
“53-M. Staff of Appellate Tribunal.—(1) The Central Government shall provide the
Appellate Tribunal with such officers and other employees as it may think fit.
(2) The officers and other employees of the Appellate Tribunal shall discharge their
functions under the general superintendence and control of the Chairperson of the
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Appellate Tribunal.
(3) The salaries and allowances and other conditions of service of the officers and other
employees of the Appellate Tribunal shall be such as may be prescribed.”.

190. Subs. by Act 9 of 2023, S. 40(a) (w.e.f. the date to be notified).

“under sub-section (2) of Section 53-Q 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 the enterprise” by Act 9 of 2023, S. 40(a) (w.e.f. the date
to be notified).

191. Ins. by Act 9 of 2023, S. 40(b) (w.e.f. the date to be notified).

192.
Ins. by Act 9 of 2023, S. 40(c )(i) (w.e.f. the date to be notified).

193. Ins. by Act 9 of 2023, S. 40(c )(ii) (w.e.f. the date to be notified).

194. Subs. by Act 9 of 2023, S. 41 (w.e.f. 18-5-2023). Prior to substitution it read as:
“(1) 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:
Provided that 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
authorised by the Appellate Tribunal.”

195. Omitted by Act 7 of 2017, S. 171(d) (w.e.f. 26-5-2017). Prior to omission it read as:
“53-R. Vacancy in Appellate Tribunal not to invalidate acts or proceedings.—No act or
proceeding of the Appellate Tribunal shall be questioned or shall be invalid merely on the
ground of existence of any vacancy or defect in the constitution of the Appellate
Tribunal.”

196. Subs. for “the Commission” by Act 39 of 2007, S. 44 (w.e.f. 12-10-2007).

197.
Subs. by Act 39 of 2007, S. 45 (w.e.f. 12-10-2007).

198. Subs. by Act 39 of 2007, S. 46 (w.e.f. 12-10-2007). Prior to substitution it read as:
“Registrar or officers or other employees of the Commission”

199.
Ins. by Act 9 of 2023, S. 42 (w.e.f. 18-5-2023).

200. Subs. for “Commission” by Act 39 of 2007, S. 47 (w.e.f. 12-10-2007).

201. Ins. by Act 9 of 2023, S. 43(i) (w.e.f. 18-5-2023).

202.
Subs. by Act 39 of 2007, S. 48 (w.e.f. 12-10-2007).

203. Re-lettered by Act 9 of 2023, S. 43(i) (w.e.f. 18-5-2023).

204. Omitted by Act 39 of 2007, S. 48 (w.e.f. 12-10-2007). Prior to omission it read as:
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“(c ) the financial and administrative powers which may be vested in the Member
Administration under Section 13;”

205.
Ins. by Act 39 of 2007, S. 48 (w.e.f. 12-10-2007).

206. Subs. for “such other advisers, consultants or officers” by Act 39 of 2007, S. 48 (w.e.f.
12-10-2007).

207.
Subs. for “such other advisers, consultants or officers” by Act 39 of 2007, S. 48 (w.e.f.
12-10-2007).

208.
Subs. for “Registrar” by Act 39 of 2007, S. 48 (w.e.f. 12-10-2007).

209. Omitted by Act 39 of 2007, S. 48 (w.e.f. 12-10-2007). Prior to omission it read as:
“(h) for securing any case or matter which requires to be decided by a Bench composed
of more than two Members under sub-section (4) of Section 23;”

210. Omitted by Act 39 of 2007, S. 48 (w.e.f. 12-10-2007). Prior to omission it read as:
“(i) any other matter in respect of which the Commission shall have power under clause
(g) of sub-section (2) of Section 36;”

211.
Omitted by Act 39 of 2007, S. 48 (w.e.f. 12-10-2007). Prior to omission it read as:
“(j) the promotion of competition advocacy, creating awareness and imparting training
about competition issues under sub-section (3) of Section 49;”

212. Ins. by Act 39 of 2007, S. 48 (w.e.f. 12-10-2007).

213.
Omitted by Act 7 of 2017, S. 171(e) (w.e.f. 26-5-2017). Prior to omission it read as:
“(mb) the term of the Selection Committee and the manner of selection of panel of
names under sub-section (2) of Section 53-E;”.

214.
Omitted by Act 7 of 2017, S. 171(e) (w.e.f. 26-5-2017). Prior to omission it read as:
“(mc) the salaries and allowances and other terms and conditions of service of the
Chairperson and other Members of the Appellate Tribunal under sub-section (1) of Section
53-G;”.

215. Omitted by Act 7 of 2017, S. 171(e) (w.e.f. 26-5-2017). Prior to omission it read as:
“(md) the salaries and allowances and other conditions of service of the officers and
other employees of the Appellate Tribunal under sub-section (3) of Section 53-M;”.

216.
Ins. by Act 9 of 2023, S. 43(ii) (w.e.f. 18-5-2023).

217. Subs. by Act 39 of 2007, S. 48 (w.e.f. 12-10-2007).

218. Subs. by Act 9 of 2023, S. 44(i) (w.e.f. 18-5-2023). Prior to substitution it read as:
“(c ) the form in which details of the acquisition shall be filed under sub-section (5) of
Section 6;”

219. Ins. by Act 9 of 2023, S. 44(i) (w.e.f. 18-5-2023).

220. Subs. by Act 39 of 2007, S. 49 (w.e.f. 12-10-2007).

221.
Ins. by Act 9 of 2023, S. 44(ii) (w.e.f. 18-5-2023).
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222. Corrected by corrigendum dated 26-4-2023, Issue No. 11.

223.
Ins. by Act 9 of 2023, S. 44(iii) (w.e.f. 18-5-2023).

224.
Ins. by Act 9 of 2023, S. 45 (w.e.f. 18-5-2023).

225. Ins. by Act 9 of 2023, S. 45 (w.e.f. 26-10-2023).

226. Subs. by Act 39 of 2007, S. 50 (w.e.f. 1-9-2009).

227.
The proviso and the Explanation omitted by Act 39 of 2009, S. 2(a) (w.r.e.f. 14-10-
2009). Prior to omission it read as:
“Provided that, notwithstanding anything contained in this sub-section, the Monopolies
and Restrictive Trade Practices Commission established under sub-section (1) of Section
5 of the repealed Act may continue to exercise jurisdiction and powers under the repealed
Act for a period of two years from the date of the commencement of this Act in respect
of all cases or proceedings (including complaints received by it or references or
applications made to it) filed before the commencement of this Act as if the Monopolies
and Restrictive Trade Practices Act, 1969 (54 of 1969) had not been repealed and all the
provisions of the said Act so repealed shall mutatis mutandis apply to such cases or
proceedings or complaints or references or applications and to all other matters.
Explanation.—For the removal of doubts, it is hereby declared that nothing in this
proviso shall confer any jurisdiction or power upon the Monopolies and Restrictive Trade
Practices Commission to decide or adjudicate any case or proceeding arising under the
Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969) on or after the
commencement of this Act.”

228.
Subs. by Act 39 of 2007, S. 50 (w.e.f. 1-9-2009).

229. Subs. for “the Central Government” by Act 39 of 2007, S. 50 (w.e.f. 1-9-2009).

230. Subs. by Act 39 of 2007, S. 50 (w.e.f. 1-9-2009). Prior to substitution it read as:
“the Central Government shall, out of the monies standing”

231.
Subs. by Act 39 of 2007, S. 50 (w.e.f. 1-9-2009).

232. Subs. by Act 39 of 2007, S. 50 (w.e.f. 1-9-2009).

233. Subs. by Act 39 of 2009, S. 2(b)(i) (w.r.e.f. 14-10-2009). Prior to substitution it read as:
“after the expiry of two years referred to in the proviso to sub-section (1)”

234. Ins. by Act 39 of 2009, S. 2(b)(ii) (w.r.e.f. 14-10-2009).

235. Subs. for “on or before the expiry of two years referred to in the proviso to sub-section
(1)” by Act 39 of 2009, S. 2(c )(i) (w.r.e.f. 14-10-2009).

236. Ins. by Act 39 of 2009, S. 2(c )(ii) (w.r.e.f. 14-10-2009).

237.
Subs. by Act 39 of 2007, S. 50 (w.e.f. 1-9-2009).

238. Subs. by Act 39 of 2009, S. 2(d) (w.r.e.f. 14-10-2009). Prior to substitution it read as:
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“after the expiry of two years referred to in the proviso to sub-section (1)”

239. Ins. by Act 39 of 2009, S. 2(e) (w.r.e.f. 14-10-2009).

240. Subs. for “five years” by Noti. No. S.O. 1192(E), dt. 16-3-2022 (w.e.f. 16-3-2022).

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