THE COMPETITION ACT, 2002

THE COMPETITION ACT, 2002

(12 OF 2003)

CONTENTS

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THE COMPETITION ACT, 2002¹

No. 12 OF 2003

[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 inter-ests 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:—

CHAPTER I

PRELIMINARY

Short title, extent and commencement

1. (1) This Act may be called the Competition Act, 2002.

• 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.

Definitions

2. In this Act, unless the context otherwise requires,—

• “acquisition” means, directly or indirectly, acquiring or agreeing to acquire—

• shares, voting rights or assets of any enterprise; or

• control over management or control over assets of any enterprise;

• “agreement” includes any arrangement or understanding or action in concert,—

(i)    whether or not, such arrangement, understanding or action is formal or in writing; or

• whether or not such arrangement, understanding or action is intended to be enforceable by legal proceedings;

²[(ba)“Appellate Tribunal” means the Competition Appellate Tribunal established under sub-section (1) of Section 53A”]

• The following Act of Parliament received the assent of the President on the 13th January, 2003

• by Competition (Amendment) Act, 2007

(1)

• “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;

• “Chairperson” means the Chairperson of the Commission appointed under sub-section (1) of section 8;

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

• “consumer” means any person who—

• 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

• hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any

(2)

Explanation.-For the purposes of this clause,—

• “activity” includes profession or occupation;

• a plant  or  factory  established for  the  production, storage, supply,

• “goods” means goods as defined in the Sale of Goods Act, 1930 (3 of 1930) and includes—

• products manufactured, processed or mined; (B)debentures, stocks and shares after allotment;

(k)  “notification” means a notification published in the Official Gazette; (l)

“person” includes—

• an individual;

(ii)   a Hindu undivided family; (iii)  a company;

• a firm;

• an association of persons or a body of individuals, whether incorporated or not, in India or outside India; or

• any body corporate incorporated by or under the laws of a country outside India;

• a co-operative society registered under any law relating to cooperative societies;

• a local authority;

• every artificial juridical person, not falling within any of the preceding sub-clauses;

(m)  “practice” includes any practice relating to the carrying on of any trade by a person or an enterprise;

• “prescribed” means prescribed by rules made under this Act;

• “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;

• “public financial institution” means a public financial institution specified under section 4A of the Companies Act, 1956 (1 of 1956) and includes a

(3)

State Financial, Industrial or Investment Corporation;

• “regulations” means the regulations made by the Commission under section 64;

• “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;

• “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;

• stock except where a distinction between stock and share is expressed or implied;

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

• “trade” means any trade, business, industry, profession or occupation relating to the production, supply, distribution, storage or control of goods and includes the provision of any services;
• “turnover” includes value of sale of goods or services;

• words and expressions used but not defined in this Act and defined in the Companies Act, 1956 (1 of 1956) shall have the same meanings respectively assigned to them in that Act.

(4)

CHAPTER II

PROHIBITION OF CERTAIN AGREEMENTS, ABUSE OF DOMINANT POSITION AND REGULATION OF COMBINATIONS

Prohibition of agreements

Anti-competitive agreements

3. (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.

• Any agreement entered into in contravention of the provisions contained in subsection (1) shall be void.

• Any agreement entered into between enterprises or associations of

enterprises or persons or associations of persons or between any person and enterprise or practice carried on, or decision taken by, any association of enterprises or association of persons, including cartels, engaged in identi-cal or similar trade of goods or provision of services, which—

• directly or indirectly determines purchase or sale prices;

• limits or controls production, supply, markets, technical development, investment or provision of services;

• 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 competi-tion:

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.

Explanation.—For the purposes of this sub-section, “bid rigging” means any agree-ment, 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

• Any agreement amongst enterprises or persons at different stages or levels

of services, including—

(5)

• tie-in arrangement;

• exclusive supply agreement;

• exclusive distribution agreement;

• refusal to deal;

• 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.

Explanation.—For the purposes of this sub-section,—

• “tie-in arrangement” includes any agreement requiring a purchaser of goods, as a condition of such purchase, to purchase some other goods;

• “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;

• “exclusive distribution agreement” includes any agreement to limit, restrict or withhold the output or supply of any goods or allocate any area or market for the disposal or sale of the goods;

• “refusal to deal” includes any agreement which restricts, or is likely to restrict, by any method the persons or classes of persons to whom goods are sold or from whom goods are bought;

• “resale price maintenance” includes any  agreement to sell goods on

(5) Nothing contained in this section shall restrict—

• the right of any person to restrain any infringement of, or to impose

reasonable conditions, as may be necessary for protecting any of his rights which have been or may be conferred upon him under—

• the Copyright Act, 1957 (14 of 1957);

• the Patents Act, 1970 (39 of 1970);

• the Trade and Merchandise Marks Act, 1958 (43 of 1958) or the Trade Marks Act, 1999 (47 of 1999);
• the Geographical Indications of Goods (Registration and Protection)

Act, 1999 (48 of 1999); (e) the Designs Act, 2000 (16 of 2000);

(6)

• directly or indirectly, imposes unfair or discriminatory—

• condition in purchase or sale of goods or service; or

• price in purchase or sale (including predatory price) of goods or service.

Explanation.— For the purposes of this clause, the unfair or discriminatory con-dition in purchase or sale of goods or service referred to in sub-clause (i) and unfair or discriminatory price in purchase or sale of goods (including predatory price) or service referred to in sub-clause (ii) shall not include such discriminatory condition or price which may be adopted to meet the competition; or

• limits or restricts—

• production of goods or provision of services or market there for  or

• 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 ⁵[in any manner]; or

• makes conclusion of contracts subject to acceptance by other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts; or

• 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—

• “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

• affect its competitors or consumers or the relevant market in its favour.

• “predatory price” means the  sale  of goods or provision  of services, at

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 com-petition or eliminate the competitors.

• by Competition (Amendment) Act, 2007 for “No enterprise shall abuse its dominant position.”

• by Competition (Amendment) Act, 2007 for “under sub-section (1), if an enterprise”

• by Competition (Amendment) Act, 2007

(7)

(a)  any acquisition where—

• 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,—

• either, in India, the assets of the value of more than rupees one thousand crores or turnover more than rupees three thousand crores; or

• ⁷[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]

• the group,  to which the  enterprise whose control,  shares, assets or

voting rights have been acquired or are being acquired, would belong after the acquisition, jointly have or would jointly have,—

• either in India, the assets of the value of more than rupees four thou sand crores or turnover more than rupees twelve thousand crores; or

• ⁸[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]

• 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—
• by Competition (Amendment) Act, 2007

• by Competition (Amendment) Act, 2007 for:

“ in India or outside India, in aggregate, the assets of the value of more than five hundred million US dollars or turnover more than fifteen hundred million US dollars; or”

• by Competition (Amendment) Act, 2007 for:

“ in India or outside India, in aggregate, the assets of the value of more than two billion US dollars or turnover more than six billion US dollars; or”

(8)

• the enterprise over which control has been acquired along with the enterprise over which the acquirer already has direct or indirect control jointly have,—

• 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,—

• either in India, the assets of the value of more than rupees four thou sand crores or turnover more than rupees twelve thousand crores or

• any merger or amalgamation in which—

• the enterprise remaining after merger or the enterprise created as a result of the amalgamation, as the case may be, have,—

• by Competition (Amendment) Act, 2007 for

“ in India or outside India, in aggregate, the assets of the value of more than five hundred million US dollars or turnover more than fifteen hundred million US dollars; or”

• by Competition (Amendment) Act, 2007 for

“ in India or outside India, in aggregate, the assets of the value of more than two billion US dollars or turnover more than six billion US dollars; or”

• by Competition (Amendment) Act, 2007 for

“ in India or outside India, in aggregate, the assets of the value of more than five hundred million US dollars or turnover more than fifteen hundred million US dollars; or”

(9)

• the group, to which the enterprise remaining after the merger or the enter prise created as a result of the amalgamation, would belong after the merger or the amalgamation, as the case may be, have or would have,—

Explanation.— For the purposes of this section,—

• “control” includes controlling the affairs or management by—

• one or more enterprises, either jointly or singly, over another enterprise or group;

• appoint more than fifty per cent of the members of the board of directors in the other enterprise; or

• control the management or affairs of the other enterprise;

• the value of assets shall be determined by taking the book value  of the

indication, geographical indications, design or layout- design or similar other commercial rights, if any, referred to in sub-section (5) of section 3.

Regulation of combinations

6. (1) No person or enterprise shall enter into a combination which causes or is likely to cause an appreciable adverse effect on competition within the

relevant market in India and such a combination shall be void.

• by Competition (Amendment) Act, 2007 for:

“in India or outside India, the assets of the value of more than two billion US dollars or turn over more than six billion US dollars

(10)

• Subject to the provisions contained in sub-section (1), any  person or

of the proposed combination, within ¹⁴ [thirty days] of—

• approval of the proposal relating to merger or amalgamation, referred to in clause (c) of section 5, by the board of directors of the enterprises concerned with such merger or amalgamation, as the case may be;

• execution of any agreement or other document for acquisition referred

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

(b) of that section.

¹⁵[(2A)No combination shall come into effect until two hundred and ten days have passed from the day on which the notice has been given to the Commission under sub-section(2) or the Commission has passed orders under section 31, which-ever is earlier.]

• The Commission shall, after receipt of notice under sub-section (2), deal with such notice in accordance with the provisions contained in sections

29, 30 and 31.

• The provisions  of this section shall not apply  to share subscription or

• The public financial institution, foreign institutional investor,  bank  or

venture capital fund, referred to in sub-section (4), shall, within seven days

in clause (a) of the Explanation to section 115AD of the Income-tax Act,

1961(43 of 1961);

• “venture capital  fund” has  the same meaning as assigned to it in clause

• of the Explanation to clause (23 FB) of section 10  of the  Income-tax

Act, 1961(43 of 1961);.

• by Competition (Amendment) Act, 2007 for “may, at his or its option”
• by Competition (Amendment) Act, 2007 for “seven days”
• by Competition (Amendment) Act, 2007

(11)

CHAPTER III

COMPETITION COMMISSION OF INDIA

Establishment of Commission

7. (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”.

• 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.

Composition of Commission

¹⁶[8.(1) The Commission shall consist of a Chairperson and not less than two and not more than six other Members to be appointed by the Central Government.

• The Chairperson and every other Member shall be a person of ability, integrity and standing and who has special knowledge of, and such

(3)  The Chairperson and other Members shall be whole-time Members.]

• by Competition (Amendment) Act, 2007 for ;
  • The Commission shall consist of a Chairperson and not less than two and not more than ten other Members to be appointed by the Central Government:

Provided that the Central Government shall appoint the Chairperson and a Member during the first year of the establishment of the Commission.

• The Chairperson and every other Member shall be a person of ability, integrity and standing and who has been, or is qualified to be a judge of a High Court, or, has special knowledge of, and professional experience of not less than fifteen years in 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 Commission.

• The Chairperson and other Members shall be whole-time Members.”

(12)

¹⁷[Selection Committee for Chairperson and Members of Commission]

¹⁸[9. (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 –

1. two experts of repute who have special knowledge of, and professional ex

competition law and policy

• The term of the Selection Committee and the manner of selection of panel of names shall be such as may be prescribed.]

Term of office of Chairperson and other Members

¹⁹[Provided that the Chairperson or other Members shall not hold office as such after he has attained the age of sixty-five years]

• A vacancy caused by the resignation or removal of the Chairperson or any

form, manner and before such authority, as may be prescribed.

• 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.

• by Competition (Amendment) Act, 2007 for “Selection of Chairperson and other Members”
• by Competition (Amendment) Act, 2007 for:

“The Chairperson and other Members shall be selected in the manner as may be prescribed.”

• by Competition (Amendment) Act, 2007 for:

“Provided that no Chairperson or other Member shall hold office as such after he has attained-

• in the case of the Chairperson, the age of sixty-seven years;

• in the case of any other Member, the age of sixty-five years.”

(13)

• 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.

Resignation, removal and suspension of Chairperson and other members

11. (1) The Chairperson or any  other  Member  may,  by notice  in writing under

• 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,—

• 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

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

• has become physically or mentally incapable of acting as a Member.

• 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)

Restriction on employment of Chairperson and other Members in certain cases

enterprise which has been a party to a proceeding before the Commission under this Act:

²⁰  Subs. by Competition (Amendment) Act, 2007 for “one year”

(14)

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).

²¹[Administrative powers of Chairperson]

²²[13. The Chairperson shall have the powers of general superintendence, direction and control in respect of all administrative matters of the Commission:

Salary and allowances and other terms and conditions of service of Chairperson and other Members

14. (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.

Vacancy, etc. not to invalidate proceedings of Commission

15. No act or proceeding of the Commission shall be invalid merely by reason of—

• any vacancy in, or any defect in the constitution of, the Commission; or

• any defect in the appointment of a person acting as a Chairperson or as a Member; or
• any irregularity in the procedure of the Commission not affecting the merits of the case.

• by Competition (Amendment) Act, 2007 for “Financial and administrative powers of Member Administration”
• by Competition (Amendment) Act, 2007 for:

“ The Central Government shall designate any Member as Member Administration who shall exercise such financial and administrative powers as may be vested in him under the rules made by the Central Government:

Provided that the Member Administration shall have authority to delegate such of his financial and administrative powers as he may think fit to any other officer of the Commission subject to the condition that such officer shall, while exercising such delegated powers continue to act under the direction, superintendence and control of the Member Administration.”

(15)

Appointment of Director General, etc.

16. ²³ [(1) The Central Government may, by notification, appoint a Director General for the purposes of assisting the Commission in conducting inquiry

into contravention of any of the provisions of this Act and for performing such other functions as are, or may be, provided by or under this Act.

(1A)    The  number of other  Additional, Joint,  Deputy  or Assistant Directors

General or such officers or other employees in the office of Director

General and the manner of appointment of such Additional, Joint, Deputy or

Assistant Directors General or such officers or other employees shall be such as may be prescribed.”]

• Every Additional,  Joint,  Deputy  and  Assistant Directors  General or

²⁴[such officers or other employees,] shall exercise his powers, and discharge his functions, subject to the general control, supervision and direction of the Director General.

• The salary, allowances and other terms and conditions of service of the Director General and Additional, Joint, Deputy and Assistant Directors General or, ²⁵ [such officers or other employees,] shall be such as may be prescribed.

• The Director  General  and  Additional, Joint,  Deputy  and  Assistant

international trade, law or economics and such other qualifications as may be prescribed.

• by Competition (Amendment) Act, 2007 for :

“  The Central Government may, by notification, appoint a Director General and as many

Additional, Joint, Deputy or Assistant Directors General or such other advisers, consultants or officers, as it may think fit, for the purposes of assisting the Commission in conducting inquiry into contravention of any of the provisions of this Act and for the conduct of cases before the Commission and for performing such other functions as are, or may be, provided by or under this Act”

• by Competition (Amendment) Act, 2007 for “such other advisers, consultants and officers,”
• by Competition (Amendment) Act, 2007 for “such other advisers, consultants and officers,”
• by Competition (Amendment) Act, 2007 for “such other advisers, consultants and officers,”

(16)

²⁷[Appointment of Secretary, experts, professionals and officers and other employees of Commission]

• by Competition (Amendment) Act, 2007 for “Registrar and officers and other employees of Commission”
• by Competition (Amendment) Act, 2007 for:

(1)   The Commission may appoint a Registrar and such officers and other employees as it considers necessary for the efficient performance of its functions under this Act

• The salaries and allowances payable to and other terms and conditions of service of the

Registrar and officers and other employees of

the Commission and the number of such officers and other employees shall be such as may be prescribed.”

(17)

CHAPTER IV

DUTIES, POWERS AND FUNCTIONS OF COMMISSION

Duties of Commission

18. 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.

Inquiry into certain agreements and dominant position of enterprise

19. (1) The Commission may inquire into any alleged contravention of the provisions contained in subsection (1) of section 3 or sub-section (1) of section 4 either on its own motion or on—

(a)  ²⁹[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.

• 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).

• creation of barriers to new entrants in the market;

• driving existing competitors out of the market;

• foreclosure of competition by hindering entry into the market;

• accrual of benefits to consumers;

(e)  improvements in production or distribution of goods or provision of services;

• promotion of technical, scientific and economic development by means of production or distribution of goods or provision of services.

²⁹ Subs. by Competition (Amendment) Act, 2007 for “receipt of a complaint,”

(18)

(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:—

• market share of the enterprise;

• size and resources of the enterprise;

• size and importance of the competitors;

• economic power of the enterprise including commercial advantages over competitors;

• vertical integration of the enterprises or sale or service network of such enterprises;

• dependence of consumers on the enterprise;

• 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;

• entry barriers including barriers such as regulatory barriers, financial

risk, high capital cost barriers, economies of service for consumers;

of entry, marketing entry barriers, technical entry scale, high cost of substitutable goods or

• countervailing buying power;

• market structure and size of market; (k) social obligations and social costs;

• relative advantage,by way of the contribution to the economic development, by the enterprise enjoying a dominant position having or likely to have an appreciable adverse effect on competition;

(m)   any other factor which the Commission may consider relevant for the inquiry.

• 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”.

• regulatory trade barriers;

• local specification requirements; (c) national procurement policies;

(d)    adequate distribution facilities; (e) transport costs;

• language;

• consumer preferences;

• need for secure or regular supplies or rapid after-sales services.

(19)

• The Commission shall, while determining the “relevant product market”, have due regard to all or any of the following factors, namely:—

• physical characteristics or end-use of goods;

• price of goods or service

• consumer preferences;

• exclusion of in-house production;

• existence of specialised producers;

• classification of industrial products.

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 subsection after the expiry of one year from the date on which such combination has taken effect.

• The Commission shall, on receipt of a notice under sub-section (2) of section 6 ³⁰[***], inquire whether a combination referred to in that notice or reference has caused or is likely to cause an appreciable adverse effect on competition in India.

• Notwithstanding anything contained in section 5, the Central Government

shall, on the expiry of a period of two years from the date of commence-ment of this Act and thereafter every two years, in consultation with

• For the purposes of determining whether a combination would have  the

• actual and potential level of competition through imports in the market

• extent of barriers to entry into the market;

• level of combination in the market;

³⁰ The words “or upon receipt of a reference under sub-section (1) of section 21” omitted by Competi-tion (Amendment) Act, 2007

(20)

prices or profit margins;

• extent of effective competition likely to sustain in a market;

• extent to which substitutes are available or arc 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;

• 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;

• nature and extent of innovation;

Reference by statutory authority

21. (1) Where in the course of a proceeding before any statutory authority an issue is raised by any party that any decision which such statutory authority has taken or proposes to take is or would be, contrary to any of the provisions of this Act, then such statutory authority may make a reference in respect of such issue to the Commission:

³¹[Provided that any statutory authority, may, suo motu, make such a reference to the Commission.]

• by Competition (Amendment) Act, 2007
• by Competition (Amendment) Act, 2007 for:

“ On receipt of a reference under sub-section (1), the Commission shall, after hearing the parties to the proceedings, give its opinion to such statutory authority which shall thereafter pass such order on the issues referred to in that sub-section as it deems fit:

Provided that the Commission shall give its opinion under this section within sixty days of receipt of such reference.”

(21)

Provided that the quorum for such meeting shall be three Members.]

• by Competition (Amendment) Act, 2007
• by Competition (Amendment) Act, 2007
• by Competition (Amendment) Act, 2007 for “Benches of Commission”
• by Competition (Amendment) Act, 2007 for:
  • The jurisdiction, power and authority of the Commission may be exercised by Benches thereof.

• The Benches shall be constituted by the Chairperson and each Bench shall consist of not less than two Members.

• Every Bench shall consist of at least one Judicial Member.

Explanation.—For the purposes of this sub-section, “Judicial Member” means a Member who is, or has been, or is qualified to be, a Judge of a High Court.

• The Bench over which the Chairperson presides shall be the Principal Bench and the otherBenches shall be known as the Additional Benches.

• There shall be constituted by the Chairperson one or more Benches to be called the Mergers Bench or Mergers Benches, as the case may be, exclusively to deal with matters referred to in sections 5 and 6.

• The places at which the Principal Bench, other Additional Bench or Mergers Bench shall ordinarily sit, shall be such as the Central Government may, by notification, specify.”

(22)

3723. ³⁷23. [Omitted by the Competition (Amendment) Act, 2007] ³⁸24. [Omitted by the Competition (Amendment) Act, 2007] ³⁹25. [Omitted by the Competition (Amendment) Act, 2007]

• Prior to omission, Section 23 read as under:-

“  Distribution of business of Commission amongst Benches

• 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.

• 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.

• The Chairperson may

• transfer a Member from one Bench to another Bench , or

• authorize 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.”

“  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.”

• Prior to omission, Section 25 read as under: “ 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—

• 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

• 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

• 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 (1) 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.”

(23)

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,

• by Competition (Amendment) Act, 2007 for “Procedure for inquiry on complaints under section 19”
• by Competition (Amendment) Act, 2007 for:

“ Procedure for inquiry on complaints under Section 19

• On receipt of a complaint or a reference from the Central Government or a State

Government or a statutory authority or on its own knowledge or information, 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.

• The Director General shall, on receipt of direction under sub-section (1), submit a report on his findings with in such period as may be specified by the Commission.

• Where on receipt of a complaint under clause (a) of sub-section (1) of section 19, the

Commission is of the opinion that there exists no prima facie case, it shall dismiss the complaint and may pass such orders as it may deems fit, including imposition of costs, if necessary.

• The Commission shall forward a copy of the report referred to in sub-section (2) to the parties concerned or to the Central Government or the State Government or the statutory authority, as the case may be.

• If the report of the Director General relates on a complaint and such report recommends that there is no contravention of any of the provisions of this Act, the complainant shall be given an opportunity to rebut the findings of the Director General.

• If, after hearing the complainant, the Commission agrees with the recommendation of the Director General, it shall dismiss the complaint.

• If, after hearing the complainant, the Commission is of the opinion that further inquiry is called for, it shall direct the complainant to proceed with the complaint.

• If the report of the Director General relates on a reference made under sub-section (/) and such report recommends that there is no contravention of the provisions of this Act, the Commission shall invite comments of the Central Government or the State Government or the statutory authority, as the case may be, on such report and on receipt of such comments, the Commission shall return the reference if there is no prima facie case or proceed with the reference as a complaint if there is a prima facie case.
• If the report of the Director General referred to in sub-section (2) 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.”

(24)

Government or the statutory authority or the parties concerned, as the case may be.

• 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.
• The Commission may forward a copy of the report referred to in sub section(3) to the parties concerned:

Provided that in case the investigation is caused to be made based on reference received from the Central Government or the State Government or the statutory authority, the Commission shall forward a copy of the report referred to in sub- section (3) 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 sub-section (3) reco-

mends 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.

• If, after consideration of the objections and suggestions referred to in

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.]

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

27. Where after inquiry the Commission finds that any agreement referred to in section 3 or action of an enterprise in a dominant position, is in contravention of section 3 or section 4, as the case may be, it may pass all or any of the following orders, namely:—

(25)

• direct any enterprise or association of enterprises or person or association of persons, as the case may be, involved in such agreement, or abuse of dominant position, to discontinue and not to re-enter such agreement or discontinue such abuse of dominant position, as the case may be;

• direct the enterprises concerned to abide Commission may pass and comply with the of costs, if any;

by such other orders as the directions, including payment

⁴⁴(f) [Omitted by Competition (Amendment) Act, 2007]

(g)  pass such other ⁴⁵[order or issue such directions] as it may deem fit.

⁴⁶[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 groupare also responsible for, or have contributed to, such a contravention, then it may pass orders, under this section, against such members of the group.]

• by Competition (Amendment) Act, 2007 for:

“ Provided that in case any agreement referred to in section 3 has been entered into by any cartel, the Commission shall impose upon each producer, seller, distributor, trader or service provider included in that cartel, a penalty equivalent to three times of the amount of profits made out of such agreement by the cartel or ten percent. of the average of the turnover of the cartel for the last preceding three financial years, whichever is higher;”

• Prior to omission, Clause (c) of Section 27 read as under:-

“award compensation to parties in accordance with the provisions contained in section 34;”

• Prior to omission, Clause (c) of Section 27 read as under:-

“recommend to the Central Government for the division of an enterprise enjoying dominant position;”

• by Competition (Amendment) Act, 2007 for “order”
• by Competition (Amendment) Act, 2007

(26)

• the transfer or vesting of property, rights, liabilities or obligations;

• the adjustment of contracts either by discharge or reduction of any liability or obligation or otherwise;

and the registration thereof;

• any other matter which may be necessary to give effect to the division of the enterprise.

• Notwithstanding anything contained in any other law for the time being in force or in any contract or in any memorandum or articles of association, an officer of a company who ceases to hold office as such in consequence of the division of an enterprise shall not be entitled to claim any compensation for such cesser.

• by Competition (Amendment) Act, 2007 for “Central Government, on recommendation under clause(f) of section 27”
• Prior to omission, clause (d) of sub-section(2) of section 28 read as under:-

“the payment of compensation to any person who suffered any loss due to dominant position of such enterprise;”

• by Competition (Amendment) Act, 2007

(27)

(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,

(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 within fifteen working days from the date on which the details of the combination were published under sub-section (2).

• The Commission may, within fifteen working 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.

• 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.

per provisions contained in that section.]

• by Competition (Amendment) Act, 2007
• by Competition (Amendment) Act, 2007
• by Competition (Amendment) Act, 2007 for “Inquiry into disclosure under sub-section(2) of section 6”
• by Competition (Amendment) Act, 2007 for:

“Where any person or enterprise has given a notice under sub-section (2) of section 6. The Commission shall inquire—

• whether the disclosure made in the notice is correct;

• whether the combination has, or is likely to have, an appreciable adverse effect on

competition.”                              ₍₂₈₎

Orders of Commission on certain combinations

31. (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 including the combination in respect of which a notice has been given under sub-section (2) of section 6.

• 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.

• 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.

• The parties, who accept the modification proposed by the Commission under subsection (3), shall carry out such modification within the period specified by the Commission.

with such combination in accordance with the provisions of this Act.

• 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.

• If the Commission agrees with the amendment submitted by the parties under subsection (6), it shall, by order, approve the combination.

• 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).

• 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

(29)

• the acquisition referred to in clause (a) of section 5; or

• the acquiring of control referred to in clause (b) of section 5; or

• 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.

• If the Commission does not, on the expiry of a period of ⁵⁴[two hundred and ten days from the date of notice given to the Commission under sub-

the combination shall be deemed to have been approved by the Commis-sion.

Explanation.—For the purposes of determining the period of ⁵⁵[two hundred and ten] days specified in this subsection, the period of thirty working days specified in sub-section (6) and a further period of thirty working days specified in sub- section (8) shall be excluded.

• Where any extension of time is sought by the parties to the combination, the period of ninety working days shall be reckoned after deducting the extended time granted at the request of the parties.

• Where the Commission has ordered a combination to be void, the acquistion 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.

• 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.

Acts taking place outside India but having an effect on competition in India

32. The Commission shall, notwithstanding that,—

• an agreement referred to in section 3 has been entered into outside India;or

• any party to such agreement is outside India; or

• any enterprise abusing the dominant position is outside India; or

• a combination has taken place outside India; or

• any party to combination is outside India; or

• by Competition (Amendment) Act, 2007 for:

“ninety working days from the date of publication referred to in sub-section(2) of section 29”

• by Competition (Amendment) Act, 2007 for ”ninety days”

(30)

• any other matter or practice or action arising out of such agreement or dominant position or combination is outside India,

deem fit in accordance with the provisions of this Act.]

⁵⁸[Power to issue interim orders]

⁵⁹[33. Where during an inquiry, the Commission is satisfied that an act in contravention of sub-section (1) of section 3 or sub-section (1) of section 4 or section 6 has been committed and continues to be committed or that such act is about to be committed, the Commission may, by order, temporarily restrain any party from carrying on such act until the conclusion of such inquiry or until further orders, without giving notice to such party, where it deems it necessary.]

• by Competition (Amendment) Act, 2007
• by Competition (Amendment) Act, 2007
• by Competition (Amendment) Act, 2007 for “Power to grant interim relief”
• by Competition (Amendment) Act, 2007 for:
  • Where during an inquiry before the Commission, it is proved to the satisfaction of the

Commission, by affidavit or otherwise, 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, grant a temporary injunction restraining any party from carrying on such act until the conclusion of such inquiry or until further orders, without giving notice to the opposite party, where it deems it necessary.

• Where during the inquiry before the Commission it is proved to the satisfaction of the

Commission by affidavit or otherwise that import of any goods is likely to contravene sub-section (1) of section 3 or subsection (1) of section 4 or section 6, it may, by order, grant a temporary injunction restraining any party from importing such goods until the conclusion of such inquiry or until further orders, without giving notice to the opposite party, where it deems it necessary and a copy of such order granting temporary injunction shall be sent to the concerned authorities.

• The provisions of rules 2A to 5 (both inclusive) of Order XXXIX of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908) shall, as far as may be, apply to a temporary injunction issued by the Commission under this Act, as they apply to a temporary injunction issued by a civil court, and any reference in any such rule to a suit shall be construed as a reference to any inquiry before the Commission.

(31)

6034. ⁶⁰ [Omitted by Competition (Amendment) Act, 2007] (39 of 2007 with effect from 12th October 2007)

Appearance before Commission

35. A ⁶¹[person or an enterprise] or the Director General may either appear in person or authorise one or more chartered accountants or company secre-taries 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,—

• “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;

• “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;

• “cost accountant” means a cost accountant as defined in 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;

• “legal practitioner” means an advocate, vakil or an attorney of any High Court, and includes a pleader in practice.
• Prior to omission, section 34 read as under:-“ Power to award compensation

• Without prejudice to any other provisions contained in this Act, any person may make an application to the Commission for an orderfor 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.

• 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 contra vention of the provisions of Chapter II having been committed by such enterprise.
• 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.”

• by Competition (Amendment) Act, 2007 for “complainant or defendant”

(32)

• by Competition (Amendment) Act, 2007 for:

“(1)  The Commission shall not be bound by the procedure laid down by 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 Govern-ment, the Commission shall have powers to regulate its own procedure including the places at which they shall have their sittings, duration of oral hearings when granted, and times of its inquiry.

• The Commission shall have, for the purposes of discharging its functions umder 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:—

• summoning and enforcing the attendance of any person and examining him on oath;

• requiring the discovery and production of documents;

• receiving evidence on affidavits;

• issuing commissions for the examination of witnesses or documents;

• subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1of 1872), requisitioning any public record or document or copy of such record or document from any office;
• dismissing an application in default or deciding it ex parte; (g)any other matter which may be prescribed.

• Every proceeding before the Commission shall be deemed to be a judicial proceeding 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 Commission shall be deemed to be a civil court for the purposes of section 195 (2 of 1974) and Chapter XXVI of the Code of Criminal Procedure, 1973.

• 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 or proceeding before it.
• The Commission may direct any person—

• to produce before the Director General or the Registrar or an officer authorised by it, such books, accounts 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;

• to furnish to the Director General or the Registrar or any 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.

• If the Commission is of the opinion that any agreement referred to in section 3 or “abuse of dominant position referred to in section 4 or the combination referred to in section 5 has caused or is likely to cause an appreciable adverse effect on competition in the relevant market in India and it is necessary to protect, without further delay, the interests of consumers and other market participants in India, it may conduct an inquiry or adjudicate upon any matter under this Act after giving a reason able oral hearing to the parties concerned.”

(33)

• 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:-

• summoning and enforcing the attendance of any person and examining him on oath;

• requiring the discovery and production of documents;

• receiving evidence on affidavit;

• 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.

• 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.

• The Commission may direct any person:

⁶³ 37. [Omitted by Competition (Amendment) Act, 2007] (39 of 2007 with effect from 12th October 2007)

• Prior to omission, section 37 read as under:-“ 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.”

(34)

Rectification of orders

38. (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.

• 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.

⁶⁴ [Execution of orders of Commission imposing monetary penalty]

⁶⁵[39.(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.

• 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.

• Where a reference has  been made by the Commission under  sub-section

• 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

• by Competition (Amendment) Act, 2007 for “Execution of orders of Commission”
• by Competition (Amendment) Act, 2007 for:

“  Every order passed by the Commission under this Act shall be enforced by the Commission

in the same manner as if it were a decree or order made by a High Court or the principal civil court in a suit pending therein and it shall be lawful for the Commission to send, in the event of its inability to execute it, such order to the High Court or the principal civil court, as the case may be, within the local limits of whose jurisdiction,—

• in the case of an order against a person referred to in sub-clause (iii) or sub-clause (vi) or subclause (vii) of clause (l) of section 2, the registered office or the sole or principal place of business of the person in India or where the person has also a subordinate office, that subordinate office, is situated;

• in the case of an order against any other person, the place, where the person concerned voluntarily resides or carries on business or personally works for gain, is situated, and thereupon the court to which the order is so sent shall execute the order as if it were a decree or order sent to it for execution.”

(35)

tax and  sums imposed by way of penalty, fine, and interest under the

Income–tax Act, 1961 (43 of 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 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 XVIID 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 53B of this Act.]

6640. ⁶⁶40. [Omitted by Competition (Amendment) Act, 2007] (39 of 2007 with effect from 12th October 2007)

• Prior to omission, section 40 read as under:-

“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 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.”

(36)

CHAPTER V

DUTIES OF DIRECTOR GENERAL

• Without prejudice to the provisions of sub-section (2), sections 240  and

⁶⁷[Explanation.—For the purposes of this section, —

• 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 240A of the Companies Act, 1956 (1 of1956) shall be construed as “the Chief Metropolitan Magistrate,

Delhi”.]

(37)

CHAPTER VI

PENALTIES

Contravention of orders of Commission

⁶⁸[42.(1) The Commission may cause an inquiry to be made into compliance of its orders or directions made in exercise of its powers under the Act.

• If any person does not comply with the orders or directions issued, or fails

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 authorized by it.]

⁶⁹[Compensation in case of contravention of orders of Commission]

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

• by Competition (Amendment) Act, 2007 for:

“(1) Without prejudice to the provisions of this Act, if any person contravenes, without any reasonable ground, any order of the Commission, 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 fails to pay the penalty imposed under this Act, he shall be liable to be detained in civil prison for a term which may extend to one year, unless in the meantime the Commission directs his release and he shall also be liable to a penalty not exceeding rupees ten lakhs.

• The Commission may, while making an order under this Act, issue such directions to any person or authority, not inconsistent with this Act, as it thinks necessary or desirable, for the proper implementation or execution of the order, and any person who commits breach of, or fails to comply with, any obligation imposed on him under such direction, may be ordered by the Commission to be detained in civil prison for a term not exceeding one year unless in the meantime the Commission directs his release and he shall also be liable to a penalty not exceeding rupees ten lakhs.”

• by Competition (Amendment) Act, 2007
• by Competition (Amendment) Act, 2007

(38)

directions issued by the Commission or contravening, without any reason-able ground, any decision or order of the Commission issued under sections

Penalty for failure to comply with directions of Commission and Director General

⁷¹[43. If any person fails to comply, without reasonable cause, with a direction given by—

• the Commission under sub-sections (2) and (4) of section 36; or

• the Director General while exercising powers referred to in sub-section (2)of section 41,

such person shall be punishable with fine 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.]

⁷²[Power to impose penalty for non-furnishing of information on combinations]

⁷³[43A. 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 percent, of the total turnover or the assets, whichever is higher, of such a combination.]

Penalty for making false statement or omission to furnish material information

44. If any person, being a party to a combination,—

• makes a statement which is false in any material particular, or knowing it to be false; or

• by Competition (Amendment) Act, 2007 for:

“If any person fails to comply with a direction given by—

• the Commission under sub-section (5) of section 36; or

• the Director General while exercising powers referred to in sub-section (2) of section 41, the Commission shall impose on such person a penalty of rupees one lakh for each day during which such failure continues.”

• by Competition (Amendment) Act, 2007
• by Competition (Amendment) Act, 2007

(39)

Penalty for offences in relation to furnishing of information

⁷⁴[45.(1) Without prejudice to the provisions of section 44, if a person, who furnishes or is required to furnish under this Act any particulars, documents or any information,—

• omits to state any material fact knowing it to be material; or

(c)    wilfully alters, suppresses or destroys any document which is required to be furnished as aforesaid,

such person shall be punishable with fine which may extend to rupees one crore as may be determined by the Commission.]

• Without prejudice to the provisions of sub-section(1), the Commission may also pass such other order as it deems fit.

Power to impose lesser penalty

46. The Commission may, if it is satisfied that any producer, seller, distributor, trader or service provider included in any cartel, which is alleged to have violated section 3, has made a full and true disclosure in respect of the alleged violations and such disclosure is vital, impose upon such producer, seller, distributor, trader or service provider a lesser penalty as it may deem fit, than leviable under this Act or the rules or the regulations:

⁷⁵[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.]

⁷⁴  Subs. by Competition (Amendment) Act, 2007 for :

“(1) Without prejudice to the provisions of section 44, if any person, who furnishes or is required to furnish under this Act any particulars, documents or any information—

• makes any statement or furnishes any document which he knows or has reason to believe to be false in any material particular; or

• omits to state any material fact knowing it to be material; or

• wilfully alters, suppresses or destroys any document which is required to be furnished as aforesaid, the Commission shall impose on such person a penalty which may extend to rupees ten lakhs.”

⁷⁵  Subs. by Competition (Amendment) Act, 2007 for:

“Provided that lesser penalty shall not be imposed by the Commission in cases where proceedings for the violation of any of the provisions of this Act or the rules or has the regulations have been instituted or any investigation has been directed to be made under section 26 before making of such disclosure:”

⁷⁶  Subs. by Competition (Amendment) Act, 2007 for “first”

(40)

• not complied with the condition on which the lesser penalty was imposed by the Commission; or
• had given false evidence; or

• the disclosure made is not vital,

and thereupon such producer, seller, distributor, trader or service provider may be tried for the offence with respect to which the lesser penalty was imposed and shall also be liable to the imposition of penalty to which such person has been liable, had

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.

• 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

Explanation.—For the purposes of this section,—

• ”company” means a body corporate and includes a firm or other association of individuals; and

• ”director”, in relation to a firm, means a partner in the firm.

(41)

CHAPTER VII

COMPETITION ADVOCACY

• The opinion given by the Commission under sub-section (1) shall not be binding upon the Central Government ⁷⁹ [or the State Government, as the case may be] in formulating such policy.

• by Competition (Amendment) Act, 2007 for:

“(1) In formulating a policy on competition (including review of laws related to competition), the Central Government may make a reference to the Commission for its opinion on possible effect of such policy on competition and on receipt of such a reference, the Commission shall, within sixty days of making such reference, give its opinion to the Central

Government, which may thereafter formulate the policy as it deems fit.”

• by Competition (Amendment) Act, 2007
• The words “as may be prescribed” omitted by Competition (Amendment) Act, 2007

(42)

CHAPTER VIII

FINANCE, ACCOUNTS AND AUDIT

Grants by Central Government

50. The Central Government may, after due appropriation made by Parliament by law in this behalf, make to the Commission grants of such sums of money as the Government may think fit for being utilised for the purposes of this Act.

Constitution of Fund

51. (1) There shall be constituted a fund to be called the “Competition Fund” and there shall be credited thereto—

• all Government grants received by the Commission;

⁸¹(b) [Omitted by Competition (Amendment) Act, 2007] (c) the fees received under this Act;

• the interest accrued on the amounts referred to in ⁸²[clauses (a) and (c)].

• The Fund shall be applied for meeting—

• the other expenses of the Commission in connection with the discharge of its functions and for the purposes of this Act.

constituted.

Accounts and Audit

52. (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.

• Prior to omission, clause (b) of section 51(1) read as under :-

“the monies received as costs from parties to proceedings before the Commission;”

• by Competition (Amendment) Act, 2007 for “clauses (a) to (c)”

(43)

India.

Explanation.—For the removal of doubts, it is hereby declared that the orders of the Commission, being matters appealable to the ⁸³[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

• The accounts of the Commission as certified by the Comptroller and

Auditor- General of India or any other person appointed by him in this behalf

together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.

Furnishing of returns, etc., to Central Government

(2) The Commission shall prepare once in every year, in such form and at such time as may be prescribed, an annual report giving a true and full account of its activities during the previous year and copies of the report shall be forwarded to the Central Government.

• A copy of the report received under sub-section (2) shall be laid, as soon as may be after it is received, before each House of Parliament.

⁸³  Subs. by Competition (Amendment) Act, 2007 for “Supreme Court”

(44)

⁸⁴[CHAPTER VIIIA

COMPETITON APPELLATE TRIBUNAL

Establishment of Appellate Tribunal:

53A. (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 43A, section 44, section 45 or section 46 of the 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

42A or under sub- section(2) of section 53Q of this Act, and pass orders for the recovery of compensation under section 53N of this Act.

• The Headquarter of the Appellate Tribunal shall be at such place as the

Central Government may, by notification, specify.

referred to in clause (a) of section 53A may prefer an appeal to the Appellate Tribunal.

• Every appeal under sub-section (1) shall be filed within a period of sixty days from the date on which a copy of the direction or decision or order made by the Commission is received by the Central Government or the State Government or a local authority or enterprise or any person referred to in that

sub-section and it shall be in such form and be accompanied by such fee as may be prescribed:

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.

(3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may,

⁸⁴  “Chapter VIIIA” Inserted by Competition (Amendment) Act, 2007

(45)

Selection Committee

53E.(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;

• the Secretary in the Ministry of Law and Justice ……….

• The terms of the Selection Committee and the manner of selection of panel of names shall be such as may be prescribed.

Term of office of Chairperson and Members of Appellate Tribunal

53F.     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, –

• in the case of the Chairperson, the age of sixty-eight years;

• in the case of any other member of the Appellate Tribunal, the age of sixty-five years.

(46)

Terms and conditions of service of chairperson and Members of Appellate

Tribunal

53G(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.

continued before the Appellate Tribunal from the stage at which the vacancy is filled.

Resignation of Chairperson and Members of Appellate Tribunal

53I.      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.

Member of Appellate Tribunal to act as its Chairperson in certain cases

53J. (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.

• When the Chairperson of the Appellate Tribunal is unable to discharge his functions 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

(47)

Removal and suspension of Chairperson and Members of Appellate Tribunal

53K.(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-

• has been adjudged an insolvent; or

• has engaged at any time, during his terms of office, in any paid employment; or

• has been convicted of an offence which, in the opinion of the Centra Government, involves moral turpitude; or

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 op-portunity of being heard in respect of those charges.

Restriction on employment of Chairperson and other Members of Appellate Tribunal in certain cases

Provided that nothing contained in this section shall apply to any employ-ment 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).

Staff of Appellate Tribunal

53M.(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 dis charge their functions under the general superintendence and control of the Chairperson of the Appellate Tribunal.

(48)

• 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.

• 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 de-termined 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.

• 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—

• an application may be made for compensation before the Appellate Tribunal only after either the Commission or the Appellate Tribunal on appeal under clause (a) of sub-section(1) of section 53A of the Act, has determined in a proceeding before it that violation of the provisions of the Act has taken place, or if provisions of section 42A or sub-section(2) of sec-tion 53Q of the Act are attracted.

(49)

• 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:-

1. a) summoning and enforcing the attendance of any person and examining him on oath;

1. issuing commissions for the examination of witnesses or documents;

1. reviewing its decisions;

1. dismissing a representation for default or deciding it exparte;

1. setting aside any order of dismissal of any representation for default or any order passed by it ex parte;

1. any other matter which may be prescribed.

• Every proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian Penal Code (45 of 1860) and the

Appellate Tribunal shall be deemed to be a civil court for the purposes of section 195 (2 of 1974) and Chapter XXVI of the Code or Criminal Proce-dure, 1973.

Execution of orders of Appellate Tribunal

53P.(1) Every order made by the Appellate Tribunal shall be enforced by it in t h e same manner as if it were a decree made by a court in a suit pending

(50)

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,-

1. in the case of an order against a company, the registered office of the company is situated; or

1. 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.

• 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.

Metropolitan Magistrate, Delhi may deem fit:

Provided that the Chief Metropolitan Magistrate, Delhi shall not take cogni-zance of any offence punishable under this sub-section, save on a complaint made by an officer authorized by the Appellate Tribubnal.

Right to legal representation

53S.(1) A person preferring an appeal to the Appellate Tribunal may either appear in person or authorize one or more chartered accountants or company secre-taries or cost accountants or legal practitioners or any of its officers to present his or its case before the Appellate Tribunal.

(51)

spect to any appeal before  the Appellate Tribunal.

• The Commission may authorize one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to act as presenting officers and every person so authorized may present the case with respect to any appeal before the Appellate Tribunal.

(52)

CHAPTER IX

MISCELLANEOUS

• any enterprise which performs a sovereign function on behalf of the Central Government or a State Government:

Power of Central Government to issue directions

55.(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 Govern-ment may give in writing to it from time to time:

• The decision of the Central Government whether a question is one of policy or not shall be final.

Power of Central Government to supersede Commission

56. (1) If at any time the Central Government is of the opinion—

• 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

• that the Commission has persistently made default in complying with

(53)

• 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:

• Upon the publication of a notification under sub-section (1) superseding the Commission,—

• the Chairperson and other Members shall as from the date of supersession, vacate their offices as such;

• all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Commission shall, until the Commission is reconstituted under sub-section (3), be exercised and discharged by the Central Government or such authority as the Central Government may specify in this behalf;

(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.

Restriction on disclosure of information

57. No information relating to any enterprise, being an information which has been obtained by or on behalf of ⁸⁵[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.

(54)

⁸⁶[Chairperson, Members, Director General, Secretary, officers and other employees, etc., to be public servants]

⁸⁷[58.The Chairperson and  other  Members and  the Director General, Additional,

Joint, Deputy or Assistant Directors General and Secretary and officers and other employees of the Commission and the Chairperson, Members, officers and other employees of the Appellate Tribunal shall be deemed, while acting or pur-porting to act in pursuance of any of the provisions of this Act, to be public ser-vants within the meaning of section 21 of the Indian Penal Code (45 of 1860).]

Protection of action taken in good faith

Deputy or Assistant Directors General or ⁸⁸[the Secretary or officers or other employees of the Commission or the Chairperson, Members, officers and other employees of the Appellate Tribunal] for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder.

Act to have overriding effect

60. The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.

Exclusion of jurisdiction of civil courts

61. No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the ⁸⁹ [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.

• by Competition (Amendment) Act, 2007 for “Members, Director General, Registrar, officers and other employees, etc. of Commission to be public servants”
• by Competition (Amendment) Act, 2007 for :

“The Chairperson and other Members and the Director General, Additional, Joint, Deputy or

Assistant Directors General and Registrar and officers and other employees of the

Commission 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).”

• by Competition (Amendment) Act, 2007 for “the Registrar or officers or other employees of the Commission”
• by Competition (Amendment) Act, 2007 for “Commission”

(55)

• 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:-—

• the qualifications for appointment of the Director General, Additional,

Joint, Deputy   or   Assistant  Directors             General  or

officers or other employees] under sub-section (4) of section 16;

• by Competition (Amendment) Act, 2007 for:

“ the manner in which the Chairperson and other Members shall be selected under section 9;”

• Prior to omission, clause (c) of sub-section(2) of section 63 read as under:-

“the financial and administrative powers which may be vested in the Member Administration

under section 13;”

• by Competition (Amendment) Act, 2007
• by Competition (Amendment) Act, 2007 for “such other advisers, consultants or officers”

• by Competition (Amendment) Act, 2007 for “such other advisers, consultants or officers”

(56)

⁹⁶(h) [Omitted by Competition (Amendment) Act, 2007]

⁹⁷(i)  [Omitted by Competition (Amendment) Act, 2007]

⁹⁸(j)  [Omitted by Competition (Amendment) Act, 2007]

• the form in which the annual statement of accounts shall be prepared under sub-section (1) of section 52;

• 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;

• the form in which and the time within which the annual report shall be prepared under sub-section (2) of section 53;

⁹⁹[(ma) the form in which an appeal may be filed before the Appellate Tribunal under sub-section (2) of section 53B and the fees payable in respect of such appeal;

(mb)  the term of the Selection Committee and the manner of selection of panel of names under sub-section(2) of section 53E;

sub-section (3) of section 53M;

• by Competition (Amendment) Act, 2007 for “Registrar”
• Prior to omission, clause (h) of sub-section(2) of section 63 read as under:-

“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;”

• Prior to omission, clause (i) of sub-section(2) of section 63 read as under:-

“any other matter in respect of which the Commission shall have power under clause (g) of sub-section (2) of section 36;”

• Prior to omission, clause (j) of sub-section(2) of section 63 read as under:-

“the promotion of competition advocacy, creating awareness and imparting training about competition issues under sub-section (3) of section49;”

• by Competition (Amendment) Act, 2007

(57)

in respect of which the Appellate Tribunal shall have powers under the

Code of Civil Procedure, 1908 (5 of 1908) while trying a suit;]

¹⁰⁰[(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 ;]

• any other  matter  which  is to be,  or may  be,  prescribed, or in

Power to make regulations

64. (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.

• 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:—

• by Competition (Amendment) Act, 2007 for:

“ the manner in which the monies transferred to the Central Government shall be dealt with by that Government under the fourth proviso to sub-section (2) of section 66;”

• by Competition (Amendment) Act, 2007 for:

(d)  the fee which may be determined under clause (a) of sub-section (1) of section 19;

• any other matter in respect of which provision is to be, or may be, made by regulations.”

(58)

• the fee which may be determined under clause (a) of sub-section(1) of section 19;

• the manner in which penalty shall be recovered under sub-section(1) of section 39;

• any other matter in respect of which provision is to be, or may be, made by regulations.]