CCI - Competition Commission of India
CCI - Competition Commission of India
CCI - Competition Commission of India
JURIDICAL SCIENCES
(WBNUJS)
competition in the markets, to protect the interest of consumers, to ensure freedom of trade
carried on by other participant in the markets in India and for matters connected therewith or
incidental thereto.
Competition Commission of India is responsible for enforcing The Competition Act, 2002
throughout India and to prevent activities that have an adverse effect on competition in India. It
was established on 14 October 2003. It became fully functional in May 2009 with Mr.
Dhanendra Kumar as its first Chairman.
ESTABLISHMENT OF COMMISSION
The Central Government under Section 7 of Competition Act, 2002; by issue of a notification;
has to establish a Commission for the purposes of the act to be known as Competition
Commission of India. The Commission is a body corporate under its name. It will have
perpetual succession and a common seal. Subject to the provisions of the act, the commission has
been given the power to acquire, hold and dispose of property both movable and immovable. It
has the capacity to contract and also to sue and be sued in its own name. Thus, all the powers of a
corporate personality have been conferred on the commission. In the premises, the set up of
Commission corresponds to that of Securities and Exchange Board of India constituted under the
SEBI Act, 1992.
The Head Office of the Commission shall be at such place as the Central Government may
decide from time to time. Vide Notification: SO 1198(E) dated 14th Oct, 2003, the Central
Government established the Competition Commission of India having its Head Office at New
Delhi.The Commission has also been authorized to establish its office at other places in India.
Thus, the law provides for setting up of CCIs offices at places other than that of its Headquarter.
COMPOSITION OF COMMISSION
The composition of the Commission as spelled out under Section 8 of the Act consists of a
chairperson and not less than 2 (two) and not more than 6 (Six) Members. The Chairperson and
the members are to be appointed by the Central Government.
QUALIFICATION OF MEMBERS
As per Section 8(2), the Chairman/Chairperson and every other member have to be a person of
ability, integrity and standing. They must be qualified to be appointed as High Court Judges or
have been so or, in the alternative, they must have special knowledge of and professional
experience for not less than 15 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.
According to sub-section 3 of the same, the Chairperson and other members are to be WholeTime members.
(2) The term of the Selection Committee and the manner of selection of panel of names shall
be such as may be prescribed.
(c) Where he has been convicted of an offence which in the opinion of the central government
involved with moral turpitude.
(d) Where he has acquired such financial or other interest as will prejudicially affect his
functioning as a member
(e) Where he has so abused his position as to render his continuation in office prejudicial to
public interest.
(f) Where he has become physically or mentally incapable of acting as a member
In cases of acquisition of prejudicial interest under clause D or abuse of position under clause (e)
a reference has to be made to the supreme court for a report on the fact as to whether removal is
necessary.
Further to ensure freedom in the functioning of the Chairperson and the Members, section 14(2)
provides that the salary and allowance and other terms and conditions of service of the
Chairperson shall not be varied to his disadvantage after his appointment.
No act or proceedings of the Commission shall be invalid merely because there is any vacancy in
the Commission or defect in the Constitution of the Commission or any defect in the
appointment of Chairperson or a member or any irregularity in the procedure of the Commission
not affecting the merits of the case.
B. Impose such penalty as it may deem fit which shall be not more than 10 % of the average of
the Turnover for the last three proceeding financial years upon each of such person or Enterprises
which are parties to such agreements or abuse.
Provided that in case any agreement referred to in Section 3 has been entered into by a Cartel,
the commission may impose upon each producer, seller, distributor, trade or service provider
included in Bid Cartel, a penalty of up to 3 times of its profit for each year of the continuance of
such agreement or 10 % of its turnover for each year of the continuance of such agreement
whichever is higher
C. Direct that the agreement shall stand modified to the extent and in the manner as may be
specified in the order by the commission. Example - DLF case
D. Pass other order or issue such other directions as it may deem fit
Provided that while passing orders under this Section, if the commission comes to finding that an
enterprise in contravention to Section 3 or Section 4 the act is a member of our group as defined
in clause of the explanation to Section 5 of the Act and other members of such a group are also
responsible for or have contributed to such a contravention, then it may pass orders under this
section against such members of the group.
ENFORCEMENT OF ORDER
Enforcement of order of CCI can be done in the same manner as Income Tax recovery procedure
Acts taking place outside India but having an effect on competition in India, the Commission can
pass orders on those things too. This is known as Extraterritorial Jurisdiction of Competition
Commission of India
The Commission has to meet at such times and places and has to observe rules of procedure for
transaction of business as its meetings as may be prescribed by a regulations. If the chairman is
for any reason not able to attend a meeting, the senior most members present at the meeting have
to preside. Matters before the commission have to be decided by a majority of the members
present and voting. In case of equality of vote, the Chairman or member presiding is to have
casting vote. Quorum of meeting is 3 members.
REFERENCE BY COMMISSION TO STATUTORY AUTHORITY [SECTION 21 A]
Where in the course of a proceedings before the Commission and an issue is raised by any party
that any decision of the Commission whose implementation is entrusted to a Statutory Authority
would be contrary to the provisions of the act; the commission may make a reference in respect
of it to the Statutory Authority. Such reference may be made Suo Motu also. The Statutory
Authority has to give its opinion within 60 days. The commission may then decide the matter in
the light of the opinion.
APPROVAL OF COMBINATIONS
Where the Commission is of the opinion that a combination does not or is not likely to have an
Appreciable Adverse Effect on Competition, it may pass an order approving such combinations,
including combinations about which a notice has been given under section 6.
If the combination is likely to have an adverse affect the commission may direct that the
combination shall not take effect.
The commission may direct the combination for modification. If the parties agreed to do so they
would have to carry out the modifications within the specified period. If the parties do not show
the combination will be declared to be one with adverse effects and could be dealt with
accordingly.
If the parties do not accept the modification issued within 30 days, inform the Commission of
any amendments would wish to make to the modifications. The Commission may accept the
amendments and approve the combination.
If the commission does not accept the amendments the parties are to be allowed further 30
working days time to accept the original modifications.
If the party is still fail to do so the combination is to be deemed of Adverse nature and is to be
dealt with accordingly.
Where the combination does not come to be approved apart from penalties and prosecution under
the act the commission may order that the proposed acquisition of shares control majority or an
amalgamation shall not be given effect to. In appropriate circumstances the commission may
frame asking for implementing its orders
Where from the date of publication of the details of a combination, the commission, within 210
days from the date of notice to Commission under section 6(2), does not pass any order issue any
directions the communication shall be deemed to have been approved by the commission.
Where the party obtains an extension, the 90 days period will be reckoned after deducting such
period.
Where are communication is declared to be void the acquisition of shares or control or merger or
amalgamation has to be dealt with by appropriate authority is under other laws in the way as if
nothing of the sort had taken place. The parties to the combination have also to be dealt with
accordingly.
The Commission may direct any person to produce before the Director General or the Secretary
or an Officer authorized by it, such books or other documents in the custody or under the control
of such persons so directed and maybe specified are 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 secretary of any other officer authorized by it as respect the
trade or 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 the act.
The commission has power to review its order, to rectify its orders and also powers of
enforcement of its orders.
ACKNOWLEGEMENT
In making this project, I have taken resources from the Bare Act, study material issued by The
Institute of Company Secretaries of India (ICSI), Fundamentals of Business Law written by
Mr. Avtar Singh. I have also collected some information from Wikipedia, Manupatra and from
some other websites.
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(SIGNATURE OF THE EXAMINER)
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(RAKTIM MUKHOPADHYAY)