Concept Bill on Competition

Monday, November 13, 2000
Concept Bill on Competition
A Bill to foster and maintain competition in the Indian market
so as to subserve consumer interest while protecting the freedom of economic action of various market participants and to prevent practices which affect competition and to establish a Commission therefor

Chapter 1
PRELIMINARY

1. Short title, extent and commencement

2. Definitions

3. Act not to apply in certain cases

Short title, extent and commencement
1 (1) This Act shall be called the Competition Act, 2000.
(2) It extends to the whole of India except the State of Jammu & Kashmir.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any provision of this Act to the commencement of this Act shall be construed as a reference to the commencement of that provision.

Definitions
2. For the purposes of this Act, unless the context otherwise requires,

(a). ‘acquisition’ means directly or indirectly, acquiring or agreeing to acquire, shares, voting rights, management control or assets or control over assets in any enterprise.

(b) ‘agreement’ includes any arrangement or understanding or action in concert, whether formal or not, in oral or writing, whether or not it is intended to be specifically enforceable.

(d) ‘Commission’ means the Competition Commission of India established under section 8;

(e) 'combination’,

(i) means

(I) acquisition by a person, directly or indirectly, of-

(A) shares in the capital of an enterprise, or voting rights or,

(B) any assets of an enterprise,

so as to acquire direct or indirect control thereof ;

(II) acquiring of control by a person over an enterprise when such person already has direct or indirect control over another enterprise engaged in production, distribution and trading of the same or substitutable goods or provision of the same or substitutable service.

(III) merger or amalgamation of two or more enterprises.

(IV) establishment of a Joint Venture;

(f) ‘consumer’ means any person who buys goods or uses services for consideration which has been paid or partly paid and partly promised, or is to be paid under a system of deferred payment, and also includes any person who uses such goods or services with the approval of the buyer, irrespective of whether such purchase or use is for a personal or commercial purpose.

(g) "Director General " means the Director General appointed under sub-section(1) of section 15 and includes Additional Directors General as may be appointed under that section;

(h) "enterprise" is a body which is, or has been, or is proposed to be, engaged in the production, storage, supply, distribution, acquisition or control of articles or goods, or the provision of services, of any kind, or in investment, or in the business of acquiring, holding, underwriting or dealing with shares, debentures or other securities of any other body corporate, either directly or through one or more of its units or divisions or subsidiaries, whether such unit or division or subsidiary is located at the same place where the enterprise is located or at a different place or at different places, and includes:

(A) a department of the Government engaged in a non-sovereign function and levying a fee or charge therefor and also includes a body corporate established by or under any Central, Provincial or State Act, a Government Company as defined under the Companies Act, 1956, a co-operative society formed and registered under any Central, Provincial or State Act relating to co-operative societies, Banks and other financial Institutions.

(B) a company incorporated under the Companies Act, 1956, partnerships, sole proprietorships, association of persons, societies registered under the Societies Registration Act, Trusts and any other body, whether incorporated or not, in India or outside India, which carries on a business, commercial or economic activity.

Explanation: ‘unit’ or ‘division’ in relation to an enterprise includes-

A. a plant or factory established for the production, storage, supply, distribution, acquisition or control of any article or goods;

B. any branch office established for the provision of any service.

(i) "financial institution" means public financial institutions specified in or under Section 4A of the Companies Act, 1956 and includes a state financial, industrial or investment corporation.

(j) "goods" means goods as defined in the Sale of Goods Act, 1930 (3 of 1930), and includes:

(A) products manufactured, processed or mined;

(B) Debentures, stocks and shares after allotment;

(k) "Member" means a member of the Commission appointed under sub-section (1) of section 10;

(l) "notification" means a notification published in the Official Gazette.

(m) "practice" means and includes any economic action taken by a person or an enterprise.

(n) "prescribed" means prescribed in the rules made under this Act;

(o) "price" in relation to the sale of any goods or to the performance of any services, includes every valuable consideration, whether direct or indirect, or deferred, and includes any consideration which in effect relates to the sale of any goods or to the performance of any services although ostensibly relating to any other matter or thing.

(p) "regulations" means regulations made by the Commission under section 53;

(q) "service" includes provision of facilities in connection with, inter alia, banking, financing, insurance, Chit fund, medicine, education, real estate, transport, processing, supply of electrical or other energy, board or lodging or both, communications, information technology, entertainment, amusement or the purveying of news or other information but does not include the rendering of any service free of charge.

(r) "shares" means shares in the share capital of a company carrying voting rights and includes any security which would entitle the holder to receive shares with voting rights.

(s) "trade" means any trade, business, industry, or occupation relating to the production, supply, distribution, or control of goods and includes the provision or rendering of any services;

(t) ‘turnover’ includes value of sales;

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

Act not to apply in certain cases
3. The Central Government may, by notification, from time to time, exempt from the application of this Act, or any part thereof, as the case may be, for such period as it may specify in such notification -

(a) any class of enterprises if such exemption is necessary in the interests of national security or public interest;

(b) any practice or agreement arising out of and in accordance with any obligation assumed by India under any treaty or international agreement;

Chapter II
PROHIBITION OF CERTAIN AGREEMENTS

Anti competitive agreements

4. (1) No enterprise or association of enterprises shall enter into any agreement or take any decision or engage in any concerted action, in respect of production, supply, distribution, acquisition or control of goods, or the provision of services, which causes or is likely to cause an appreciable adverse effect on competition within India.

(2) Any agreement reached or decision taken or concerted action engaged in, in contravention of sub-section (1) shall be void.

(3) Any agreement entered into between enterprises or decision taken by association of enterprises, including cartels, or concerted practices between enterprises, involved in the same or similar manufacturing or trading of goods or provision of services, which-

(a) directly or indirectly fixes purchase or selling prices;

(b) limits or controls production, supply, markets, technical development or investment;

(d) directly or indirectly results in bid rigging or collusive tendering,

shall be presumed to have an appreciable adverse effect on competition.

Explanation - For the purposes of this sub-section-

(i) "bid rigging" includes agreements, decisions or understanding between enterprises involved in the same manufacturing, trading or service rendering activity which has the effect of eliminating competition for bids or adversely affect or manipulate the bidding process.

(ii)"cartel" includes an association of producers, sellers, distributors, traders or service providers who by agreement between themselves control or attempt to control the production, distribution, sale or price of or trade in goods or provision or rendering of service.

(4) Any agreement or concerted practice between enterprises at different stages or levels of the production chain in different markets, in respect of production, distribution, sale or price of or trade in goods or provision of services including -

(a) tie – in arrangement;

(b) exclusive supply agreement;

(d) refusal to deal ;

(e) resale price maintenance,

shall be an agreement or practice in contravention of sub-section (1) if such agreement or concerted practice causes or is likely to cause an appreciable adverse effect on competition.

(5) For the purposes of sub-section (4), to determine whether there is an appreciable adverse effect on competition, the following factors, among others, may be taken into account by the Commission, such as whether the agreements or concerted practices-

(a) result in creation of barriers to new entry, or,

(b) result in forcing existing competitors out of the market, or,

(d) result in any consumer benefit or pro-competitive impact

(e) contribute to the improvement of production and distribution and promote technical and economic progress, while allowing consumers a fair share of the benefits.

(6) The provisions of this Chapter shall not-

(a) apply to any agreement, decision or concerted action leading to any combination, even if no notice is required to be given to the Commission under section 6.

(b) restrict the right of any person to restrain any infringement of intellectual property rights granted in India or to impose such reasonable conditions as may be necessary for the purposes of protecting or exploiting such intellectual property rights.

(c) restrict the right of any person to export goods from India, to the extent to which the agreement, decision or concerted action relates exclusively to the production, supply, distribution or control of goods or provision of services for such export.

Chapter III
PROHIBITION AGAINST ABUSE OF DOMINANT POSITION

Abuse of dominance

5. (1) No enterprise shall abuse its dominant position.

(2) For the purposes of sub-section (1), dominant position means a position of strength enjoyed by an enterprise, anywhere in the world, which enables it to operate independently of competitive pressure in the relevant market, and also to appreciably affect the relevant market, competitors and consumers by its actions.

(3) For the purposes of determining whether an enterprise enjoys dominant position, or otherwise, one or more of the following factors may be taken into account, namely:-

(a) market share;

(b) size and resources of the enterprise;

(d) economic power of the enterprise including commercial advantages over competitors, which may be gauged with reference, among other factors, to product range, established trade marks, customer loyalty, vertical integration of the firm, sales or service network;

(e) technical advantages enjoyed by the firm, which may be judged with reference, among other factors, to patents, know-how and copyright;

(f) dependence of consumers;

(g) monopoly status or dominance acquired as a result of any statute, or by virtue of being an undertaking of the Government, Government company or a public sector undertaking ;

(h) entry barriers if any, which may be judged with reference, among other factors, to regulatory barriers, financial risk, high capital cost of entry, marketing entry barriers, technical entry barriers, economies of scale, high switching costs for customers;

(i) countervailing buying power;

(j) market structure and size of market.

(k) any other factor which the Commission considers to be relevant.

(4) For the purposes of sub-section (1), abuse of a dominant position having an appreciable adverse effect on competition, competitors or consumers occurs when an enterprise -

(a) directly or indirectly imposes unfair or discriminatory purchase or selling prices or conditions, including predatory prices;

(b) limits production, markets or technical development to the prejudice of consumers;

(d) makes the 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;

(e) uses dominance in one market to move into or protect other markets.

(5) For the purpose of clause (a) of sub-section (4)"predatory price" means the sale of a product or provision of a service with a view to eliminate competition or the competitors, at a price that is below the cost of production of the goods or provision of service, the cost of such production or provision being computed in accordance with regulations made by the Commission in this behalf.

(6) The relevant market may be determined with reference to the relevant product market or the relevant geographic market or with reference to both.

Explanation: For the purposes of this sub-section –

(a) " relevant product market" means , a market comprising all those products or services which are regarded as interchangeable or substitutable by the consumer, by reason of the products’ characteristics, their prices and their intended use and factors relevant for determining a product market may, include-

(i) physical characteristics or end use;

(ii) price;

(iii) consumer preference;

(iv) exclusion of in-house production;

(v) existence of specialized producers;

(vi) industry product classifications

(b) "relevant geographic market" means a market comprising the area in which the enterprises concerned are involved in the supply and demand of products or services, in which the conditions of competition are distinctly homogenous and can be distinguished from neighboring areas because the conditions of competition are appreciably different in those areas and for determining a geographic market, inter alia the following factors may be taken into account, namely :-

(i) regulatory trade barriers;

(ii) local specification requirements or differing national standards;

(iii) national procurement policies;

(iv) adequate distribution facilities or differing national standards;

(v) transport costs;

(vi) language;

(vii) consumer preferences;

(viii) need for secure or regular supplies or rapid after-sales services.

Chapter IV
REGULATION OF COMBINATIONS

6. Obligation to give notice of combination in certain cases.

7. Commission to inquire into certain acquisitions, mergers and joint ventures

Obligation to give notice of combinations in certain cases.
6. Any person who proposes to enter into an agreement or combination as provided in sub-section (2) of section 7 of this Act, shall give notice to the Commission in the prescribed form, specifying the details of the proposed agreement or combination, within seven days of the occurrence of any of the following events:

a) the Board of Directors of respective companies accepting a proposal of merger or amalgamation;

b) the conclusion of negotiations of an agreement for acquisition or acquiring of control;

c) the execution of a Joint Venture agreement, shareholder agreement or technology agreement, in relation to any joint venture:

Provided that any acquisition by a public financial institution, foreign institutional investor, bank or venture capital fund pursuant to any covenant of a loan agreement, share subscription or investment agreement or financing facility, upon the filing of an exemption application in the prescribed form, specifying the extent and terms of control, the circumstances for exercise of such control, the consequences of default and control of the enterprise, the Commission shall grant an exemption from filing the notice required under this section:
Provided further that a public financial institution, foreign institutional investor, bank or venture capital fund shall not be exempt from filing a notice under this section, in relation to any inter-related or controlled enterprise at the time of acquisition or establishing a combination.

Commission to inquire into certain acquisitions, mergers and joint ventures
7. (1) The Commission shall enquire into every combination referred to in sub-section (2) for satisfying itself that such combination does not cause or is not likely to cause any appreciable adverse effect on competition within the relevant market in India.

(2) The following combinations shall be enquired into by the Commission for the purposes of sub-section (1), namely:-

(a) any acquisition where-

(i) the parties to the acquisition namely, the acquirer and the company whose shares, voting rights or assets are being acquired, jointly would have assets worldwide, exceeding rupees five hundred crores or turnover worldwide, exceeding rupees one thousand five hundred crores; or

(ii) the group to which the entity in which the shares, assets or voting rights, as the case may be, have been acquired will belong will have ,-

(I) in India, assets in excess of rupees two thousand crores or turnover in excess of rupees six thousand crores; or

(II) worldwide, assets in excess of one billion U.S. dollars or turnover in excess of three billion U.S. dollars.

(b) acquiring of control by a person over an enterprise where such person has already direct or indirect control over another enterprise engaged in production, distribution or trading of the same or substitutable goods or provision of the same or substitutable service if ,

i. the enterprise over which control has been acquired along with the enterprise over which the acquirer already has direct or indirect control, jointly, would have assets worldwide, in excess of rupees five hundred crores or turnover worldwide, in excess of rupees one thousand five hundred crores; or

ii. the group to which the enterprise over which control has been acquired, along with the enterprise over which the acquirer already has direct or indirect control jointly belong would have -

(I) in India of assets in excess of two thousand crores or turnover in excess of six thousand crores; or

(II) world wide assets in excess of one billion U.S dollars or turnover in excess of three billion U.S dollars;

(c) any merger or amalgamation in which the entity remaining after merger or the entity created as a result of the amalgamation as the case may be,-

(i) would have assets worldwide, of a sum in excess of rupees five hundred crores or turnover worldwide, in excess of rupees one thousand five hundred crores; or

(ii) the group to which the entity remaining after merger or the entity created as a result of the amalgamation as the case may be, will belong, will have

(I) in India, assets in excess of rupees two thousand crores or turnover in excess of rupees six thousand crores; or

(II) worldwide, assets in excess of one billion U.S. dollars or turnover in excess of three billion U.S. dollars.

(d) Any Joint Venture where the group or groups, as the case may be, to which the Joint Venture will belong, jointly, would have-

(I) in India, assets in excess of rupees two thousand crores or turnover in excess of rupees six thousand crores; or

(II) worldwide assets in excess of one billion US dollars or turnover in excess of three billion US dollars.

Explanation 1: For the purposes of this Chapter, value of assets shall be determined by taking the book value of the assets as shown in the duly audited books of the enterprise relating to the financial year immediately preceding the year in which the proposed merger date falls or is liable to be notified in accordance with the provisions of this Chapter, less any depreciation in value, and shall include the brand value, value of goodwill, intellectual property rights and the value of other intangible assets, if any.

Explanation 2: For the purposes of this Chapter, group means two or more enterprises which directly or indirectly have-

(a) the ability to exercise 26% or more of the voting rights in the other enterprise; or

(b) the ability to appoint more than half the members of the Board of Directors in the other enterprise; or

Explanation 3: For the purposes of this chapter, control means and includes the right by one or more enterprises, either jointly or singly, to exercise restraint or direction over another enterprise.

(3) Notwithstanding anything contained in sub-section (2 ) the Commission shall , on the expiry of a period of two years from the commencement of this Act and thereafter every two years, in consultation with the Central Government by notification revise, on the basis of the wholesale price index, the value of assets in India for the purposes of that sub-section.

(4) For the purposes of determining whether a combination would have the effect of or be likely to have an appreciable adverse affect on competition in a market, the Commission may, inter alia, take into account one or more of the following factors, namely:

(a) the actual and potential level of competition through imports in the market;

(b) the extent of barriers to entry to the market;

( c)the level of Combination in the market;

(d) the degree of countervailing power in the market ;

(e) the likelihood that the Combination would result in the parties to the Combination being able to significantly and sustainably increase prices or profit margins;

(f) the extent of effective competition remaining in a market;

(g) the extent to which substitutes are available in the market or are likely to be available in the market;

(h) the market share of the parties involved in the combination, individually and as a combination;

(i) the likelihood that the Combination would result in the removal from the market of a vigorous and effective competitor;

(j) the nature and extent of vertical integration in the market;

(k) the possibility of a failing business ;

(l) the nature and extent of innovation

(m) whether the benefits of the combination outweigh the adverse impact of the combination, if any.

Explanation: For the purposes of this section market shall means a relevant market as defined in sub-section (6) of section 5.

Chapter V
COMPETITION COMMISSION OF INDIA

8. Establishment of Commission.

9. Composition of the Commission

10. Appointment of Chairperson and Members.

11. Term of office of Chairperson and Members.

12. Resignation, Removal and suspension of Chair-person and Members

13. Salary and allowances of Chairperson and Members

14. Vacancy or defect not to invalidate proceedings.

15. Appointment of Director General

16. Officers and other employees of the Commission

Establishment of Commission
8. With effect from such date as the Central Government may, by notification, appoint in this behalf, there shall be established for the purposes of this Act, a Commission, to be known as the Competition Commission of India to exercise the jurisdiction powers and authority conferred by or under this Act.

Composition of the Commission
9. (1) The Commission shall consist of a Chairperson and such number of other members as the Central Government may deem fit.

(2) The Chairperson and the Members shall be persons of ability, integrity and standing who are or have been or qualified to be High Court Judges or have 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 any other matter which would in the opinion of Central Government be useful to the Commission.

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

Appointment of Chairperson and Members.
10. (1) The Chairperson and Members shall be appointed by the President on the recommendation of a Committee consisting of –

(a) the Chief Justice of India or his nominee;

(b) the Union Finance Minister;

(d) the Governor of Reserve Bank of India; and

(e) the Cabinet Secretary;

(2) No appointment shall be invalidated merely by reason of any vacancy in, or any defect in the constitution of, the Committee appointed under sub-section (1).

Term of office of Chairperson and Members.
11. (1) The Chairperson and Members shall hold office for a term of five years from the date on which they enter upon their office or until they attain-

(a) in the case of Chairperson, the age of seventy years;

(b) in the case of any other member, the age of sixty-five years,

whichever is earlier.
(2) Subject to the provisions of sub-section (1) the Chairperson and the other Members shall be eligible for reappointment in accordance with the provisions of section 10.

(3) The Chairperson or a Member shall not, for a period of six months from the date on which he ceases to hold office, hold any employment in or be connected with the management or administration of any enterprise or undertaking which has been a party to any proceedings before him, under this Act.

(4) A vacancy caused by the resignation or removal of the Chairperson or any Member under section 12 or by death or otherwise shall be filled by fresh appointment in accordance with the provisions of section 10.

(5) The Chairperson and every other Member shall before entering upon his office make and subscribe to an oath of office and secrecy in such form, manner and before such authority as may be prescribed.

(6) The Chairperson shall exercise such financial and administrative powers over the Benches as may be vested in him under the regulations.

Provided that the Chairperson shall have authority to delegate such of the financial and administrative powers as he may think fit to any member or officer of the Commission subject to the condition that the Member or such officer shall while exercising such delegated powers, continue to act under the direction control and supervision of the Chairperson.

(7) In the event of the occurrence of any vacancy in the office of the Chairperson by reason of his death, resignation or otherwise, the senior-most member holding office for the time being 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 this office.

(8) When the Chairperson is unable to discharge his functions owing to absence, illness or any other cause, the senior-most member holding office for the time being shall discharge the functions of the Chairperson until the date on which the Chairperson resumes his duties.

Resignation, Removal and suspension of Chairperson and Members.
12. (1) The Chairperson or any Member may by notice in writing under his hand addressed to the President resign his office.

Provided that the Chairperson or a Member shall unless he is permitted by the President 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 which ever is the earliest.

(2) The Chairperson or a Member shall not be removed from his office except by an order made by the President on the ground of proved misbehaviour or incapacity, after an inquiry made by a Judge of the Supreme Court, in which such Chairperson or the Member had been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges.

(3) The Central Government may by rules regulate the procedure for the investigation of misbehaviour or incapacity of the Chairperson or the Member referred to in sub-section (2).

(4) The President may suspend from office the Chairperson or a Member, as the case may be, in respect of whom a reference has been made to the Supreme Court under sub-section (2), until he has passed an order on receipt of report of the Supreme Court on such reference.

(5) Notwithstanding anything contained in sub-section (1) or sub-section (2), the President may, by order, remove the Chairperson or any other Member from his office if such Chairperson or such Member –

(a) is adjudged an insolvent; or

(b) engages during his term of office in any paid employment outside the duties of his office; or

(d) is, in the opinion of the President, unfit to continue in office by reason of infirmity of body or mind.

Salary and allowances of Chairperson and Members.
13. (1) There shall be paid to the Chairperson a salary, which is equal to the salary of a Judge of the Supreme Court.

(2) There shall be paid to a Member a salary, which is equal to the salary of a Judge of a High Court.

(3) The other conditions of service relating to travelling expenses, provision of house rent allowance and conveyance facilities, sumptuary allowance, medical facilities shall be such as may be prescribed by the Central Government

(4) The salary ,allowances and the other terms and conditions of service of the Chairperson or a Member shall be not be varied to his disadvantage after appointment.

Vacancy or defect not to invalidate proceedings.
14. No act or proceeding of the Commission shall be invalidated merely by reason of –

(a) any vacancy in, or any defect in the constitution of, the Commission; or

(b) any defect in the appointment of a person acting as the Chairperson or as a Member; or

Appointment of Director General
15. (1) The Central Government may by notification appoint a Director-General and as many Additional Directors-General, as it may think fit, for the purposes of assisting the Commission in conducting inquiry into contraventions of the provisions of the Act and for the conduct of cases before the Commission.

(2) Every Additional Director-General shall exercise his powers and discharge his functions subject to the general control, supervision and direction of the Director-General.

(3) The conditions of service of the Director General or any Additional Director General shall be such as may be prescribed.

(4) The Director General and the Additional Directors General shall be appointed from amongst persons as are known for their integrity and objectivity and who have expertise in investigation, knowledge of accountancy, management, business, public administration, international trade, law or economics.

Officers and other employees of the Commission.
16. (1) The Central Government shall provide the Commission with such other categories of officers and employees as may be prescribed.

(2) The officers and employees of the Commission shall discharge their functions under the general superintendence of the Chairperson.

(3) The salaries and allowances and other conditions of service of the officers and employees of the Commission shall be such as may be prescribed.

Chapter VI
JURISDICTION, POWERS AND AUTHORITY OF THE COMMISSION

17. Inquiry into anti-competitive practices

18. Inquiry into Combinations

19. Reference by Statutory Authorities

20. Benches of the Commission

21. Distribution of business amongst the Commission and Benches

22. Procedure for deciding the case where the Members of a Bench differ in opinion

23. Place of filing complaints etc

24. Procedure for inquiry on complaints under section 17

25. Orders by the Commission after enquiry

26. Procedure for investigation of combinations

27. Findings and orders of the Commission upon investigation

28. Consequences of non-disclosure

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

30. Power to award interim relief

31. Power to award compensation

32. Appearance before the Commission

33. Manner of conduct of inquiry

34. The Power of Commission to regulate its procedure

35. Review of orders of the commission

36. Rectification of orders

37. Execution of orders of the Commission

38. Penalty for disobeying orders of Commission

39. Appeals

Inquiry into anti-competitive practices
17. The Commission may inquire in to any action which is alleged to be in contravention of sub-section (1) of section 4 or sub-section(1) of section 5, upon

(a) receipt of a complaint of facts which constitute such action, from any person, consumer or trade association;

(b) a reference made to it by the Central Government or a State Government;

Inquiry into Combinations
18. Without prejudice to the provisions of section 17, the Commission shall on receipt of a notice under section 6 or otherwise inquire into every combination referred to in sub-section (2) of section 7 with a view to satisfy itself whether such combination causes or is likely to cause an appreciable adverse effect on competition within the Indian market.

Reference by Statutory Authorities
19. (1) Where in the course of a proceeding before any statutory authority entrusted with the responsibility of regulating any utility or service, an issue is raised by any party that any decision that such statutory authority has taken or proposes to take, is or would be, as the case may be, contrary to the provisions of this Act, then such statutory authority shall make a reference to the Commission

(2) On receipt of such a reference, the Commission shall, after hearing the parties to the proceedings, give its opinion to such statutory authority, which shall thereafter pass such order as it deems fit.

Provided that where any reference has been made to the Commission under this section, the statutory authority concerned shall not make any final order till the opinion of the Commission has been made available to it.

Benches of the Commission
20. (1) The jurisdiction, powers and authority of the Commission may be exercised by Benches thereof.

(2) Every Bench shall consist of atleast 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.

(3) The Bench over which the Chairperson presides shall be the Principal Bench and the other Benches shall be known as additional Benches.

(4) There shall be constituted one or more Benches to be called the Mergers Bench, exclusively to deal with matters referred to in Chapter IV.

(5) The places at which the principal Bench and other Benches shall ordinarily sit shall be such as Central Government may by notification, specify.

Distribution of business amongst the Commission and Benches
21 (1) Where any Benches are constituted, the Chairperson may, from time to time, by order make provisions as to the distribution of the business of the Commission amongst the Benches and specify the matters, which may be dealt with by each Bench.

(2) If any question arises as to whether any matter falls within the purview of the business allocated to a Bench, the decision of the Chairperson thereon shall be final;

(3) The Chairperson, with the prior approval of the Central Government, may-

(i) transfer a Member from one place to another; and

(ii) authorise the Member at one place to discharge also the functions of the Member at another place.

(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 required in his opinion or under 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 the case where the Members of a Bench differ in opinion.
22. 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.

Place of filing complaints etc
23. A complaint or reference, as the case may be, shall be instituted before a Bench within whose local limits of jurisdiction-

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

(b) any of the respondents, where there are more than one, at the time of the initiation of the complaint or 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 Commission is given, or the defendants who do not reside, or carry on business, or personally works for gain, as aforesaid, acquiesce in such institution; or

Procedure for inquiry on complaints under section 17
24. (1) On receipt of a complaint or a reference from the Central Government or the State Government, or its own knowledge or information, under section 17, 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.

(2) The Director General shall submit a report on his findings within such time period as may be specified by the Commission.

(3) The Commission shall forward a copy of the report to the complainant or the Central Government or the State Government as the case may be.

(4) If on the basis of the report submitted under sub-section (2) or otherwise the Commission is of the opinion that any action or practice is in contravention of sub-section (1) of section 4 or sub-section(1) of section 5 the Commission shall direct the Director-General to inquire into the matter.

(5) If the report of the Director-General recommends that there is no contravention of the provisions of this Act, the complainant shall be given an opportunity to rebut the findings of Director-General.

(6) If after hearing the complainant, the Commission agrees with the recommendation of the Director-General, it shall dismiss the complaint.

(7) 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.

Orders by the Commission after enquiry
25. (1) Where after enquiry, the Commission finds that such agreements, decisions or concerted practices as the case may be, or the actions of a dominant enterprise, are in contravention of Chapter II or Chapter III, as the case may be, it may pass an order:

a) directing the enterprise or the enterprises as the case may be, involved in such agreement, decision or concerted practice or abuse of dominance, to discontinue and not repeat such agreement, decision or concerted practice or abuse, as the case may be;

b) directing the enterprises involved in such agreement, decision or concerted practice, or abuse of dominance, as the case may be, to make payment of fine which shall be not more than ten percent of the average of the turnover for the last three years, of each of such enterprises involved;

c) awarding compensation to parties in accordance with the provisions of section 31;

d) directing that the agreements shall stand modified in respect thereof in such manner as may be specified by the Commission;

e) directing the enterprises concerned to abide by such other orders and directions, including payment of costs, as may be given by the Commission, to subserve the purposes of this Act.

(f) in appropriate cases, recommend to the Central Government, the division of a dominant enterprise.

(A) If the Commission so recommends, the Central Government may, notwithstanding anything contained in any other law for the time being in force, by an order in writing, direct the division of an enterprise, to ensure that the enterprise does not abuse its dominant position.

(B) Notwithstanding anything contained in any other law for the time being in force, the order referred to in sub-section (2) may provide for all such matters as may be necessary to give effect to the division of an enterprise, including:-

(i) the transfer or vesting of property, rights, liabilities or obligations;

(ii) the adjustment of contracts either by discharge or reduction of any liability or obligation or otherwise’

(iii) the creation, allotment, surrender or cancellation of any shares, stock or securities;

(iv) the payment of compensation

(v) the formation or winding up of an enterprise or the amendment of the memorandum and articles of association or any other instruments regulating the business of any enterprise;

(vi) the extent to which and the circumstances in which provisions of the order affecting an enterprise may be altered by the enterprise and the registration thereof;

(vii) the continuation, with such changes as may be necessary, of parties to any legal proceedings.

Procedure for investigation of combinations
26. (1) The Commission shall examine every notice of disclosure given under section 6, as soon as it is received.

(2) The Commission shall, within seven working days of receipt of the said notice of disclosure of the combination (hereinafter referred to in this Chapter as the said combination), which is complete in all respects, direct the parties to the said Combination to publish details of the Combination within ten working days of its direction, in such manner, as it thinks suitable, for bringing the combination to the attention of the public and persons who would be affected by it.

(3) The Commission may also invite any person or member of the public, affected or likely to be affected by said Combination, to file their written objections before the Commission within fifteen working days of the date on which the details of the combination are published under sub-section (2).

(4) The Commission may, within fifteen working days from the expiry of the fifteen working days period specified in sub-section (3) above, call for such additional or other information as it may deem fit from the parties to the said Combination.

(5) The additional or other information called for by the Commission shall be furnished by the parties to the said combination within fifteen days of the expiry of fifteen working day period specified in sub-section (4).

(6) After receipt of all information and within a period of forty five working days from the expiry of the period as prescribed in sub-section (5), the Commission shall proceed to deal with the case in accordance with the provisions of section 27.

Findings and orders of the Commission upon investigation
27. (1) Where the Commission is of the opinion that the said combination has no appreciable adverse effect on competition, it shall by order approve the proposed combination.

(2) Where the Commission is of the opinion that the said Combination, may not have an appreciable adverse effect on competition, it shall propose to the concerned parties, conditions subject to which it proposes to approve the said combination.

(3) If the parties to the said Combination agree with the modifications proposed under sub-section (2), they shall, within thirty working days,

(i) intimate their acceptance of the modifications to the Commission or

(ii) if they do not agree with the conditions proposed by the Commission, apply to the Commission for further modifications as they may consider necessary.

(4) If the Commission agrees with the modifications suggested by the parties, it shall by order approve the said combination subject to such modifications.

(5) If the Commission does not accept the modifications suggested by the parties, then, the parties shall be given a further period of thirty working days within which to signify their assent to the combination as proposed to be approved subject to such modifications specified under sub-section (2).

(6) If the parties fail to convey their assent, at the end of the thirtieth working day or the sixtieth working day as the case may be, the said combination shall be deemed to have been disapproved by the Commission.

(7) Where the Commission is of the opinion that the said Combination, has or is likely to have an appreciable adverse effect on competition, it shall direct that the said combination shall not take effect.

(8) If the Commission does not, at the expiry of a period of 90 working days from the date of publication referred to in sub-section (2) of section 26, reach a decision in accordance with provisions of sub-section (1), sub-section (2) or sub-section (7), the said combination shall be deemed to have been approved by the Commission.

Provided that the period of thirty days specified in each of sub-section (3) and sub-section (5) shall not be affected by the expiry of the ninety day limitation prescribed in this sub-section so long as the decision required to be reached by the Commission under sub-section (2) has been reached by the Commission within the ninety working day stipulation under this sub-section.

(9) When any extension of time is sought at the instance of parties to the combination, the ninety working day period shall be reckoned after deducting the extended time granted at the request of parties.

Consequences of non-disclosure
28. (1) If a person who is liable to notify to the Commission in terms of Section 6, fails to do so, and it is brought to the notice of the Commission by a reference made by the Central Government or a State Government or on perusing the order of any High Court or any regulatory, statutory or governmental authority, at any time after such liability to notify has come into effect, that the person, though liable to notify under Section 6, has failed to so notify, the Commission shall forthwith issue a show cause notice to the person concerned as to why action should not be taken against such person.

(2) Upon receipt of the Show cause notice, the persons concerned shall state the reasons for failing to notify in contravention of section 6.

(3) If after inquiry, the Commission is of the opinion that the reasons for non-disclosure are not satisfactory, the person liable to give notice under Section 6 shall be liable to a penalty of rupees Two Lakhs for each day during which such failure has continued.

Provided that the maximum penalty shall not exceed the amount of penalty leviable for a delay of one hundred days.

Provided further that pending an inquiry, the combination shall not be stopped from taking effect.

(4) If the Commission arrives at a decision under sub-section 3, it shall also forthwith start investigation in terms of section 26 and reach a conclusion under section 27.

(5) If the Commission reaches a conclusion under sub-section (1) of section 27, then no action except levying of fine under sub-section (3) shall be taken against the persons.

(6) If the Commission reaches a conclusion under sub-section 7 of section 27, then notwithstanding anything inconsistent under any other law for the time being in force, in addition to the levying of fines under sub-section 3, the Commission shall also direct that the Combination or acquisition, as the case may be, shall be deemed to be void as on that day.

(7) Without prejudice to the aforesaid, the Commission may, notwithstanding anything inconsistent under any other law for the time being in force, shall, in the case of a merger, direct a demerger. In other cases, the Commission shall evolve a mechanism to reverse the combination and pass such directions or orders or take such other steps as may be required, including framing of a scheme, for reversing the combination.

Acts taking place outside India but having an effect on competition in India
29. Where any practice of an enterprise or enterprises, falling under Chapter II, Chapter III or Chapter IV as the case may be, is carried on outside India, but has or is likely to have an appreciable adverse effect on competition in India, the Commission shall have jurisdiction to pass such orders as may be necessary.

Power to award interim relief
30. (1) 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 4 or sub-section (1) of Section 5 has been committed and continues to be committed or that such an act is about to be committed, the Commission may grant a temporary injunction restraining any party from carrying on such an act until the conclusion of such inquiry or until further orders, without granting notice to the opposite party, where it deems it necessary.

(2) The provisions of Rules 2A to 5 (both inclusive) if 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 section, 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.

Power to award compensation
31. (1) Without prejudice to any other provision of this Act, any person may make an application to the Commission for an order for the recovery from any enterprise such compensation as it deems fit, for any loss or damage shown to have been suffered, as a result of any contravention of the provisions of Chapter II ,Chapter III or Chapter IV having been committed.

(2) The Commission may, after an enquiry made into the allegation made in the application filed under sub-section (1) make an order directing the owner of the enterprise to make payment to the petitioner, of the amount determined by it as realizable from the enterprise or the owner thereof, as compensation for the loss or damage caused to the petitioner by reason of such act carried on by such enterprise.

(3) Where any loss or damage referred to sub-section (1) is caused to numerous persons having the same interest, one or more of such persons may, with leave of the Commission, petition under sub-section (1) for and on behalf of, or for the benefit of, the persons so interested, and thereupon, the provisions of Order 1 Rule 8 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.

Appearance before the Commission
32. A complainant and the Director-General may either appear in person or authorise one or more chartered accountants, or company secretaries, cost accountants or legal practitioners, or any of his or its accredited officers to present his or its case before the Commission.
Explanation: For the purpose of this section-

(a) "Chartered accountant" means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 and who has obtained a certificate of practice under sub-section (1) of Section 6 of that Act;

(b) "company secretary" means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 and who has obtained a certificate of practice under sub-section (1) of Section 6 of that Act;

(c) "cost accountant" means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 and who has obtained a certificate or practice under sub-section (1) of section 6 of that Act;

(d) "legal practitioner" means an advocate, vakil or an attorney of any High Court, and includes a pleader in practice.

Manner of conduct of inquiry
33. (1) The Commission while adjudicating on any matter shall ordinarily call for evidence by way of affidavit.

(2) A witness may, with the leave of the Commission, be summoned for cross-examination or for seeking clarifications.

The Power of Commission to regulate its procedure.
34. (1) The Commission shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules made by the Central Government, the Commission shall have powers to regulate its own procedure including the fixing of places, duration of oral hearings where granted, and times of its enquiry

(2) The Commission shall have, for the purposes of discharging its functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit, in respect of the following matters, namely:—

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

(b) requiring the discovery and production of documents;

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

(e) subject to the provisions of sections 123 and 124 of the Indian Evidence Act 1872,requisitioning any public record or document or copy of such record or document from any office;

(f) dismissing an application in default or deciding it exparte;

(e) any other matter which may be prescribed.

(3) Every proceeding before the Commission shall be deemed to be a judicial proceeding within the meaning of section 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 and Chapter XXVI of the Code of Criminal Procedure 1973( 2 of 1974).

(4) 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 before any inquiry or proceeding before it.

(5) The Commission may require any person-

(a) to produce before, and allow to be examined and kept by an officer of the Commission specified in this behalf, such books, accounts or other documents in the custody or under the control of the person so required as may be specified or described in the requisition, being documents relating to any trade practice, the examination of which may be required for the purposes of this Act;

(b) to furnish to an officer so specified such information as respects the trade practice as may be required for the purposes of this Act or such other information as may be in his possession in relation to the trade carried on by any other person.

Review of orders of the commission
35. Any person considering himself aggrieved by an order of the Commission from which appeal is allowed by this Act but no appeal has been preferred may, within thirty days of the date of the order, apply to the Bench which passed the order for a review of the order and the Bench 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, however, that no order shall be modified or set aside without an opportunity of being heard having been given to the person in whose favour the order is given and the Director General where he was a party to the proceedings.

Rectification of orders
36. Any clerical or arithmetical mistakes in any proceedings, amendment of proceedings, declaration or order of the Commission or error therein arising from any accidental slip or omission may, at any time, be corrected by the Commission either on its own motion or on the application of any party and the provisions of sections 152 and 153 of the Code of Civil Procedure, 1908 (5 of 1908) shall be applicable in this respect.

Execution of orders of the Commission
37. An 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 -

(a) in the case of an order against a company, the registered office of the company is situated, or

(b) in the case of an order against any other person, 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.

Penality For Disobeying orders of commission
38. (1) Without prejudice to any other provision in this Act, if any person contravenes, without any reasonable excuse, 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 give made or granted under this Act, he shall be liable to be detained in Civil prison for a term extending upto one year, unless in the meantime the Commission directs his release and shall also be liable to a penalty of rupees Ten lakhs.

(2) The Commission may, while making an order under this Act, issue such directions to person or authority, not inconsistent with this Act, as it may think necessary or desirable, for the proper implementation and/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 upto One year, unless in the meantime the Commission directs his release and/or shall also be liable to a penalty of rupees Ten lakhs.

Appeals
39. (1) An appeal shall lie against any order passed by the Commission to the Supreme Court.

(2) No appeal shall lie against any decision or order made by the Commission with the consent of the parties.

(3) Every appeal under this section shall be preferred within a period of thirty days from the date of the decision or order appealed against:

Provided that the Supreme Court may entertain the appeal after the expiry of the said period of thirty days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time.

Chapter VII
DUTIES OF THE DIRECTOR GENERAL

Director-General to investigate contraventions
40. (1) The Director General or any Additional Director General shall when so directed by the Commission assist the Commission in investigating into any contravention of the provisions of the Act or rules or regulations made thereunder.

(2) The Director General or the Additional General shall have the powers of conferred upon the Commission under sub-section (5) of section 34.

(3) Without prejudice to the provisions of sub-section (2), sections 240 and 240A of the Companies Act 1956 (1 of 1956), so far as may be, shall apply to an investigation made by the Director General or any other person investigation under his authority, as they apply to an inspector appointed under that Act.

Chapter VIII
OFFENCES AND PENALTIES

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

42. Penalty for failure to give notice under section 6

43. Penalty for making false statements or omission to furnish material information

44. Penalty for offences in relation to furnishing of information

45. Contraventions by companies

Penalty for failure to comply with directions of Commission and Director General
41. Without prejudice to provisions contained elsewhere in this Act, if a person fails to comply with an obligation imposed upon him by the Commission under sub-section (5) of section 34 or the Director General, as the case may be, under sub-section (2) of section 40 pertaining to investigations, he shall be liable for a penalty of rupees One lakh per day for each day that such person fails to comply with directions given by the Commission or the Director General as the case may be.

Penalty for failure to give notice under section 6
42. Any person being a party to a combination which is required under section 6 to be notified to the Commission fails to give such notice shall be liable to a penalty of one lakh rupees for every day during which such failure continues.

Penalty for making false statements or omission to furnish material information
43. If any person being a party to a combination:

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

b) omits any material particular knowing it to be material,

such person be shall be liable to a penalty which shall not be less than rupees 50 lakhs but which may extend upto rupees one crore as may be determined by the Commission .

Penalty for offences in relation to furnishing of information –
44(1) If any person, who furnishes or is required to furnish any particulars, documents or any information -

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

b) omits to state any material fact knowing to be material; or

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

he shall be liable for penalty which may extend to rupees ten lakhs.

(2) Without prejudice to the provisions of sub-section (1), the Commission may also pass such other order as it may deem fit, including closing the defence in the case of a respondent, or dismissing the complaint, in the case of a complainant.

Contraventions by companies
45 (1) Where a contravention of any of the provisions of this Act has been committed by a company, every person who, at the time the contravention took place, was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly.

(2) Notwithstanding anything contained in sub- section (1), where a contravention of any of the provisions of this Act has been done by a company and it is proved that the contravention has been done with the consent or connivance, of or is attributable to any wilful neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that contravention and shall be liable to be proceeded against and punished accordingly.

Explanation: For the purposes of this section –

a) "Company" means a body corporate and includes a firm or other association of individuals; and

b) ‘director’ in relation to a firm, means a partner in the firm.

Chapter IX
COMPETITION ADVOCACY

46. Competition advocacy

47. Establishment of Competition Fund

Competition advocacy
46. In formulating a law or policy, the Central Government may make a reference to the Commission for its opinion on possible effect of such law or policy on competition and on receipt of such a reference, the Commission shall within sixty days, give its opinion to the Central Government, which may thereafter formulate the law or policy as it deems fit.

Establishment of Competition Fund
47(1) The Central Government shall establish a fund to be called the Competition Fund (hereinafter referred to in this Act as the Fund).

(2) there shall be credited to the Fund the following amounts:

a) the fees received from any person for filing a complaint or any application under this Act;

b) the monies received as costs, if so directed by the Commission, from parties to proceedings before the Commission;

c) grants and donations given to the Fund by the Central Government, State Governments, companies or any other institutions for the purposes of the Fund;

d) the interest accrued on the amounts referred to in clauses (a) to (c);

e) the interest or other income received out of the investments made from the fund.

(3) The Fund shall be utilised for promotion of competition advocacy, creating awareness about competition issues, and training, in accordance with such rules as may be prescribed.

(4)The Fund shall be administered by a committee of such members of the Commission as may be determined by the Chairperson. The committee so appointed under this sub-section shall be competent to spend moneys out of the Fund for carrying out the objects for which the Fund has been established.

Chapter X
MISCELLANEOUS

48. Restriction of disclosure of information

49. Members and staff of the Commission to be public servants

50. Protection of action taken in good faith

51. Act to have overriding effect

52. Exclusion of jurisdiction of civil courts

53. Power to make rules

54. Power to make regulations

55. Power to remove difficulties

56. Repeals and savings

Restriction on disclosure of information
48. No information relating to any enterprise, being an information which had been obtained by or behalf of the Commission 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 with any other law for the time being in force.

Members and staff of the Commission to be public servants.
49. The Chairperson and other Members and the officers and other employees of the Commission shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

Protection of action taken in good faith.
50. No suit prosecution or other legal proceedings shall lie against the Central Government or against the Chairperson or other Member, or any other person authorized by such Chairperson or other Member for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder.

Act to have overriding effect
51. 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
52. No civil Court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Commission is empowered by or under this Act to determine and no injunction shall be granted by any court or any authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.

Power to make rules

53. (1) The Central Government may, by notification, make rules to carry out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely-

a) the conditions of service of members of Commission and the Director General;

b) the duties and functions of the Director General;

c) the travelling and other expenses payable to persons summoned by the Commission to appear before it;

d) any other matter which is required to be, or may be, prescribed.

(3) Every rule made under this Act by the Central Government shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session, or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Power to make regulations
54. (1) The Commission may, make regulations by notification in the Official Gazette, for the efficient performance of its functions under this Act.

(2) In particular and without prejudice to the generality of the foregoing provisions, such regulations may provide for all or any of the following matters, namely;-

a) the conditions of service, as approved by the Central Government, of persons appointed by the Commission;

b) the form and manner in which notice may be given or applications may be made to it under this Act and the fees payable therefor;

c) the particulars to be furnished under this Act and form and manner in which and the intervals within they may be furnished;

d) the issue of processes to Government and to other persons and the manner in which they may be served;

e) the payment of costs of any proceedings before the Commission by the parties concerned and the general procedure and conduct of the business of the Commission;

f) the manner in which every authenticated copy of any order made by the Commission in respect of any restrictive or unfair trade practice shall be recorded;

g) any other matter for which regulations are required to be may be, made under this Act.

(3) The Central Government shall cause every regulation made under this section to be laid, as soon may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if before the expiry of the session immediately following the session or the successive sessions aforesaid, both House agree in making any modification in the regulation, or both House agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation.

Power to remove difficulties.
55. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty:

Provided that no such order shall be made after the expiry of a period of three years from the appointed day.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.

Repeals and savings
56. (1) The Monopolies and Restrictive Trade Practices Act, 1969 is hereby repealed and the Monopolies and Restrictive Trade Practices Commission established under sub-section (1) of section 5 of the said Act (hereinafter referred to as the repealed Act) shall stand dissolved.

(2) On the dissolution of the said Monopolies and Restrictive Trade Practices Commission, the person appointed as Chairman of the Monopolies and Restrictive Trade Practices Commission and every other person appointed as Member and holding office as such immediately before such date shall vacate their respective offices and such Chairman or other Member shall be entitled to claim compensation not exceeding three months pay and allowances for the premature termination of their term of their office or of any contract of service.

(3) All cases pertaining to monopolistic or restrictive trade practices pending before the Monopolies and Restrictive Trade Practices Commission at the time of commencement of this Act, or where in such cases, a charge pertaining to an unfair trade practice has also been pleaded, shall stand transferred to the Commission and shall be adjudicated by the Commission in accordance with the provisions of the Monopolies and Restrictive Trade Practices Act, 1969 as if that Act had not been repealed.

(4) All pending cases pertaining to unfair trade practices, other than those relating to tie in sales, purchases or cases falling under clause (x) of sub-section (1) of section 36A, the Monopolies and Restrictive Trade Practices Act 1969 under the repealed Act shall stand transferred to the National Commission constituted under the Consumer Protection Act, 1986.

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