Provisions regarding CCI

In Competition Act, 2002

Establishment of Commission (Section 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”.
(2) The Commission shall be a body corporate by
the name aforesaid having perpetual succession
and a common seal with power, subject to the
provisions of this Act, to acquire, hold and dispose
of property, both movable and immovable, and to
contract and shall, by the said name, sue or be
sued.
(3) The head office of the Commission shall be at
such place as the Central Government may decide
from time to time. (C) K L GUPTA
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.

(2) The Chairperson and every other Member

shall be a person of ability, integrity and standing
and who has special knowledge of, and such
professional experience of not less than fifteen
years in, international trade, economics,
business, commerce, law, finance, accountancy,
management, industry, public affairs or
competition matters, including
competition law and policy, which in the opinion
of the Central Government, may be useful to the
Commission.
Term of office of Chairperson & other Members
(Section 10)
- 5 years (Till age of 65)

- They shall be eligible for re-appointment

Vacancy, Defect in appointment, etc not to

Invalidate proceedings of Commission (Section
15)
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 –
a) the Chief Justice of India or his nominee -
Chairperson;
b) the Secretary in the Ministry of Corporate Affairs -
Member;
c) the Secretary in the Ministry of Law and Justice -
Member;
d) two experts of repute who have special knowledge
of, and professional experience in international
trade, economics, business, commerce, law, finance,
accountancy, management, industry, public affairs or
competition matters including – Members
competition law and policy.
S. 10 Term of office of Chairperson and other Members:
(1)The Chairperson and every other Member shall hold
office as such for a term of five years from the date on
which he enters upon his office and shall be eligible for
re-appointment:[Provided that the Chairperson or
other Members shall not hold office as such after he
has attained the age of sixty-five years]
(2) A vacancy caused by the resignation or removal of the
Chairperson or any other Member under section 11 or by
death or otherwise shall be filled by fresh appointment in
accordance with the provisions of sections 8 and 9.
(3) The Chairperson and every other Member shall,
before entering upon his office, make and subscribe to an
oath of office and of secrecy in such form, manner and
before such authority, as may be prescribed.
(4) In the event of the occurrence of a vacancy in the
office of the
Chairperson by reason of his death, resignation or
otherwise, the seniormost Member shall act as the
S. 11 Resignation, removal and
suspension of Chairperson and other
members
(1) The Chairperson or any other Member
may, by notice in writing under his hand
addressed to the Central Government, resign
his office:

Provided that the Chairperson or a Member

shall, unless he is permitted by the Central
Government to relinquish his office sooner,
continue to hold office until the expiry of
three months from the date of receipt of such
notice or until a person duly appointed as his
successor enters upon his office or until the
(2) Notwithstanding anything contained in sub-section
(1), the Central Government may, by order, remove the
Chairperson or any other Member from his office if such
Chairperson or Member, as the case may be,—
(a) is, or at any time has been, adjudged as an insolvent;
or
(b) has engaged at any time, during his term of office, in
any paid employment; or
(c) has been convicted of an offence which, in the opinion
of the Central Government, involves moral turpitude; or
(d) has acquired such financial or other interest as is
likely to affect prejudicially his functions as a Member; or
(e) has so abused his position as to render his
continuance in office prejudicial to the public interest; or
(f) has become physically or mentally incapable of acting
as a Member.
(3) Notwithstanding anything contained in sub-
section (2), no Member shall be removed from
his office on the ground specified in clause (d)
or clause (e) of that subsection unless the
Supreme Court, on a reference being made to it
in this behalf by the Central Government, has,
on an inquiry, held by it in accordance with such
procedure as may be prescribed in this behalf
by the Supreme Court, reported that the
Member, ought on such ground or grounds to be
removed.
Restriction on Employment of Chairperson & other
members (Section 12) :-

The Chairperson & other Members shall not for a

period of 2 years from the date on which they cease to
hold office any employment in, or connected with the
management or admin of any enterprise which has
been a party to a proceeding before the Competition.

However, the aforesaid restriction will not apply to any

employment under Central or State Government or
Local Authority or in any statutory authority.
15. Vacancy, etc., not to invalidate
proceedings of Commission.—No
act or proceeding of the Commission
shall be invalid merely by reason of—
(a) any vacancy in, or any defect in
the constitution of, the Commission;
or
(b) any defect in the appointment of a
person acting as a Chairperson or as
a Member; or
(c) any irregularity in the procedure
of the Commission not affecting the
Appointment of Director General etc. (Section 16) :-

The Central Govt. may by notification, appoint a

Director-General for the purpose of assisting the
Commission in conducting inquiry into contravention
of any of the provisions of this Act

(C) K L GUPTA
Duties of Commission (Section 18) :-

Duty of the Commission is to….

- eliminate practices having adverse effect on

competition.

- promote and sustain competition

- protect the interest of consumers and

- ensure freedom of trade carries on by other

participants in markets in India

(C) K L GUPTA
Inquiry into certain agreements & dominant
position of enterprise (Section 19) :-

- Receipt of any information from any person,

consumer or their association or trade association
or

- A reference made to it by the Central Government

or a State Government or a Statutory Authority.

- Suo moto

(C) K L GUPTA
Determinants – whether an agreement has an
appreciable adverse effect on competition
(Section 19) :-
- Creation of barriers to new entrants in the market;

- Driving existing competitions out of the market;

- Foreclosure of competition by hindering entry into

the market;

- Accrual of benefit to consumers;

- Improvement in production or distribution of goods

or provisions of services;

- Promotion of technical, scientific and economic

development by means of production or distribution
of goods or provision(C)of services etc.
K L GUPTA
Determinants – whether an enterprise enjoys a
dominant position or not (Section 19) :-

- 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

services or network of such enterprise;

- Dependence of consumers on the enterprise;

- Market structure and size of the market etc..

(C) K L GUPTA
Inquiry into combinations by Commission
(Section 20) :-

- The Commission may upon its own knowledge or

information relating to acquisition referred to in
Section 5, inquire into whether such a
combinations has caused or is likely to cause an
appreciable adverse effect on competition in
India.

- Commission shall not initiate any inquiry after

the expiry of 1 year from the date on which such
combination has taken effect.

(C) K L GUPTA
Procedure for inquiry under Section 19
(Section 26) :-

- Under the Section 19, if the Commission is of the

opinion that there exits a prima facie case, it shall
direct the Director General to cause an
investigation to be made into the matter if not
prima facie case, it shall close the matter.

- DG shall submit report.

- Report will be sent to parties concerned/Central

Government/State Government as the case may be.

(C) K L GUPTA
Orders by Commission after inquiry into
agreements or abuse of dominant position
(Section 27) :-

- Direct any enterprise, person etc. to discontinue

and not to re-enter such agreement or discontinue
such abuse of dominant position.

- 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 proceedings financial
years.

- Direct to modify agreements.

- Or pass any such other order as it may deem fit.

(C) K L GUPTA
Procedure for investigation of combinations
(Section 29) :-

- Commission is of the prima facie opinion that a

combinations is likely to cause or has causes an
appreciable adverse effect on competition, it will
issue notice to the parties to combination calling
upon them to respond within 30 days of the receipt
of the notice as why investigation in respect of such
combination should not be conducted.

- After receiving reply Commission may call for report

from DG.

- Commission will ask for publication of agreement if

there is prima facie case of appreciable adverse
effect

(C) K L GUPTA
Orders of Commission on certain combinations
(Section 31) :-

- Where 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 the combination.

- If yes then it shall direct that combination shall not

take effect.

- Commission may propose to modify combination

make it lawful.

- If parties accept modification then it will be

approved.

- If parties do not accept modification, such

combination shall be deemed to have an
appreciable adverse effect on competition.
(C) K L GUPTA

Cont.
 Cont.

Orders of Commission on certain

combinations (Section 31) :-

If the Commission does not on the expiry of a

period of 210 days from the date of notice given to
the Commission under sub-section (2) of section
6, pass an order or issue direction in accordance
with the provisions of sub-section (1) or sub-
section (7), the combination shall be deemed to
have been approved by the Commission.

(C) K L GUPTA
Acts taking place outside India but having an
effect on competition in India (Section 32) :-
The Commission shall, notwithstanding that, an
agreement referred to in Section 3 has been entered
into outside India;
a. Any party to such agreement is outside India; or
b. Any enterprise abusing the dominant position is
outside India or
c. A combination has taken place outside India or
d. Any other mater matter or practice or action
arising out of such agreement or dominant position
or combination is outside India,
Have power to inquire into such agreement or abuse of
dominant position or combination if such agreement or
dominant position or combination has or is likely to
have an appreciable adverse effect on competition,
pass such orders as it may deem fit.
(C) K L GUPTA
Power to issue interim orders (Section 33) :-

The Commission may by order, temporarily restrain

any party from carrying on such act until the
conclusion of any such inquiry or until further orders,
without giving notice to such party where it deems
necessary.

(C) K L GUPTA
Contravention of orders of Commission
(Section 42) :-
- If any person, without reasonable cause, fails to
comply with orders or directions of the Commission
issued under Sections 27,28,31,32,33,42A and 43A
of the Act, he shall be punishable with fine which
may extend to Rs. 1 lakh for each day during which
such non-compliance occurs, subject to a max of Rs.
10 Crore.
- If any person does not comply with the above, he
shall be punishable with imprisonment for a term
which may extend to 3 years or with fine which may
extend to Rs. 25 crore or with both as the Chief
Metropolitan Magistrate, Delhi may deem fit.

(C) K L GUPTA
Compensation in case of contravention of orders of
Commission (Section 42A):-
Application can be made To Appellate Tribunal for
violating directions issued by Commission

(C) K L GUPTA
Penalty for failure to comply with directions of
Commission & Director General (Section 43) :-

If any person fails to comply, without reasonable cause

with a direction given……

………. punishable with fine which may extend to Rs. 1

lakh for each day during which such failure continues
subject to a maximum of Rs. 1 Crore.

(C) K L GUPTA
Power to impose penalty for no-furnishing of
information on combinations (Section 43A)

Commission shall impose on such person or enterprise

a penalty which may extend to 1% of the total turnover
or the assets whichever is higher of such combination.

(C) K L GUPTA
Establishment of Appellate Tribunal (Section 53A) :-

The Central Govt. shall by notification establish an

Appellate Tribunal to be know as Competition
Appellate Tribunal,

- to hear and dispose of appeals against orders,

directions passed by the Commission;

- to adjudicate on claim for compensation that

may arise from the findings of the Commission.

(C) K L GUPTA
Composition of Appellate Tribunal (Section 53B) :-

- A Chairperson &

- not more than 2 members

Term of Office (Section 53F) :-
- 5 years, eligible for re-appointment

- Chairperson (68 years), Members (65 years)

(C) K L GUPTA
Awarding compensation (Section 53N) :-

- The Central Govt. or a State Govt. or a local

authority or any enterprise or any person may make
an application to the Appellate Tribunal to
adjudicate on claim for compensation that may
arise from the findings of the commission.

- Every application made under shall be accompanied

by the findings of the Commission.

- The Appellate Tribunal may, after an inquiry into the

allegations mentioned above pass an order
directing the enterprise to make payment to the
applicant.

Power of Competition Commission of India to award

compensation under Section 34 repealed by the

(C) K L GUPTA
Competition (Amendment) Act, 2007
Contravention of orders of Appellate Tribunal
(Section 53Q) :-

If any person contravenes, without any reasonable

ground any order of the Appellate Tribunal, he
shall be liable for a penalty of not exceeding Rs. 1
Crore or imprisonment for a term upto 3 years or
with both as the Chief Metropolitan Magistrate,
Delhi may deem fit.

(C) K L GUPTA
Competition Advocacy
(Section 49) :-

The Commission shall make

suitable measures for the
promotion of competition
advocacy, creating awareness
and imparting training about
competition issues.

(C) K L GUPTA
 60 days

Competition
Appellate Tribunal
(Section 53A)

60 days

Competition of
Commission of
India (Section 7)

Appeal Flow