2011 (11) TMI 649 - HC - Law of Competition

Competition Act Appeal Ends Without New Orders; Further Action May Follow with Competition Commission.

The appeal was disposed of without additional directions as the learned Single Judge did not make a reference under Section 21 of The Competition Act, ... Power of a court to refer matters to the Competition Commission - statutory authority for reference under Section 21 of the Competition Act, 2002 - competitor or aggrieved person remedy under Section 19 of the Competition Act, 2002 - prima facie view by a court and right to contest before statutory forumStatutory authority for reference under Section 21 of the Competition Act, 2002 - power of a court to refer matters to the Competition Commission - Whether the High Court could make a reference to the Competition Commission under Section 21 of the Competition Act, 2002 or perform the function of a 'Statutory Authority' for that purpose. - HELD THAT: - The Single Judge's consideration of sending the matter to the Competition Commission was examined. The court recorded that a reference under Section 21 is an act of a Statutory Authority as defined in the Act and the High Court does not fall within that definition. The Division Bench observed that the impugned order did not effectuate a formal Section 21 reference by the High Court. The bench emphasised that if the respondent wished to pursue competition law remedies, the appropriate route available is by making an application under Section 19 to the Competition Commission, and that any such application could be contested by the appellant on all available grounds. The court treated the Single Judge's observations as a prima facie view rather than a binding statutory referral and declined to pass any further direction in that regard. [Paras 1, 2]The High Court cannot act as the Statutory Authority to make a reference under Section 21; the impugned order did not amount to a Section 21 reference, and the respondent may approach the Competition Commission under Section 19, which the appellant may contest.Prima facie view by a court and right to contest before statutory forum - competitor or aggrieved person remedy under Section 19 of the Competition Act, 2002 - Whether further directions were necessary after the Single Judge recorded a prima facie view on monopolistic practice and suggested reference to the Competition Commission. - HELD THAT: - The Division Bench noted that the Single Judge had only taken a prima facie view and had not effected a statutory reference. Given that the respondent has indicated willingness to file a formal application under Section 19 and that the appellant would be free to contest any such application on available grounds, the court found no need to pass additional orders. The Division Bench therefore concluded that no further judicial intervention was warranted at this stage. [Paras 2, 3]No further orders are required; the respondent may file under Section 19 and the appellant may contest the application; appeal disposed of.Final Conclusion: The Division Bench held that the High Court is not the 'Statutory Authority' to make a Section 21 reference to the Competition Commission; the impugned order did not amount to such a reference, the respondent may approach the Competition Commission by filing under Section 19, the appellant may contest that application, and no further directions are required - appeal disposed of. Issues involved: Interpretation of provisions of The Competition Act, 2002 regarding referral to Competition Commission.The appellant argued that the learned Single Judge did not grant the relief sought by the respondent in the writ petition and questioned the need for the High Court to refer the matter to the Competition Commission u/s 21 of The Competition Act. The appellant contended that only a Statutory Authority, as defined in Sec. 2(w) of the Act, can make such a reference, excluding the High Court. It was suggested that the respondent could approach the Competition Commission by filing an application u/s 19 of the Act if desired.Upon review, it was observed that the learned Single Judge did not make a reference u/s 21 of the Act. Despite this, the respondent's counsel indicated that their client would submit a formal application u/s 19 of The Competition Act. Consequently, no further orders were deemed necessary, especially since the Single Judge's view was preliminary, allowing the appellant to contest any such application on all available grounds.The appeal was thus disposed of, with no additional directions issued.