Competition law applies to statutory coal monopolies; commercial mining and distribution by government companies are not sovereign functions.

The Competition Act, 2002 applies to government companies and statutory coal monopolies engaged in coal mining and distribution because those activities are commercial, not sovereign functions. The Act's definitions of enterprise, dominant position, and the Section 19(4) factors show that Parliament intended competition law to reach public sector undertakings and statutory monopolies. The Coal Mines (Nationalisation) Act, 1973 and its non obstante clause do not create immunity from the later Competition Act, and the constitutional setting under Articles 31B, 31C and 39(b) does not exempt such entities from competition scrutiny. Their substantive defences on alleged abuse remain for determination in the pending proceedings.

---

---

Issues: Whether the Competition Act, 2002 applies to a statutory coal monopoly and its government company subsidiaries created under the Coal Mines (Nationalisation) Act, 1973, and whether such entities are outside the Act because they function to achieve the constitutional objective under Article 39(b).

Analysis: The relevant provisions of the Competition Act, 2002 define an enterprise to include a Government company and expressly exclude only activities relatable to sovereign functions. Coal mining and coal distribution by the appellants were held to be commercial activities and not sovereign functions. The scheme of the Act, especially the definitions of enterprise, goods, dominant position, and the factors in Section 19(4), shows that Parliament intended to bring Government companies, public sector undertakings, and statutory monopolies within the Act. The Coal Mines (Nationalisation) Act, 1973 and its non obstante clause were considered, but the later enactment and its overriding provisions were held to operate notwithstanding inconsistency. The constitutional setting under Articles 31B, 31C and 39(b) did not confer immunity from the Competition Act, though the appellants remained entitled to defend their conduct before the competent forum, including reliance on policy and directives where legally relevant.

Conclusion: The Competition Act, 2002 applies to the appellants, and they are not exempt merely because they are a statutory monopoly created to serve the common good under Article 39(b).

Final Conclusion: The appellants' contention that their coal mining and distribution activities fall outside competition law was rejected, while their substantive defenses on the merits of alleged abuse were left to be considered in the pending proceedings.

Ratio Decidendi: A Government company operating a statutory monopoly in commercial activity is an enterprise under the Competition Act, 2002 and remains subject to that Act unless it is performing a sovereign function or is validly exempted; a prior nationalisation statute does not by itself confer immunity from competition law.

---