Natural justice in competition proceedings requires notice before departing from the investigation report's findings.

A competition regulator must give notice and an opportunity of rebuttal before it relies on conclusions or directions that materially depart from the Director General's report. Where the Commission proposed disclosure of the discount policy and other directions inconsistent with the report's findings, the affected party was entitled to meet the proposed deviation. The absence of such notice and hearing caused prejudice and violated natural justice, rendering the order unsustainable. The matter was therefore remanded for fresh consideration after notice wherever the Commission differs from the Director General's findings.

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Issues: Whether the Competition Commission could rely upon conclusions and directions that were contrary to the Director General's report without first putting the appellant on notice and granting an opportunity of rebuttal, and whether the impugned order was liable to be set aside and remanded on that ground.

Analysis: The dispute was confined to compliance with natural justice after investigation. The Director General's report had stated that non-disclosure of pricing or discounting policy did not itself appear to be a contravention, and that the appellant had no obligation to keep traders in business. The Commission, however, directed public disclosure of the discount policy and stated that no end-use restriction could be imposed and buyers could trade the product. These directions went beyond, and were inconsistent with, the specific findings in the report. Where the Commission proposes to differ from the Director General on material issues, an effective opportunity must be given to the affected party to meet the proposed deviation. The absence of such notice and hearing caused prejudice and vitiated the order.

Conclusion: The impugned order was unsustainable for breach of natural justice and was set aside with a direction to remand the matter to the Commission for fresh consideration after issuing notice wherever it differs from the Director General's findings.

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