TaxTMI 
TaxTMI 
Competition (Amendment) Act, 2007
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.... Competition Act, 2002(12 of 2003) (hereinafter referred to as the principal Act), after clause (b), the following clause shall be inserted, namely: '(ba) "Appellate Tribunal" means the Competition Appellate Tribunal established under sub-section (1) of section 53A.'. 3. Amendment of section 4. In section 4 of the principal Act,-- (i) for sub-section (1), the following sub-section shall be substituted, namely:―" (1) No enterprise or group shall abuse its dominant position." (ii) in sub-section (2),- (a) for the words, brackets and figure "under sub-section (1), if an enterprise", the words, brackets and figure "under sub-section (1), if an enterprise or a group" shall be substituted; (b) in clause (c), after the word "access", the words "in any manner" shall be inserted; (iii) after sub-section (2), in the Explanation, after clause (b), the following clause shall be inserted, namely:- '(c) "group" shall have the same meaning as assigned to it in clause (b) of the Explanation to section 5.' 4. Amendment of section 5. In section 5 of the principal Act, (i) in clause (a),- ....
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.... 5. Amendment of section 6. In section 6 of the principal Act, in sub-section (2),- (a) for the words "may, at his or its option.", the word "shall" shall be substituted; (b) for the words "seven days", the words "thirty days" shall be substituted; (c) after sub-section (2), the following sub-section shall be inserted, namely:―- "(24) No combination shall come into effect until two hundred and ten days have passed from the day on which the notice has been given to the Commission under sub-section (2) or the Commission has passed orders under section 31, whichever is earlier." 6. Substitution of new section for section 8. For section 8 of the principal Act, the following section shall be substituted, namely:― "8. Composition of commission. (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 trad....
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....r of the Commission.". 11. Amendment of section 16. In section 16 of the principal Act, (a) for sub-section (1), the following sub-sections shall be substituted, namely:- "(1) The Central Government may, by notification, appoint a Director General for the purposes of assisting the Commission in conducting inquiry into contravention of any of the provisions of this Act and for performing such other functions as are, or may be, provided by or under this Act. (1A) The number of other Additional, Joint, Deputy or Assistant Directors General or such officers or other employees in the office of Director General and the manner of appointment of such Additional, Joint, Deputy or Assistant Directors General or such officers or other employees shall be such as may be prescribed."; (b) in sub-section (2), for the words "such other advisers, consultants and officers.", 'the words "such officers or other employees," shall be substituted; (c) in sub-sections (3) and (4), for the words "such other advisers, consultants or officers,", the words "such officers or other employees," shall be substituted. 12. Substitution new section for of sec....
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....e of a proceeding before the commission an issue is raised by any party that any decision which, the commission has taken during such proceeding or proposes to take, is or would be contrary to any provision of this Act whose implementation is entrusted to a statutory authority, then the commission may make a reference in respect of such issue to the statutory authority: Provided that the commission, may, suo motu, make such a reference to the statutory authority. (2) On receipt of a reference under sub-section (1), the statutory authority shall give its opinion, within sixty days of receipt of such reference, to the commission which shall consider the opinion of the statutory authority, and thereafter give' its findings recording reasons therefor on the issues referred to in the said opinion.": 17. Substitution of new section for section 22. For section 22 of the principal Act, the following section shall be substituted, namely:― "22. Meetings of Commission. (1) The commission shall meet at such times and such places, and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be provided by....
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....n shall forward a copy of the report referred to in sub-section (3) to the Central Government or the State Government or the statutory authority, as the case may be. (5) If the report of the Director General referred to in sub-section (3) recommends that there is no contravention of the provisions of this Act, the Commission shall invite objections or suggestions from the Central Government or the State Government or the statutory authority or the parties concerned, as the case may be, on such report of the Director General. (6) If, after consideration of the objections or suggestions referred to in sub-section (5), if any, the Commission agrees with the recommendation of the Director General, it shall close the matter forthwith and pass such orders as it deems fit and communicate its order to the Central Government or the State Government or the statutory authority or the parties concerned, as the case may be. (7) If, after consideration of the objections or suggestions referred to in sub-section (5), if any, the Commission is of the opinion that further investigation is called for, it may direct further investigation in the matter by the Director Genera....
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....) After receipt of the response of the parties to the combination under sub-section (1), the Commission may call for a report from the Director General and such report shall be submitted by the Director General within such time as the Commission may direct. "; (c) in sub-section (2), after the words "parties to the combination", the words, brackets, figure and letter "or the receipt of the report from Director General called under sub-section (1A), whichever is later" shall be inserted. 23. Substitution of new section for section 30. For section 30 of the principal Act, the following section shall be substituted, namely:- "30. Procedure in case of notice under sub-section (2) of section 6. Where any person or enterprise has given a notice under sub-section (2) of section 6, the Commission shall examine such notice and form its prima facie opinion as provided in sub-section (1) of section 29 and proceed as per provisions contained in that section.". 24. Amendment of section 31. In section 31 of the principal Act, in sub-section (11),- (a) for the words, brackets and figures "ninety working days from the date of publication referred to ....
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....8(5 of 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; (c) receiving evidence on affidavit; (d) issuing commissions for the examination of witnesses or documents; (e) requisitioning, subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872(1 of 1872), any public record or document or copy of such record or document from any office. (3) 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 in the conduct of any inquiry by it. (4) The Commission may direct any person (a) to produce before the Director General or the Secretary or an officer authorised by it, such books or other documents in the custody or under the control of such person so directed as may be specified or described in the direction, being documents relating to any trade, the examination of which may be required for the pur....
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....er for the purposes of recovery of sums imposed by way of penalty. under this Act and reference made by the Commission under sub-section (2) would amount to drawing of a certificate by the Tax Recovery Officer as far as demand relating to penalty under this Act. Explanation 3.- Any reference to appeal in Chapter XVIID and the Second Schedule to the Income-tax Act, 1961(43 of 1961), shall be construed as a reference to appeal before the Competition Appellate Tribunal under section 53B of this Act.". 32. Omission of section 40. Section 40 of the principal Act shall be omitted. 33. Amendment of section 41. In section 41 of the principal Act, the following Explanation shall be inserted, namely:― 'Explanation-. For the purposes of this section,-- (a) the words "the Central Government" under section 240 of the Companies Act, 1956(1 of 1956) shall be construed as "the Commission"; (b) the word "Magistrate" under section 240A of the Companies Act, 1956(1 of 1956) shall be construed as "the Chief Metropolitan Magistrate, Delhi?".'. 34. Substitution of new section for section 42. For section 42 of the principal Act, the followin....
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....directions of Commission and Director General. If any person fails to comply, without reasonable cause, with a direction given by (a) the Commission under sub-sections (2) and (4) of section 36; or (b) the Director General while exercising powers referred to in sub-section (2) of section 41,such person shall be punishable with fine which may extend to rupees one lakh for each day during which such failure continues subject to a maximum of rupees one crore, as may be determined by the Commission.". 37. Insertion of new section 43A After section 43 of the principal Act, the following section shall be inserted, namely:― "43A. Power to impose penalty for non-furnishing of information on combinations. If any person or enterprise who fails to give notice to the Commission under sub-section (2) of section 6, the Commission shall impose on such person or enterprise a penalty which may extend to one per cent. of the total turnover or the assets, whichever is higher, of such a combination.". 38. Amendment of section 45. In section 45, of the principal Act, for sub-section (1), the following sub-section shall be substituted, namely:- ....
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....y be prescribed," shall be omitted. 41. Amendment of section 51. In section 51 of the principal Act, in sub-section (/),- (i) clause (b) shall be omitted; (ii) in clause (d), for the words, brackets and letters "clauses (a) to (c)", the words, brackets and letters "clauses (a) and (c)" shall be substituted. 42. Amendment of section 52. In section 52 of the principal Act, in sub-section (2), in the Explanation, for the words "Supreme Court", the words "Appellate Tribunal or the Supreme Court" shall be substituted. 43. Insertion of new Chapter VII A. After Chapter VIII of the principal Act, the following Chapter shall be inserted, Insertion of namely:- 'CHAPTER VIII A COMPETITION APPELLATE TRIBUNAL 53A. Establishment of Appellate Tribunal. (1) The Central Government shall, by notification, establish an Appellate Tribunal to be known as Competition Appellate Tribunal,- (a) to hear and dispose of appeals against any direction issued or decision made of order passed by the Commission under sub-sections (2) and (6) of section 26, section 27, section 28, section 31, section 32, section 33, section 38, section 39, sec....
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....f Appellate Tribunal (1) The Chairperson of the Appellate Tribunal shall be a person, who is, or has been a Judge of the Supreme Court or the Chief Justice of a High Court. (2) A Member of the Appellate Tribunal shall be a person of ability, integrity and standing having special knowledge of, and professional experience of not less than twenty-five years in, competition matters, including competition law and policy, international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affairs, administration or in any other matter which in the opinion of the Central Government, may be useful to the Appellate Tribunal. 53E. Selection Committee. (1) The Chairperson and Members of the Appellate Tribunal 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. (2) The term of the Selecti....
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.... certain cases. (1) In the event of the occurrence of any vacancy in the office of the Chairperson of-the Appellate Tribunal by reason of his death or resignation, the senior-most Member of the Appellate Tribunal shall act as the Chairperson of the Appellate Tribunal until the date on which a new Chairperson appointed in accordance with the provisions of this Act to fill such vacancy enters upon his office. (2) When the Chairperson of the Appellate Tribunal is unable to discharge his functions owing to absence, illness or any other cause, the senior-most Member or, as the case may be, such one of the Members of the Appellate Tribunal, as the Central Government may, by notification, authorise in this behalf, shall discharge the functions of the Chairperson until the date on which the Chairperson resumes his duties. 53K. Removal and suspension of Chairperson and Members of Appellate Tribunal. (1) The Central Government may, in consultation with the Chief Justice of India, remove from office the Chairperson or any other Member of the Appellate Tribunal, who -- (a) has been adjudged an insolvent; or * (b) has engaged at any time, du....
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....he officers and other employees of the Appellate. Tribunal shall be such as may be prescribed. 53N. Awarding compensation. (1) Without prejudice to any other provisions contained in this Act, the Central Government or a State Government 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 or the orders of the Appellate Tribunal in an appeal against any finding of the Commission or under section 42A or under sub-section (2) of section 53Q of the Act, and to pass an order for the recovery of compensation from any enterprise for any loss or damage shown to have been suffered, by the Central Government or a State Government or a local authority or any enterprise or any person as a result of any contravention of the provisions of Chapter II, having been committed by the enterprise: (2) Every application made under sub-section (1) shall be accompanied by the findings of the Commission, if any, and also be accompanied with such fees as may be prescribed. (3) The Appellate Tribunal may, after an inquiry made into th....
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....dure including the places at which they shall have their sittings. (2) The Appellate Tribunal 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(5 of 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; (c) receiving evidence on affidavits; (d) subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872(1 of 1872), requisitioning any public record or document or copy of such record or document from any office;. (e) issuing commissions for the examination of witnesses or documents; (f) reviewing its decisions; (g) dismissing a representation for default or deciding it ex parte; (h) setting aside any order of dismissal of any representation for default or any order passed by it ex parte; (i) any other matter which may be prescribed. (3) Every proceeding before the Appellate Tribunal shall be deemed t....
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....eding of the Appellate Tribunal shall be questioned or shall be invalid merely on the ground of existence of any vacancy or defect in the constitution of the Appellate Tribunal. 53S. Right to legal representation. (1) A person preferring an appeal to the Appellate Tribunal may either appear in person or authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to present his or its case before the Appellate Tribunal. (2) The Central Government or a State Government or a local authority or any enterprise preferring an appeal to the Appellate Tribunal may authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to act as presenting officers and every person so authorised may present the case with respect to any appeal before the Appellate Tribunal. (3) The Commission may authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of its officers to act as presenting officers and every person.so authorised may present the case with respect to an....
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....sions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code.".(45 of 1860) 46. Amendment of section 59 In section 59 of the principal Act, for the words "the Registrar or officers or other employees of the Commission", the words "the Secretary or officers or other employees of the Commission or the Chairperson, Members, officers and other employees of the Appellate Tribunal" shall be substituted. 47. Amendment of section 61 In section 61 of the principal Act, for the word "Commission", the words "Commission or the Appellate Tribunal" shall be substituted. 48. Amendment of section 63. In section 63 of the principal Act, in sub-section (2), (i) for clause (a), the following clause shall be substituted, namely: -- "(a) the term of the Selection Committee and the manner of selection of panel of names under sub-section (2) of section 9;"; (ii) clause (c) shall be omitted; (iii) after clause (d), the following clause shall be inserted, namely: - "(da) the number of Additional, Joint, Deputy or Assistant Directors General or such officers or other employees in the office of Director Gener....
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....business at the meetings of the Commission under sub-section (1) of section 22; (g) the manner in which penalty shall be recovered under sub-section (1) of section 39; (h) any other matter in respect of which provision is to be, or may be, made by regulations.". 50. Amendment of section 66. In section 66 of the principal Act, (a) for sub-section (1), the following sub-sections, shall be substituted, namely:― (1) The Monopolies and Restrictive Trade Practices Act, 1969 is hereby (54 of 1969) repealed and the Monopolies and Restrictive Trade Practices: Commission established under sub-section (1) of section 5 of the said Act (hereafter referred to as the repealed Act) shall stand dissolved: Provided that, notwithstanding anything contained in this sub-section, the Monopolies and Restrictive Trade Practices Commission established under 3v sub-section (I) of section 5 of the repealed Act may continue to exercise jurisdiction and powers under the repealed Act for a period of two years from the date of the commencement of this Act in respect of all cases or proceedings (including complaints received by it or references or applicati....
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....f the rights in relation to such Monopolies and Restrictive Trade Practices Commission had not been transferred to, and vested in, the Competition Commission of India or the Appellate Tribunal; as the case may be, and shall continue to do so unless and until his employment in the Competition Commission of India or the Appellate Tribunal, as the case may be, is duly terminated or until his remuneration, terms and conditions of employment are duly altered by the Competition Commission of India or the Appellate Tribunal, as the case may be;"; (ii) in the third proviso, for the words "the Central Government", the words "the Competition Commission of India or the Appellate Tribunal, as the case may be," shall be substituted; (iii) in the fourth proviso.- (A) for the words "the Central Government shall, out of the monies standing", the words "the Competition Commission of India or the Appellate Tribunal, as the case may be, shall, out of the monies standing" shall be substituted; (B) for the portion beginning with the words "the Central Government and such monies" and ending with the words "as may be prescribed" the following shall be substituted, name....