 bill no  70 of 2007 the competition (amendment) bill, 2007 a billto amend the competition act, 2002be it enacted by parliament in the fifty-eighth year of the republic of india as follows:—1(1) this act may be called the competition (amendment) act, 2007short title and commencement(2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint: provided that different dates may be appointed for different provisions of this act and any reference in any such provision to the commencement of this act shall be construed as a reference to the coming into force of that provisionamendment of section 212 of 20032 in section 2 of the competition act, 2002 (hereinafter referred to as the principalact), 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 in section 4 of the principal act,—amendment of section 4(a) 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 (i), if an enterprise'', the words ''under sub-section (i), 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 in section 5 of the principal act, in clause (a),—amendment of section 5(a) in sub-clause (i), for item (b), the following item shall be substituted, namely:—"(b) in india or outside india, in aggregate, the assets of the value of more than five hundred million us dollars, including at least rupees five hundred crores in india, or turnover more than fifteen hundred million us dollars, including at least rupees fifteen hundred crores in india; or" (b) in sub-clause (ii), for item (b), the following item shall be substituted, namely:—"(b) in india or outside india, in aggregate, the assets of the value of more than two billion us dollars, including at least rupees five hundred crores in india, or turnover more than six billion us dollars, including at least rupees fifteen hundred crores in india; or"5 in section 6 of the principal act, in sub-section (2),—amendment of section 6(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:— "(2a) 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 for section 8 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 8"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 governmentcomposition of commission(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(3) the chairperson and other members shall be whole-time members"7 for section 9 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 9"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;selection committee for chairperson and members of commission(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 professionalexperience in international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affairs or competition matters including competition law and policymembers(2) the term of the selection committee and the manner of selection of panel of names shall be such as may be prescribed"amendment of section 108 in section 10 of the principal act, in sub-section (1), for the proviso, the following proviso shall be substituted, namely: — "provided that the chairperson or other members shall not hold office as such after he has attained the age of sixty-five years"amendment of section 129 in section 12 of the principal act, for the words "one year", the words "two years"shall be substituted10 for section 13 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 13"13 the chairperson shall have the powers of general superintendence, direction and control in respect of all administrative matters of the commission:administrative powers of chairperson provided that the chairperson may delegate such of his powers relating to administrative matters of the commission, as he may think fit, to any other member or officer of the commission"11 in section 16 of the principal act, —amendment of section 16(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 substituted12 for section 17 of the principal act, the following section shall be substituted, namely: —substitution of new section for section 17''17 (1) the commission may appoint a secretary and such officers and other employees as it considers necessary for the efficient performance of its functions under this act(2) the salaries and allowances payable to and other terms and conditions of service of the secretary and officers and other employees of the commission and the number of such officers and other employees shall be such as may be prescribedappointment of secretary, experts, professionals and officers and other employees of commission(3) the commission may engage, in accordance with the procedure specified by regulations, such number of experts and professionals of integrity and outstanding ability, who have special knowledge of, and experience in, economics, law, business or such other disciplines related to competition, as it deems necessary to assist the commission in the discharge of its functions under this act"amendment of section 1913 in section 19 of the principal act, in sub-section (1), in clause (a), for the words"receipt of a complaint,", the words "receipt of any information, in such manner and" shall be substitutedamendment of section 2014 in section 20 of the principal act, in sub-section (2), the words, brackets and figures "or upon receipt of a reference under sub-section (1) of section 21" shall be omitted15 in section 21 of the principal act,—amendment of section 21(a) in sub-section (1), the following proviso shall be inserted, namely: — "provided that any statutory authority, may, suo motu, make such a reference to the commission"; (b) for sub-section (2), the following sub-section shall be substituted, namely: —"(2) on receipt of a reference under sub-section (1), the commission shall give its opinion, within sixty days of receipt of such reference, to such statutory authority which shall consider the opinion of the commission and thereafter, give its findings recording reasons thereof on the issues referred to in the said opinion"16 after section 21 of the principal act, the following section shall be inserted, namely:—insertion of new section21a reference by commission''21a(1) where in the course 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 for section 22 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 22meetings of commission"22(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 regulations(2) the chairperson, if for any reason, is unable to attend a meeting of the commission, the senior-most member present at the meeting, shall preside at the meeting(3) all questions which come up before any meeting of the commission shall be decided by a majority of the members present and voting, and in the event of an equality of votes, the chairperson or in his absence, the member presiding, shall have a second or casting vote: provided that the quorum for such meeting shall be three members"18 sections 23, 24 and 25 of the principal act shall be omittedomission of sections 23, 24 and 2519 for section 26 of the principal act, the following section shall be substituted, namely: —substitution of new section for section 26 procedure for inquiry under section 19"26(1) on receipt of a reference from the central government or a state government or a statutory authority or on its own knowledge or information received under section 19, if the commission is of the opinion that there exists a prima facie case, it shall direct the director general to cause an investigation to be made into the matter: provided that if the subject matter of an information received is, in the opinion of the commission, substantially the same as or has been covered by any previous information received, then the new information may be clubbed with the previous information(2) where on receipt of a reference from the central government or a state government or a statutory authority or information received under section 19, the commission is of the opinion that there exists no prima facie case, it shall close the matter forthwith and pass such orders as it deems fit and send a copy of its order to the central government or the state government or the statutory authority or the parties concerned, as the case may be(3) the director general shall, on receipt of direction under sub-section (1), submit a report on his findings within such period as may be specified by the commission(4) the commission may forward a copy of the report referred to in sub-section(3) to the parties concerned: provided that in case the investigation is caused to be made based on a reference received from the central government or the state government or the statutory authority, the commission shall forward a copy of the report referred to in subsection (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 subsection (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 subsection (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 general or cause further inquiry to be made in the matter or itself proceed with further inquiry in the matter in accordance with the provisions of this act(8) if the report of the director general referred to in sub-section (3) recommends that there is contravention of any of the provisions of this act, and the commission is of the opinion that further inquiry is called for, it shall inquire into such contravention in accordance with the provisions of this act"20 in section 27 of the principal act,—amendment of section 27(i) in clause (b), for the proviso, the following proviso shall be substituted, namely:— "provided that in case any agreement referred to in section 3 has been entered into by a cartel, the commission may impose upon each producer, seller, distributor, trader or service provider included in that cartel, a penalty of up to three times of its profit for each year of the continuance of such agreement or ten per cent of its turnover for each year of the continuance of such agreement, whichever is higher"; (ii) clauses (c) and (f) shall be omitted;(iii) in clause (g), for the word "order", the words "order or issue such directions"shall be substituted;(iv) after clause (g), the following proviso shall be inserted, namely:— "provided that while passing orders under this section, if the commission comes to a finding, that an enterprise in contravention to section 3 or section 4 of the act is a member of a group as defined in clause (b) of the explanation to section 5 of the act, and other members of such a group are also responsible for, or have contributed to, such a contravention, then it may pass orders, under this section, against such members of the group"21 in section 28 of the principal act,—amendment of section 28(a) in sub-section (1), for the words, brackets, letter and figures "central government, on recommendation under clause (f) of section 27", the word "commission" shall be substituted;(b) clause (d) of sub-section (2) shall be omitted22 in section 29 of the principal act, —amendment of section 29(a) in sub-section (1), after the words "where the commission is of the", the words "prima facie" shall be inserted;(b) after sub-section (1), the following sub-section shall be inserted, namely:—"(1a) 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 inserted23 for section 30 of the principal act, the following section shall be substituted, namely: —substitution of new section for section 30"30 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""procedure in case of notice under subsection (2) of section 624 in section 31 of the principal act, in sub-section (11),—amendment of section 31(a) for the words, brackets and figures "ninety working days from the date of publication referred to in sub-section (2) of section 29", the words, brackets and figures "two hundred and ten days from the date of notice given to the commission under sub-section (2) of section 6" shall be substituted;(b) in the explanation, for the words "ninety working", the words "two hundred and ten" shall be substituted25 in section 32 of the principal act, after clause (f), —amendment of section 32(a) after the words "have power to inquire", the words and figures "in accordance with the provisions contained in sections 19, 20, 26, 29 and 30 of the act" shall be inserted;(b) after the words "relevant market in india", occurring at the end, the words"and pass such orders as it may deem fit in accordance with the provisions of this act" shall be inserted26 for section 33 of the principal act, the following section shall be substituted, namely: —substitution of new section for section 33 power to issue interim orders"33 where during an inquiry, the commission is satisfied that an act in contravention of sub-section (1) of section 3 or sub-section (1) of section 4 or section6 has been committed and continues to be committed or that such act is about to be committed, the commission may, by order, temporarily restrain any party from carrying on such act until the conclusion of such inquiry or until further orders, without giving notice to such party, where it deems it necessary"27 section 34 of the principal act shall be omittedomission of section 34 amendment of section 3528 in section 35 of the principal act, for the words "complainant or defendant", the words "person or an enterprise" shall be substituted29 for section 36 of the principal act, the following section shall be substituted, namely: —substitution of new section for section 36"36 (1) in the discharge of its functions, the commission shall be guided by the principles of natural justice and, subject to the other provisions of this act and of any rules made by the central government, the commission shall have the powers to regulate its own procedurepower of commission to regulate its own procedure5 of 1908(2) the commission 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, while trying a suit, in respect of the following matters, namely: —(a) summoning and enforcing the attendance of any person and examininghim 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;1 of 1872(e) requisitioning, subject to the provisions of sections 123 and 124 of the indian evidence act, 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 purposes of this act;(b) to furnish to the director general or the secretary or any other officer authorised by it, as respects the trade or such other information as may be in his possession in relation to the trade carried on by such person, as may be required for the purposes of this act"30 section 37 of the principal act shall be omittedomission of section 3731 for section 39 of the principal act, the following section shall be substituted, namely: —substitution of new section for section 39"39 (1) if a person fails to pay any monetary penalty imposed on him under this act, the commission shall proceed to recover such penalty, in such manner as may be specified by the regulationsexecution of orders of commission imposing monetary penalty43 of 1961(2) in a case where the commission is of the opinion that it would be expedient to recover the penalty imposed under this act in accordance with the provisions of the income-tax act, 1961, it may make a reference to this effect to the concerned income-tax authority under that act for recovery of the penalty as tax due under the said act43 of 1961(3) where a reference has been made by the commission under sub-section (2)for recovery of penalty, the person upon whom the penalty has been imposed shall be deemed to be the assessee in default under the income-tax act, 1961 and the provisions contained in sections 221 to 227, 228a, 229, 231 and 232 of the said act and the second schedule to that act and any rules made thereunder shall, in so far as may be, apply as if the said provisions were the provisions of this act and referred to sums by way of penalty imposed under this act instead of to income-tax and sums imposed by way of penalty, fine and interest under the income-tax act, 1961 and to the commission instead of the assessing officer43 of 1961explanation 1— any reference to sub-section (2) or sub-section (6) of section220 of the income-tax act, 1961, in the said provisions of that act or the rules made thereunder shall be construed as references to sections 43 to 45 of this act43 of 1961explanation 2— the tax recovery commissioner and the tax recovery officer referred to in the income-tax act, 1961 shall be deemed to be the tax recovery commissioner and the tax recovery officer 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 act43 of 1961explanation 3— any reference to appeal in chapter xviid and the second schedule of the income-tax act, 1961, shall be construed as a reference to appeal before the competition appellate tribunal under section 53b of this act"32 section 40 of the principal act shall be omittedomission of section 40 amendment of section 4133 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 shall be construed as "the commission";1 of 1956(b) the word "magistrate" under section 240a of the companies act,1956 shall be construed as "the chief metropolitan magistrate, delhi"1 of 195634 for section 42 of the principal act, the following section shall be substituted, namely: —substitution of new sectionfor section 42"42 (1) the commission may cause an inquiry to be made into compliance of its orders or directions made in exercise of its powers under the actcontravention of orders of commission(2) if any person, without reasonable cause, fails to comply with the 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 rupees one lakh for each day during which such non-compliance occurs, subject to a maximum of rupees ten crore, as the commission may determine(3) if any person does not comply with the orders or directions issued, or fails to pay the fine imposed under sub-section (2), he shall, without prejudice to any proceeding under section 39, be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to rupees twenty-five crore, or with both, as the chief metropolitan magistrate, delhi may deem fit: provided that the chief metropolitan magistrate, delhi shall not take cognizance of any offence under this section save on a complaint filed by the commission or any of its officers authorised by it"35 after section 42 of the principal act, the following section shall be inserted, namely:—insertion of new section 42a compensation in case of contravention of orders of commission"42a without prejudice to the provisions of this act, any person may make an application to the appellate tribunal for an order for the recovery of compensation from any enterprise for any loss or damage shown to have been suffered, by such person as a result of the said enterprise violating directions issued by the commission or contravening, without any reasonable ground, any decision or order of the commission issued under sections 27, 28, 31, 32 and 33 or any condition or restriction subject to which any approval, sanction, direction or exemption in relation to any matter has been accorded, given, made or granted under this act or delaying in carrying out such orders or directions of the commission"36 for section 43 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 43"43 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,penalty for failure to comply with directions of commission and director generalsuch 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 after section 43 of the principal act, the following section shall be inserted, namely:—insertion of new section 43a"43a 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"power to impose penalty for non-furnishing of information on combinations amendment of section 4538 in section 45, of  the principal act, for sub-section (1), the following sub-section shall be substituted, namely:—"(1) without prejudice to the provisions of section 44, if a person, who furnishes or is required to furnish under this act any particulars, documents or any information,–(a) makes any statement or furnishes any document which he knows or has reason to believe to be false in any material particular; or(b) omits to state any material fact knowing it to be material; or (c) wilfully alters, suppresses or destroys any document which is required to be furnished as aforesaid, such person shall be punishable with fine which may extend to rupees one crore as may be determined by the commission"39 in section 46 of the principal act, —amendment of section 46(a) for the first proviso, the following proviso shall be substituted, namely:—''provided that lesser penalty shall not be imposed by the commission in cases where the report of investigation directed under section 26 has been received before making of such disclosure:"; (b) in the second proviso, for the word "first", the word "has" shall be substituted; (c) after the second proviso, the following proviso shall be inserted, namely:— "provided also that lesser penalty shall not be imposed by the commission if the person making the disclosure does not continue to cooperate with the commission till the completion of the proceedings before the commission"40 in section 49 of the principal act,—amendment of section 49(a) for sub-section (1), the following sub-section shall be substituted, namely:—"(1) the central government may, in formulating a policy on competition(including review of laws related to competition) or on any other matter, and a state government may, in formulating a policy on competition or on any other matter, as the case may be, make a reference to the commission for its opinion on possible effect of such policy on competition and on the receipt of such a reference, the commission shall, within sixty days of making such reference, give its opinion to the central government, or the state government, as the case may be, which may thereafter take further action as it deems fit"; (b) in sub-section (2), after the words "central government", the words "or the state government, as the case may be," shall be inserted;(c) in sub-section (3), the words ", as may be prescribed," shall be omitted41 in section 51 of the principal act, in sub-section (1),—amendment of section 51(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 substitutedamendment of section 5242 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 substituted43 after chapter viii of the principal act, the following chapter shall be inserted, namely: —insertion of new chapter viii-a 'chapter viii a competition appellate tribunal53a (1) the central government shall, by notification, establish an appellate tribunal to be known as competition appellate tribunal,—establishment of appellate tribunal(a) to hear and dispose of appeals against any direction issued or decision made or 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, section 43, section 43a, section 44, section 45 or section 46 of this act;(b) 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 this act, and pass orders for the recovery of compensation under section 53n of this act(2) the headquarter of the appellate tribunal shall be at such place as the central government may, by notification, specifyappeal  to appellate tribunal53b(1) the central government or the state government or a local authority or enterprise or any person, aggrieved by any direction, decision or order referred to in clause (a) of section 53a may prefer an appeal to the appellate tribunal(2) every appeal under sub-section (1) shall be filed within a period of sixty days from the date on which a copy of the direction or decision or order made by the commission is received by the central government or the state government or a local authority or enterprise or any person referred to in that sub-section and it shall be in such form and be accompanied by such fee as may be prescribed: provided that the appellate tribunal may entertain an appeal after the expiry of the said period of sixty days if it is satisfied that there was sufficient cause for not filing it within that period(3) on receipt of an appeal under sub-section (1), the appellate tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the direction, decision or order appealed against(4) the appellate tribunal shall send a copy of every order made by it to the commission and the parties to the appeal(5) the appeal filed before the appellate tribunal under sub-section (1)shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal within six months from the date of receipt of the appeal53c the appellate tribunal shall consist of a chairperson and not more than two other members to be appointed by the central governmentcomposition of appellate tribunal53d(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 courtqualifications for appointment of chairperson and members of appellate tribunal(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 tribunalselection committee53e (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 selection committee and the manner of selection of panel of names shall be such as may be prescribed53f the chairperson or a member of the appellate tribunal 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:term of office of chairperson and members of appellate tribunal provided that no chairperson or other member of the appellate tribunal shall hold office as such after he has attained,—(a) in the case of the chairperson, the age of sixty-eight years; (b) in the case of any other member of the appellate tribunal, the age of sixty-five years 53g (1) the salaries and allowances and other terms and conditions of service of the chairperson and other members of the appellate tribunal shall be such as may be prescribed(2) the salaries, allowances and other terms and conditions of service of the chairperson and other members of the appellate tribunal shall not be varied to their disadvantage after their appointmentterms and conditions of service of chairperson  and members of appellate tribunal vacancies53h if, for any reason other than temporary absence, any vacancy occurs in the office of the chairperson or a member of the appellate tribunal, the central government shall appoint another person in accordance with the provisions of this act to fill the vacancy and the proceedings may be continued before the appellate tribunal from the stage at which the vacancy is filledresignation of chairperson and members of appellate tribunal53-i the chairperson or a member of the appellate tribunal may, by notice in writing under his hand addressed to the central government, resign his office: provided that the chairperson or a member of the appellate tribunal 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 expiry of his term of office, whichever is the earliest53-j(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 member of appellate tribunal to act as its chairperson in certain casesappellate 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 member 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 duties53k(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; orremoval and suspension of chairperson and members of appellate tribunal(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 become physically or mentally incapable of acting as such chairperson or other member of the appellate tribunal; or(e) has acquired such financial or other interest as is likely to affect prejudicially his functions as such chairperson or member of the appellate tribunal; or(f) has so abused his position as to render his continuance in office prejudicial to the public interest (2) notwithstanding anything contained in sub-section (1), no chairperson or a member of the appellate tribunal shall be removed from his office on the ground specified in clause (e) or clause (f) of sub-section (1) except by an order made by the central government after an inquiry made in this behalf by a judge of the supreme court in which such chairperson or member had been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges53l the chairperson and other members of the appellate tribunal shall not, for a period of two years from the date on which they cease to hold office, accept any employment in, or connected with the management or administration of, any enterprise which has been a party to a proceeding before the appellate tribunal under this act:restriction onemploymentof chairperson and other members of appellate tribunal in certain cases provided that nothing contained in this section shall apply to any employment under the central government or a state government or local authority or in any statutory authority or any corporation established by or under any central, state or provincial act or a government company as defined in section 617 of the companies act, 19561 of 195653m(1) the central government shall provide the appellate tribunal with such officers and other employees as it may think fitstaff of appellate tribunal(2) the officers and other employees of the appellate tribunal shall discharge their functions under the general superintendence and control of the chairperson of the appellate tribunal (3) the salaries and allowances and other conditions of service of the officers and other employees of the appellate tribunal shall be such as may be prescribedawarding compensation53n(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 the allegations mentioned in the application made under sub-section (1), pass an order directing the enterprise to make payment to the applicant, of the amount determined by it as realisable from the enterprise as compensation for the loss or damage caused to the applicant as a result of any contravention of the provisions of chapter ii having been committed by such enterprise: provided that the appellate tribunal may obtain the recommendations of the commission before passing an order of compensation5 of 1908(4) where any loss or damage referred to in sub-section (1) is caused to numerous persons having the same interest, one or more of such persons may, with the permission of the appellate tribunal, make an application under that sub-section for and on behalf of, or for the benefit of, the persons so interested, and thereupon, the provisions of rule 8 of order 1 of the first schedule to the code of civil procedure, 1908, shall apply subject to the modification that every reference therein to a suit or decree shall be construed as a reference to the application before the appellate tribunal and the order of the appellate tribunal thereonexplanation— for the removal of doubts, it is hereby declared that –(a) an application may be made for compensation before the appellate tribunal only after either the commission or the appellate tribunal on appeal under clause (a) of sub-section (1) of section 53a of the act, has determined in a proceeding before it that violation of the provisions of the act has taken place, or if provisions of section 42a or sub-section (2) of section 53q of the act are attracted(b) enquiry to be conducted under sub-section (3) shall be for the purpose of determining the eligibility and quantum of compensation due to a person applying for the same, and not for examining afresh the findings of the commission or the appellate tribunal on whether any violation of the act has taken place5 of 1908procedure and powers of appellate tribunal53-o (1) the appellate tribunal shall not be bound by the procedure laid down in the code of civil procedure, 1908, but shall be guided by the principles of natural justice and, subject to the other provisions of this act and of any rules made by the central government, the appellate tribunal shall have power to regulate its own procedure including the places at which they shall have their sittings5 of 1908(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 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;1 of 1872(d) subject to the provisions of sections 123 and 124 of the indianevidence act, 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 defaultor any order passed by it ex parte;(i) any other matter which may be prescribed45 of 1860 2 of 1974(3) every proceedings before the appellate tribunal shall be deemed to bejudicial proceedings within the meaning of sections 193 and 228, and for the purposes of section 196, of the indian penal code and the appellate tribunal shall be deemed to be a civil court for the purposes of section 195 and chapter xxvi of the code of criminal procedure, 1973execution of orders of appellate tribunal53p(1) every order made by the appellate tribunal shall be enforced by it in the same manner as if it were a decree made by a court in a suit pending therein, and it shall be lawful for the appellate tribunal to send, in case of its inability to execute such order, to the court within the local limits of whose jurisdiction,—(a) in the case of an order against a company, the registered office of the company is situated; or(b) in the case of an order against any other person, place where the person concerned voluntarily resides or carries on business or personally works for gain, is situated (2) notwithstanding anything contained in sub-section (1), the appellate tribunal may transmit any order made by it to a civil court having local jurisdiction and such civil court shall execute the order as if it were a decree made by that courtcontravention of orders of appellate tribunal53-q(1) without prejudice to the provisions of this act, if any person contravenes, without any reasonable ground, any order of the appellate tribunal, he shall be liable for a penalty of not exceeding rupees one crore or imprisonment for a term up to three years or with both as the chief metropolitan magistrate, delhi may deem fit: provided that the chief metropolitan magistrate, delhi shall not take cognizance of any offence punishable under this sub-section, save on a complaint made by an officer authorised by the appellate tribunal(2) without prejudice to the provisions of this act, any person may make an application to the appellate tribunal for an order for the recovery of compensation from any enterprise for any loss or damage shown to have been suffered, by such person as a result of the said enterprise contravening, without any reasonable ground, any order of the appellate tribunal or delaying in carrying out such orders of the appellate tribunal53r no act or proceeding 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 tribunalvacancy  in appellate tribunal not to  invalidate acts or proceedings right to legal representation53-s(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 any appeal before the appellate tribunalexplanation— the expressions "chartered accountant" or "company secretary" or "cost accountant" or "legal practitioner" shall have the meanings respectively assigned to them in the explanation to section 35| appeal                                                                                 ||----------------------------------------------------------------------------------------|| supreme court                                                                         || 53t the central government or any state government or the commission or               || any statutory authority or any local authority or any enterprise or any person         || aggrieved by any decision or order of the appellate tribunal may file an appeal to the || supreme court within sixty days from the date of communication of the decision or      || order of the appellate tribunal to them:                                               | provided that the supreme court may, if it is satisfied that the applicant was prevented by sufficient cause from filing the appeal within the said period, allow it to be filed after the expiry of the said period of sixty dayspower to punish for contempt70 of 197153u the appellate tribunal shall have, and exercise, the same jurisdiction,powers and authority in respect of contempt of itself as a high court has and may exercise and, for this purpose, the provisions of the contempt of courts act, 1971 shall have effect subject to modifications that, —(a) the reference therein to a high court shall be construed as includinga reference to the appellate tribunal;(b) the references to the advocate-general in section 15 of the said act shall be construed as a reference to such law officer as the central government may, by notification, specify in this behalfamendment of section 5744 in section 57 of the principal act, for the words "the commission", the words "thecommission or the appellate tribunal" shall be substituted45 for section 58 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 5845 of 1860"58 the chairperson and other members and the director general, additional, joint, deputy or assistant directors general and secretary and officers and other employees of the commission and the chairperson, members, officers and other employees of the appellate tribunal shall be deemed, while acting or purporting to act in pursuance of any of the provisions of this act, to be public servants within the meaning of section 21 of the indian penal code"chairperson, members, director general, secretary, officers and other employees, etc, to be public servantsamendment of section 5946 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 substitutedamendment of section 6147 in section 61 of the principal act, for the word "commission", the words"commission or the appellate tribunal" shall be substituted48 in section 63 of the principal act, in sub-section (2), —amendment of section 63(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 general and the manner in which such additional, joint, deputy or assistant directors general or such officers or other employees may be appointed under subsection (1a) of section 16;";(iv) in clauses (e) and (f), for the words "such other advisers, consultants or officers", the words "such officers or other employees" shall be substituted;(v) in clause (g), for the word "registrar", the word "secretary" shall be substituted;(vi) clauses (h), (i) and (j) shall be omitted;(vii) after clause (m), the following clauses shall be inserted, namely: —"(ma) the form in which an appeal may be filed before the appellate tribunal under sub-section (2) of section 53b and the fees payable in respect of such appeal;(mb) the term of the selection committee and the manner of selection of panel of names under sub-section (2) of section 53e;(mc) the salaries and allowances and other terms and conditions of service of the chairperson and other members of the appellate tribunal under subsection (1) of section 53g;(md) the salaries and allowances and other conditions of service of the officers and other employees of the appellate tribunal under sub-section (3) of section 53m;(me) the fee which shall be accompanied with every application made under sub-section (2) of section 53n;(mf) the other matters under clause (i) of sub-section (2) of section 53-oin respect of which the appellate tribunal shall have powers under the code of civil procedure, 1908 while trying a suit;";5 of 1908(viii) for clause (n), the following clause shall be substituted, namely:— "(n) the manner in which the monies transferred to the competition commission of india or the appellate tribunal shall be dealt with by the commission or the appellate tribunal, as the case may be, under the fourth proviso to sub-section (2) of section 66"amendment of section 6449 in section 64 of the principal act, in sub-section (2), for clauses (d) and (e), the following clauses shall be substituted, namely:—"(d) the procedures to be followed for engaging the experts and professionals under sub-section (3) of section 17;(e) the fee which may be determined under clause (a) of sub-section (1) of section 19;(f) the rules of procedure in regard to the transaction of 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 in section 66 of the principal act,—amendment of section 66(a) for sub-section (1), the following sub-sections shall be substituted, namely:—54 of 1969(1) the monopolies and restrictive trade practices act, 1969 is hereby 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:54 of 1969 provided that, notwithstanding anything contained in this sub-section, the monopolies and restrictive trade practices commission established under sub-section (1) of section 5 of the repealed act may continue to exercise jurisdiction and power 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 applications made to it) filed before the commencement of this act as if the monopolies and restrictive trade practices act, 1969 had not been repealed and all the provisions of the said act so repealed shall mutatis mutandis apply to such cases or proceedings or complaints or references or applications and to all other matters54 of 1969explanation—for the removal of doubts, it is hereby declared that nothing in this proviso shall confer any jurisdiction or power upon the monopolies and restrictive trade practices commission to decide or adjudicate any case or proceeding arising under the monopolies and restrictive trade practices act, 1969 on or after the commencement of this act54 of 1969(1a) the repeal of the monopolies and restrictive trade practices act, 1969 shall, however, not affect,—(a) the previous operation of the act so repealed or anything duly done or suffered thereunder; or(b) any right, privilege, obligation or liability acquired, accrued or incurred under the act so repealed; or(c) any penalty, confiscation or punishment incurred in respect of any contravention under the act so repealed; or(d) any proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, confiscation or punishment as aforesaid, and any such proceeding or remedy may be instituted, continued or enforced, and any such penalty, confiscation or punishment may be imposed or made as if that act had not been repealed"(b) in sub-section (2), —(i) for the second proviso, the following proviso shall be substituted, namely:— "provided further that the director general of investigation and registration, additional, joint, deputy or assistant directors general of investigation and registration or any officer or other employee who has been, immediately before the dissolution of the monopolies and restrictive trade practices commission employed on regular basis by the monopolies and restrictive trade practices commission, shall become, on and from such dissolution, the officer and employee, respectively, of the competition commission of india or the appellate tribunal, in such manner as may be specified by the central government, with the same rights and privileges as to pension, gratuity and other like matters as would have been admissible to him if 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, namely:—"the competition commission of india or the appellate tribunal, as the case may be, and such monies which stand so transferred shall be dealt with by the said commission or the tribunal, as the case may be, in such manner as may be prescribed";(c) for sub-section (3), the following sub-section shall be substituted, namely:—"(3) all cases pertaining to monopolistic trade practices or restrictive trade practices pending (including such cases, in which any unfair trade practice has also been alleged), before the monopolies and restrictive trade practices commission shall, after the expiry of two years referred to in the proviso to subsection (1), stand transferred to the appellate tribunal and shall be adjudicated by the appellate tribunal in accordance with the provisions of the repealed act as if that act had not been repealed" (d) in sub-section (4), for the words "on or before the commencement of this act shall, on such commencement", the words, brackets and figure "on or before the expiry of two years referred to in the proviso to sub-section (1)," shall be substituted;(e) for sub-section (5), the following sub-section shall be substituted, namely:— "(5) all cases pertaining to unfair trade practices referred to in clause (x)of sub-section (1) of section 36a of the monopolies and restrictive trade practices act, 1969 and pending before the monopolies and restrictive trade practices commission shall, after the expiry of two years referred to in the proviso to sub-section (1), stand transferred to the appellate tribunal and the appellate tribunal shall dispose of such cases as if they were cases filed under that act" statement of objects and reasonsthe competition act was enacted in 2002 keeping in view the economic developments that resulted in opening up of the indian economy, removal of controls and consequent economic liberalization which required that the indian economy be enabled to allow competition in the market from within the country and outside  the competition act, 2002 (hereinafter referred to as the act) provided for the establishment of a competition commission, (the commission) to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets in india, and for matters connected therewith or incidental thereto2 the competition commission of india was established on the 14th october, 2003but could not be made functional due to filing of a writ petition before the hon'ble supreme court  while disposing of the writ petition on the 20th january, 2005, the hon'ble supreme court held that if an expert body is to be created by the union government, it might be appropriate for the government to consider the creation of two separate bodies, one with expertise for advisory and regulatory functions and the other for adjudicatory functions based on the doctrine of separation of powers recognised by the constitution keeping in view the judgment of the hon'ble supreme court, the competition (amendment) bill, 2006 was introduced in lok sabha on the 9th march, 2006 and the same was referred for examination and report to the parliamentary standing committee taking into account the recommendations of the committee, the competition (amendment) bill, 2007 is being introduced3 the competition (amendment) bill, 2007, inter alia, provides for the following :—(a) the commission shall be an expert body which would function as a market regulator for preventing and regulating anti-competitive practices in the country in accordance with the act and it would also have advisory and advocacy functions in its role as a regulator;(b) for mandatory notice of merger or combination by a person or enterprise to the commission within thirty days and to empower the commission for imposing a penalty of up to one per cent of the total turnover or the assets, whichever is higher, on a person or enterprise which fails to give notice of merger or combination to the commission;(c) for establishment of the competition appellate tribunal, which shall be a three member quasi judicial body headed by a person who is or has been a judge of the supreme court or the chief justice of a high court to hear and dispose of appeals against any direction issued or decision made or order passed by the commission;(d) for adjudication by the competition appellate tribunal of claims on compensation and passing of orders for the recovery of compensation from any enterprise for any loss or damage suffered as a result of any contravention of the provisions of the act;(e) for implementation of the orders of the competition appellate tribunal as a decree of a civil court;(f) for filing of appeal against the orders of the competition appellate tribunal to the supreme court;(g) for imposition of a penalty by the commission for contravention of its orders and in certain cases of continued contravention a penalty which may extend to rupees twenty-five crores or imprisonment which may extend to three years or with both as the chief metropolitan magistrate, delhi may deem fit, may be imposed4 the bill also aims at continuation of the monopolies and restrictive trade practices commission (mrtpc) till two years after constitution of competition commission, for trying pending cases under the monopolies and restrictive trade practices act, 1969 after which it would stand dissolved the bill also provides that mrtpc would not entertain any new cases after the competition commission is duly constituted cases still remaining pending after this two year period, would be transferred to competition appellate tribunal or the national commission under the consumer protection act, 1986 depending on the nature of cases5 the bill seeks to achieve the above objectivesnew delhi;prem chand guptathe 9th august, 2007 ———— president's recommendation under article 117 of the constitution of india[copy of letter no 5/18/2006-igc, dated the 20th august, 2007 from shri prem chand gupta, minister of corporate affairs to  the secretary-general, lok sabha]the president, having been informed of the subject matter of the proposed competition(amendment) bill, 2007, recommends introduction of the bill under article 117(1) of the constitution and also recommends the consideration of the bill under article 117(3) of the constitution notes on clausesclause 2 —this clause seeks to amend section 2 of the competition act, 2002 relating to definitions  it is proposed to define the expression "appellate tribunal" used in the billclause 3 —this clause seeks to amend section 4 of the competition act, 2002 relating to abuse of dominant positionthe existing provisions of section 4 applies only to an enterprise and not to the group of enterprises clause (c) of sub-section (2) of section 4 states that there shall be an abuse of dominant position if an enterprise indulges in practice or practices resulting in denial of market accessit is proposed to amend the provisions of section 4 so as to make it applicable to group of enterprises also it is also proposed to amend clause (c) of sub-section (2) of said section so as to insert the words "in any manner"  this amendment is clarificatory in natureclause 4 —this clause seeks to amend section 5 of the competition act, 2002 relating to combinationunder the existing provisions of section 5, there is no specific provision regarding local nexus for foreign entities which are parties to combinationsit is proposed to substitute item (b) in sub-clause (i) and item (b) in sub-clause (ii) of clause (a) of section 5 to provide for a local nexus for combinations involving foreign entity and an indian entity  a threshold value of local assets and operations in terms of asset value of at least rupees 500 crores and turnover of atleast rupees 1500 crores, is proposed for operations in india in addition to the existing global asset or turnover limits provided in the actclause 5 —this clause seeks to amend section 6 of the competition act, 2002 relating to regulation of combinationsunder the existing provisions of section 6, it is voluntary for a person or enterprise to give notice of the formation of combination within seven days to the commissionit is proposed to amend sub-section (2) of section 6 so as to provide for mandatory notice of combinations to the commission within thirty days  it is also proposed to add subsection (2a) providing that 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 or the commission has passed orders under section 31, whichever is earlierclause 6 —this clause seeks to substitute section 8 of the competition act, 2002relating to composition of competition commission of indiathe new clause provides that the commission shall consist of a chairperson and not less than two and not more than six other members instead of ten members as provided for under the existing provisions of section 8, to be appointed by the central government  it also proposes to remove from eligibility requirement that the person who has been or is qualified to be a judge of a high court, and to omit the special knowledge of, and professional experience of administration or in any other matter from the qualifications for appointment as chairperson or any other memberclause 7 —this clause seeks to substitute section 9 of the competition act, 2002relating to selection of chairperson and other members of the competition commission of indiaunder the existing provisions, the chairperson and other members shall be selected in the manner as may be prescribed by the rules made by the central government  the competition commission of india (selection of chairperson and other members of the commission) rules, 2003 made under this section provide for selection of the chairperson and other members by a selection committee consisting of (a) a person, who has been a retired judge of the supreme court or a high court or a retired chairperson of a tribunal established or constituted under an act of parliament or a distinguished jurist or a senior advocate for five years or more - as member, (b) a person who has special knowledge of, and professional experience of twenty-five years or more in international trade, economics, business, commerce or industry - as member, (c) a person who has special knowledge of, and professional experience of twenty-five years or more in accountancy, management, finance, public affairs or administration - as member nominated by the central governmentthe new clause provides that the chairperson and other members of the competition commission of india 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— as chairperson, (b) the secretary in the ministry of corporate affairs - as member,(c) the secretary in the ministry of law and justice—as member and (d) two experts of repute having special knowledge in specified fields - as memberit also provides that the term of the selection committee and the manner of selection of panel of names shall be such as may be prescribedclause 8—this clause seeks to amend section 10 of the competition act, 2002 relating to term of office of chairperson and other members of the competition commission of indiaunder the existing provisions contained in section 10, no chairperson of the competition commission of india shall hold office as such after he has attained the age of sixty-seven years and no other member shall hold office as such after he has attained the age of sixty-five yearsit is proposed to amend the said section 10 to provide that the chairperson or other member shall not hold office as such after he has attained the age of sixty-five yearsclause 9—this clause seeks to amend section 12 of the competition act, 2002 relating to restriction on employment of chairperson and other members of the competition commission of india in certain casesunder the existing provisions contained in the said section, the chairperson and other members shall not, for a period of one year from the date on which they cease to hold office, accept any employment in, or connected with the management or administration of, any enterprise which has been a party to a proceeding before the commission under this acthowever, this provision does not apply to any employment under the central government or a state government or local authority or in any statutory authority or any corporation established by or under any central, state, or provincial act or a government company as defined in section 617 of the companies act, 1956it is proposed to amend the said section so as to increase the said period of restriction on employment of chairperson and other members of the competition commission of india from one year to two yearsclause 10—this clause seeks to substitute section 13 of the competition act, 2002relating to financial and administrative powers of member administrationunder the existing provisions contained in the said section, the central government is to designate any member as member administration who shall exercise such financial and administrative powers as are vested in him under the rulesit is proposed to substitute the said section 13 by a new section to provide that the chairperson shall have the powers of general superintendence, direction and control in respect of all administrative matters of the commission  however, the chairperson may delegate such of his powers relating to administrative matters of the commission, as he may think fit to any other member or officer of the commissionclause 11—this clause seeks to amend section 16 of the competition act, 2002relating to appointment of director general, etcunder the existing provisions contained in the said section, the central government can appoint a director general and as many additional, joint, deputy or assistant director general or such other advisers, consultants or officers, as it may think fit, for the purposes of assisting the commission in conducting inquiry into contravention of any of the provisions of the act and for the conduct of cases before the commission and for performing such other functions as are, or may be, provided by or under the actit is proposed to amend the said section so as to, inter alia, omit the "advisers" and"consultants" from the scope of section 16 and therefore the central government would not appoint "advisers" and "consultants" in the competition commission of india  the power to engage the "advisers", and "consultants" is proposed to be conferred upon the competition commission of indiaclause 12—this clause seeks to substitute section 17 of the competition act, 2002relating to registrar and officers and other employees of the competition commission of india by a new sectionunder the existing provisions contained in the said section, the commission may appoint a registrar and such officers and other employees as it considers necessary for the efficient performance of its functions under this actit is proposed to substitute said section so as to confer power upon the commission to appoint a secretary instead of registrar in addition to officers and other employees in the discharge of its functions under the said act and also proposed to confer power on the commission to engage such experts and professionals of integrity and outstanding ability who have special knowledge of, and experience in, economics, law, business or such other disciplines related to competition, as it deems necessary to assist the commissionclause 13—this clause seeks to amend section 19 of the competition act, 2002relating to inquiry into certain agreements and dominant position of enterpriseunder the existing provisions contained in clause (a) of sub-section (1) of said section, the commission may inquire into any alleged contravention of the provisions contained in sub-section (1) of section 3 or sub-section (1) of section 4 either on its own motion or on receipt of a complaintit is proposed to amend said section so as to substitute "receipt of a complaint", by the words "receipt of any information, in such manner" to enable the commission to inquire into any alleged contravention on receipt of any information instead of receipt of a complaintclause 14 —this clause seeks to amend sub-section (2) of section 20 of the competition act, 2002 relating to inquiry into combination by the commissionunder the existing provisions contained in sub-section (2) of section 20, the commission shall, upon receipt of a reference under sub-section (1) of section 21, inquire whether the combination referred to in the reference is likely to cause an appreciable adverse effect on competition in indiait is proposed to amend the said sub-section (2) so as to delete the provision of inquiry on a reference from a statutory authority as the reference has been made on an issue, which is under consideration of the statutory authorityclause 15—this clause seeks to amend sub-sections (1) and (2) of section 21 of the competition act, 2002 relating to reference by statutory authorityunder the existing provisions contained in sub-section (1) of said section where in the course of a proceeding before any statutory authority an issue is raised by any party that any decision which such statutory authority has taken or proposes to take, is or would be, contrary to any of the provisions of the act then such statutory authority may make a reference in respect of such issue to the commission  under the existing sub-section (2), on receipt of a reference from a statutory authority, the commission shall, after hearing the parties to the proceedings, give its opinion to such statutory authority which shall thereafter pass such order on the issues referred to in that sub-section as it deems fitit is proposed to add a proviso to said sub-section (1) so as to provide that any statutory authority may suo motu make a reference to the commission  it is also proposed to amend sub-section (2) so as to provide that the statutory authority on the opinion of the commission shall give its findings recording reasons thereforclause 16—this clause seeks to insert a new section 21a regarding reference by commissionthis new section provides for making of a reference by the commission to statutory authorities on an issue raised in any matter before it or suo motu  the statutory authority shall be duty bound to give its opinion within sixty days to the commission and the commission shall consider the opinion of the statutory authority and give its findings recording reasons thereforclause 17—this clause seeks to substitute section 22 of the competition act, 2002relating to benches of the competition commission of indiaunder the existing provisions contained in the said section, the jurisdiction, powers and authority of the commission may be exercised by benches thereofit is proposed to substitute the said section for the meetings of the competition commission of india  it, inter alia, provides that the commission shall meet at such times and places, and shall observe such rules of procedure in regard to the transaction of business at its meetings as may be provided by the regulations  it also provides that all questions which come up before any meeting of the commission shall be decided by a majority of the members present and voting, and in the event of an equality of votes, the chairperson or in his absence, the member presiding, shall have a second or casting vote  it also provides that the quorum for such meeting shall be three membersclause 18 —this clause seeks to omit sections 23, 24 and 25 of the competition act,2002 relating to distribution of business of the competition commission of india amongst benches, procedure for deciding a case where members of a bench differ in opinion and jurisdiction of benchclause 19 —this clause seeks to substitute section 26 of the competition act, 2002relating to procedure for enquiry on complaints under section 19it is proposed to provide that on receipt of a reference from the central government or a state government or a statutory authority or on its own knowledge or information received under section 19, if the commission is of the opinion that there exists a prima facie case, it shall direct the director general to cause an investigation to be made into the matter  it also provides that on receipt of reference under the above provision, if the commission is of the opinion that there exists no prima facie case, it shall close the matter forthwith and pass such orders as it deems fit and send a copy of its order to the central government or the state government or the statutory authority or the parties concerned, as the case may be  the director general on receipt of direction under the above provision shall submit a report on his findings within such period as may be specified by the commission  the commission may forward a copy of the report to the parties concerned  it also provides that if the report of the director general 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  it provides that if the commission agrees to the recommendations of the director general, it shall close the matter and pass such order as it deems fit and communicate its order to the authorities mentioned  it further provides that after consideration of the objections or suggestions referred to above, if any, the commission is of  the opinion that further investigation is called for, it may direct for further investigation it further provides that if the report of the director general recommends that there is contravention of any of the provisions of the act and the commission is of the opinion that further inquiry is called for, it shall inquire into such contravention in accordance with the provisions of  the act  it is also proposed to provide that if the subject matter of an information received is, in the opinion of the commission, substantially the same as or has been covered by any previous information received, then the new information may be clubbed with the previous informationclause 20 —this clause seeks to amend section 27 of the competition act, 2002relating to orders by commission after inquiry into agreements or abuse of dominant positionthe existing provisions contained in the said section, inter alia, confer power upon the commission to pass orders awarding compensation to parties in accordance with the provisions contained in section 34the power to award compensation is proposed to be conferred upon the appellate tribunal by new section 53n proposed to be inserted by clause 43 of the bill it is, therefore, proposed to omit clauses (c) and (f) of section 27 which confer powers on the commission to pass orders awarding compensationit is also proposed to add a proviso to this section providing that if the commission comes to a finding that an enterprise, in contravention to section 3 or section 4 of the act, is a member of a group as defined in clause (b) of the explanation to section 5 of the act, and other members of such a group are also responsible for, or have contributed to, such a contravention, then it may pass any orders against such members of the groupclause 21 —this clause seeks to amend section 28 of the competition act, 2002relating to division of enterprise enjoying dominant positionunder the existing provisions contained in the said section the central government can, on recommendation of the commission, order division of enterprise enjoying dominant positionit is proposed to amend section 28 so as to confer said power upon the commission to order division of an enterprise instead of the central government to order the divisionclause 22 —this clause seeks to amend section 29 of the competition act, 2002relating to procedure for investigation of combinationsit is, inter alia, proposed to insert a new sub-section (1a)  to provide that the commission may, after receipt of the response of the parties to the combination under subsection (1), 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 directclause 23 —this clause seeks to substitute section 30 of the competition act, 2002relating to inquiry into disclosures under sub-section (2) of section 6under the existing provisions contained in the said section, where any person or enterprise has given a notice under sub-section (2) of section 6, the commission shall inquire, (a) whether the disclosure made in the notice is correct,  (b) whether the combination has, or is likely to have, an appreciable adverse effect on competitionit is proposed to substitute section 30 so as to provide that 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 and proceed in accordance with the provisions of section 29clause 24—this clause seeks to amend sub-section (11) of section 31 of the competition act, 2002 relating to orders of commission on certain combinationsunder the existing provisions contained in the said sub-section (11) the combination is deemed to have been approved by the commission if the commission does not pass orders on expiry of a period of ninety working days from the date of publication referred to in sub-section (2) of section 29it is proposed to provide for deemed approval for the combination if the commission does not pass orders in two hundred and ten days from the date of notice given to the commission under sub-section (2) of section 6  this amendment is consequential in natureclause 25 —this clause seeks to amend section 32 of the competition act, 2002relating to acts taking place outside india but having an effect on competition in india  the proposed amendment is clarificatory in natureclause 26 —this clause seeks to substitute section 33 of the competition act, 2002relating to power to grant interim reliefthe existing provisions of section 33 provides that where during an inquiry before the commission it is proved to the satisfaction of the commission that an act in contravention of sections 3, 4 and 6 has been committed, the commission may by order grant a temporary injunction restraining any party from carrying on such act it also provides that where during the inquiry before the commission, if the commission is satisfied that import of any goods is likely to contravene sections 3, 4 and 6 it may, by order, grant a temporary injunction restraining any party from importing such goods until the conclusion of such inquiry or until further orders, without giving notice to the opposite party, where it deems it necessary and a copy of such order granting temporary injunction shall be sent to the concerned authorities it further provides that the provisions of rules 2a to 5 (both inclusive) of order xxxix of the first schedule to the code of civil procedure, 1908 shall, as far as may be, apply to a temporary injunction issued by the commission under this act, as they apply to temporary injunction issued by a civil courtthe proposed section 33 provides that where during an inquiry, the commission is satisfied that an act in contravention of sections 3, 4 and 6 has been committed, the commission may, by order, temporarily restrain any party from carrying on such act until the conclusion of such inquiry or until further orders, without giving notice to such partyclause 27 —this clause seeks to omit section 34 of the competition act, 2002 relating to power to award compensationthe power to award compensation is proposed to be conferred upon the appellate tribunal by new section 53n proposed to be inserted by clause 43 of the bill  it is, therefore, proposed to omit aforesaid section 34 conferring power upon the competition commission of india to award compensationclause 28 —this clause seeks to amend section 35 of the competition act, 2002relating to appearance before the competition commission of indiaunder the existing provisions contained in the said section, a complainant or defendant or the director general may either appear in person or authorise one or more chartered accountants or company secretaries or cost accountants or legal practitioners or any of his or its officers to present his or its case before the commissionit is proposed to amend the said section so as to substitute the words "person or an enterprise", for the words "complainant or defendant" for appearance before the commissionclause 29 —this clause seeks to substitute section 36 of the competition act, 2002relating to power of commission to regulate its own procedurethe existing section 36 confer powers upon the commission, inter alia, to dismiss an application in default or deciding it ex parte or exercise power in respect of any other matter which may be prescribed it also provides that every proceeding before the commission shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purpose of section 196 of the indian penal code and the commission shall be deemed to be a civil court for the purposes of section 195 and chapter xxvi of the code of criminal procedure, 1973it is proposed to substitute the said section so as to provide that the commission may direct any person to produce before the director general or secretary or an officer authorised by it the books or other documents, being documents relating to any trade, in the custody or under the control of such person for the purpose of examination under the act and also that the commission may direct any person to furnish to the director general or secretary or any officer authorised by it, such other information as may be in his position in relation to the trade carried on by such person as required for the purpose of this actclause 30 —this clause seeks to omit section 37 of the competition act, 2002 relating to review of orders of the competition commission of indiaclause 31 —this clause seeks to substitute section 39 of the competition act, 2002relating to execution of orders of the competition commission of indiathe existing section provides that every order passed by the commission under this act shall be enforced by the commission in the same manner as if it were a decree or order made by a high court or the principal civil court in a suit pending therein and it shall be lawful for the commission to send, in the event of its inability to execute it, such order to the high court or the principal civil court, as the case may beit is proposed to substitute said section, inter alia, to provide that if a person fails to pay any monetary penalty imposed on him under the act, the commission shall proceed to recover such penalty, in the manner as may be specified by regulations  sub-section (2) of proposed  section provides that in a case where the commission is of the opinion that it would be expedient to recover the penalty imposed under the competition act, 2002 in accordance with the provisions of the income-tax act, 1961, it may make a reference to this effect to the concerned income-tax authority under the income-tax act, 1961 for recovery of the penalty as tax due under the said act  it is also proposed to provide that any 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 and any reference to appeal in chapter xviid and the second schedule of the income-tax act, 1961, shall be construed as a reference to appeal before the competition appellate tribunal under section 53b of this actclause 32 —this clause seeks to omit section 40 of the competition act, 2002 relating to appealunder the existing provisions contained in the said section, any person aggrieved by any decision or order of the commission may file an appeal to the supreme court within sixty days from the date of communication of the decision or order of the commission to him on one or more of the grounds specified in section 100 of the code of civil procedure, 1908it is proposed to insert, by clause 43 of the bill, new sections 53b and 53t to provide filing of appeal from any direction, decision or order referred to in clause (a) of new section 53a to the appellate tribunal and filing of an appeal to the supreme court from any decision or order of the appellate tribunal  omission of section 40 is therefore consequential in natureclause 33—this clause seeks to amend section 41 of the competition act, 2002relating to director general to investigate contraventionsthe existing sub-section (3) of section 41 provides that, without prejudice to the provisions of sub-section (2), sections 240 and 240a of the companies act, 1956, so far as may be, shall apply to an investigation made by the director general or any other person investigating under his authority, as they apply to an inspector appointed under that actit is proposed to add an explanation to sub-section (3) of section 41 to provide that the words "the central government" under section 240 of the companies act, 1956 shall be construed as "the commission" and the word "magistrate" under section 240a of the companies act, 1956 shall be construed as "the chief metropolitan magistrate, delhi"clause 34—this clause seeks to substitute section 42 of the competition act, 2002relating to contravention of orders of the competition commission of indiaunder the existing provisions contained in the said section if any person contravenes, without any reasonable ground, any order of the commission, or any condition or restriction subject to which any approval, sanction, direction or exemption in relation to any matter has been accorded, given, made or granted under this act or fails to pay the penalty imposed under this act, he shall be liable to be detained in civil prison for a term which may extend to one year, unless in the meantime the commission directs his release and he shall also be liable to a penalty not exceeding rupees ten lakhit is proposed to substitute the said section so as to provide that if any person, without reasonable cause fails to comply with the orders or directions issued under the sections specified  therein, he shall be punishable with fine which may extend to rupees one lakh for each day subject to a maximum of rupees ten crore as the commission may determine it also provides that if any person does not comply with the orders or directions issued under this section, he shall be punishable with imprisonment for a term which may extend to three years or with fine which may extend to rupees twenty-five crore or with both as the chief metropolitan magistrate, delhi may deem fit it further provides that the chief metropolitan magistrate, delhi may pass such orders as it may deem fit on a complaint filed before it by the commission for non-compliance of its ordersclause 35—this clause seeks to insert a new section 42a regarding compensation in case of contravention of orders of commissionthe proposed new section provides that any person may make an application to the appellate tribunal for an order for the recovery of compensation from any enterprise for any loss or damage shown to have been suffered, by such person as a result of the said enterprise violating directions issued by the commission or contravening, without any reasonable ground, any decision or order of the commissionclause 36 —this clause seeks to substitute section 43 of the competition act, 2002relating to penalty for failure to comply with the directions of the competition commission of india and director general of the commission  the new section seeks to provide that a penalty which may extend to rupees one lakh for each day subject to a maximum of rupees one crore may be imposed on the person who, without reasonable cause, fails to comply with the directions given by the commission and the director general issued under the specified sectionsclause 37—this clause seeks to insert a new section 43a regarding power to impose penalty for non-furnishing of information on combinationsthe new section seeks to empower the commission for imposing a penalty on the person or enterprise for not giving the notice to the commission about the combination under sub-section (2) of section 6  this insertion is consequential in natureclause 38—this clause seeks to substitute sub-section (1) of section 45 of the competition act, 2002 regarding penalty for offences in relation to furnishing of informationthe existing provision provides for imposition of a penalty on a person, which may extend to rupees ten lakh, for furnishing documents or making statements which he knows and has reasons to believe to be falseit is proposed to provide for imposition of a fine which may extend to rupees one crore, as the commission may determine, on a person for furnishing documents or making statements which he knows and has reason to believe to be falseclause 39—this clause seeks to amend section 46 of the competition act, 2002relating to power to impose lesser penaltyunder the existing provisions of the said section the competition commission of india has been conferred power to impose lesser penalty in the circumstances mentioned in that section  the first proviso to said section provides that the commission shall not impose lesser penalty in cases where proceedings, for the violation of any of the provisions of this act or the rules or the regulations, have been instituted or any investigation has been directed to be made under section 26 before making of such disclosureit is proposed to substitute said first proviso to provide that the commission shall not impose lesser penalty in cases where the report of investigation directed under section 26 has been received before making of such disclosure it is also proposed to amend second proviso so as to provide for lesser penalty upon a person who discloses the information about a cartel it is also proposed to add a third proviso to the said section providing that lesser penalty shall not be imposed by the commission if the person making the disclosure does not continue to co-operate with the commission till the completion of the proceedings before the commissionclause 40—this clause seeks to amend section 49 of the competition act, 2002relating to competition advocacyunder the existing provisions contained in sub-section (1) of the said section the central government may, in formulating a policy on competition (including review of laws related to competition), make a reference to the commission for its opinion on possible effect of such policy on competition and on receipt of such a reference, the commission shall, within sixty days of making such reference, give its opinion to the central government, which may thereafter formulate the policy as it deems fit  the existing sub-section (2) provides that the opinion given by the commission shall not be binding upon the central government in formulating such policy  the existing sub-section (3) provides that the commission shall take suitable measures, for the promotion of competition advocacy, creating awareness and imparting training about competition issues in the manner as may be prescribed by rulesit is proposed to amend sub-section (1) of the said section so as to enable the central government to make reference to the commission on any other matter also apart from the existing proviso of making a reference on policy on competition (including review of laws related to competition) and also to enable the state government to make a reference to the commission in formulating a policy on competition or on any other matter  it is also proposed to amend sub-section (2) of the said section to provide that the opinion of the commission shall not be binding on state government as well as the central government  it is further proposed to amend sub-section (3) of the said section to provide that the commission shall take suitable measures for the promotion of competition advocacy, creating awareness and imparting training about competition issues in the manner as may be decided by the commission and not as may be prescribed by rulesclause 41 —this clause seeks to amend section 51 of the competition act, 2002relating to constitution of fundthe provisions contained in clause (b) of sub-section (1) of the said section, inter alia, provide that the monies received as costs from parties to proceedings before the commission shall be credited to the "competition fund" constituted by that sectionit is proposed to omit said clause (b)clause 42 —this clause seeks to amend section 52 of the competition act, 2002relating to accounts and auditthe explanation to the existing sub-section (2) of the said section clarified that the orders of the commission, being matters appealable to the supreme court, shall not be subject to audit under this sectionit is proposed to amend the said explanation so as to provide that the orders of the commission, being matters appealable to the competition appellate tribunal shall also not be subject to audit under this sectionclause 43 —this clause seeks to insert new chapter viiia to the competition act,2002 relating to establishment of competition appellate tribunalthe new chapter viiia contains provisions for (a) establishment of appellate tribunal,(b) appeal to appellate tribunal, (c) composition of appellate tribunal, (d) qualifications for appointment of chairperson and members of appellate tribunal, (e) selection committee, (f) term of office of chairperson and members of appellate tribunal, (g) terms and conditions of service of chairperson and members of appellate tribunal, (h) vacancies, (i) resignation of chairperson and members, (j) member of appellate tribunal to act as chairperson in certain cases, (k) removal and suspension of chairperson and members of appellate tribunal, (l) restriction on employment of chairperson and other members in certain cases, (m) staff of appellate tribunal, (n) procedure for awarding compensation, (o) procedure and powers of appellate tribunal, (p) execution of orders of appellate tribunal, (q) contravention of orders of appellate tribunal, (r) vacancy in appellate tribunal not to invalidate acts or proceedings, (s) right to legal representation, (t) appeal to the supreme court and (u) power to punish for contemptclause 44 —this clause seeks to amend section 57 of the competition act, 2002relating to restriction on disclosure of informationit is proposed to bring the appellate tribunal also within the scope of section 57 of the competition act, 2002 consequent to the proposal to insert a new chapter viii-a vide clause 43 of the bill  the proposed amendment is consequential in natureclause 45—this clause seeks to amend section 58 of the competition act, 2002relating to members, director general, registrar, officers and other employees, etc, of the competition commission of indiaunder the existing provisions contained in the said section, the chairperson and other members and the director general, additional, joint, deputy or assistant directors general and registrar and officers and other employees of the commission shall be deemed, while acting or purporting to act in pursuance of any of the provisions of the competition act, 2002, to be public servants within the meaning of section 21 of the indian penal codeclause 12 of the bill proposes to confer power upon the commission to appoint a secretary instead of registrar  clause 43 of the bill proposes to insert new chapter viii-a in the competition act, 2002 to establish the competition appellate tribunal  hence, it is proposed to bring the secretary, officers and other employees of the commission and the chairperson, members, officers and other employees of the appellate tribunal within the scope of section 58 of the competition act, 2002  the proposed amendment is consequential in natureclause 46—this clause seeks to amend section 59 of the competition act, 2002relating to protection of action taken in good faithunder the existing provisions contained in the said section, no suit, prosecution or other legal proceedings can lie against the central government or commission or any officer of the central government or the chairperson or any member or the director general, additional, joint, deputy or assistant directors general or registrar or officers or other employees of the commission for anything which is in good faith done or intended to be done under this act or the rules or regulations made thereunderclause 12 of the bill proposes to confer power upon the commission to appoint a secretary instead of registrar  clause 43 of the bill proposes to insert new chapter viii-a in the competition act, 2002 proposing to establish the competition appellate tribunal  it is proposed to bring the secretary, officers and other employees of the commission and the chairperson, members, officers and other employees of the appellate tribunal within the scope of the aforesaid section  the proposed amendment is consequential in natureclause 47—this clause seeks to amend section 61 of the competition act, 2002relating to exclusion of jurisdiction of civil courtsunder the existing provisions contained in the said section, no civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the commission is empowered by or under this act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this actclause 43 of the bill proposes to insert new chapter viii-a in the competition act,2002 proposing to establish the competition appellate tribunal  it is proposed to exclude the jurisdiction of civil courts in respect of any matter in which the commission or appellate tribunal is empowered to determine  the proposed amendment is consequential in natureclause 48 —this clause seeks to amend section 63 of the competition act, 2002relating to power to make rulesit is proposed to amend said section so as to confer powers upon the central government to make rules in respect of certain matters specified in that section and to make certain other amendments which are consequential in natureclause 49—this clause seeks to amend section 64 of the competition act, 2002relating to power to make regulations by the competition commission of indiait is proposed to amend said section 64 so as to confer powers upon the competition commission of india to make regulations in respect of certain matters specified in the said sectionclause 50 —this clause seeks to amend section 66 of the competition act, 2002relating to repeal and savingunder the existing provisions, the monopolies and restrictive trade practices act,1969 is proposed to be repealed and upon such repeal, the monopolies and restrictive trade practices commission established under sub-section (1) of section 5 of the repealed act shall stand dissolved  sub-sections (2) to (10) of the aforesaid section deals with the matters arising out of such repealit is proposed to amend said section 66 so as to provide that the monopolies and restrictive trade practices commission may continue to exercise jurisdiction and powers under the monopolies and restrictive trade practices act, 1969 for a period of two years from the date of bringing into force of section 66 of the competition act, 2002 only in respect of cases or proceedings filed before such commencement  it further provides for the transfer of pending cases after the two years period to the appellate tribunal or the national commission under the consumer protection act, 1986 depending on the nature of cases  it also provides that the staff of the monopolies and restrictive trade practices commission who has been employed on regular basis by the monopolies and restrictive trade practices commission shall, on its dissolution, become employees of the competition commission or the appellate tribunal in the manner as may be specified by the central government financial memorandumclause 43 of the bill seeks to establish a competition appellate tribunal with a chairperson and up to two members, along with associated staff, whose expenses would be paid from the consolidated fund of india  however, clause 6 of the bill seeks to reduce the strength of the competition commission from ten additional members to six additional members  clause 17 of the bill further provides for commission to function as a collegium and not through benches, leading to absence of need for provision of offices to these benches, and the need for branches of director general's office at these benches2 the expenditure to be incurred on creation of the competition appellate tribunal would be rupees 10961 lakh per annum  however, there would be a decrease in expenditure up to an extent of rupees 22239 lakh in a year due to reduction of strength of competition commission of india from ten additional members to six additional members, and by removal of the concept of benches functioning at different locations, and their associated director general subordinate offices  thus, there would be an overall saving of rupees 11278 lakh per annum3 thus, there would not be any additional financial outgo due to the changes proposed in the amendment bill memorandum regarding delegated legislationclause 48 of the bill seeks to amend section 63 of the competition act, 2002  this clause empowers the central government to make rules, by notification, to carry out the provisions of the proposed legislation  the matters in respect of which such rules may be made are specified therein  these matters relate to, inter alia, provide for (a) the term of the selection committee and the manner of selection of panel of names under sub-section (2) of section 9; (b) the number of additional, joint, deputy or assistant directors general or such officers or other employees in the office of director general and the manner in which such additional, joint, deputy or assistant directors general or such officers or other employees may be appointed under sub-section (1a) of section 16; (c) the salary, allowances and other terms and conditions of service of the director general, additional, joint, deputy or assistant directors general or such officers or other employees under sub-section (3) of section 16; (d) the qualifications for appointment of the director general, additional, joint, deputy or assistant directors general or such officers or other employees under subsection (4) of section 16; (e) the salaries and allowances payable to, and other terms and conditions of service of, the secretary and officers and other employees of the commission and the number of such officers and other employees under sub-section (2) of section 17; (f) the form in which an appeal may be filed before the appellate tribunal under sub-section (2) of section 53b and the fees payable in respect of such appeal; (g) the term of the selection committee and the manner of selection of panel of names under sub-section (2) of section 53e; (h) the salaries and allowances and other terms and conditions of service of the chairperson and other members of the appellate tribunal under sub-section (1) of section 53g; (i) the salaries and allowances and other conditions of service of the officers and other employees of the appellate tribunal under sub-section (3) of section 53m; (j ) the fee which shall be accompanied with every application made under sub-section (2) of section 53n; (k) the other matters under clause (i) of sub-section (2) of section 53-o in respect of which the appellate tribunal shall have powers under the code of civil procedure while trying a suit; (l) the manner in which the monies transferred to the competition commission of india or the appellate tribunal, as the case may be, shall be dealt with by the commission or the appellate tribunal under the fourth proviso to sub-section (2) of section 662 clause 49 of the bill seeks to amend section 64 of the competition act, 2002  this clause empowers the competition commission of india to make regulations, by notification, to carry out the purposes of the proposed legislation  the matters in respect of which such regulations may be made are specified therein  these matters relate to, inter alia, (a) the procedure to be followed for engaging the experts and professionals under sub-section (3) of section 17; (b) the manner and fee which may be determined under clause (a) of subsection (1) of section 19; (c) the rules of procedure in regard to the transaction of business at the meetings of the commission under sub-section (1) of section 22; (d) the manner in which penalty shall be recovered under sub-section (1) of section 39; (e) any other matter in respect of which provision is to be, or may be, made by regulations3 the rules made by the central government and the regulations made by the competition commission of india shall be laid, as soon as may be after they are made, before each house of parliament4 the matters in respect of which rules and regulations may be made are generally matters of procedure and administrative details and it is not practicable to provide for them in the bill itself  the delegation of legislative power involved is of a normal character extracts from the competition act, 2002definitions                                                                                                                2 in this act, unless the context otherwise requires,—                                                                                                                prohibition of abuse of dominant position4 (1) no enterprise shall abuse its dominant positionabuse of dominant position(2) there shall be an abuse of dominant position under sub-section (1), if an enterprise,—(a) directly or indirectly, imposes unfair or discriminatory—(i) condition in purchase or sale of goods or service; or (ii) price in purchase or sale (including predatory price) of goods or serviceexplanation—for the purposes of this clause, the unfair or discriminatory condition in purchase or sale of goods or service referred to in sub-clause (i) and unfair or discriminatory price in purchase or sale of goods (including predatory price) or service referred to in sub-clause (ii) shall not include such discriminatory condition or price which may be adopted to meet the competition; or (b) limits or restricts—(i) production of goods or provision or services or market therefor; or (ii) technical or scientific development relating to goods or services to the prejudice of consumers; or (c) indulges in practice or practices resulting in denial of market access; or (d) makes conclusion of contracts subject to accepteance by other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection withthe subject of such contracts; or(e) uses its dominant position in one relevant market to enter into, or protect, other relevant market explanation—for the purposes of this section, the expression—(a) "dominant position" means a position of strength, enjoyed by an enterprise, in the relevant market, in india, which enables it to—(i) operate independently of competitive forces prevailing in the relevant market; or(ii) affect its competitors or consumer or the relevant market in its favour;(b) "predatory price" means the sale of goods or provision of services, at a price which is below the cost, as may be determined by regulations, or production of the goods or provision of services, with a view to reduce competition or eliminate the competitors regulation of combinationscombination5 the acquisition of one or more enterprises by one or more persons or merget  or amalgamation of enterprises shall be a combination of such enterprises and persons or enterprises, if—(a) any acquisition where—(i) the parties to the acquisition, being the acquirer and the enterprise, whose control, shares, voting rights or assets have been acquired or are being acquired jointly have,—(a) either, in india, the assets of the value of more than rupees one thousand crores or turnover more than rupees three thousand crores; or(b) in india or outside india, in aggregate, the assets of the value of more than five hundred million us dollars or turnover more than fifteen hundred million us dollars; or(ii) the group, to which the enterprise whose control, shares, assets or voting rights have been acquired or are being acquired, would belong after the acquisition, jointly have a would jointly have,—(a)  either in india, the assets of the value of more than rupees four thousand crores or turnover more than rupees twelve thousand crores; or(b) in india or outside india, in aggregate, the assets of the value of more than two billion us dollars or turnover more than six billion us dollars; orregulation of combinatons6 (1) no person or enterprise shall enter into a combination which causes or is likely to cause an appreciable adverse effect on competition with in the relevant market in india and such a combination shall be void(2) subject to the provisions contained in sub-section (1), any person or enterprise, who or which proposes to enter into a combination, may, at his or its option, give notice to the commission, in the form as may be specified, and the fee which may be determined, by regulations, disclosing the details of the proposed combination, within seven days of—(a) approval of the proposal relating to merger or amalgamation, referred to in clause (c) approval of the proposal relating to merger or amalgamation, referred to in clause (c) of section 5, by the board of directors of the enterprises concerned with such merger or amalgamation, as the case may be;(b) execution of any agreement or other document for acquisition referred to in clause (a) of section 5 or acquiring of control referred to in clause (b) of that sectioncomposition of commission8 (1) the commission shall consist of  a  chairperson  and not less than two and not more than ten other members  to be appointed by the central government:provided that the central government shall appoint the chairperson and  a member during the first year of the establishment of the commission (2) the  chairperson  and  every other member shall be  a  person  of ability,  integrity and standing and who, has been, or is qualified to  be,  a  judge  of  a high court, or, has special  knowledge  of,  and  professional   experience   of  not  less   than  fifteen   years   in 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 commission(3) the chairperson and other members shall be whole-time members9 the chairperson  and  other members shall be selected in the manner as may be prescribedselection of chairperson and other members10 (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:terms of office of chairperson and other membersprovided that no chairperson or other member shall hold office as such after he has attained,—(a) in the case of the chairperson, the age of sixty-seven years; (b) in the case of any other member, the age of sixty-five years                                                                                                                12  the  chairperson  and other members shall not,  for  a  period  of one year from the date on which they cease to hold office, accept any employment in, or connected with the management or administration of, any enterprise which has been a party to a proceeding before the commission under this act:restriction  on employment of chairpersonand othermembers  in certain  cases1  of  1956provided  that  nothing contained in this section shall apply  to  any  employment under the central government or a state government or local  authority or in any statutory authority or any corporation established  by  or  under  any  central, state or provincial act or  a  government  company  as  defined in section 617 of the companies act, 195613 the central government shall designate any member as member administration who  shall exercise such financial and administrative powers as may be  vested in him under the rules made by the central government:financial and administrative powers of member administrationprovided  that  the  member  administration shall  have  authority  to  delegate  such of his financial and administrative powers as  he  may  think  fit  to  any  other officer of the commission  subject  to  the  condition  that  such officer shall, while exercising such delegated  powers  continue  to  act  under the  direction,  superintendence  and  control of the member administrationappointment of  director- general, etc16 (1) the central government  may,  by  notification,  appoint  a   director-general and  as  many  additional, joint, deputy or assistant directors general or such other  advisers, consultants  or  officers,  as it may think fit,  for  the  purposes  of  assisting  the  commission in  conducting  inquiry  into  contravention of any of the provisions of this act and for the conduct  of cases before the commission and for performing such other functions  as are, or may be, provided by or under this act(2) every additional, joint, deputy and assistant directors general or  such  other advisers,  consultants and officers, shall  exercise  his  powers,  and discharge his functions, subject to the general  control,  supervision and direction of the director general(3) the salary, allowances and other terms and conditions of  service  of  the  director general and additional, joint, deputy and  assistant directors  general  or such other advisers, consultants  or  officers, shall be such as may be prescribed(4)  the director general and additional, joint, deputy and assistant directors general or such other advisers, consultants or officers shall be appointed from amongst persons of integrity and outstanding ability and who have experience in investigation, and knowledge of accountancy, management, business, public administration, international trade, law or economics and such other qualifications as may be prescribedregistrar and officers and other employees of commission17 (1) the  commission  may  appoint  a  registrar and  such  officers  and  other employees  as it considers necessary for the efficient performance  of its functions under this act(2)  the  salaries  and  allowances payable to  and  other  terms  and conditions  of service  of  the  registrar  and  officers  and  other employees  of the commission and the number of such officers and other employees shall be such as may be prescribed                                                                                                              19 (1)   the   commission  may   inquire  into  any   alleged  contravention  of  the provisions  contained in  sub-section  (1)  of  section  3 or sub-section (1) of section 4 either on its own motion or  on—inquiry  into certain agreements and  dominant position  of enterprise(a)  receipt  of  a  complaint,  accompanied by such  fee  as  may  be  determined by  regulations,  from  any   person,  consumer  or  their  association or trade association;  or 20 (1)                                                                                                  inquiry into combination by commission(2) the commission shall, on receipt of a notice uner sub-section (2) of section 6 or upon receipt of  a reference under sub-section (1) of section 21, inquire whether a combination referred to in that notice or reference has caused or is likely to cause an appreciable adverse effect on competition in india                                                                                                              reference  by statutory authority 21 (1) where in the course of  a  proceeding  before  any statutory  authority an issue is raised by  any party  that  any decision which such statutory authority has taken  or proposes  to take, is or would be, contrary to any of the provisions of this act,  then  such  statutory authority may make  a  reference  in respect of such issue to the commission(2)  on  receipt of a reference under sub-section (1), the  commission shall,  after hearing the parties to the proceedings, give its opinion  to  such statutory authority which shall thereafter pass such order on  the issues referred to in that sub-section as it deems fit:provided that the commission shall give its opinion under this section within sixty days of receipt of such referencebenches of commission22 (1) the jurisdiction, powers and authority  of the commission may be exercised by benches thereof (2) the benches shall be constituted by the chairperson and each bench  shall consist of not less than two members  (3) every bench shall consist of at least one judicial member explanation—for  the purposes of this sub-section, "judicial  member"  means  a member who is, or has been, or is qualified to be, a judge of  a high court (4) the  bench  over  which the chairperson  presides  shall  be  the  principal bench and the other benches shall be known as the additional  benches (5) there shall be constituted by the chairperson one or more benches  to be called the mergers bench or mergers benches, as the case may be,  exclusively to deal with matters referred to in sections 5 and 6 (6) the places at which the principal bench, other additional bench or mergers bench  shall  ordinarily sit, shall be such  as  the  central government may, by notification, specify23 (1) where any  benches are constituted, the chairperson may, from time to  time, by  order,  make provisions as to the distribution of the business  of the  commission amongst the benches and specify the matters, which  may be dealt with by each benchdistribution of business of commission amongst benches(2) if any question arises as to whether any matter falls within  the purview  of  the business allocated to a bench, the decision  of  the chairperson thereon shall be final(3) the chairperson may—(i) transfer a member from one bench to another bench;  or (ii) authorise  the  members  of  one bench  to  discharge  also  the functions of the members of other bench:provided  that the chairperson shall transfer, with the prior approval of  the  central government, a member from one bench situated  in  one city to another bench situated in another city(4) the chairperson may, for the purpose of securing that any case or  matter which, having regard to the nature of the questions  involved,  requires or is required in his opinion or under the rules made by the  central  government in this behalf, to be decided by a bench composed  of  more than two members, issue such general or special orders as  he may deem fitprocedure  for deciding  a case where members of a bench  differin opinion24 if  the  members of a bench differ in opinion on  any  point,  they  shall state the point or points on which they differ, and make a  reference to the chairperson who shall either hear the point or points  himself  or refer the case for hearing on such point or points by  one  or more of the other members and such point or points shall be decided  according to the opinion of the majority of the members who have heard  the case, including those who first heard itjurisdiction of bench25 an  inquiry shall  be  initiated  or  a  complaint be instituted or a reference be made under this act before a  bench within the local limits of whose jurisdiction—(a)  the respondent, or each of the respondents, where there are  more  than  one, at the time of the initiation of inquiry or institution  of  the complaint or making of reference, as the case may be, actually and  voluntarily  resides,  or carries on business, or personally works  for gain;  or(b) any of the respondents, where there are more than one, at the time  of the initiation of the inquiry or institution of complaint or making  of  reference, as the case may be, actually and voluntarily resides or  carries  on business or personally works for gain provided that in such  case either the leave of the bench is given, or the respondents who do  not  reside,  or  carry on business, or personally work for  gain,  as aforesaid, acquiesce in such institution;  or(c) the cause of action, wholly or in part, arises explanation—a  respondent,  being a person referred to in  sub-clause  (iii)  or subclause (vi) or sub-clause (vii) or sub-clause (viii)  of  clause  (l) of section 2, shall be deemed to carry on business at  its  sole  or  principal  place of business in india or  at  its  registered office  in  india  or where it has also a subordinate office  at  such placeprocedure for inquiry on complaints under section 1926 (1) on receipt of a complaint or a reference from the central government or a state  government or a statutory authority or on its own knowledge  or  information, under section 19, if the commission is of the opinion that there exists a prima facie case, it shall direct the director general  to  cause  an investigation to be made into the matter(2)  the  director  general  shall,  on  receipt  of  direction  under sub-section (1), submit a report on his findings within such period as may be specified by the commission(3)  where  on receipt of a complaint under clause (a) of  sub-section  (1)  of section19, the commission is of the opinion that there exists  no  prima facie case, it shall dismiss the complaint and may pass such orders as it deems fit, including imposition of costs, if necessary(4)  the commission shall forward a copy of the report referred to  in sub-section  (2)to the parties concerned or 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 relates on a complaint  and  such  report recommends that there is no contravention of any of  the  provisions  of this act, the complainant shall be given an opportunity  to rebut the findings of the director general(6)  if, after hearing the complainant, the commission agrees with the  recommendation  of  the  director  general,   it  shall  dismiss   the complaint(7)  if,  after  hearing  the complainant, the commission  is  of  the  opinion  that further  inquiry  is called for, it  shall  direct  the complainant to proceed with the complaint(8)  if the report of the director general relates on a reference made  under subsection (1) and such report recommends that there  is  no contravention  of  the  provisions of this act, the  commission  shall  invite  comments of the central government or the state government  or the  statutory  authority, as the case may be, on such report  and  on  receipt of such comments, the commission shall return the reference if  there  is  no  prima  facie case or proceed with the  reference  as  a  complaint if there is a prima facie case(9)  if the report of the director general referred to in  sub-section  (2) recommends that there is contravention of any of the provisions of  this act, and the commission is of the opinion that further inquiry is  called  for,  it shall inquire into such contravention  in  accordance  with the provisions of this act27 where after inquiry the commission finds that  any  agreement  referred  to in section 3 or action of an enterprise  in  a  dominant position, is in contravention of section 3 or section 4, as the  case may be, it may pass all or any of the following orders, namely:—    orders by commission after  inquiry into  agreements or  abuse  of dominant position(b) impose such penalty, as it may deem fit which shall be not more than ten per cent, of the average of the turnover for the last three preceding financial years, upon each of such person or enterprises which are parties to such agreements or abuse:provided that in case any agreement referred to in section 3 has been entered into by any cartel, the commission shall impose upon each producer, seller, distributor, trader or service provider included in that cartel, a penalty equivalent to three times of the amount of profits made out of such agreement by the cartel or ten per cent of the average of the turnover of the cartel for the last preceding three financial years, whichever is higher;(c) award compensation to parties in accordance with the  provisions  contained in section 34;     (f)  recommend  to  the  central government for  the  division  of  an  enterprise enjoying dominant position;(g) pass such other order as it may deem fit28 (1) the central government, on recommendation under clause (f) of section 27, may, notwithstanding anything contained in any other law for the time being in force, by order in writing, direct division of an enterprise enjoying dominant position to ensure that such enterprise does not abuse its dominant positiondivision of enterprise enjoying dominant position(2) in particular, and without prejudice to the generality of the foregoing powers, the order referred to in sub-section (1) may provide for all or any of the following matters, namely:—                                                                                                              (d) the payment of compensation to any person who suffered any loss due to dominant position of such enterprise;                                                                                                               procedure for investigation of combinations29 (1) where the commission is of the opinion that a combination is likely to cause, or has caused an appreciable adverse effect on competition within the relevant market in india, it shall issue a notice to show cause to the parties to combination calling upon them to respond within thirty days of the receipt of the notice, as to why investigation in respect of such combination should not be conducted(2) the commission, if it is prima facie of the opinion that the combination has, or is likely to have, an appreciable adverse effect on competition, it shall, within seven working days from the date of receipt of the response of the parties to the combination, direct the parties to the said combination to publish details of the combination within ten working days of such direction, in such manner, as it thinks appropriate, for bringing the combination to the knowledge or information of the public and persons affected or likely to be affected by such combination30 where any person or enterprise has given a notice under sub-section (2) of section6, the commission shall inquire—(a) whether the disclosure made in the notice is correct;inquiry into disclosures under subsection (2) of section 6(b)  whether the combination has, or is likely to have, an appreciable adverse effect on competition31 (1)     orders of commission on certain combinations(11) if the commission does not, on the expiry of a period of ninety working days from the date of publication referred to in sub-section (2) of section 29, pass an order or issue direction in accordance with the provision of sub-section (1) or sub-section (2) or subsection (7), the combination shall be deemed to have been approved by the commissionexplanation—for the purposes of determining the period of ninety working days specified in this sub-section, the period of thirty working days specified in sub-section (6)and a further period of thirty working days specified in sub-section (8) shal be excludedacts taking place outside india but having an effect on competition in india32 the commission shall, notwithstanding that,—(a)  an  agreement  referred  to in section 3 has  been  entered  into  outside india;or(b) any party to such agreement is outside india;  or (c) any enterprise abusing the dominant position is outside india;  or(d) a combination has taken place outside india;  or (e) any party to combination is outside india;  or (f)  any  other  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 in the relevant market in indiapower to grant interim relief33  (1) where during an inquiry before  the commission, it is proved to the satisfaction of the commission, by  affidavit  or  otherwise, that an act in contravention of  sub-section (1)  of section 3 or sub-section (1) of section 4 or section 6 has been  committed  and continues to be committed or that such act is about  to  be  committed,  the  commission may,  by  order,  grant  a  temporary  injunction  restraining any party from carrying on such act until  the  conclusion  of  such inquiry or until further orders,  without  giving  notice to the opposite party, where it deems it necessary(2) where during the inquiry before the commission it is proved to the  satisfaction  of the commission by affidavit or otherwise that  import  of  any goods is likely to contravene sub-section (1) of section 3  or sub-section  (1) of section 4 or section 6, it may, by order, grant  a  temporary injunction restraining any party from importing such  goods until  the conclusion of such inquiry or until further orders, without giving notice to the opposite party, where it deems it necessary and a copy  of such order granting temporary injunction shall be sent to the concerned authorities(3) the provisions of rules 2a to 5 (both inclusive) of order xxxix of  the  first schedule to the code of civil procedure, 1908 shall, as far as may be, apply to a temporary injunction issued by the  commission  under  this  act, as they apply  to  temporary  injunction issued  by a civil court, and any reference in any such rule to a suit  shall  be  construed  as  a reference   to  any  inquiry  before  the  commissionpower to award compensation34 (1) without prejudice to any  other  provisions  contained in this act, any person may make an  application  to  the commission for an order for the recovery of compensation from  any  enterprise for any loss or damage shown to have been suffered, by  such  person as  a result of any contravention of the  provisions  of  chapter ii, having been committed by such enterprise(2) the commission may, after an inquiry made into the allegations mentioned in the application made under sub-section (1), pass an order  directing  the  enterprise  to make payment to the applicant,  of  the  amount  determined  by  it  as  realisable  from  the enterprise  as  compensation  for  the  loss or damage caused to the  applicant  as  a  result  of any contravention of the provisions of chapter  ii  having  been committed by such enterprise5 of 1908 (3)  where any loss or damage referred to in sub-section (1) is caused  to  numerous persons  having the same interest, one or more  of  such  persons   may,  with  the  permission of  the  commission,  make   an  application  under  that sub-section for and on behalf of, or for  the  benefit  of, the persons so interested, and thereupon, the  provisions  of  rule  8  of order 1 of the first schedule to the  code  of  civil  procedure,  1908, shall apply subject to the  modification  that  every reference therein to a suit or decree shall be construed as  a reference to the application before the commission and the order of  the commission thereonappearance before commission35 a complainant or defendant or  the  director  general may either appear in personor authorise one or more  chartered  accountants  or company secretaries or cost accountants or  legal  practitioners  or any of his or its officers to present his  or  its case before the commissionexplanation—for the purposes of this section,—38 of 1949(a)  "chartered accountant" means a chartered accountant as defined in  clause(b)  of  sub-section  (1)  of   section  2  of  the  chartered accountants  act, 1949 and who has obtained a certificate of practice under sub-section (1) of section 6 of that act;56 of 1980(b) "company secretary" means a company secretary as defined in clause (c)  of sub-section (1) of section 2 of the company secretaries  act,  1980  and who has obtained a certificate of practice under sub-section (1) of section 6 of that act;23 of 1959(c) "cost accountant" means a cost accountant as defined in clause (b)  of subsection (1) of section 2 of the cost and works accountants act,  1959  and who has obtained a certificate of practice under  sub-section (1) of section 6 of that act;(d) "legal  practitioner" means an advocate, vakil or an attorney  of  any highcourt, and includes a pleader in practice5 of 1908power of commission to regulate its own procedure36 (1)  the commission  shall not be bound by the procedure laid down by the  code of  civil  procedure,  1908, but shall be  guided  by  the  principles  of natural justice and, subject to the other provisions of this  act  and  of  any  rules made by  the  central  government,  the  commission  shall have powers to regulate its own procedure  including  the places at which they shall have their sittings, duration of  oral  hearings when granted, and times of its inquiry5 of 1908(2)  the  commission 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,  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) issuing commissions for the examination of witnesses or documents;1 of 1872(e) subject  to the provisions of sections 123 and 124 of the  indian evidence act,  1872, requisitioning any public record  or document or copy of such record or document from any office;(f) dismissing an application in default or deciding it ex parte; (g) any other matter which may be prescribed45 of 18602 of 1974(3)  every  proceeding before the commission shall be deemed to  be  a  judicial proceeding within the meaning of sections 193 and 228 and for  the purposes of section 196 of the indian penal code  and  the commission shall be deemed to be a civil court for the purposes of  section 195 and chapter xxvi of the code of criminal procedure,  1973(4)  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 or proceeding before it(5) the commission may direct any person—(a)  to  produce  before the director general or the registrar  or  an  officer authorised by it, such books, accounts 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  purposes  of this act;(b) to furnish to the director general or the registrar or any officer  authorised by it, as respects the trade or such other information  as  may  be in his possession in relation to the trade carried on by  such  person, as may be required for the purposes of this act (6) if the commission is of the opinion that any agreement referred to  in section 3 or abuse of dominant position referred to in section 4 or  the  combination  referred to in section 5 has caused or is likely  to  cause  an  appreciable adverse effect on competition in  the relevant market in india and it is necessary to protect, without further delay,  the  interests of consumers and other market participants in india, it  may  conduct  an inquiry or adjudicate upon any matter under this  act after giving a reasonable oral hearing to the parties concernedreview of orders of commission37 any person aggrieved by an order  of  the commission from which an appeal is allowed by this act but  no  appeal  has  been preferred, may, within thirty days from the date of  the  order,  apply to the commission for review of its order  and  the  commission may make such order thereon as it thinks fit:provided  that the commission may entertain a review application after  the  expiry of the said period of thirty days, if it is satisfied that  the  applicant  was prevented by sufficient cause from preferring  the  application in time:provided further that no order shall be modified  or  set  aside  without giving an opportunity of being  heard  to  the  person  in  whose favour the order is given and the director  general  where he was a party to the proceedingsexecution of orders of commission    39 every order passed  by  the  commission  under this act shall be enforced by the commission in  the  same  manner  as if it were a decree or order made by a high court  or the  principal  civil court in a suit pending therein and it  shall  be  lawful  for  the commission to send, in the event of its inability  to  execute it, such order to the high court or the principal civil court,  as the case may be, within the local limits of whose jurisdiction,—(a) in the case of an order against a person referred to in sub-clause (iii)  or subclause (vi) or sub-clause (vii) of clause (1) of section  2, the registered office or the sole or principal place of business of the  person in india or where the person has also a subordinate office, that subordinate office, is situated;(b) in the case of an order against any other person, the place, where the  person concerned voluntarily resides or carries on  business  or personally works for gain, is situated, and  thereupon  the court to which the order is so sent shall  execute  the order as if it were a decree or order sent to it for executionappeal5 of 190840 any  person  aggrieved by any decision or order  of  the  commission  may file an appeal to the supreme court within sixty  days  from  the  date  of  communication of the decision  or  order  of  the  commission  to him on one or more of the grounds specified in section  100 of the code of civil procedure, 1908:provided  that  the  supreme court may, if it is  satisfied  that  the  appellant  was prevented by sufficient cause from filing  the  appeal  within  the said period, allow it to be filed within a further  period  not exceeding sixty days:provided  further  that  no appeal shall lie against any  decision  or  order of the commission made with the consent of the parties                                                                                                               chapter vi penaltiescontravention of orders of commission42 (1) without prejudice  to  the  provisions  of this act, if any person contravenes, without  any  reasonable  ground,  any order of the commission, or any condition  or  restriction  subject  to  which any approval,  sanction  direction  or  exemption  in relation to any matter has been accorded, given, made or  granted  under this act or fails to pay the penalty imposed under this  act,  he  shall  be liable to be detained in civil prison for  a  term  which may  extend to one year, unless in the meantime the  commission  directs  his  release  and he shall also be liable to  a  penalty  not  exceeding rupees ten lakhs(2)  the  commission may, while making an order under this act,  issue  such directions to any person or authority, not inconsistent with this  act,   as   it  thinks  necessary  or desirable,   for   the   proper  implementation  or execution of the order, and any person who commits  breach  of,  or  fails to comply with, any obligation imposed  on  him  under  such direction, may be ordered by the commission to be detained  in  civil  prison  for  a term not exceeding one year  unless  in the meantime the commission  directs his release and he shall also be liable to a penalty not exceeding rupees ten lakhs43  if any person fails to comply with a direction given  by—(a) the commission under sub-section (5) of section 36;  or(b)the  director  general  while exercising powers  referred  to  in  subsection (2) of section 41,penalty  for failure  to comply with directions  of commission and director generalthe  commission  shall impose on such person a penalty of  rupees  one  lakh for each day during which such failure continues                                                                                                              45 (1) without prejudice to the provisions of section 44, if any person, who furnishes or is required to furnish under this act any particulars, documents or any information,—| penalty       | for   ||---------------|-------|| offences      | in    || relation      | to    || furnishing of |       || information  |       |(a) makes any statement or furnishes any document which he knows or has reason to believe to be false in any material particular; or(b) omits to state any material fact knowing it to be material; or (c) willfully alters, suppresses or destroyes any document which is required  to be furnished as aforesaid, the  commission shall impose on such person a penalty which may extend to rupees ten lakhs                                                                                                              power to impose lesser penalty 46 the commission may, if it is satisfied that any producer, seller, distributor, trader or service provider included in any cartel, which is alleged to have violated section 3, has made a full and true disclosure in respect of the alleged violations and such disclosure is vital, impose upon such producer, seller, distributor, trader or service provider a lesser penalty as it may deem fit, than leviable under this act or the rules or the regulations:provided that lesser penalty shall not be imposed by the commission in cases where proceedings for the violation of any of the provisions of this act or the rules or the regulations have been instituted or any investigation has been directed to be made under section 26 before making of such disclosure:provided further that lesser penalty shall be imposed by the commission only in respect of a producer, seller, distributor, trader or service provider included in the cartel, who first made the full, true and vital disclosures under this section:provided also that the commission may, if it satisfied that such producer, seller, distributor, trader or service provider included in the cartel had in the course of proceedings,—(a) not compiled with the condition on which the lesser penalty was imposed by the commission; or(b) had given false evidence; or (c) the disclosure made is not vital,and thereupon such producer, seller, distributor, trader or service provider may be tried for the offence with respect to which the lesser penalty was imposed and shall also be liable to the imposition of penalty to which such person has been liable, had lesser penalty not been imposed     chapter vii competiton advocacycompetition advocacy49 (1) in formulating a policy on competition (including review of laws related to competition), the central government may make a reference to the commission for its opinion on possible effect of such policy on competition and on receipt of such a reference, the commission shall within sixty days of making such reference, give its opinion to the central government, which may thereafter formulate the policy as it deems fit(2) the opinion given by the commission under sub-section (1) shall not be binding upon the central government in formulating such policy(3) the commission shall take suitable measures, as may be prescribed, for the promotion of competition advocacy, creating awareness and imparting training about competition issues    constitution of fund51 (1) there shall be constituted a fund to be  called the "competition fund" and there shall be credited thereto—                                                                                                              (b)  the  monies received as costs from parties to proceedings  before  the commission;                                                                                                               (d)  the interest accrued on the amounts referred to in clauses (a) to  (c)                                                                                                              52(1)     accounts and audit(2) the accounts of the commission shall be audited by the comptroller and auditor-general of india at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the commission to the comptroller and auditor-general of indiaexplanation—for the removal of doubts, it is hereby declared that the orders of the commission, being matters appealable to the supreme court, shall not be subject to audit under this section                                                                                                              restriction on disclosure of information57 no information relating  to  any enterprise, being an information which has been obtained by or  on  behalf  of  the commission for the purposes of  this  act,  shall,  without the  previous  permission in writing of  the  enterprise,  be  disclosed  otherwise  than in compliance with or for the  purposes  of  this act or any other law for the time being in force45 of 186058  the chairperson  and  other members and the director general, additional, joint, deputy  or  assistant  directors general and registrar and officers and  other  employees  of the  commission  shall  be  deemed,  while  acting   or  purporting  to act in pursuance of any of the provisions of this  act,  to  be public servants within the meaning of section 21 of the indian  penal codemembers, director general, registrar, officers and other employees, etc, of commission to be public servantsprotection ofaction taken in good faith59 no suit, prosecution or  other  legal  proceedings shall lie against the central government  or  commission or any officer of the central government or the chairperson or  any  member or the director general, additional, joint, deputy  or  assistant  directors general  or  registrar   or  officers  or  other  employees  of the commission for anything which is in good faith  done  or intended to be done under this act or the rules or regulations made  thereunderexclusion of jurisdiction of civil courts61 no civil court  shall  have  jurisdiction  to entertain any suit or proceeding in respect  of  any  matter which the commission is empowered by or under this act  to  determine  and  no injunction shall be granted by a any court  or  other  authority  in respect of any action taken or to be taken in  pursuance  of any power conferred by or under this act                                                                                                              63 (1)                                                                                                   power to make rules (2)  in  particular,  and without prejudice to the generality  of  the foregoing  power, such  rules  may  provide for all  or  any  of  the following matters, namely:—(a) the manner in which the chairperson and other members shall be selected under secion 9;                                                                                                               (c) the financial and administrative powers which may be vested in the member administration under section 13;                                                                                                               (e) the salary, allowances and other terms and conditions of service of the director general, additional, joint, deputy or assistant directors general or such other advisers, consultants or officers under sub-section (3) of section 16;(f) the qualifications for appointment of the director general, additional, joint, deputy or assistant directors general or such other advisers, consultants or officers under sub-section (4) of section 16;(g)  the  salaries and allowances and other terms and  conditions  of  service of the registrar and officers and other employees payable, and  the  number  of such officers and employees under sub-section  (2)  of section 17;(h) for securing any case or matter which requires to be decided by a bench composed of more than two members under sub-section (4) of section 23;(i) any other matter in respect of which the commission shall have power under clause (g) of sub-section (2) of section 36;(j) the promotion of competition advocacy, creating awareness and imparting training about competition issues under sub-section (3) of section 49;     (n) the manner in which the monies transferred to the central government shall be dealt with by that government under the fourth proviso to sub-section (2) of section 66;64 (1)                                                                                                   power to make regulations(2) in  particular,  and without prejudice to the generality  of  the  foregoing  provisions, such regulations may provide for all or any  of  the following matters, namely:—                                                                                                              (d)  the  fee which may be determined under clause (a) of  sub-section (1) of section 19;(e)  any  other matter in respect of which provision is to be, or  may be, made by regulationsrepeal and saving54 of 196966 (1) the monopolies and restrictive trade practices act, 1969 is hereby repealed and the monopolies and restrictive trade practices commission established under subsection (1) of section 5 of the said act (hereinafter referred to as the repealed act) shall stand dissolved(2) on the dissolution of the monopolies and restrictive trade practices commission, the person appointed as the chairman of the monopolies and restrictive trade practices commission and every other person appointed as member and director general of investigation and registration, additional, joint, deputy or assistant directors general of investigation and registration and any officer and other employee of that commission and holding office as such immediately before such dissolution shall vacate their respective offices and such chairman and other members shall be entitled to claim compensation not exceeding three months' pay and allowances for the premature termination of term of their office or of any contract of service:provided that the director  general of investigation and registration,  additional, joint, deputy or assisstant directors general of investigation and registration or any officer or other employee who has been, immediately  before the dissolution of the monopolies and restrictive trade practices commission appointed on deputation basis to the monopolies and restrictive trade practices commission, shall, on such dissolution, stand reverted to his parent cadre, ministry or department, as the case may be:provided further that the director general of investigation and registration, additional, joint, deputy or assistant director general of investigation and registration or any officer or other employee who has been, immediately before the dissolution of the monopolies and restrictive trade practices commission, employed on regular basis by the monopolies and restrictive trade practices commission, shall become, on and from such dissolution, the officer and employee, respectively, of the central government with the same rights and privileges as to pension, gratuity and other like matters as would have been admissible to him if the rights in relation to such monopolies and restrictive trade practices commission had not been transferred to, and vested in, the central government and shall continue to do so unless and until his employment in the central government is duly terminated or until his remuneration, terms and conditions of employment are duly altered by that government:14 of 1947provided also that notwithstanding anything contained in the industrial disputes act,1947, or in any other law for the time being in force, the transfer of the services of any director general of investigation and registration, additional, joint, deputy or assistant directors general of investigation and registration or any officer or other employee, employed in the monopolies and restrictive trade practices commission, to the central government shall not entitle such director general of investigation and registration, additional, joint, deputy or assistant directors general of investigation and registration or any officer or other employee any compensation under this act or any other law for thetime being in force and no such claim shall be entertained by any court, tribunal or other authority:provided also that where the monopolies and restrictive trade practices commission has established a provident fund, superannuation, welfare or other fund for the benefit of the director general of investigation and registration, additional, joint, deputy or assistant directors general of investigation and registration or the officers and other employees employed in the monopolies and restrictive trade practices commission, the monies relatable to the officers and other employee whose services have been transferred by or under this act to the central government shall, out of the monies standing, on the dissolution of the monopolies and restrictive trade practices commission to the credit of such provident fund, superannuation, welfare or other fund, stand transferred to, and vest in, the central government and such monies which stand so transferred shall be dealt with by the said government in such manner as may be prescribed(3) all cases  pertaining  to   monopolistic  trade  practices   or  restrictive trade practices  pending   before  the  monopolies  and  restrictive  trade practices commission on or before the  commencement  of  this act, including such cases, in which any unfair trade practice  has   also been alleged, shall, on such commencement, stand transferred  to  the competition commission of india and shall be  adjudicated  by  that   commission in accordance with the provisions of the repealed act  as if that act had not been repealed54 of 196968 of 1986(4) subject to the provisions of sub-section (3), all cases pertaining to unfair trade practices other than those referred to in clause (x) of sub-section (1) of section 36a of the monopolies and restricive trade practices act, 1969 and pending before the monopolies and restrictive trade practices commission on or before the commencement of this act shall, on such commencement, stand transferred to the national commission constituted under the consumer protection act, 1986 and the national commission shall dispose of such cases as if they were cases filed under that act:68 of 1986provided that the national commission may, if it considers appropriate, transfer any case transferred to it under this sub-section, to the concerned state commission established under section 9 of the consumer protection act, 1986 and that state commission shall dispose of such case as if it was filed under that act54 of 1969(5) all cases pertaining to unfair trade practices referred to in clause (x) of subsection (1) of section 36a of the monopolies and restrictive trade practices act, 1969 and pending before the monopolies and restrictive trade practices commission on or before the commencement of this act shall, on such commencement, stand transferred to the competition commission of india, and the competition commission of india shall dispose of such cases as if they were cases filed under that act     lok sabha———— a billto amend the competition act, 2002————(shri prem chand gupta, minister of corporate affairs)