 bill no 18 of 2006 the competition (amendment) bill, 2006 a bill to amend the competition act, 2002be it enacted by parliament in the fifty-seventh year of the republic of india as follows:—1 (1)  this act may be called the competition (amendment) act, 2006short 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 principal act), after clause (b), the following clause shall be inserted, namely:—'(ba) "appellate tribunal" means the competition appellate tribunal established under sub-section (1) of section 53a'amendment of section  43 in section 4 of the principal act, in sub-section (2), in clause (c), after the word"access", the words "in any manner" shall be inserted4 for section 8 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 8 composition of commission"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 government(2) the chairperson and every other member shall be a person of ability, integrity and standing and who 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, 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"5 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—selection committee for chairperson and members of commission(a)  the chief justice of india or his nomineechairperson; (b) the secretary in the ministry of company affairsmember; (c) the secretary in the ministry of law and justicemember(2) the term of the selection committee and the manner of selection of panel of names shall be such as may be prescribedamendment of section 106 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 member shall not hold office as such after he has attained the age of sixty-five years"amendment of section 127 in section 12 of the principal act, for the words "one year", the words "two years"shall be substituted8 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"9 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 substituted10 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 actappointment of secretary, experts, professionals and officers and other employees of commission(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 prescribed(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 1911 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 substituted12 in section 21 of the principal act,—amendment of section 21(a) after 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) and the proviso thereto, 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 finding recording reasons therefor on the issues referred to in the said opinion"13 for section 22 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 22 meetings of commission"22 (1) 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 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''14 sections 23, 24 and 25 of the principal act shall be omittedomission of sections 23, 24 and 2515 for section 26 of  the principal act, the following section shall be substituted, namely:—substitution of new section for section 26procedure 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(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 subsection (3) to the parties concerned:provided that in case the investigation is caused to be made based on 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 sub-section (3) to the central government or the state government or the statutory authority, as the case may be(5) if the report of the director general referred to in sub-section (3) recommends that there is no contravention of the provisions of this act, the commission shall invite objections or suggestions from the central government or the state government or the statutory authority or the parties concerned, as the case may be, on such report of the director general(6) if, after consideration of the objections and 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 investigations are called for, it may direct further investigations in the matter by the director general or cause further inquiries to be made by 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"16  in section 27 of the principal act,—amendment of section 27(i) clauses (c) and (f) shall be omitted; (ii) in clause (g), for the word "order", the words "order or issue such direction"shall be substituted17  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) in sub-section (2), clause (d) shall be omitted18 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 sixty days:provided that the commission may, if it is satisfied that the director general was prevented by sufficient cause from submitting the report within the said period, allow the director general to submit the report within a further period not exceeding sixty days" (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 inserted19 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 620 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 inserted21 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, 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"22 section 34 of the principal act shall be omittedomission of section 34amendment of section 3523 in section 35 of the principal act, for the words "complainant or defendant", the words "person or an enterprise" shall be substituted24 for section 36 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 36 power  of commission to regulate its own procedure"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 procedure5 of 1908(2) the commission shall have, for the purposes of discharging its functions under the 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 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 field 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"25 section 37 of the principal act shall be omittedomission of section 3726 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 incometax 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 income-tax officer and commissioner of income-tax43 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 officerreferred 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"27  section 40 of the principal act shall be omittedomission of section 4028  for section 42 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 42 contravention of orders of commission"42 (1) without prejudice to the provisions of this act, if any person violates any direction issued or contravenes, 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 fails to pay the penalty imposed under this act, then he shall, without prejudice to any proceeding under section 39, be liable for imposition of an additional penalty not exceeding rupees ten lakhs or imprisonment for a term up to one year or both as the civil court having jurisdiction in the matter may deem fit(2) the commission may cause an investigation to be made into compliance of its orders and, based on the results of the investigation or otherwise, file a complaint before the civil court having jurisdiction in the matter, which shall pass such order under this section as it may deem fit:provided that the civil court shall not take cognizance of any offence punishable under this section, save on a complaint filed by the commission or any of its officers authorised by it"amendment of section 4329 in section 43 of the principal act, in clause (a), for the words, brackets and figure"under sub-section (5)", the words, brackets and figures "under sub-sections (2) and (4)"shall be substituted30 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 such disclosure:"; (b) in the second proviso, for the word "first", the word "has" shall be substitutedamendment of section 4931 in section 49 of the principal act, in sub-section (1), for the words and brackets"in formulating a policy on competition (including review of laws related to competition), the central government may make a reference", the following shall be substituted, namely:—"the central government may, in formulating a policy on competition (including review of laws related to competition) and a state government may, in formulating a policy on competition, make a reference"32 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 5233 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 substitutedinsertion of new chapter viii a34 after chapter viii of the principal act, the following chapter shall be inserted, namely: — 'chapter viiia 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 44, section 45 or section 46 of the act;(b) to adjudicate on claim for compensation that may arise from the findings of the commission and pass orders for the recovery of compensation under section 53n(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 government53d (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, 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  the selection committee composition of which has been specified in section 9(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 appellatetribunalprovided 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 years53g (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| terms         | and       ||---------------|-----------|| conditions of |           || service       | of        || chairperson   |           || and  members  |           || of            | appellate || tribunal     |           |(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 appointmentvacancies53h 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 filled53-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:resignation of chairperson and members of appellate tribunalprovided 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 earliestmember of appellate tribunal to act as its chairperson in certain cases53j (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, resignation, the seniormost member of the appellate tribunal shall act as the chairperson of the appellate tribunal until the date on which a new chairperson appointed in accordance with the provisions of this act to fill such vacancy enters upon his office(2) when  the  chairperson  of the appellate tribunal  is  unable  to discharge his functions owing to absence, illness or any other cause, the senior-most member or, as the case may be, such one of the 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;  or removal 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 on employment of chairperson and other members of appellate tribunal 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 a local authority or in any statutory authority or in 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, 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 and to pass 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 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 in a case no decision or order has been made or direction issued on the contravention alleged on the application by the commission, 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 thereon5 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 examininghim on oath;(b) requiring the discovery and production of documents; (c) receiving evidence on affidavit;1 of 1872(d) subject  to the provisions of sections 123 and 124 of the  indian evidenceact,  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 be judicial 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 tribunal53 p (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 situate;  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 tribunal53q 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 to be detained in civil prison for a term which may extend to one year, unless in the meantime the civil court directs his release and he shall also be liable to a penalty not exceeding rupees ten lakhs53r 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 or appellate tribunal not  to invalidate acts or proceedings right to legal representation53s (1) a person preferring an appeal to the appellate tribunal  may eitherappear 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 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 35appeal to supreme  court53t any person aggrieved by any decision or order of the appellate tribunalmay 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 him:provided that the supreme court may, if it is satisfied that the applicant wasprevented 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 including a 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 behalf'amendment of section 5735 in section 57 of the principal act, for the words "the commission", the words "the commission or the appellate tribunal" shall be substituted36 for section 58 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 58 members, director general, secretary, officers and other employees, etc45 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''amendment of section 59 amendment of section 61 amendment of section 635 of 1908amendment of section 6437 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 substituted38 in section 61 of the principal act, for the word "commission", the words"commission or the appellate tribunal" shall be substituted39 in section 63 of the principal act, in sub-section (2),—(i) for clause (a), the following clause shall be substituted, namely:—''(a) the term of the selection committee and the manner of selection of panel of names under sub-section (2) of section 9;'';(ii) clause (c) shall be omitted; (iii) after clause (d), the following clause shall be inserted, namely:—"(da) the number of additional, joint, deputy or assistant directors general or such officers or other employees in the office of director 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;"; (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) and (i) 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 the chairperson and other members of the appellate tribunal under sub-section (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;"; (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 6640 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"41 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 54 of 1969 54 of 1969 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 (hereinafter referred to as the repealed act) shall stand dissolved:provided that, notwithstanding anything contained in this sub-section, the monopolies  and restrictive trade practices commission established under subsection (1) of section 5 of the repealed act, may continue to exercise jurisdiction and powers under the repealed act for  a period of two years from the date of the commencement of this act in respect of all cases or proceedings (including complaints received by it or references or 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 mattersexplanation—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 act(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 and on or after the expiry of two years referred to in the proviso to sub-section (1) shall, 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" shall be substituted;(e) for sub-section (5), the following sub-section shall be substituted, namely:—54 of 1969"(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 on or after the expiry of two years referred to in the proviso to sub-section (1), shall, 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" statement of objects and reasonsthe competition act was enacted in 2002 keeping in view the economic developments that have resulted in opening up of the indian economy, removal of controls and consequent economic liberalisation which required that the indian market be geared to face competition from within the country and outside  the competition act, 2002 provided for the establishment of a 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 (cci) was established on the 14th october,2003 but could not be made functional due to filing of a writ petition before the hon'ble supreme court the hon'ble supreme court delivered its judgment on the 20th january, 2005  while disposing of the writ petition, the hon'ble supreme court observed that "if an expert body is to be created as submitted on behalf of the union of india consistent with what is said to be the international practice, it might  be appropriate for the respondents  to consider the creation of two separate bodies, one with expertise that is advisory and regulatory and the other adjudicatory  this followed up by an appellate body as contemplated by the proposed amendment, can go a long way, in meeting the challenge sought to be raised in this writ petition based on the doctrine of separation of powers recognised by the constitution any way, it is for those who are concerned with the process of amendment to consider that aspect it cannot be gainsaid that the commission as now contemplated, has a number of adjudicatory functions as well" the hon'ble supreme court left open all questions regarding the validity of the competition act, 2002 including rule 3 of the competition commission of india (selection of chairperson and other members of the commission) rules, 20033 the competition (amendment) bill, 2006, inter alia, seeks to make the following amendments to the competition act so as to address various legal issues and to make the cci fully operational on a sustainable basis, namely:—(a) to provide that cci would be an expert body which  will function as a market regulator for preventing anti-competitive practices in the country and it would also have advisory and advocacy functions in its role as a regulator;(b) to omit the provisions relating to adjudication of disputes between two or more parties by the cci and  to provide  for investigation through the director general in case there exist a prima facie case relating to anti competitive agreements or abuse of dominant position under the competition act, 2002 and conferring power upon the cci to pass orders on completion of an inquiry and impose monetary penalties and in doing so the cci would work as a collegium and its decisions would be based on simple majority; (c) to provide for establishment of the competition appellate tribunal (cat), which shall be a three-member quasi-judicial body headed by a person who is or has been a retired judge of the supreme court or the chief justice of a high court and selection of the chairperson and other members of cat to be made by a selection committee headed by the chief justice of the supreme court of india or his nominee, and having secretaries of ministries of company affairs and law as its members;(d) to provide for hearing and disposing of  appeals by the cat against any direction issued or decision made or order passed by the cci;(e) to provide for  adjudication by cat 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  competition act, 2002;(f) to provide for implementation of the orders of the cat as a decree of a civil court;(g) to provide for filing of appeal against the orders of the cat to the supreme court;(h) to confer powers to sectoral regulators to make suo motu reference to ccion competition issues, in addition to the present provision of making reference, when such request is made by any party in a dispute before it 4 the bill also aims at continuation of the monopolies and restrictive trade practices commission (mrtpc) till two years after constitution of cci, 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 cci is duly constituted  cases still remaining pending after this two year period, would be transferred to cat 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 24th february, 2006 ———— president's recommendation under article 117 of the constitution of india ————[copy of letter no 5/31/2003-igc, dated the 24th february, 2006 from shri prem chand gupta, minister of company affairs to the secretary-general, lok sabha]the president, having been informed of the subject matter of the proposed competition(amendment) bill, 2006 recommends introduction of the bill in lok sabha under article117(1) of the constitution and also recommends to lok sabha 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, 2002relating 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 position under the existing provisions contained in clause (c) of sub-section (2)  of said section, there  shall be an abuse of dominant position  if an enterprise indulges  in practice or practices resulting in denial of  market  access it is proposed to amend the said clause (c) and to insert the words "in any manner"the proposed amendment is clarificatory in natureclause 4— this clause seeks to substitute section 8 of the competition act, 2002relating to composition of competition commission of india the 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 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, 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 5— this clause seeks to substitute section 9 of the competition act, 2002relating to selection of chairperson and other members  of the competition commission of india  under the existing provisions, the chairperson  and other members shall be selected in the manner as may be specified 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, an 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, to be nominated by the central government the 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, (b)  the secretary in the ministry of company affairs—as member  and (c) the secretary in the ministry of law and justice—as  member: it further provides that the term of the selection committee and the manner of selection of panel of names shall be such as may be prescribedclause 6— this clause seeks to amend section 10 of the competition act, 2002relating to term of office of chairperson and other members of the competition commission of india under the existing provisions no chairperson of the competition commission of india can  hold office as such after he has attained the age of sixty-seven years and no  other member can  hold office as such after he has attained the age of sixty-five years it 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 7— this clause seeks to amend section 12 of the competition act, 2002relating to restriction on employment of chairperson and other members of the competition commission of india in certain cases under 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 act however, 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, 1956 it is proposed to amend said section 12 to increase the said  restriction on employment of chairperson and other members of the competition commission of india from one year to two yearsclause 8— this clause seeks to substitute section 13 of the competition act, 2002relating to financial and administrative powers of member administration under the existing provisions contained in the said section, the financial and administrative powers of member administration are vested in  the member administration designated by the central government it 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 9— this clause seeks to amend section 16 of the competition act, 2002relating to appointment of director general, etc under the existing provisions contained in the said section, the central government can  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 the competition  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 competition act, 2002 it 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 10— 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 section under 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 act it is proposed to substitute said  section to confer power upon  the  commission to appoint a secretary instead of registrar and  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 commission in addition to officers and other employees in the discharge of its functions under the said actclause 11— this clause seeks to amend section 19 of the competition act, 2002relating to inquiry into certain agreements and dominant position of enterprise under 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  complaint it 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 12— this clause seeks to amend section 21 of the competition act, 2002relating to reference by statutory authority under 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 competition act, 2002,  then  such  statutory authority may make  a  reference  in respect of such issue to the commission it is proposed to amend said sub-section (1)  so as to provide that any statutory authority may make a reference on its own under that sub-section it further provides that on receipt of opinion of the competition commission of india, the statutory authority shall pass orders recording reasons thereonclause 13— this clause seeks to substitute section 22 of the competition act, 2002relating to benches of the competition commission of india under the existing provisions contained in the said section, the jurisdiction, powers and authority  of the commission may be exercised by benches thereof it 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 regulations it further  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 person presiding, shall have a second or casting vote it also  provides that the quorum for such meeting shall be three membersclause 14— 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 15— this clause seeks to substitute section 26 of the competition act, 2002relating to procedure for inquiry 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 further 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 person or consumer or their association or trade association, 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, he 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 investigations are 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 competition act and the commission is of the opinion that further inquiry is called for, it shall enquire into such contravention in accordance with the provisions of the competition actclause 16— this clause seeks to amend section 27 of the competition act, 2002relating to orders by  the competition commission of india after inquiry into agreements or abuse of dominant position the provisions contained in the said section, inter alia, confer power upon the competition commission of india to pass orders awarding  compensation to parties in accordance with the  provisions contained in section 34 the power to award compensation is proposed to be conferred upon the appellate tribunal by new section 53n proposed to be inserted by clause 34 of the billit is, therefore, proposed to omit clause (c) of the aforesaid section which  confer power upon the competition commission of india to pass orders awarding  compensation the proposed amendment is of consequential in natureclause 17— this clause seeks to amend section 28 of the competition act, 2002relating to division of enterprise enjoying dominant position under the existing provisions contained in the said  section,  the central government can, on recommendation of the commission order division of enterprise enjoying dominant position it is proposed to amend section 28 of the act so as to confer said  power upon the competition commission of india to order division of an enterprise, instead of the central government to  order the division on recommendation of the commissionclause 18— this clause seeks to amend section 29 of the competition act, 2002relating to procedure for investigation of combinations it 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 sixty days however, the commission may, on sufficient reason being submitted by the director general for non-submission of report within sixty days, grant up to sixty days more to the director general for submission of the reportclause 19— this clause seeks to substitute section 30 of the competition act, 2002relating to inquiry into disclosures under sub-section (2) of section 6 under 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 competition it 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 20— 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 21— this clause seeks to substitute section 33 of the competition act, 2002relating to power to grant interim relief sub-section (2) of the said section confers specific power upon the competition commission of india to grant , by order,  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 in cases specified in the said sub-section sub-section (3) of the existing aforesaid section 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 court it is proposed to omit said sub-sections (2) and (3)clause 22— this clause seeks to omit section 34 of the competition act, 2002 relating to power to award compensation the power to award compensation is proposed to be conferred upon the appellate tribunal by new section 53n proposed to be inserted by clause 34 of the bill it is, therefore, proposed to omit aforesaid section 34 conferring power upon the competition commission of india to award compensationclause 23— this clause seeks to amend  section 35 of the competition act, 2002relating to appearance before of the competition commission of india under 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 enterprises'', for the words ''a complainant or defendent'' for appearance before the commissionclause 24— this clause seeks to substitute  section 36 of the competition act, 2002relating to power of commission to regulate its own procedure the existing provisions confer powers upon the competition commission of india, 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 and 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  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 it is proposed to omit said powers and provision clause 25— this clause seeks to omit  section 37 of the competition act, 2002relating to review of orders of  the competition commission of indiaclause 26— this clause seeks to substitute  section 39 of the competition act, 2002relating to execution of orders of  the competition commission of india which 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 be it is proposed to substitute said  section,  inter alia, to provide that   if a person fails to pay any monetary penalty imposed on him under this act, the commission shall proceed to recover such penalty, in the manner as may be specified by regulations sub-section (2) of proposed new 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 income-tax act, 1961 for recovery of the penalty as tax due under the said actclause 27— this clause seeks to omit  section 40 of the competition act, 2002relating to appeal under 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, 1908 it is proposed to insert, by clause 34 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 section53a to the appellate tribunal and filing of an appeal to the supreme court from any decision or order of the appellate tribunal ommission of section 40 is consequential in natureclause 28— 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 lakh it is proposed to substitute the said section so as to provide that a civil court having jurisdiction  shall order for civil prision and additional penalty on a complaint  made by the commissionclause 29— this clause seeks to amend  section 43 of the competition act, 2002relating to penalty for failure to comply with directions of  the competition commission of india and director general of the commission the proposed amendment is consequential in natureclause 30— this clause seeks to amend  section 46 of the competition act, 2002relating to power to impose lesser penalty  under 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 disclosure it 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 to be made under section  26  has been received before making of such disclosureclause 31— this clause seeks to amend  section 49 of the competition act, 2002relating to competition advocacy under 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 fitit is proposed to amend said sub-section (1) to enable a state government, in formulating a policy on competition, make a reference to the commission for its opinion under said section and provisions of this section would apply to the reference made by the state governmentclause 32— this clause seeks to amend  section 51 of the competition act, 2002relating to constitution of fund  the provisions contained in clause (b) of sub-section (1) of the existing 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 section  it is proposed to omit said clause (b) so as  to provide that the  monies received as costs from parties to proceedings  before the commission shall  not be credited to the competition fundclause 33— this clause seeks to amend  section 52 of the competition act, 2002relating to accounts and auditthe explanation to sub-section (2) of said section clarifies that the orders  of  the commission, being matters appealable to  the  supreme court, shall not be subject to audit under this sectionit is, therefore, proposed to amend 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 34— this clause seeks to insert  new chapter viiia of the competition act,2002 relating to establishment of competition appellate tribunal the 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,  (h) vacancies, (i) resignation of chairperson and members, (j) member 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  or appellate tribunal not  to  invalidate acts or proceedings, (s) right to legal representation, (t) appeal to supreme court and (u) power to punish for contemptclause 35— this clause seeks to amend  section 57 of the competition act, 2002relating to restriction on disclosure of information under the existing provisions  contained in the said section, 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 the competition act or any other law for the time being in force  clause 34 of the bill proposes to insert  new chapter viiia in the competition act,2002 relating to competition appellate tribunal it is proposed to bring the appellate tribunal within the scope of section 57 of the competition act, 2002 the proposed amendment is consequential in natureclause 36— 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 india, to be public servants under 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 code clause 10 of the bill proposes to confer power upon  the  commission to appoint a secretary instead of registrar clause 34 of the bill proposes to insert  new chapter viii-a in the competition act, 2002 to establish the competition appellate tribunal it is proposed to bring the secretary or officers or other employees of the commission, chairperson, members, officers and other employees of the appellate tribunal within the scope of section 58 of the competition act, 2002 the propose amendment is consequential in natureclause 37— this clause seeks to amend  section 59 of the competition act, 2002relating to protection of action taken in good faith under 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 thereunder  clause 10 of the bill proposes to confer power upon  the  commission to appoint a secretary instead of registrar  clause 34 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 or officers or other employees of the commission, chairperson, members, officers and other employees of the appellate tribunal within the scope of the aforesaid section the proposed amendment is consequential in natureclause 38— this clause seeks to amend  section 61 of the competition act, 2002relating to exclusion of jurisdiction of civil courts under 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 act clause 34 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 39— this clause seeks to amend  section 63 of the competition act, 2002relating to power to make rules it 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 40— this clause seeks to amend  section 64 of the competition act, 2002relating to power to make regulations by the competition commission of india it 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 section clause 41— this clause seeks to amend  section 66 of the competition act, 2002relating to repeal and saving under 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 repeal it 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 power under that act 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 all cases of proceeding filed before such commencement it further provides that the transfer of pending cases after the two years period to the appellate tribunal or the national commission under consumer protection act, 1986 depending on the nature of cases it also provides that the staff of the commission who has been employed on regular basis by the monopolies and restrictive trade practices commission shall, on its dissolution, become employees for the competition commission or the appellate tribunal in the manner as specified by the central government financial memorandumclause 34 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 (4) of the bill seeks to reduce the strength of the competition commission from ten additional members to six additional members clause 13 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 39 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 selection committee and 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 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 officers and other employees in addition to the  director general,  additional, joint,  deputy  or  assistant directors  general  under sub-section (3)of section 16; (d)  the  qualifications  for  appointment of  officers and other employees in addition to the  director general, additional, joint, deputy or assistant directors general under sub-section (4) of section 16;  (e)  the  salaries  and allowances and other terms and conditions  of service of the secretary  in addition to the officers and other employees payable, and the  number  of such officers and 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 subsection (2) of section 53e, (h) the salaries and allowances and other terms and conditions of the chairperson and other members of the appellate tribunal under sub-section (1) of section53g; (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; and (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 that  competition commission of india or the appellate tribunal under  the  fourth proviso to sub-section (2)of section 66;2 clause 40 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,  provide for (a) the procedures to be followed for engaging the experts and professionals under subsection (3) of section 17; (b) the rules procedure in regard to the transaction of business at the meetings of the commission under sub-section (1) of section 22; and (c) the manner in which penalty shall be recovered under sub-section (1) of section 393 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 detail and it is not practicable to provide for them in the bill itself the delegation of legislative power involved is of a normal characterdefinitions                                                                                                                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,—                                                                                                               (c) indulges in practice or practices resulting in denial of market access; or                                                                                                               composition 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:term 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 chairperson and other members  in certain  casesprovided  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 prescribed17 (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 actregistrar and officers and other employees of commission(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                                                                                                               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  differ in 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    (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 fit    28 (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 generally 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 combination                                                                                                              30 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) ofsection 6(b)  whether the combination has, or is likely to have, an appreciable adverse effect on competition     32 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| acts             ||------------------|| place outside    || india but having || an effect on     || competition in   || india           |(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  subsection  (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 authorities5 of 1908(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 toawardcompensation34 (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)  ofsub-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  himon 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 evidenceact,  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 proceedings                                                                                                              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 execution of orders of commissionthe  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                                                                                                              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    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)                                                                                                              accounts and audit52(1)     (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 memebrs under sub-section (4) of section 23;(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;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 regulations                                                                                                               repeal 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 the time 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 commecnement 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————(shir prem chand gupta, minister of company affairs)mgipmrnd—5908ls1(s3)—02032006