Can Competition Commission of India during pendency of inquiry issue interim order? Discuss with relevant case laws.
CS Executive · Economic, Business and Commercial Laws · PYQS · December 2023
Can Competition Commission of India during pendency of inquiry issue interim order? Discuss with relevant case laws.
Answer & Explanation:
Section 33 of the Competition Act, 2002 provides that where during an inquiry, the Commission is satisfied that an act in contravention of section 3(1) or section 4(1) 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, temporarily restrain any party from carrying on such act until the conclusion of such inquiry or until further orders, without giving notice to such party, where it deems it necessary. In the case of Competition Commission of India v. Steel Authority of India (Civil Appeal No. 7779 of 2010, judgment dated September 09, 2010) , Hon'ble Supreme Court observed that the power under section 33 of the Competition Act, 2002, has to be exercised by the Commission sparingly and under compelling and exceptional circumstances. The Commission while recording a reasoned order inter alia should: record its satisfaction which has to be of much higher degree than formation of a prima facie view under section 26 (1) of the Act in clear terms that an act in contravention of stated provisions has been committed and continues to be committed or is about to be committed; It is necessary to issue order of restraint and from the record before the Commission, it is apparent that there is every likelihood of the party to the lis suffering irreparable and irretrievable damage or there is definite apprehension that it would have adverse effect on competition in the market.
Topics: Competition Act, 2002
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