The Hindu Business Line : Competition Act amendment Bill introduced in Lok Sabha

The Competition Commission of India (CCI) could soon transform into an expert body that would function as a market regulator as well as perform advocacy functions if the Bill proposing amendments to the Competition Act, 2002, gets Parliamentary nod.

The Competition (Amendment) Bill, 2006 introduced in Lok Sabha today by the Minister for Company Affairs, Mr Prem Chand Gupta, envisages the CCI to be an expert body with 2-7 members performing the said task.

It proposes to delete the provision of the existing Act, which envisions the CCI as one with judicial members and decision-making made through benches.

The Bill also seeks to facilitate the continuation of the MRTP Commission for two more years to try pending cases.

All cases pending even after the two-year period would be transferred to the Appellate Tribunal or National Commission of Consumer Protection, according to the Bill.

Moreover, all staff of MRTPC would be absorbed in the Appellate Tribunal and the CCI.

As regards selection of the members of the CCI, the Amendment Bill stipulates that the Chairman and members of the Commission would be experts picked by a selection committee headed by the Chief Justice of India or his nominees; Secretaries of Company Affairs and Law Ministries may also be included as members.

Further, as per the proposed amendments, the CCI would not adjudicate on disputes between two or more parties but would be competent to pass orders, including cease and desist orders, and impose monetary penalties.

In effect, it would work as a collegium and its decisions would be based on simple majority.

The Bill also proposes that the appeals against the orders of the CCI could be made before the Competition Appellate Tribunal, which would be a three-member quasi-judicial body headed by existing or retired judge of the Supreme Court or Chief Justice of a High Court.

The selection committee for the chairperson and members of the Appellate Tribunal would be the same as that of CCI.

The Appellate Tribunal as proposed in the Amendment Bill would adjudicate on compensation claims that may arise on the findings of the CCI or the orders of the Tribunal.

Further, the orders of the Tribunal would be implemented as a decree of a Civil Court. Appeals against the orders of the Tribunal would lie with the Supreme Court.