Litigation

Any third party or an independent person can initiate a legal action under the Indian competition law against a company or a cartel against anti-competitive practices.  Further, the Competition Commission of India (CCI) can suo moto initiate enquiries and investigations against the companies for anti-competitive practices. The CCI and the Competition Appellate Tribunal (COMPAT) have jurisdiction over the anti-trust claims in India.

The CCI consists of a chairperson and six (6) members appointed by the Federal Government. It is CCI’s duty to eliminate practices having adverse effect on competition, promote and sustain competition, protect consumer interests and ensure freedom of trade in the market. CCI has wide powers to impose penalties for contravention of the Competition Act, including (i) cease and desist order; (ii) impose a penalty as it may deem fit, but not exceeding 10% of the average of the turnover for the last three (3) preceding financial years upon each person or enterprise, as the case may be; (iii) in case of cartel, impose a penalty on every producer, seller, distributor, trader or service provider included, of up to three (3) times of its profit for each year of the continuance of the concerned agreement or 10% of its turnover for each year of the continuance of such agreement, whichever is higher; or (iv) direct the companies to modify the concerned agreements to the extent and in the manner as it may deem fit.

The appeals from the CCI’s orders can be filed in the COMPAT, which is a statutory body established under the Competition Act, 2002. The COMPAT is headquartered in Delhi. The appellate tribunal consists of three (3) members.

An appeal to the COMPAT’s orders can be filed in the Supreme Court of India within sixty (60) days from the receipt of CCI’s order. The appellate tribunal is not bound by the procedural law and is guided by the principles of natural justice, the provisions of the Competition Act, and any rules made thereunder. The appellate tribunal has the same powers as vested in the civil courts and accordingly, every order of the appellate tribunal is enforceable as a decree of a court. The penalty for contravention of the appellate tribunal’s order is monetary fine up to rupees one (1) crore and / or imprisonment for a term up to three (3) years.

Our Firm has a robust team of lawyers with the necessary skills and expertise in Indian competition law, and assist Indian as well as International companies in drafting their transaction documents and providing legal advice on the competition law issues in India. We represent clients in CCI enquiries and investigations, appeals in the COMPAT, and the also in the Indian courts.