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TMI Blog2011 (11) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... icipating in chess tournaments organized by respondent no.2, and those which respondent no.2 has authorized or approved. The case of the petitioners is that the petitioners being amateurs, like to play chess whenever an opportunity presents itself, even in those tournaments not organized by respondent no.2 or which may not have the blessings of respondent no.2. 3. The submission of the petitioner is that respondent no.1 has issued the revised guidelines for assistance to National Sports Federation (NSF). Under these guidelines, it is provided that National Sports Federations shall be fully responsible and accountable for the overall management, direction, control, regulation, promotion, development and sponsorship of the discipline for which they are recognized by the concerned International Federation. They are expected to discharge their responsibilities in consonance with the principles laid down in the OIympic Charter, or in the charter of the Indian Olympic Association, or the relevant International Federation as the case may be. These guidelines further provide that the NSFs should maintain certain basic standards, norms and procedures with regard to their internal functioni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not functioning in the best interest of development of sports for which the federation was granted recognition. 6. The grievance of the petitioners is that respondent no.2 prohibits chess players who are registered with it from playing in any tournament, or participating in any competition of chess, if such a tournament/competition is organized by an association/federation or other body which does not have the approval of respondent no.2. Ms. Palli submits that the said conduct of respondent no.2 is highly monopolistic and anti-competitive. Respondent no.2 being the internationally recognized sports federation is exploiting its dominant position to impose such unreasonable restrictions on the rights of the players, by issuing caution notices and by claiming that such conduct of the players is detrimental to the interest of respondent no.2. In this respect, Ms. Palli has drawn my attention to the caution notice displayed by respondent no.2 on its website. The said caution notice reads:- Caution "This is to inform all chess players/organizers/officials that any chess event organized under the banner of "Chess Association of India" is not recognized by the All India Chess Federati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... desist from indulging in any act detrimental to the interests of Federation. (j) Players shall not fraudulently participate in events. (v) Any other act which is against the aim and objects of the Federation and detrimental to its interests. (x) Players shall strictly abide by the Constitution, Rules Regulations and Orders/Instructions of the Federations in force from time to time and also abide by the instructions of the Arbiters and AICF Office Bearers. As per players Registration form DECLARATION 2. I also declare that I shall abide by the rules and regulations and the latest amendments and decisions of the State/District Chess Association/Federation as the case may be and cooperate with the officials in participating in State and National Tournaments/Championships. 3. I also declare that I will not participate in any unauthorized tournament/championship". 8. Ms. Palli submits that the Railway Sports Promotion Board, which is also affiliated to respondent no.2 federation issued a circular dated 24.6.2011 to the effect that some railway chess players had participated in chess tournaments which were not authorized by respondent no.2. Respondent no.2 had relied upon its rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o withdraw their ratings. They are free to play in tournaments not approved by us. We cannot stop them in playing unapproved/illegal tournaments. But they cannot continue to be our members. So it is wrong to say that our actions are undemocratic or illegal. We enclose the players registration form wherein the players have to sign a declaration stating that they will not play in unauthorized tournaments, is highlighted for your immediate reference. We are also enclosing a copy of our notification on our website cautioning the players against participating in unauthorized/illegal tournaments". 9. The aforesaid conduct or stand of respondent no.2 is not denied by learned counsel for respondent no.2 In fact, she has drawn my attention to the declaration that chess players make at the time of seeking registration. The said declaration, inter alia reads as follows:- "I also declare that I shall abide by the rules and regulations and the latest amendments and decisions of the State/District Chess Association/Federation as the case may be and cooperate with the officials in participating in State and National Tournaments/Championships." 10. She has also drawn my attention to the annexu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 010 SC 1476. The issue considered by the Supreme Court in this decision was whether the High Court, in exercise of this jurisdiction under Article 226 of the Constitution has the power to direct the CBI to investigate a case within its territorial jurisdiction without the concurrence of the State Government, as is required under Section 6 of the Delhi Special Police Establishment Act, 1946 under which the CBI has been constituted. The Supreme Court has held that, in deserving and exceptional cases, the Court may direct the CBI to cause an investigation to be made in such like cases. 15. Learned counsel for respondent no.2 has sought to explain that under the scheme of things, as it exists not only in this country, but internationally, only one federation is recognized at the district, state and national level- which also obtains recognition from the international body pertaining to the discipline of sport in question. By reference to the guidelines, she submits that only that sports federation, which is recognized by the concerned international sports council, is granted national recognition by the Government of India. 16. The issue is not about the recognition of respondent no.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rora, submits that respondent no. 2 NSF is not covered by the Competition Act. She further submits that the power to make a reference under Section 19(1)(b) of the Competition Act is vested with the Central Government, or the State Government or the statutory authority. She submits that the expression "statutory authority" is defined in Section 2(w) of the Act to mean any authority, board, corporation, council, institute, university or any other body corporate established by or under any Central, State or Provincial Act for the purposes of regulating production or supply of goods or provision of any services or markets therefor or any matter connected therewith or incidental thereto. She submits that this Court is not a statutory authority as it is constituted under the Constitution of India. 20. She further submits that the reference can be made by a statutory authority under Section 21 of the Act. This Section postulates that where the statutory authority, during the course of any proceedings before it, is inclined to make any decision which would be contrary to the provisions of the Competition Act, such authority may make a reference to the Competition Commission. Upon receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olice have not done their duty or not investigated satisfactorily, he can direct the Police to carry out the investigation properly, and can monitor the same. 22. In her rejoinder, learned counsel has drawn my attention to Section 2(h) of the Competition Act, which defines the expression "enterprise" to mean "a person or a department of the Government, who or which is, or has been, engaged in any activity, relating to the production, storage, supply, distribution, acquisition or control of articles or goods, or the provision of services, of any kind, or in investment, or in the business of acquiring, holding, underwriting or dealing with shares, debentures or other securities of any other body corporate, either directly or through one or more of its units or divisions or subsidiaries, whether such unit or division or subsidiary is located at the same place where the enterprise is located or at a different place or at different places, but does not include any activity of the Government relatable to the sovereign functions of the Government including all activities carried on by the departments of the Central Government dealing with atomic energy, currency, defence and space." 23. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m any person, consumer or their association or trade association. When any person or consumer can seek investigation of a case by the CCI, certainly this Court, in appropriate cases, can ask the CCI to look into a case. 26. Having heard learned counsel for the parties, prima facie, it appears to me that respondent no.2 is rendering services to the petitioners and to all others who are registered with it as chess players. The responsibilities of respondent no.2 as an NSF are set out in the guidelines issued by respondent no.1, some of which have already been referred to earlier. Admittedly, respondent no.2 organises chess tournaments and provides technical support and expertise for conduct of such chess tournaments. That, in my prima facie view, would constitute service rendered by respondent no.2 to the players who are registered with it. Such service is being rendered for a consideration received from the players, as is evident from the registration form, a copy whereof has been filed on record by respondent no.2. It is also borne by respondent No.1 for the benefit of all chess players who provides grants to respondent No.2. 27. Respondent no.2, prima facie, would also fall with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, shows that the said Act has been enacted to provide, keeping in view the economic development of the country, 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 thereto."(emphasis supplied). 30. Therefore, one of the purposes of the said Act is to prevent practices having adverse effect on competition. The said practice need not necessarily be related to trade or commerce. 31. The definition of the expression „enterprise‟ as used in the Competition Act read with the definition of "service" thereof, in my view, clearly shows that the respondent no.2 is an enterprise which is covered by the said provisions. The allegation against respondent no.2 is that respondent no.2, by virtue of its agreement with the petitioners, is seeking to control the provision of services which is causing adverse effect on competition within India, in asmuch, as, the chess players registered with respondent no.2 are not free to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on receipt of intimation "from any person". In fact, in State of West Bengal (supra), the Supreme Court in paragraph 45 observed that being the protectors of civil liberties of the citizens, the Supreme Court and the High Courts have not only the power and jurisdiction, but also an obligation to protect the fundamental rights, guaranteed by Part III in general, and under Article 21 of the Constitution in particular, zealously and vigilantly. The judgment in the case of T.C.Thangaraj (supra) has no application in the light of the aforesaid discussion and the substantially different positions of the Competition Act, 2002 and the Delhi Police Establishment Act whereunder CBI is constituted. 35. I, therefore, direct the Competition Commission to enquire into the alleged contravention of the provisions of Section 3 and Section 4 by respondent no.2 by its aforesaid constitutional provisions and conduct under Section 26 of the Competition Commission Act, 2002. The petitioner may appear before the Commission on 28.11.2011. The petitioner shall present before the Commission a memorandum containing its grievances in this respect on the said date. 36. It is made clear that observations mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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