TMI Blog2011 (11) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... of Youth Affairs Sports, to take appropriate steps so that respondent no.2 i.e. All India Chess Federation does not ban/threaten to ban chess players, associating themselves with other chess associations. Respondent no.2 is the National Federation for the sport of chess, recognized by respondent no.1. Respondent no.2 also is the body recognized by the concerned international federation i.e. Federation Internationale Des Echess (FIDE). 2. The petitioners claim to be chess players. In the past, they have registered themselves with respondent no.2 on an annual basis. They have been participating 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 resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NSFs are expected to introduce seeding and ranking systems which would provide an automatic and transparent system of selection. The NSFs are also required to introduce machinery for the redressal of players grievances. Such federations are also expected to evolve a system of extensive local competitions. 5. The procedure for suspension/withdrawal of recommendation is contained in Annexure III of the said guidelines. One of the reasons for which the recommendation may be withdrawn by respondent no.1, in respect of NSF, is that where in the judgment of the Government of India, the federation is not functioning in the best interest of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 reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e following Sections/Clause of the bye laws of All India Chess Federation, Section 9(n) : To take disciplinary action against its members, the office bearers, officials and players recognized by the federation or of any recongised Members. Section 16(b)(XV) : To take disciplinary action against Officials and Players concerning the charges leveled. Section 27. Rules and Regulations: All Rules and Regulations framed for relevant purposes or on any matters and adopted by the Central Council and the General Body shall have the same force as this Constitution. Rule II of Annexure to the Bye Laws: (C) Players shall 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 rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by them is valid for employment opportunities in government and public sector undertakings. We have prominently displayed on our website that players participating in such tournaments are liable for disciplinary proceedings and cautioned them against participating. Despite this some players have participated in unauthorized tournaments and as such they seized to become our members. The Federation is not duty bound to offer secretarial services to these players. Moreover, the Federation pays a fee to each of our members to the FIDE annually. Our Central Council has decided to inform FIDE about the players who are no longer our members and to 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 agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to be to exercise its monopolistic and dominant position to stifle the growth of any other association of chess players, by threatening the chess players registered with it, with disciplinary action/expulsion and a virtual boycott in case they participate in tournaments organized by such other associations. The policy and conduct of respondent No.2 may, therefore, call for examination by the Competition Commission constituted under the Competition Act, 2002. 14. Learned counsel for the petitioner has relied upon the decision of the Supreme Court in State of West Bengal and Others Vs. Committee for Protection of Democratic Rights, West Bengal and Others, AIR 2010 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion from within, and outside. The Preamble of the Act provides that the Act is enacted in view of the economic development of the country, 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 out by other participants and markets in India. She also refers to the judgment of the Supreme Court in Competition Commission Vs. Steel Authority of India Limited and Another, (2010) 10 SCC 744, wherein the Supreme Court sets out the background in which the Competition Act has been enacted and the purpose for which it has been enacted. 19. Ms. Manmeet Arora, 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 Provinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CBI in a case where the allegation was that, since one of the accused was a police officer, the local police was not conducting the investigation properly. The Supreme Court held that if the High Court found that the investigation was not being completed because one of the accused was an Inspector of Police, the High Court could have directed the Superintendent of Police to entrust the investigation to an officer, senior in rank to the Inspector of Police under Section 154(3) Cr.P.C and not to the CBI. The Supreme Court also referred to Section 156(3) of the Cr.P.C which provides a check on the performance by the police of their duties, and where the Magistrate finds that the police 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 good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e further submits that the caution that the High Court needs to exercise, in exercise of its jurisdiction under Article 226, while referring a case for investigation to the Competition Commission is not comparable to the situation where the High Court seeks to substitute the CBI as the investigating agency. This is because the said direction of the Court seeks to substitute the normal investigating agency i.e the local police concerned with the CBI, and that too without the concurrence of the State Government. She submits that under Section 19 of the Competition Act, the power of the Commission to cause an investigation can be exercised suo moto or upon information being received from 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mble may assist in ascertaining the meaning but it does not affect clear words in a statute. The courts are thus not expected to start with the preamble for construing a statutory provision nor does the mere fact that a clear and unambiguous statutory provision goes beyond the preamble give rise by itself to a doubt on its meaning. Since the meaning of the expression enterprise , service‟ and consumer‟ as used in the Competition Act is very clear, I am not inclined to accept the submission of respondent no.2 founded upon a reading of the Statement of Object and Reasons and Preamble to the Competition Act, 2002. 29. The Preamble of the Competition Act, when closely read, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Constitution of India. 34. The Supreme Court in State of West Bengal (supra) has recognized the power of the High Court, in appropriate cases, to require the CBI to cause an investigation in relation to a case falling within its territorial jurisdiction. If the High Court can direct the investigation to be made by the CBI in appropriate cases, whereby the provision of Section 6 of the Delhi Special Police Establishment Act, 1946 is over ridden, certainly the High Court can direct the making of a reference to the Competition Commission under Section 19 of the Competition Act, particularly when the Competition Commission can cause the investigation to be made not only suo motu, but 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 n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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