New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

WHETHER THE SCHEME OF COMPETITION ACT 2002 PERMITS A COMPROMISE TO BE REACHED BETWEEN PARTIES?

Other Topics - By: - Mr. M. GOVINDARAJAN - Dated:- 14-3-2016 - Memo of compromise In a normal civil litigation of adversial nature, if any settlement arrives between the disputed parties the same would have been simply recorded the memo of compromise and close the case. The filing of memo of compromise is after coming to an agreement between the disputed parties. The memo of compromise is recorded by the Court and passed the compromise decree. Once the memo of compromise is filed and allowed the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mpetitive agreements by an enterprise or association of enterprises or person or association of persons; Abuse of dominant position; and Combinations. The duties of Competition Commission of India as enunciated in Section 18 are as following: to eliminate practices having adverse effect on competition; to promote and sustain competition; to protect the interest of consumers; and to ensure freedom of trade carried on by other participants in the markets in India. To enable the Commission to perfo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dominant position, in the light of certain factors. Section 20(4) of the Act provides that for the purposes of determining whether a combination would have the effect of or is likely to have an appreciable adverse effect on competition in the relevant market, the Commission shall have due regard to all or any of the facts as mentioned in this section. The Competition Commission is given power under Section 26(1) and 26(2) either to direct the Director General to cause an investigation or to clo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t to enter any such agreement or discontinue any abuse of dominant position; to impose penalty which shall not be more than 10% of the average of the turnover for the last three preceding financial years; to direct the anti-competitive agreements to stand modified to the extend and in the manner as specified in the order; to direct the concerned enterprise to abide by such other orders as the Commission may pass and comply with the directions including payment of costs; to pass such other orders .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tween the parties subject to conditions. The facts of the case run as follows: The appellant is the Tamil Nadu Film Exhibitors Association registered under the Tamil Nadu Societies Registration Act as a society. The second respondent in this case is a producer of feature films. He made a complaint before the Competition Commissioner of India on 08.01.2013 alleging that the Tamil Nadu Theatre Owners Association by resolution dated 20.12.2012 decided to ban the screening of films which are release .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

23.01.2013 under Section 144 of the Code of Criminal Procedure against the second respondent prohibiting the exhibition of his film for public view. By means of later developments the Commissioner of Police invoked the said order on 03.02.2013 and got released the film in the theatres. The appellant filed writ petitions against the notice issued by the Competition Commission directing the inquiry and also another writ petition seeking a mandamus to direct the Commissioner of Police to take their .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed not to proceed with the matter without the leave of the Court. Subsequently the appellant and the second respondent arrived at a settlement by which the appellant agreed to withdraw the police complaint made against the second respondent and the second respondent agreed to withdraw the complaint filed before the Competition Commissioner. The parties filed a memo praying for the recording of the compromise memo and the disposal of the writ appeal in accordance with the memo. The Competition Co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ct, 2002, for two adversaries to reach a settlement, thereby closing the doors for an investigation or inquiry; and Whether the High Court can record a memorandum of settlement like the one that the parties have reached in this case. The High Court analyzed the provisions of the Competition Act, 2002 which give powers to Competition Commission. The High Court relied on the decision of Supreme Court in The Competition Commission of India V. Sail - 2010 (9) TMI 215 - SUPREME COURT OF INDIA, in whi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l Justice. The High Court found it clear that- The Commission is not really concerned about a private dispute between he individuals, but is concerned about the existence of Anti Competitive agreements or abuse of dominant position that has adverse effect on Competition and oppr3ess freedom of trade; and The Commission has residuary powers under Section 27 to pass such other orders and issue such directions as it may deem fit. The High Court was of the view that once it is conceded that the Comp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

greements or to indulge in the abuse of dominant position. The same should be accepted by the Commission. If a party agrees to abide by the mandate of Sections 3 and 4, the Commission will be actually saved of botheration to proceed with the full fledged inquiry. In such cases the only question that would be left for the Commission to deal with, is the question of imposition of penalty. Imposing penalty, in the view of the High Court is not a bar for recording of any settlement or compromise. Th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in European Union Both in the European Union and the United States permit the settlement in case of cartels. The cartel settlement procedure under European Union Rules allows the Commission to settle a case with the companies involved under a streamlined procedure if the parties agree with the Commission s findings on the infringement. The procedure was created in the year 2008 through an amendment of Commission Regulation 773/2004. Earlier Cartel settlement decisions are prohibition decisions .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is insufficient progress towards a common understanding . Position in United States In the United States, plea bargain process can be initiated at any time. The settlement process may be initiated either by the Anti-trust Division staff or the defendant at any state of the investigation. Discussions are held behind closed doors, away from the courts. The plea agreement is filed before the court and the court must accept the plea and imposed actual sentence. The rules governing the negotiation an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n of guilt); Cartel participant s co-operation (the inclusion in cartel settlement, agreements of commitment by the settling party to provide full, continuing and complete co-operation); Promise by the Government not to bring further charges (however certain violations such as those of federal tax, securities law or crimes of violence are specifically exempted from the non prosecution terms of such plea agreements. Therefore it is clear that a settlement is possible both in EU and US to the exte .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

The Commission is to ensure before allowing such settlements that such settlement and compromises- Would not lead to the continuance of anti-competitive practices; Would not allow the abuse of dominant position to continue; and Would not be prejudicial to the interest of consumers or to the freedom of trade. Recording of settlement by Commission The High Court held that despite the fact that the orders of the Competition Commission are subject to Appellate jurisdiction of the Competition Appella .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version