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2021 (12) TMI 1517

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..... s detailed therein, and the matter warranted investigation. Accordingly, the Commission directed the Director General (DG) to cause an investigation into the matter under the provisions of Section 26(1) of the Act. The Commission also directed the DG to complete the investigation and submit the investigation report within a period of 60 days from the receipt of the said order. The Opposite Party Nos. 1 to 3 are hereinafter collectively referred to, as Opposite Parties ('OPs'). 3. The present Information has been filed by TT Friendly Super League Association (TTFSL/ 'the Informant') under Section 19(1)(a) of the Competition Act, 2002 ('the Act') against the arrayed OPs alleging contravention of the provisions of Sections 3 and 4 of the Act. 4. As per the averments made in the Information, the Informant is an NGO registered under Section 8 of the Companies Act, 2013, incorporated on 06.08.2020. The Informant is stated to work with the sole purpose of the promotion of table tennis (TT) in India, as stated in the Objective Clauses of its Memorandum of Association, and conducts friendly TT matches for its members around Mumbai City, Mumbai Suburban and Thane District in Maharashtra, a .....

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..... o players/parents/coaches/clubs, to not join any unaffiliated organisations and not to play any unaffiliated organisation's matches, and it further stated that if any member club or academy enters into any arrangement with any other unaffiliated TT body, their club/academy would not be allowed to participate in any of the tournaments that the District body or State body organizes and will result in suspension/non-acceptance of their entries in TT tournaments. As a consequence of the OP-l's notice, many suburban players refused to register as members of the Informant and the players who had earlier registered with the Informant, did not join the Informant by paying the one-time lifetime membership fee of Rs. 500/-. 7. It is further stated by the Informant that to get complete clarity regarding the illegal notice issued by OP-1, the Informant sent objection letters to OP-1, OP-2 and OP-3 on their respective official e-mail addresses, asking OP-2 and OP-3 to intervene in the matter. However, no reply was received by the Informant from the OPs. 8. In addition, the Informant has alleged certain clauses of OP-3's Memorandum of Association (MOA) related to the definition of tournament, .....

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..... t which is not sanctioned/approved. All the associations are empowered to take disciplinary action against the players contravening the rules and regulations formulated under the Memorandum of Association. OP-1, however, denied that it has passed any resolution against the Informant or its members. It was pointed out that the Informant has been organising the commercial competitions and only unseeded players participate in its events. Due to non-response from the seeded players, the Informant has filed the present unwarranted litigation and has also been spreading rumors on social media. 14. The Informant, in its rejoinder, pointed out that there is a catena of cases of sports federations/bodies already decided by the Commission on the issue of limiting/controlling the provision of services, restricting market access and abuse of dominant position. The Informant on the issue of locus standi, contended that if any illegal bylaws exists in the Memorandum of Association of any of the OPs, which is in violation of the provisions of the Act, then the challenge to such illegal laws by any person/association/body, clearly falls within the jurisdiction of the Commission. 15. The Informan .....

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..... d 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. The definition is very wide in its amplitude and covers all activities of specified nature of any kind. Further, as per Section 2(u) of the Act, 'service' means service of any description which is made available to potential users and includes the provision of services in connection with the business of any industrial or commercial matters such as banking, communication, education, financing, insurance, chit funds, real estate, transport, storage, material treatment, processing, supply of electrical or other energy, boarding, lodging, entertainment, amusement, construction, repair, conveying of news or information and advertising. 20. The thrust of the definition of the term 'enterprise' is on the economic nature of the activities discharged by the entities concerned. It is immaterial whether such economic activities were undertaken for profit making/ commercial purposes or for philanthropic purposes. Thus, even non-commercial economic activities would be subject to the discipline of the Act as the Act does not distin .....

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..... r issued under Section 26(1) of the Act, the Commission assessed the relevant market as 'market for organization of table tennis leagues/events/ tournaments in India'. On the issue of dominance of OPs in the afore-delineated relevant market, the Commission noted that OPs are organised in the pyramidal structure governing and regulating the sport of table tennis in India from the District to the National level. OP-1 is the district body having affiliation with the State body (OP-2) with jurisdiction over Mumbai Suburban District only. OP-2 is stated to be the State body headquartered in Pune, Maharashtra, having affiliation with the National Federation (OP-3). OP-3 is the National Sports Federation (NSF) for the sport of table tennis in India, recognized by the Ministry of Youth Affairs and Sports under the National Sports Code 2011, headquartered at Delhi, and is a registered society under the Societies Registrations Act 1860, formed on 28.02.1961, responsible for conducting national ranking tournaments and the selection of players from States to represent the country in various international competitions such as Olympics, Commonwealth and Asian Games. OP-3 is the apex body of the .....

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..... any manner which may adversely affect the conduct of any of the Informant's friendly TT events and also a direction to TT players that they are free and at liberty to join and play the Informant's friendly TT events without any fear of restriction or ban by the OPs. For the reasons detailed hereinabove and to be further detailed hereinafter, the Commission is of the considered opinion that the present case is fit to issue some interim measures. 31. In appropriate cases, the Commission is empowered to temporarily restrain any party from carrying on acts prohibited by the Act until the conclusion of inquiry or until further orders, without even giving notice to such party. A plain reading of Section 33 of the Act makes the legal position plain when it provides that where, during an inquiry, the Commission is satisfied that an act in contravention of sub-section (1) of Section 3 or sub-section (1) of Section 4 or Section 6 has been committed and continues to be committed or that such act is about to be committed, the Commission may, by order, temporarily restrain any party from carrying on such act until the conclusion of such inquiry or until further orders without giving notic .....

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..... ommission is satisfied that OP-1 is indulging in anti-competitive behaviour in a manner which frustrates the cause of promoting the sport of table tennis. Such conduct of OP-1, if allowed to continue, may hamper the objectives of the Act and it has become imperative to issue an appropriate interim measure. Any delay in issuing the interim arrangement may irretrievably and irreparably damage the interests of other federations and the players. 35. In the result, the Commission is of the considered opinion that the present case is fit for grant of interim injunction and accordingly OP-1 is hereby restrained from issuing any communication to players/parents/coaches/clubs, restricting or dissuading them, in any manner whatsoever, from joining or participating in tournaments organised by Associations/ Federations/ Confederations which are not purportedly 'recognised' by OP-1. OP-1 is further directed not to threaten players who want to participate in such events. This arrangement shall continue till further orders or passing of the final order in the matter, whichever is earlier. OP-1 is directed to ensure strict compliance with these directions. It is further made clear that, in case o .....

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