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TMI Blog2016 (9) TMI 1679X X X X Extracts X X X X X X X X Extracts X X X X ..... tition Act, 2002 ('the Act' for short), are under challenge in this writ petition. 2. The second respondent is a person closely associated with the Malayalam film industry in different capacities. He lodged Ext.P1 complaint before the Competition Commission of India ('the Commission' for short), alleging that the opposite parties, taking advantage of their dominant position in the industry, are indulging in anti-competitive practices to restrain him from carrying on his business. To be precise, the main allegation in Ext.P1 complaint is that a ban has been imposed against him by the second opposite party namely, the Film Employees Federation of Kerala and its affiliated trade unions. 3. On 24.2.2015, the Commission directe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the Commission on 3.2.2016 nor did they file their income-tax returns as directed in Ext.P2 order. Since the opposite parties and others in the complaint to whom copies of the report of the Director General were forwarded as per Ext.P2 order sought time to file objections to the report, the hearing of the case was adjourned to 10.3.2016. The petitioners did not appear before the Commission on 10.3.2016 as well. The hearing proposed on the report of the Director General as per Ext.P2 order was, however, re- scheduled to 21.4.2016. The petitioners did not appear before the Commission on 21.4.2016 also. In the circumstances, the parties who appeared before the Commission were heard in part on 21.4.2016 and the hearing was concluded on 27.4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent supporting Exts.P2, P3 and P5 orders of the Commission. 5. Heard the learned Senior Counsel for the petitioners as also the learned counsel for the respondents. 6. Section 3(1) of the Act prohibits the anti- competitive agreements defined therein. Section 4(1) of the Act provides that no enterprise or group shall abuse its dominant position. Section 19 of the Act confers power on the Commission to enquire into any alleged contravention of the provisions contained in Sections 3(1) and 4(1) of the Act either on its own motion or on receipt of complaints. Section 26 of the Act dealing with the procedure for enquiry under Section 19 of the Act provides that on receipt of information, if the Commission is of the opinion that there exist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeded against and punished accordingly. Explanation to Section 48 clarifies that the company means a body corporate and includes a firm or other association of individuals. In other words, if the provisions of the Act are contravened by an association, every person who at the time of commission of contravention was in charge of, and was responsible for the company for the conduct of its business shall be deemed to be guilty of the contravention and is liable to be punished. 7. Going by the scheme of the Act, the Commission is empowered to initiate proceedings under the Act against any person for contravention of the provisions of the Act either on its own motion or on receipt of information or on a reference by the Central or State Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion found from the report of the Director General that a prima facie case against the petitioners has been made out, notices have been issued to the petitioners as well as per Ext.P2 order with a view to proceed against them for having contravened the provisions of the Act. Ext.P2 order of the Commission is, therefore, perfectly in order and the same does not affect the rights of the petitioners in any manner. 8. The fact that the petitioners have neither filed objections to the report submitted by the Director General nor did not appear before the Commission for the hearing proposed on the report, is not in dispute. It is seen that in the notices issued to the petitioners dated 23.12.2015, it was categorically mentioned that in case the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Section 43 of the Act, on the admitted facts, I do not find any irregularity or illegality in Ext.P5 order also. 10. The materials on record indicate that the proceedings commenced pursuant to the complaint preferred by the second respondent is yet to be over. A final decision on the issue as to whether the opposite parties in the complaint have contravened the provisions of the Act will be rendered by the Commission only when it disposes of the complaint. If only the Commission finds that the opposite parties in the complaint have contravened the provisions of the Act and that the petitioners were in charge of, and were responsible to opposite parties 2, 6 and 7 for the conduct of their business at the relevant time, they are liable to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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