VIDYAVARDHINI’SA.V.COLLEGE OF ARTS,

K. M. COLLEGE OF COMMERCE,

E. S.COLLEGE OF SCIENCE,

VASAI ROAD (W).

CERTIFICATE Following students are successfully completed the project on a subject of Law governing banking &insurance and the topic on Competition Commission of India (CCI). We all are thank you to Prof. Mrs. Rajesh Thakkar. For giving this opportunity.

Bhagyashree A. Mane. Supriya R. Pawar. Pooja V. Kalal. Pragati G. Singh. Supriya M. Palsamkar.

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GROUP MEMBERS ROLL NO.

1. Bhagyashree A. Mane. 302. Supriya R. Pawar. 443. Pooja V. Kalal. 234. Pragati G. Singh. 565. Supriya M. Palsamkar. 38

SUBMITTED TO:Prof. Mrs. Rajesh Thakkar.

DATE:

24/02/2012

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Acknowledgement

We, the student of “Second Year B.com (Banking & Insurance)” have completed the project on Law governing banking &insurance.

As such, the project work is so, complicated without guidance of professors it would have been impossible to take such a task.

Here by, we take this opportunity to express our sincere acknowledgement for successful completions of project on Competition

Commission of India (CCI). We are grateful to our project guide Mrs. Rajesh Thakkar.

As it was a team work. We acknowledge the invaluable support, advice instruction, and essential motivation of our professor.

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COMPITION COMMISSION OF

INDIA(CCI)

WITH

COMPITION FUND AND DOMINAT

POSITION

5

Sr.

No.

CONTAINS PAGE NO.

1. COMPITION COMMISSION OF INDIA 1

2. REMOVAL OF MEMBERS OF THE COMMISSION

7

3. DISABILITIES OF CHAIRMAN OR MEMBERS OF THE COMMISSION

8

4. DIFFECTS IN CONSTITUTION OF THE COMMISION

9

5. POWERS AND FUNCTION OF THE COMMISSION

10

6. COMPETITION FUND 20

7. ABUSE OF DOMINANT POSITION 23

9. CONCLUSION 25

8. Bibliography. 26

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INDEX

COMPETITION COMMISSION OF INDIA

The COMPETITION COMMISSION OF INDIA (CCI) which has been established by the Central Government with effect from 14th October,2003. The provision with respect to the same is contained in section7 to 17.

1) The competition commission of India is a body corporate having common seal and thereby can enter into a contract, hold, acquire and dispose off the property.

2) The Commission shall consist of a chairperson and not less than two and not more than ten members to be appointed by the Central Government.

3) The jurisdiction, powers and authority of the Commission may be exercised by Benches thereof. The Benches shall be constituted by the chairperson and each Bench shall consist of not less than two members(section 21)

4) The Chairperson and every other Member shall be a person of ability, integrity and

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standing and who, has been, or is qualified to be, a judge of a High Court; or, has special knowledge of and professional experience of not less than fifteen years in international trade, economics, business, commerce, law, finance, accountancy, management.

5) The maximum term of office of chairperson and members is 5 year and maximum age limit for chairman is 67 years and for other members is 65 years.

6) Members, Director General, Registrar, officers and other employees, etc. of the Commission are deemed to be public servants.

7) The Chairperson or any Member may, by notice in writing under his hand addressed to the Central Government, resign his office.

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REMOVAL OF MEMBERS OF THE COMMISSION:

The Central Government may, by order, remove the Chairperson or any other Member from his office if such Chairperson or Member, as the case may be-

a) Is, or at any time has been, adjudicated as an insolvent; or

b) has engaged at any time, during his term of office, in any paid employment, or

c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or

d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or

e) has so abused his position as to render his continuance in office prejudicial to the public interest; or

f) has become physically or mentally incapable of acting as a member.

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DISABILITIES OF CHAIRMAN OR MEMBERS OF THE COMMISSION:

The Chairperson and other members shall not accept any employment in, or connected with the management or administration of any enterprise which has been a party to a proceeding before the Commission under this Act for a period of one year from the date on which they cease to hold office.

However, he can accept employment in

Central Government orA State Government orLocal authority or In any statutory authority orAny corporation established by or under any

Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act.

DEFFECTS IN CONSTITUTION OF THE COMMISSION:

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Any vacancy in or defect in the constitution of the commission in the procedure of the commission does not make any act or proceeding of the commission as invalid.

ADDITIONAL OFFICERS OF THE COMMISSION:

The Central Government may appoint a director general and as many additional, joint, deputy or Assistant Directors Genral or such other advisers, consultants or officers as it may think fit for the following purpose:

a) Assisting the commission in conducting inquiry into contravention of any of the provision of this act

b) For the conduct of the cases before the commission

c) For such other functions as are provided in this act

The Commission may appoint a Registrar and such officers and other employees as it

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considers necessary for the efficient performance of its functions under this Act.

Power and Functions of the Commission:

Functions of Commission – Section 18:

The main duty of the Competition Commission is to:

Eliminate practices having adverse effect on competition,

Promote and sustain competition,Protect the interests of consumers and

ensure freedom of trade carried on by other participants, in markets in India.

To achieve the above objects, the commission is endowed with following powers:

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(I) Power to Inquire into certain agreement and dominant position of enterprise:

1) The Commission may inquire into any alleged contravention of the provision contained in Section 3(1) (Prohibition of anti- competitive agreements) or Section 4(1) (abuse of dominant positions) either

2) On receipt of any information from any person, consumer or their association or trade association; or

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POWER OF THE CCIPOWER

TO INQUIRE INTOCERTAI

N AGREEMENT AND

DOMINANT

POSITION OF

ENTERPRISE

POWER TO

INQUIRE INTO COMBINATION

S

POWER TO

GIVE OPINION ON

IN CASE

OF REFERENCE BY STATUT

ORY AUTHO

RITY

POWER TO

INQUIRE INTO ACTS

TAKING PLACE

OUTSIDE INDIA

BUT HAVING AN

EFFACT ON CCI

POWER TO

GRANT INTERI

M RELIEF

POWER TO

AWARDCOMPENSATIO

N

3) On a reference made to it by the Central Government or State Government or a statutory authority.

4) The Commission shall, consider the following factors: creation of barriers to new entrants in the market;

Driving existing competitors out of the market;

accrual of benefits to consumers; improvements in production or distribution

of goods or provision of services;promotion of technical, scientific and

economic development by means of production or distribution of goods or provision of services.

Factors to be considered while inquiring whether an enterprise enjoys dominant position.

5) The Commission shall, consider the following factors: while inquiring whether an

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enterprise enjoys a dominant position or not under section 4:

market share of the enterprise;size and resources of the enterprise;size and importance of the enterprise dependence of consumers on the

enterprise;Market structure and size of market.

Factors to be considered by the Commission for determining the Relevant Geographic Market.

(II) Power to Inquire into combination – Section 20:

1) The Commission may, upon its own knowledge or information relating to acquisition referred to in section 5(a) or acquiring of control referred to in section 5(b) or merger or amalgamation referred to in section 5(c), inquire into whether such a combination has caused or is likely to cause

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an appreciable adverse effect on competition in India:

2) The Commission shall not initiate any inquiry after the expiry of one year from the date on which such combination has taken effect.

3) For the purpose 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 consider the following factors:

a) Actual and potential level of competition through imports in the market:

b) Extent of barriers to entry into the market:c) Level of combination in the market;d) Degree of countervailing power in the

market:e) Extent of effective competition likely to

sustain in a market;f)Nature and extent of vertical integration in

the market:

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(III) Power to give opinion on Reference by statutory authority Section 21:

1) Where in the course of a proceeding before any statutory authority an issue is raised by any party that any decision which such statutory authority has taken or proposes to take is or would be, contrary to any of the provisions of this Act, then such statutory authority may make a reference in respect of such issue to the Commission.

2) On receipt of a reference the Commission shall give its opinion, within sixty days of receipt of such reference, to such statutory authority which shall consider the opinion of the Commission and thereafter, give its findings recording reasons therefore on the issues referred to in the said opinion.

3) Any statutory authority, may, suo motu, make such a reference to the Commission.

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(IV) Power to inquire into acts taking place outside India but having an effect on competition in India- Section 32:

The Commission shall, irrespective of the fact that:

1) An agreement referred to in section 3 has been entered into outside India; or

2) Any party to such agreement is outside India; or

3) Any enterprise abusing the dominant position is outside India; or

4) A combination has taken place outside India; or

5) Any party to combination is outside India; or

6) Any other matter or practice or action arising out of such agreement or dominant position or combination is outside India.

(V) Power to grant interim relief- Section (33):

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Interim relief is a relief (order) issued by the court during the course of proceeding. It is a temporary relief i.e it is valid only till the further orders.

The commission can grant interim relief if an inquiry is pending before it or it is proved to its satisfaction that an act in contravention of section 3, 4 or 6 has been committed and continues to be committed or that such act is about to be committed.

(VI) Power to award compensation –Section (34):

1)Commission has power to grant compensation to any person who files an application to commission for any loss or damage suffered as a result of contravention of the provisions of Chapter II (anti competitive agreements, abuse of dominant position and combinations) having been committed by such enterprise.

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2)Order for compensation shall be passed after conducting an inquiry into the allegations mentioned in the application.

3)If any loss or damage referred above is caused to numerous persons having the same interest, one or more of such persons may, with the permission of the Commission, make an application for and on behalf of, or for the benefit of, the persons so interested.

COMPETITION FUND-SECTION 51/52

Constitution of fund:

Completion fund shall be constituted and following amounts must be credited thereto-

(1) All government grants received by the commission;

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(2) The monies received as cost from parties to proceedings before the commission;

(3) The fees received under this act;(4) The interest accrued on the amounts

referred above.

Application of the fund:

The fund shall be applied for meeting-

(1) The salaries and allowances payable to the chair person and other members and the administrative expenses including the salaries, allowances and pension payable to the Director general, Additional, Joint, Deputy or Assistant directors general, the Registrar and officers and other employees of the commission;

(2) The other expenses of the commission in connection with the discharge of its functions and for the purpose of this act.

Administration of the fund:

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The fund shall be administered by a committee of such members of the commission as may be determined by the Chairperson.

The committee appointed shall spend monies out of the fund for carrying out the object for which the fund has been constituted.

Amounts and audit:

The commission shall maintain proper accounts and other relevant records and prepare and annual statement of accounts in such a form as may be prescribed by the central government in consultation with the comptroller and Auditor-General of india.

The accounts of the commission shall be audited by the Comptroller and Auditor-General of India.

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Furnishing of return etc. to central government:

The commission shall furnish to the central government:

Returns and statement as prescribed by the central government to be filed.

Such particulars in regard to any proposed or existing measures for the promotion of completion advocacy, creating awareness and imparting training about completion issues as the central may required from time to time.

Report of true and full amount of its activities during the previous year.

ABUSE OF DOMINANT POSITION

Dominance refers to a position of strength enjoyed by an undertaking that enables it to operate independently of

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competitive forces or pressures in the market and also to affect its competitive or consumer.

Definition of dominant position- section4(1)

A dominant position is defined as a position of strength, enjoyed by an undertaking or group, in the relevant market, in India, which enables it to;

(a) Operate independently of competitive forces prevailing in the relevant market; or

(b) Affects it competitors or consumer the relevant market in its favour;

Circumstances under which there is abuse of dominant position- section4(2):

In the following cases it is presumed that there is abuse of dominant position:

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(a) Directly or indirectly, imposes unfair or discriminatory:

(1) Condition on purchase or sale of goods or services; or

(2) Price in purchase or sale of goods or services;

(b) Limits or restricts:(1) Production of goods or provision of

services or market therefore; or(2) Technical or scientific development

relating to goods or services to the prejudice of consumer; or

(c) Indulges in practice or resulting in denial of market access in any manner; or

(d) Make conclusion of contract is subject to acceptance by other party of supplementary obligation which, by their nature or according to commercial usage, have no connection with the subject of such contracts; or

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(e) Uses it dominant position in one relevant market to enter into, or protect , other relevant market.

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CONCLUSION: COMPETITION COMMISSION OF INDIA (CCI) which has been established by the central government with effect from 14 oct.2003.The CCI shall consist chair person& central government has to appoint less than 2& not more than 10 members. The commission is also expected to avoid the central government on policies imparting corporation & measures for promotion of competition advocacy.

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BIBLIOGRAPHY:

WWW.GOOGLE.COM

WWW.WEKEPEDIA .COM

BOOK REFERED:

CORPORATE LAWS &LAW GOVERNING BANKING AND INSURANCE

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