LegalCrystal – Blog

ACT NO. 12 OF 2003

[13th January, 2003.]

An Act to provide, keeping in view of 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.

BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:-

CHAPTER I

PRELIMINARY

1.   Short title, extent and commencement-

1)   This Act may be called the Competition Act, 2002.

2)   It extends to the whole of India except the State of Jammu and       Kashmir.

3)   It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:

Provided that different dates  may   be  appointed  for   different provisions  of this Act and any reference in any such provision to the commencement  of  this  Act shall be construed as a reference  to  the coming into force of that provision.

2.   Definitions.-In this Act, unless the context otherwise requires -

a) “acquisition” means, directly or indirectly, acquiring or agreeing to acquire-

(i)   shares, voting rights or assets of any enterprise;  or

(ii)   control over management or control over assets of any enterprise;

b) “agreement” includes any arrangement or understanding or action in concert,-

(i)   whether or not, such arrangement, understanding  or  action  is formal or in writing;  or

(ii)   whether or not such arrangement, understanding or action is intended to be enforceable by legal proceedings;

c) “cartel” includes  an   association  of  producers,  sellers, distributors,  traders or service providers who, by agreement amongst  themselves,  limit,  control  or attempt to  control  the  production, distribution,  sale  or price of, or, trade in goods or provision  ofservices;

d) “Chairperson” means the Chairperson of the Commission  appointed under sub-section (1) of section 8;

e) “Commission” means the Competition Commission of India established under sub-section (1) of section 7;

f) “consumer” means any person who-

(i)   buys any goods for a consideration which has been paid or promised  or  partly  paid and partly promised, or under any system of  deferred payment  and includes any user of such goods other than the person who buys  such goods for consideration paid or promised or partly paid  or partly promised, or under any system of deferred payment when such use is  made  with the approval of such person, whether such  purchase  of goods is for resale or for any commercial purpose or for personal use;

(ii)   hires  or avails of any services for a consideration  which  has been paid or promised or partly paid and partly promised, or under any system  of  deferred  payment  and includes any  beneficiary  of  such services  other than the person who hires or avails of the services for  consideration paid or promised, or partly paid and partly promised, or  under  any system of deferred payment, when such services are  availed of with the approval of the first-mentioned person whether such hiring or  availing of services i for any commercial purpose or for  personal use;

g)   ”Director  General” means the Director General  appointed  under sub-section  (1) of section 16 and includes any Additional,  Joint, Deputy or Assistant Directors General appointed under that section;

h) “enterprise” means 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  goods, or the provision of services of any kind,  or  in investment,  or in the business of acquiring, holding, underwriting or dealing with shares, debentures or other securities of any other body corporate,  either  directly  or through one or more of its  units  or is  located at the same place where the enterprise is located or at  a different  place  or  at different places, but does  not  include  any activity of the Government relatable to the sovereign functions of the Government  divisions  or subsidiaries, w ether such unit or division  or subsidiary  nt including all activities carried on by the  departments of  the  Central  Government  dealing with  atomic  energy,  currency, defence and space.

Explanation.-For the purposes of this clause,-

(a)  ”activity” includes profession or occupation;

(b) “article” includes  a new article and “service” includes  a  new service;

(c)  ”unit” or “division”, in relation to an enterprise, includes-

(i)   a  plant  or  factory established for  the  production,  storage, supply, distribution, acquisition or control of any article or goods;

(ii)   any  branch  or  office established for  the  provision  of  any service;

i)    ”goods” means goods as defined in the Sale of Goods Act, 1930  (8 of 1930) and includes-

(A)  products manufactured, processed or mined;

(B)  debentures, stocks and shares after allotment;

(C)  in relation to goods supplied, distributed or controlled in India, goods imported into India;

j) “Member”  means  a  Member  of  the  Commission  appointed  under sub-section (1) of section 8 and includes the Chairperson;

k) “notification“  means  a notification published in  the  Official Gazette;

l)    ”person” includes-

(i)   an individual;

(ii)   a Hindu undivided family;

(iii)  a company;

(iv)  a firm;

(v)   an  association  of  persons or a body  of  individuals,  whether incorporated or not, in India or outside India;

(vi)  any  corporation established by or under any Central,  State  or Provincial  Act  or a Government company as defined in section 617  of the Companies Act, 1956 (1 of 1956);

(vii) any  body  corporate  incorporated by or under the  laws  of  a country outside India;

(viii) a co-operative society registered under any law  relating  to co-operative societies;

(ix)  a local authority;

(x)  every artificial juridical person, not falling within any of  the preceding sub-clauses;