Simultaneous Proceedings Against Associations, Office Bearers Permissible Under Competition Act: Kerala HC [Read Judgment]

The guilt, if any, of the persons who come under Section 48 of the Act also needs to be examined simultaneous to the guilt of the opposite parties, the court held.Dismissing a challenge against show cause notice issued by the Competition Commission of India against office bearers of the Film Employees Federation of Kerala and its affiliated trade unions, the High Court of Kerala has. Dismissing a challenge against show cause notice issued by the Competition Commission of India against office bearers of the Film Employees Federation of Kerala and its affiliated trade unions, the High Court of Kerala has held that the scheme of the Competition Act is a composite one and does not contemplate two separate proceedings against the company/association as also against its office bearers who are liable to be proceeded under Section 48 of the Act. Rejecting the contention that proceedings against the office bearers of the opposite parties in the complaint can be initiated only if it is established that the opposite parties have contravened the provisions of the Act, the court observed: “The scheme of the Act does not contemplate two separate proceedings against the opposite parties as also against the office bearers of the opposite parties who are liable to be proceeded under Section 48 of the Act. As such, the guilt, if any, of the persons who come under Section 48 of the Act also needs to be examined simultaneous to the guilt of the opposite parties.” Live Law had reported a recent order by the CCI, wherein it had held that it is permissible for the Commission to issue directions to the Director General to look into the role of the persons in-charge of and responsible for the conduct of business of the companies, before returning the finding of contravention against the companies as envisaged under Section 27 read with Section 48 of the Competition Act, 2002.