Vipul R Shah Rupali Medical and Provision and Ors. v. Director General, Competition Commission of India 2012 CompLR 107( GUJARAT)

an

d

R

eg

ul

at io

n

Facts: The petitioner’s (13 in number) are Member of the Chemists and Druggists Association, Baroda (hereinafter “Association”). In a case pending against Association under Section 3(3) of the Competition Act, 2002 (hereinafter “Act") the Competition Commission of India (CCI) had issued notice to the petitioners asking them to submit their individual profit and loss accounts and balance-sheet for the last three years. Aggrieved by this communication, the petitioners have challenged the same by filing the petitions, praying for issuance of a Writ of Mandamus, quashing and setting aside the impugned communications on grounds that Members of the Association are not before the Commission in their individual capacity. They are only Members of the Association, and the proceedings pending before the respondent-Commission are against the Association, and not against any individual Member. The Commission, therefore, has no jurisdiction to demand the personal and individual details pertaining to profit and loss accounts and balance-sheets from petitioner No.1 or any individual Member. It is further submitted that the proceedings before the Commission pertain to an Anti-Competitive Agreement and the personal balance-sheets and profit and loss accounts of the Members of the Association are not at all relevant to the same. Besides, there is no logic or reason behind calling for the personal details of the Members and the same amounts to a violation of their right of privacy, as enshrined in Article 21 of the Constitution of India.

pe

tit

io n

Issue: Whether the Commission has jurisdiction to proceed individually against the Members of the Chemists and Druggists Association and demand their individual profit and loss accounts and balancesheets pertaining to the last three years, in proceedings against the Association?

C en

tre

fo

rC om

Held: The issue of jurisdiction of the CCI to proceed individually against the Members of the Association by asking for their individual profit and loss accounts and balance-sheets for the last three years, can be raised as a preliminary issue before the Commission and the Commission can be directed to decide the said issue after hearing the petitioners, who may raise such objection before the Commission. The petitioners may appear before the Commission and raise a preliminary objection regarding jurisdiction of the Commission to issue notices to the individual Members of the Association, demanding the production of their individual profit and loss accounts and balance-sheets. After hearing the petitioners, the Commission shall decide the said preliminary issue, in accordance with law, within a period of six weeks from the date of receipt of the preliminary objections. Only after the decision of the preliminary issue regarding jurisdiction shall the Commission proceed in the matter.