NCLAT
- December 26, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
No Comments
NCLAT
Subject: Economy
Context:
NCLAT has set aside an order passed by the CCI and in another order also held that Competition Act 2002 does not provide that CCI must have a judicial member.
Details:
- The case pertains to CCI rejecting a complaint against a real estate firm for alleged abuse of the dominant position on the basis of a second/supplementary report from the Director General.
- The National Company Law Appellate Tribunal said CCI can pass the order on the basis of the first report filed by the DG office.
Concept:
Competition Appellate Tribunal vs NCLAT authority over CCI:
- The Competition Act, 2007, was enacted after amending Competition Act, 2002, that led to the establishment of the CCI and the Competition Appellate Tribunal.
- The government replaced the Competition Appellate Tribunal (COMPAT) with the National Company Law Appellate Tribunal (NCLAT) in 2017.
- In 2017 an amendment was made through which the provision of Part XIV of Chapter VI of the Finance Act, 2017 came into operation.
National Company Law Appellate Tribunal
- National Company Law Appellate Tribunal (NCLAT) was constituted under Section 410 of the Companies Act, 2013 for hearing appeals against the orders of National Company Law Tribunal(s) (NCLT), with effect from 1st June, 2016.
- Objectives
- Hear appeals against the orders passed by NCLT(s) under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC).
- Hear appeals against the orders passed by Insolvency and Bankruptcy Board of India under Section 202 and Section 211 of IBC.
- Hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India (CCI) – as per the amendment brought to Section 410 of the Companies Act, 2013.
- NCLAT is also the Appellate Tribunal to hear and dispose of appeals against the orders of the National Financial Reporting Authority.
- Composition:
- The President of the Tribunal and the chairperson and Judicial Members of the Appellate Tribunal shall be appointed after consultation with the Chief Justice of India.
- The Members of the Tribunal and the Technical Members shall be appointed on the recommendation of a Selection Committee consisting of:
- Chief Justice of India or his nominee—Chairperson.
- A senior Judge of the Supreme Court or a Chief Justice of High Court— Member.
- Secretary in the Ministry of Corporate Affairs—Member.
- Secretary in the Ministry of Law and Justice—Member.
- Secretary in the Department of Financial Services in the Ministry of Finance— Member.
- Eligibility:
- Chairperson – Should be/been judge of the Supreme Court or should be/been Chief Justice of the High Court.
- Judicial Member – Is/has been a judge of a High Court or is a judicial member of a tribunal for 5 years or more.
- Technical member– Person with proven ability, integrity and standing having special knowledge and experience of 25 years or more (in specified areas).
- Term of office of chairperson and members is 5 years and they can be reappointed for additional 5 years.
Composition of the CCI:
- Competition Commission of India (CCI) is a statutory body of the Government of India responsible for enforcing the Competition Act, 2002, it was duly constituted in March 2009.
- The commission is a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases.
- The Commission consists of one Chairperson and six Members as per the Competition Act who shall be appointed by the Central Government.
- The Chairperson and other Members shall be whole-time Members.
- Eligibility of members: The Chairperson and every other Member shall be a person of ability, integrity and 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, industry, public affairs, administration or in any other matter which, in the opinion of the Central Government, may be useful to the Commission.